Green Homes - the Future Trend

According to the latest McGraw-Hill Construction SmartMarket Report, the green share of single family home construction by value has doubled over the last three years from 8% in 2008 to 17% in 2011 equating to $17 Billion.  The market conditions shows that green homes market will continue to grow from 29% - 38% (potentially $87-$114 Billion market opportunity) of the total construction market by the year 2016. This is based on the 5-year forecast for overall residential construction.  The strong growth shows that customers nowadays are demanding for more green homes and projects.  

The report also shows why homeowners prefer to build green homes as compared to the conventional homes. The benefits of having green homes include:
- Save money
- Better health
- Better comfort
- Better investment decision
Initial costs may be high, but they will save money in the long run due to lower electricity bills. In addition to that, health and comfort considerations are also important to homeowners.  

Home builders' top consideration in building a greener home is the indoor air quality.  Benefits of improved indoor air quality includes reduced mold, allergens and radon and reduced asthma triggers. This is achieved by using paints with low volatile organic compounds and designing for sufficient airflow.

Other considerations in building a green home are choosing earth friendly building materials; using solar energy when possible; and installing systems to recycle waste water. 

Another advantage of a green home is it has a higher resale value as compared to the conventional homes. Home buyers look for affordability as well as green when making purchasing decisions.
If you want to see a list of energy efficient homes, please visit www.hearthstonealaska.com.  These homes are developed by Spinell Homes - the largest home builder in Alaska. Spinell Homes is dedicated to building energy efficient and sustainable housing. For more information on Spinell Homes, check out www.spinellhomes.com.

Avoid Mortgage Scams

As a home owner who is in danger of losing your home to foreclosure, you must be careful in dealing with a company/person who might give you false promises of saving you from foreclosure.  Knowing how to identify these scams can help you save money and headaches in the future.  Remember, KNOWLEDGE IS POWER!  If you know how to spot scams, you can avoid dealing with them and you can report them to the proper authorities.  

Here are some things you should know to indicate that you may be dealing with fraud: (Source: www.freddiemac.com)

- A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.

- A company/person guarantees they can stop a foreclosure or get your loan modified.

- A company/person advises you to stop paying your mortgage company and pay them instead.

- A company pressures you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read, and you don't fully understand.

- A company other than your lender claims to offer "government-approved" or "official government" loan modifications.

- A company/person you don't know asks you to release personal financial information online or over the phone.

If you or you know someone who have encountered mortgage fraud, you may report them to 1-800-4FRAUD8.

If you are in the danger of facing foreclosure, don't be afraid to seek help.  Here are some things that you can do to avoid losing your home to foreclosure.

1. Call your mortgage lender.  If you are having difficulties in keeping your payments up to date, your lender may offer you some options to help you make your payments more affordable (this might involve lower monthly payments but longer term) and to avoid foreclosure. 

2. Call Freddie Mac Borrow Help Centers.  They offer free, confidential counseling assistance if you are behind on your monthly payments. 

3. Call Housing Counselors. To talk to a housing counselor, you may check out http://www.hud.gov/offices/hsg/sfh/hcc/fc/index.cfm?&webListAction=search&searchstate=AK&filterSvc=dfc for a list of HUD Housing Counseling Agencies located in Alaska.

Remember, the government offers their service for free.  You do not have to spend a single centavo for their assistance.

For more information about foreclosures, please don't hesitate to contact me.

Shorter Processing Time for Short Sale Transactions

FHFA (Federal Housing Finance Agency) released last April 17, 2012 the new timelines for short sale process for Fannie Mae and Freddie Mac backed loans.  The new timelines will help home owners avoid foreclosure. 


The FHFA's new directive requires the servicers of Fannie and Freddie loans to: (Source: www.fhfa.gov)


- Review and respond to borrower requests for short sales within 30 days after receipt of a short sale offer and a complete borrower request.
- If the review is still under way after 30 days, give the borrower weekly status updates.  (This allows more time where necessary, such as where subordinate lenders and/or mortgage insurance is involved.)
- Advise the borrower of the final decision within 60 days after receipt of a short sale offer and a complete borrower request. 


In cases where the servicer makes a counteroffer, the borrower must respond within 5 business days. The servicer in return, must give its reply within 10 business days of receiving the borrower's response.


According to CNBC report, the long response time have been the no. 1 complaint in the short sale sector. It usually takes up to a year or more for a buyer to get a response which results to buyers dropping out of the transaction.  Fannie and Freddie hold hundreds of thousands of distressed loans and with the new FHFA directive, the process will be expedited. The new timelines will take effect in June.


If you have any questions about real estate, please don't hesitate to contact any of our team.  You may reach  James Team Real Estate on (907)-865-6594 or email us at patrickjameshomes@gmail.com. If you are looking for your new home, you may check out our listings at www.anchoragehomedeals.com.

According to CNNMoney, starting April 1, borrowers with ongoing disputes with creditors over debts of $1,000 or more may no longer qualify for FHA insured loans.  The new rule also applies even if the borrower has a perfect credit score.

Borrowers with ongoing debt disputes of over $1,000, would have to pay the remaining balance or enter into a payment plan with at least 3 payments on it.  Payments made must be documented and submitted to FHA, before they can secure FHA mortgages.

FHA will not include the disputed credit accounts from more than 2 years ago or any credits related to reported identity theft.

In FHA study, they found out that many borrowers that are unable to pay their current mortgages had prior credit deficiencies including unpaid collections and other unresolved credit disputes.

Tiffany Thomas Smith, Deputy Press Secretary for the U.S. Department of Housing and Urban Development said, "It's a way of protecting consumers from getting into loans they ultimately can't afford.

For more information, you can check out http://money.cnn.com/2012/03/30/real_estate/FHA-loans/index.htm.  Or you can contact me for any real estate information.

FHA to Decrease Refinance Fees

FHA (Federal Housing Administration) will lower the mortgage insurance premiums and annual fees for borrowers who refinance their loans as part of President Obama's plan to improve the housing market.

Borrowers who refinance their existing FHA loans will pay an upfront insurance premium equal to 0.01%, the lowest allowable rate, of the mortgage amount. For example, $100 for a $100,000 loan - plus an annual fee of 0.55% (down from 1.15%).  This is effective June 11, 2012.

Qualifying borrowers must be current on an existing FHA-insured mortgage signed on or before May 31, 2009.  An estimated of 2 to 3 million borrowers will benefit from this new program.  The program doesn't require verification of income and employment, and it doesn't mandate a new appraisal of the property.  A typical borrower would save about $1,000 a year in premiums and $3,000 a year including savings from lower rates, the FHA said.

The new plan is in contrast with the new increase in upfront fee and annual fee for the new borrowers.  A borrower making a 3.5% down payment on a home purchase as of April 1 will pay a 1.75% upfront fee and a 1.25% annual fee. 

If you have any questions, don't hesitate to contact me. For more fantastic housing deals, please visit www.anchoragehomedeals.com.

Is Housing Crisis Going to End by End of 2012?

According to a recent report released by Capital Economics, the housing crisis is expected to end this year. The reason behind this theory is due to banks finally loosing up their credit standards.     

Since the 2008 housing market bubble popped, credit standards have increased leaving many people with little to no chance of obtaining a loan to buy a home.  Before the crisis began, a potential home owner only needs to obtain a credit score of mid to upper 500's.  

Now, many economists home that the housing market crisis will come to an end with the easing of banks’ lending standards and a loosening of credit.

As current sign of improvement is that the banks are loosening their LTV's (loan-to-value ratios). A loan-to-value ratio or LTV ratio shows the amount of a mortgage lien as a percentage of the total appraised value of the home. For instance, if a borrower takes out a loan of $140,000 to buy a home worth $160,000, the LTV ratio is $140,000/$160,000 or 87.5%. Today, banks are showing higher LTV's.

In addition to that, the employment statistics showed continued growth for the third straight month in February as employers added 227,000 new jobs for the whole country.  Unemployment rate in Alaska was last reported at 6.9% - according to the US Federal Reserve. The unemployment rate averaged at 8.0501% from previous years. The national unemployment average is at 8.3%.  This illustrates that the Alaskan economy is outshining other economies impacted by negative housing markets.

With the current job market situation, Americans are beginning to rethink their attitudes about jumping back to the housing market.  With near record low mortgage rates and low current home prices, now is a good time to both buy and sell.  You can check out www.anchoragehomedeals.com for the best deals in Alaska.

FHA to Increase in Up-Front Mortgage Insurance - Again!

According to Bloomberg report, FHA is set to raise its mortgage insurance premiums again for the fourth time in 3 years.  Beginning April 1, the cost of up-front mortgage insurance premiums will increase by 75 basis points for new 30-year loans.  The change applies to new loans registered on, or after, April 1, 2012. “The  75 basis point increase will be in addition to a 35 basis point increase in the annual premium on loans up to $729,750 that was announced earlier last month as part of the agency’s 2013 budget”, said FHA Acting Commissioner Carol Galante. 

“For loans up to $625,000, the increase will be on top of a 10 basis point increase on annual premiums for smaller loans.   The increase will add about $5 per month to the cost of a typical FHA loan, which is about $150,000”, Galante said.

When buyers are approved for FHA loans, they are required to carry mortgage insurance.  That includes both a Mortgage Insurance Premium (MIP) and an Up Front Mortgage Insurance Premium payment into an escrow account set up by the US Treasury Department and the funds are used to protect the government in case the borrower defaults on the FHA loan.

Because the FHA backs many first-time and lower-income borrowers, the premium increases could have a negative effect on the housing market, particularly on homebuilders, according to Jaret Seiberg, senior policy analyst at Guggenheim Securities’ Washington Research Group.

“We believe this is a negative for housing as it will make it that much more expensive for first-time homebuyers to enter the market,” Seiberg said in a note to clients.

If you are planning to use FHA for your next home mortgage, get your loan application today.  If you wait, you’ll be subject to the FHA’S new premiums.  For a list of great deals in Alaska area, you may check out http://www.anchoragehomedeals.com/.