Expiration of the Federal Housing Administration's Property Flipping Waiver

The following information comes to us via a well-known loan officer in the Henry County Market.  Her name is Debbie Miller with Heritage Bank in McDonough, GA.

Debbie Miller is an AVP, Mortgage Banker and can be reached at 770-288-3155, office or 770-630-6579, cell.

Today, the Federal Housing Administration’s (FHA) Office of Single Family Housing announced that the temporary waiver of FHA’s regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, expires on December 31, 2014.

The waiver applies to all sales contracts executed on or after February 1, 2010, until 11:59 PM, December 31, 2014. FHA deems a sales contract to be executed when all parties to the contract have signed the contract, and the contract is enforceable under the law of the state the property is located. Mortgages that are made on properties in which sales contracts have been executed after 11:59 PM, December 31, 2014, are not eligible for a waiver of the regulation prohibiting property flipping.  

FHA will not extend the waiver beyond December 31, 2014.
Section 203.37a(c) lists the sales transactions exempt from this rule.The exempt transactions include sales by HUD of real estate-owned (REO) properties under HUD’s regulations in 24 CFR part 291, sales by other federal agencies of REO properties, sales of properties by nonprofit organizations that have been approved to purchase and resell HUD REO properties, sales by state- and federally-chartered financial institutions and government sponsored enterprises (GSEs), and, upon announcement by HUD through issuance of a notice, sales of properties in areas designated by the President as federal disaster areas.  The regulation, including its exemptions, is still in effect.

Open concept homes

Traditional older home or open concept?

view FROM Kitchen

Buyers today will often choose an open concept because they have been told by decorators that it's the way to go. You can see everything! You can watch your children while you are cooking! You can all be together! You're not alone in the kitchen!

But is that really what you want?

I live in an open concept home. My sink is adjacent to a half wall in the living room. My husband's chair is just on the other side of the half wall.

He loves for me to cook, he loves my baking. I love  him to make the coffee every night for the next day.

But when I'm mixing things in my beautiful KitchenAid mixer, or he is grinding the coffe, neither of us can hear the television.

View TOWARDS Kitchen

So, when you are looking at home, try to evaluate how much should be open and how your family uses the rooms in your home. It's not all it's cracked up to be.

Take it from someone who knows.

They are going to find out!

I'm not one to use slang or to be vulgar (if I can  help it).  But a phrase that resonated with me from a political campaing had to do with putting lipstick on a pig.  Although I think this is an indelicate phrase, it gives you a a really powerful image.

Recently I had the privilege of selling a home in our area that had been a rental.  I was heartened when the homeowners announced that they were going to update some items.  They also announced that they were going to repaint some rooms and give the bathrooms a deep clean and take care of some deferred exterior maintenance.

Woohoo!  This was music to my ears.  As an agent, I didn't have to cajole and discuss the virtues of getting the house ready for market.

So, imagine my surprise when the home inspection was done and there was a laundry list of deficiencies found.  When I contacted the seller to discuss the inspection results, and was discussing one particulare repair which I was certain would be a quick fix (HA!), they said "Oh yeah, we know about that, we tried to fix it and it didn't work."

Huh? You knew about it and thought what, it would go away, they wouldn't notice?

Of course they noticed and found it as well as a myriad of other problems (which the seller also knew about) and wanted them all fixed.

After 20 years of real estate in and around McDonough, GA, this is what I know:  Buyers will always overestimate the cost of repairs.  The last thing the seller should have to worry about after they are under contract is what is going to turn up during inspection/due diligence.

When discussing the sale with sellers, I ask them, Is everything in good working order? Are you aware of any thing that is in need of repair? Is there any deferred maintenance?  We walk around the house and we discuss things they know about or that I notice.

Some folks are maintenaance fanatics and the house is in great condition. Others don't have a clue (even thought the house is falling down around them). So, I play it by ear and  try to address any issues before we go on the market.  It is always better for the seller to make needed repairs while they are not be under pressure to make a quick decision once presented with a list of repairs after the buyer has their inspection.

Please, if you are the seller, do yourself a favor and get the house in good order before you put it on the market, or price it to compensate for condition and items you don't want to deal with.  If you don't know what might come up during inspection, have your own inspection.  Disclose it as part of the listing materials and make any necessary repairs and provide receipts for the repairs.

If you do this, the buyer may very well not do an  inspection and rely on yours.  Or if they do their own, they may find nothing at all and you will be one step closer to closing.

photo credit: Mike Licht, NotionsCapital.com via photopin cc

100% Financing for Rural Buyers

Below is great information about USDA Loans shared by Debbie Miller of Heritage Bank in McDonough, GA.  

If  you have never heard of these loans, they are for people who wish to buy homes in rural areas.  The loan is a 100% loan - no down payment required.  There is a fee involved and the home has to be located in a designated area.

So, if you have questions - call Debbie Miller - her contact information is below.  Once she gives you the nuts and bolts, give me a holler!  I wold be happy to help you find a home.

With the start of USDA’s fiscal year on October 1^st, the following two important changes become effective for the Rural Housing program.

·         Increased Annual Fee

o   Effective with all new obligations as of October 1^st, 2014, the annual fee will increase from 0.40% to 0.50%.

·         Eligible Rural Housing Areas

o   Barring any further Congressional action, the changes to the eligible rural areas that were announced at the end of last year will become effective on October 1^st.

o   Please consult the USDA Income and Property Eligibility web site for details on the areas that will be affected.

§  http://eligibility.sc.egov.usda.gov – Choose the tab for “Future Eligible Areas”

o   For the state of Georgia, the major change will be the removal of Chatham County from the list of eligible areas.

o   For the current eligible areas, USDA will accept complete submitted applications through September 30^th.

Debbie Miller | AVP,Mortgage Banker

2125 Keys Ferry Court, McDonough GA 30253

o: 770.288.3155| c: 770.630.6579| efax: 404-829-1747

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