3 Tips To Get The Most Out Of Your Plumbing

Everyone wants their pipes to last as long as possible, but there are a couple of simple problems that might be sucking the life out of your plumbing. Long-term stress is the enemy when it comes to your water system.
The three most common enemies are high water pressure, mineral-laden hard water, and grease. Avoid these three mistakes, and your water system will last years longer.
Take The Pressure Off Your Pipes
You might enjoy high water pressure when you’re taking a shower, but your pipes aren’t enjoying it at all. Over time, this high pressure stresses your plumbing system and can lead to leaks.
Is your high-pressure shower worth an expensive plumbing leak? To test your water pressure, you’ll have to hire a professional. Proper pressure should be somewhere between forty and eighty pounds per square inch.
To have a plumber reduce your water pressure should cost no more than about three or four hundred dollars. That sounds expensive, but it’s a lot cheaper than a leak.
Soft Water Is Good Water
If your water has a lot of minerals dissolved it, then it’s known as hard water. If you don’t already have a water softener you should consider it, because over time, those minerals will build up in your plumbing.
Eventually this will lead to a leak, so nip the problem in the bud, and look into getting a water softener. A good water softener should cost around five hundred dollars.
Hard water also makes soaps and detergents less effective. Soft water will get your clothes, your dishes, and even your hair cleaner.
Cease The Grease
Don’t ever pour cooking grease down the drain. It might be liquid when you pour it, but after a while, it will cool and solidify in your pipes. This won’t break the plumbing and cause a leak, but it will clog it all up.
The water that goes down afterward won’t do anything to wash away the sticky grease. You don’t want your pipes backing up, trust me. That is one messy problem.
Instead pour your grease into containers and throw it away in the garbage. Even better, go ahead and save it in the pantry and cook with it later.
Indoor plumbing is one of the most convenient technologies we have. So don’t take it for granted. Take care of your plumbing, and get the most out of it.
Avoid excessive water pressure, get a water softener, and don’t pour any grease down the drain. A little care now will go a long way. No one wants to deal with a plumbing leak. They’re expensive and a huge hassle.

Get down do you? (Down Payment Options)

Home Buyers Don't need to Put 20% Lower

Buyers in modern day U. S. housing marketplace don't need 20 percentage down. Yet, many believe they perform. This "20 % Down" misbelief might have true eventually in history, although not since the advent in the FHA-backed loan inside 1934, which was 80 years back.
The likely answer why buyers believe any twenty percent downpayment becomes necessary is because, using a conventional mortgage, putting twenty percentage down removes the necessity for private mortgage insurance.
Private mortgage insurance is insurance homeowners are necessary to pay so as to protect a lender in the eventuality of default. Mortgage insurance costs vary by downpayment, state, and the borrower's credit history.

Home buyers -- especially first-time home buyers -- will often delay a purchase simply because they don't feel as if they have sufficient money saved way up for downpayment. As well as, while this should be described as a consideration in homeownership, it should never be the sole consideration.
Home affordability is just not about what kind of money you can place down on a house. Home affordability is all about whether you are able the monthly payments that come with owning a house.
A larger downpayment will result in a smaller mortgage loan size and, thus, a smaller regular mortgage payment. Even so, if you've depleted yourself savings to produce the purchase, possibly the big downpayment had been poor planning.

Financial experts call this kind of being "house-poor". When you find yourself house-poor, you have small money left to deal with the everyday emergencies regarding life (and regarding homeowners).
Making a downpayment of a lot less than 20% can possibly be financially conservative, in this manner.

FHA Mortgage: 3. 5% Downpayment

The FHA mortgage is somewhat of the misnomer because your FHA doesn't actually make loans. Rather, the FHA is an insurer of lending options.
The FHA publishes a number of standards for the loans it'll insure. When a standard bank underwrites and funds that loan which meets these specific guidelines, your FHA agrees in order to insure that mortgage loan against loss.

FHA mortgage suggestions are famous for their liberal approach to people's credit reports and downpayments. The FHA can typically insure a mortgage for borrowers having low credit scores providing that there's a reasonable explanation for the low FICO.

Your FHA allows any downpayment of only 3. 5 percent in all U. S. marketplaces.
Other traits associated with an FHA include:
•    Your downpayment may consist fully from "gift funds"
•    Your credit history requirement is 500
•    Mortgage insurance costs paid upfront on closing, and regular thereafter
 
Furthermore, the FHA supports homeowners who've experienced recent short sales, foreclosures or bankruptcies through the agency's Back to function program.
The FHA protects loan sizes approximately $625, 500 inside designated "high-cost" locations nationwide. High-cost locations include Orange State, California; the California D. C. city area; and, The big apple City's 5 boroughs.

VA Mortgage: No Income Down

The VA mortgage is really a no-money-down program available to members of your U. S. armed service and surviving husband and wife.
Guaranteed by your U. S. Department of Veteran Extramarital liasons, VA loans act like FHA loans as the agency helps ensure repayment to loan companies making loans so this means VA mortgage suggestions.
VA loan certification are straight-forward.
Generally, active duty and also honorably discharged service personnel qualify for the VA program. In add-on, home buyers who've spent at least 6 years inside the Reserves or National Guard qualify, as are husband and wife of service members killed inside the line of work.
 
Some key traits in the VA loan incorporate:
•    You may work with intermittent occupancy
•    Bankruptcy along with derogatory credit do not immediately disqualify people
•    No mortgage insurance becomes necessary
 
VA loans also enable loan sizes all the way to $1, 094, 625 inside high-cost areas. This could be helpful in areas for instance San Francisco, California; and Honolulu, Hawaii that happen to be home to You. S. military angles.

USDA Mortgage: 100% Capital

No Money Lower options exist regarding non-military borrowers, far too. The U. Utes. Department of Agriculture gives a 100% mortgage, far too. The program is formally called a Section 502 mortgage, but, more generally, it's called any Rural Housing Personal loan.
The good news concerning the USDA Rural Housing Loan is that it's not really a "rural loan" -- it's available to buyers in suburban areas, too. The USDA's goal is always to reach "low-to-moderate earnings homebuyers", wherever they may be.

Many borrowers while using USDA Single Household Housing Guaranteed Loan Program come up with a good living and are now living in neighborhoods which don't meet the traditional definition regarding rural.
For illustration, college towns including Christiansburg, Virginia; State College, Pennsylvania; and even suburbs of Columbus, Iowa meet USDA eligibility specifications. So do your less-populated suburbs regarding some major You. S. cities.
 
Some key traits in the USDA loan incorporate:
•    You may incorporate eligible home fixes and improvements within your loan size
•    There is maximum home purchase price
•    Guarantee fee included with loan balance on closing; mortgage insurance coverage collected monthly
 
Another key profit is that USDA mortgage rates are often lower than costs for comparable, low- as well as no-downpayment mortgages. Financing a house via the USDA would be the lowest cost ways of homeownership.

To receive personalized rates please email me at eneal@athccorp.com with your available times to discuss your options.

Mel Watt and the upcoming forcast

Start with his first action — delay of the fee increases. There’s a reason that the National Association of Realtors, the Mortgage Bankers Association, the National Association of Home Builders and various nonprofit community groups were so happy with Watt’s move.

Keep in mind that Watt also has ties to Wall Street and the financial community ... so his door will be open to them."

Not only had they been highly critical of DeMarco’s plans, but Watt affirmed — boldly, before even taking office — the very views that caused them to support his nomination: He is openly, unabashedly and dependably pro-housing to the core.


Not just in favor of affordable housing for the middle- and upper-income borrowers with 770 FICO scores who had become the profitable mainstays of Fannie and Freddie under DeMarco, but pro-housing for more marginal homebuyers — the very people the mortgage giants were directed to serve under the HUD housing goals during the Clinton and Bush years.

So when Watt postponed the fee hikes, he was really saying: I am not going to make homeownership any more expensive or difficult to achieve than it already is. Forget these increases. They’re dead.
What else might be on his agenda? He’s not talking publicly. Nor are the White House domestic policy advisers, who’ll have greater leverage during his stewardship at FHFA than they ever had with DeMarco.

But a potentially useful guide to where FHFA may be headed is the detailed to-do list set out for Watt by the Center for American Progress, an influential voice on housing policy in Washington. The Center describes itself as a “nonpartisan institute,” but it has a distinct lean to the left and strong ties to both the Obama and the Clinton administrations.

Its founder and chairman, John Podesta, former chief of staff for Bill Clinton, was recently hired by Obama as a top White House counselor.
Podesta summed up his approach in a discussion with Politico: Given effective control of the House by extreme right-wing Republicans, he said, Obama should “focus on executive action” — pushing a progressive domestic agenda that requires no approval by Congress but has significant impacts.
With a liberal Democratic ally now running FHFA — the highest-impact player in the housing and mortgage marketplace — the agency is a perfect vehicle for advancing that type of strategy.

What’s on the Center for American Progress’ list for Watt? At the top: Restore Fannie and Freddie’s earlier “focus on working and middle income families” and jettison DeMarco’s “myopic focus on restoring the short-term (financial) health of Fannie Mae and Freddie Mac.” The latter approach may have helped produce billions in payments to the Treasury, but it “has harmed not only individual families but also the housing market as a whole.”

Next, “develop a principal reduction program to prevent foreclosures.” DeMarco’s refusal to allow principal forgiveness in connection with troubled loan workouts infuriated Democrats in Congress and community groups, and was a key reason why Obama brought in Watt. He’ll deliver the goods.
Also on the agenda:

• Reverse DeMarco’s decision to “punish states for protecting homeownership during the foreclosure process.” Watt has already done this — at least prospectively. As part of the delay he announced for fee hikes, Watt put on ice DeMarco’s plan to leave controversial “adverse market fees” in place for new mortgages on properties in four states — Connecticut, Florida, New Jersey and New York — where judicial foreclosure timelines are unusually long.
• Restrain guarantee-fee (G-fee) increases, which under DeMarco have moved from about 21 basis points to more than 50 basis points. Already accomplished by the delay.
• Fulfill the “duty to serve” rule given to FHFA by the Housing and Economic Recovery Act of 2008 (HERA). This requires Fannie and Freddie to step up efforts toward (1) increasing the availability of credit for manufactured housing, (2) preserving/rehabilitating affordable rental units, and (3) better serving rural areas. Watt, a Yale Law School graduate, is highly likely to agree to comply with the law.
• Initiate a stronger push to fund affordable rentals.
• Capitalize the National Housing Trust Fund and the Capital Magnet Fund, which support the development of rental units affordable for very low-income families. The HERA law in 2008 directed FHFA, Fannie and Freddie to put money into these pots — a longtime goal of Barney Frank, the former Democratic congressman from Massachusetts who played a major role in shaping the law, but watched in frustration as DeMarco put priorities elsewhere. Look for long-delayed action under Watt.

None of this is to suggest that Watt is going to be a puppet on strings, taking orders from the White House, think tanks, or community groups. It’s just that these are items that have been part of the shared agendas of Obama, Watt and most Democrats in the House and Senate for years.

Keep in mind that Watt also has ties to Wall Street and the financial community — the banking industry has contributed generously to his congressional campaigns — so his door will be open to them. And also note his legal responsibilities under the 2008 law that will restrict his ability to return Fannie and Freddie to their former, more activist roles in promoting homeownership.

But you can bank on most of the above to be somewhere on Watt’s work plan for 2014. And that should be good for housing in the broadest sense.


To receive personalized rates please email me at eneal@athccorp.com with your available times to discuss your options.  

Start with his first action — delay of the fee increases. There’s a reason that the National Association of Realtors, the Mortgage Bankers Association, the National Association of Home Builders and various nonprofit community groups were so happy with Watt’s move.

Keep in mind that Watt also has ties to Wall Street and the financial community ... so his door will be open to them."

Not only had they been highly critical of DeMarco’s plans, but Watt affirmed — boldly, before even taking office — the very views that caused them to support his nomination: He is openly, unabashedly and dependably pro-housing to the core.
Not just in favor of affordable housing for the middle- and upper-income borrowers with 770 FICO scores who had become the profitable mainstays of Fannie and Freddie under DeMarco, but pro-housing for more marginal homebuyers — the very people the mortgage giants were directed to serve under the HUD housing goals during the Clinton and Bush years.
So when Watt postponed the fee hikes, he was really saying: I am not going to make homeownership any more expensive or difficult to achieve than it already is. Forget these increases. They’re dead.
What else might be on his agenda? He’s not talking publicly. Nor are the White House domestic policy advisers, who’ll have greater leverage during his stewardship at FHFA than they ever had with DeMarco.
But a potentially useful guide to where FHFA may be headed is the detailed to-do list set out for Watt by the Center for American Progress, an influential voice on housing policy in Washington. The Center describes itself as a “nonpartisan institute,” but it has a distinct lean to the left and strong ties to both the Obama and the Clinton administrations.
Its founder and chairman, John Podesta, former chief of staff for Bill Clinton, was recently hired by Obama as a top White House counselor.
Podesta summed up his approach in a discussion with Politico: Given effective control of the House by extreme right-wing Republicans, he said, Obama should “focus on executive action” — pushing a progressive domestic agenda that requires no approval by Congress but has significant impacts.
With a liberal Democratic ally now running FHFA — the highest-impact player in the housing and mortgage marketplace — the agency is a perfect vehicle for advancing that type of strategy.
What’s on the Center for American Progress’ list for Watt? At the top: Restore Fannie and Freddie’s earlier “focus on working and middle income families” and jettison DeMarco’s “myopic focus on restoring the short-term (financial) health of Fannie Mae and Freddie Mac.” The latter approach may have helped produce billions in payments to the Treasury, but it “has harmed not only individual families but also the housing market as a whole.”
Next, “develop a principal reduction program to prevent foreclosures.” DeMarco’s refusal to allow principal forgiveness in connection with troubled loan workouts infuriated Democrats in Congress and community groups, and was a key reason why Obama brought in Watt. He’ll deliver the goods.
Also on the agenda:

• Reverse DeMarco’s decision to “punish states for protecting homeownership during the foreclosure process.” Watt has already done this — at least prospectively. As part of the delay he announced for fee hikes, Watt put on ice DeMarco’s plan to leave controversial “adverse market fees” in place for new mortgages on properties in four states — Connecticut, Florida, New Jersey and New York — where judicial foreclosure timelines are unusually long.
• Restrain guarantee-fee (G-fee) increases, which under DeMarco have moved from about 21 basis points to more than 50 basis points. Already accomplished by the delay.
• Fulfill the “duty to serve” rule given to FHFA by the Housing and Economic Recovery Act of 2008 (HERA). This requires Fannie and Freddie to step up efforts toward (1) increasing the availability of credit for manufactured housing, (2) preserving/rehabilitating affordable rental units, and (3) better serving rural areas. Watt, a Yale Law School graduate, is highly likely to agree to comply with the law.
• Initiate a stronger push to fund affordable rentals.
• Capitalize the National Housing Trust Fund and the Capital Magnet Fund, which support the development of rental units affordable for very low-income families. The HERA law in 2008 directed FHFA, Fannie and Freddie to put money into these pots — a longtime goal of Barney Frank, the former Democratic congressman from Massachusetts who played a major role in shaping the law, but watched in frustration as DeMarco put priorities elsewhere. Look for long-delayed action under Watt.

None of this is to suggest that Watt is going to be a puppet on strings, taking orders from the White House, think tanks, or community groups. It’s just that these are items that have been part of the shared agendas of Obama, Watt and most Democrats in the House and Senate for years.
Keep in mind that Watt also has ties to Wall Street and the financial community — the banking industry has contributed generously to his congressional campaigns — so his door will be open to them. And also note his legal responsibilities under the 2008 law that will restrict his ability to return Fannie and Freddie to their former, more activist roles in promoting homeownership.
But you can bank on most of the above to be somewhere on Watt’s work plan for 2014. And that should be good for housing in the broadest sense.
- See more at: http://www.inman.com/2013/12/31/watts-vision-of-fannie-and-freddies-role-good-for-housing-in-the-broadest-sense/#sthash.AEwepT2q.dpuf

Start with his first action — delay of the fee increases. There’s a reason that the National Association of Realtors, the Mortgage Bankers Association, the National Association of Home Builders and various nonprofit community groups were so happy with Watt’s move.

Keep in mind that Watt also has ties to Wall Street and the financial community ... so his door will be open to them."

Not only had they been highly critical of DeMarco’s plans, but Watt affirmed — boldly, before even taking office — the very views that caused them to support his nomination: He is openly, unabashedly and dependably pro-housing to the core.
Not just in favor of affordable housing for the middle- and upper-income borrowers with 770 FICO scores who had become the profitable mainstays of Fannie and Freddie under DeMarco, but pro-housing for more marginal homebuyers — the very people the mortgage giants were directed to serve under the HUD housing goals during the Clinton and Bush years.
So when Watt postponed the fee hikes, he was really saying: I am not going to make homeownership any more expensive or difficult to achieve than it already is. Forget these increases. They’re dead.
What else might be on his agenda? He’s not talking publicly. Nor are the White House domestic policy advisers, who’ll have greater leverage during his stewardship at FHFA than they ever had with DeMarco.
But a potentially useful guide to where FHFA may be headed is the detailed to-do list set out for Watt by the Center for American Progress, an influential voice on housing policy in Washington. The Center describes itself as a “nonpartisan institute,” but it has a distinct lean to the left and strong ties to both the Obama and the Clinton administrations.
Its founder and chairman, John Podesta, former chief of staff for Bill Clinton, was recently hired by Obama as a top White House counselor.
Podesta summed up his approach in a discussion with Politico: Given effective control of the House by extreme right-wing Republicans, he said, Obama should “focus on executive action” — pushing a progressive domestic agenda that requires no approval by Congress but has significant impacts.
With a liberal Democratic ally now running FHFA — the highest-impact player in the housing and mortgage marketplace — the agency is a perfect vehicle for advancing that type of strategy.
What’s on the Center for American Progress’ list for Watt? At the top: Restore Fannie and Freddie’s earlier “focus on working and middle income families” and jettison DeMarco’s “myopic focus on restoring the short-term (financial) health of Fannie Mae and Freddie Mac.” The latter approach may have helped produce billions in payments to the Treasury, but it “has harmed not only individual families but also the housing market as a whole.”
Next, “develop a principal reduction program to prevent foreclosures.” DeMarco’s refusal to allow principal forgiveness in connection with troubled loan workouts infuriated Democrats in Congress and community groups, and was a key reason why Obama brought in Watt. He’ll deliver the goods.
Also on the agenda:

• Reverse DeMarco’s decision to “punish states for protecting homeownership during the foreclosure process.” Watt has already done this — at least prospectively. As part of the delay he announced for fee hikes, Watt put on ice DeMarco’s plan to leave controversial “adverse market fees” in place for new mortgages on properties in four states — Connecticut, Florida, New Jersey and New York — where judicial foreclosure timelines are unusually long.
• Restrain guarantee-fee (G-fee) increases, which under DeMarco have moved from about 21 basis points to more than 50 basis points. Already accomplished by the delay.
• Fulfill the “duty to serve” rule given to FHFA by the Housing and Economic Recovery Act of 2008 (HERA). This requires Fannie and Freddie to step up efforts toward (1) increasing the availability of credit for manufactured housing, (2) preserving/rehabilitating affordable rental units, and (3) better serving rural areas. Watt, a Yale Law School graduate, is highly likely to agree to comply with the law.
• Initiate a stronger push to fund affordable rentals.
• Capitalize the National Housing Trust Fund and the Capital Magnet Fund, which support the development of rental units affordable for very low-income families. The HERA law in 2008 directed FHFA, Fannie and Freddie to put money into these pots — a longtime goal of Barney Frank, the former Democratic congressman from Massachusetts who played a major role in shaping the law, but watched in frustration as DeMarco put priorities elsewhere. Look for long-delayed action under Watt.

None of this is to suggest that Watt is going to be a puppet on strings, taking orders from the White House, think tanks, or community groups. It’s just that these are items that have been part of the shared agendas of Obama, Watt and most Democrats in the House and Senate for years.
Keep in mind that Watt also has ties to Wall Street and the financial community — the banking industry has contributed generously to his congressional campaigns — so his door will be open to them. And also note his legal responsibilities under the 2008 law that will restrict his ability to return Fannie and Freddie to their former, more activist roles in promoting homeownership.
But you can bank on most of the above to be somewhere on Watt’s work plan for 2014. And that should be good for housing in the broadest sense.
- See more at: http://www.inman.com/2013/12/31/watts-vision-of-fannie-and-freddies-role-good-for-housing-in-the-broadest-sense/#sthash.AEwepT2q.dpuf

Start with his first action — delay of the fee increases. There’s a reason that the National Association of Realtors, the Mortgage Bankers Association, the National Association of Home Builders and various nonprofit community groups were so happy with Watt’s move.

Keep in mind that Watt also has ties to Wall Street and the financial community ... so his door will be open to them."

Not only had they been highly critical of DeMarco’s plans, but Watt affirmed — boldly, before even taking office — the very views that caused them to support his nomination: He is openly, unabashedly and dependably pro-housing to the core.
Not just in favor of affordable housing for the middle- and upper-income borrowers with 770 FICO scores who had become the profitable mainstays of Fannie and Freddie under DeMarco, but pro-housing for more marginal homebuyers — the very people the mortgage giants were directed to serve under the HUD housing goals during the Clinton and Bush years.
So when Watt postponed the fee hikes, he was really saying: I am not going to make homeownership any more expensive or difficult to achieve than it already is. Forget these increases. They’re dead.
What else might be on his agenda? He’s not talking publicly. Nor are the White House domestic policy advisers, who’ll have greater leverage during his stewardship at FHFA than they ever had with DeMarco.
But a potentially useful guide to where FHFA may be headed is the detailed to-do list set out for Watt by the Center for American Progress, an influential voice on housing policy in Washington. The Center describes itself as a “nonpartisan institute,” but it has a distinct lean to the left and strong ties to both the Obama and the Clinton administrations.
Its founder and chairman, John Podesta, former chief of staff for Bill Clinton, was recently hired by Obama as a top White House counselor.
Podesta summed up his approach in a discussion with Politico: Given effective control of the House by extreme right-wing Republicans, he said, Obama should “focus on executive action” — pushing a progressive domestic agenda that requires no approval by Congress but has significant impacts.
With a liberal Democratic ally now running FHFA — the highest-impact player in the housing and mortgage marketplace — the agency is a perfect vehicle for advancing that type of strategy.
What’s on the Center for American Progress’ list for Watt? At the top: Restore Fannie and Freddie’s earlier “focus on working and middle income families” and jettison DeMarco’s “myopic focus on restoring the short-term (financial) health of Fannie Mae and Freddie Mac.” The latter approach may have helped produce billions in payments to the Treasury, but it “has harmed not only individual families but also the housing market as a whole.”
Next, “develop a principal reduction program to prevent foreclosures.” DeMarco’s refusal to allow principal forgiveness in connection with troubled loan workouts infuriated Democrats in Congress and community groups, and was a key reason why Obama brought in Watt. He’ll deliver the goods.
Also on the agenda:

• Reverse DeMarco’s decision to “punish states for protecting homeownership during the foreclosure process.” Watt has already done this — at least prospectively. As part of the delay he announced for fee hikes, Watt put on ice DeMarco’s plan to leave controversial “adverse market fees” in place for new mortgages on properties in four states — Connecticut, Florida, New Jersey and New York — where judicial foreclosure timelines are unusually long.
• Restrain guarantee-fee (G-fee) increases, which under DeMarco have moved from about 21 basis points to more than 50 basis points. Already accomplished by the delay.
• Fulfill the “duty to serve” rule given to FHFA by the Housing and Economic Recovery Act of 2008 (HERA). This requires Fannie and Freddie to step up efforts toward (1) increasing the availability of credit for manufactured housing, (2) preserving/rehabilitating affordable rental units, and (3) better serving rural areas. Watt, a Yale Law School graduate, is highly likely to agree to comply with the law.
• Initiate a stronger push to fund affordable rentals.
• Capitalize the National Housing Trust Fund and the Capital Magnet Fund, which support the development of rental units affordable for very low-income families. The HERA law in 2008 directed FHFA, Fannie and Freddie to put money into these pots — a longtime goal of Barney Frank, the former Democratic congressman from Massachusetts who played a major role in shaping the law, but watched in frustration as DeMarco put priorities elsewhere. Look for long-delayed action under Watt.

None of this is to suggest that Watt is going to be a puppet on strings, taking orders from the White House, think tanks, or community groups. It’s just that these are items that have been part of the shared agendas of Obama, Watt and most Democrats in the House and Senate for years.
Keep in mind that Watt also has ties to Wall Street and the financial community — the banking industry has contributed generously to his congressional campaigns — so his door will be open to them. And also note his legal responsibilities under the 2008 law that will restrict his ability to return Fannie and Freddie to their former, more activist roles in promoting homeownership.
But you can bank on most of the above to be somewhere on Watt’s work plan for 2014. And that should be good for housing in the broadest sense.
- See more at: http://www.inman.com/2013/12/31/watts-vision-of-fannie-and-freddies-role-good-for-housing-in-the-broadest-sense/#sthash.AEwepT2q.dpuf

FHA Mortgage Program: Popular Among First Time Home Buyers

The FHA mortgage program has become a very popular mortgage program with first time home buyers.  Home buyers do have many options with mortgage programs when looking to get pre-approved, but the FHA program has become the most popular.
There are many reasons why the FHA program has become very popular among first time home buyers.  Here are some of the great benefits why the FHA mortgage program is great for home buyers.

Credit Score

The minimum credit score allowed with most lenders is a middle score of 640.  It’s very common that home buyers don’t realize they have a good enough credit score to qualify for the FHA mortgage program.  The lower credit score that is allowed opens up the opportunity for many first time home buyers to qualify for a mortgage.

Down Payment

The minimum down payment is only 3.5% of the purchase price.  The down payment can even be gifted funds from a family member.  Many home buyers didn’t know the down payment can be gifted.  Home buyers can even use the funds from a 401k retirement account.

Interest Rates

The interest rates for the FHA mortgage program are very low.  We have been seeing the FHA interest rates lower than most conventional mortgage rates, when comparing 30 year fixed rates.  These lower interest rates keeps the total payment lower for home buyers, which allows them to afford more of a home.

Debt to Income Ratio

The debt to income ratio allowed is higher with the FHA program versus a conventional program.  The debt to income ratio is the total monthly payments, including the new mortgage payment, divided over the total gross monthly income.
Example:  The new mortgage payment total is $1500, plus an auto loan payment of $300, plus a credit card payment of $50, gives you a total monthly debt of $1850.  The total monthly income, before taxes, is $5000.  1850/500 (total debt/total income) = 37%.
The FHA program lenders allow up to 55% debt to income ratio percentage, where a conventional mortgage only allows up to 45%.
These benefits have made the FHA mortgage program the most popular program among first time home buyers.


To receive personalized rates please email me at eneal@athccorp.com with your available times to discuss your options.  

New Real Estate Tax Laws 2014

While most of the nation was ringing in 2014 as the Swarovski crystal ball dropped in Times Square, the American government was busy eliminating a raft of tax breaks as part of their usual year-end house cleaning. While this doesn’t come as much of a surprise, the vanishing act of these tax breaks typically goes unnoticed until the last minute, sparking a lobbying craze across Washington.

"It's a hit on people who are meant to be helped," Kevin Stein, associate director of the California Reinvestment Coalition, told The Los Angeles Times. "It is a big deal and it would be very unfortunate if, due to Congress' inability to act, people will suffer."

Private mortgage insurance (PMI) premiums have affected a large number of borrowers. As one of the so-called “temporary” tax breaks created during the onset of the financial crisis, being able to deduct that insurance premium saves an individual (on average) around 25 percent off their federal income tax return. Those who engage in a short sale could see themselves having to pay thousands of dollars in additional fees now that this break is gone.

“If this tax break is not reinstated, it could condemn those consumers to a permanent class of renters, but it will weigh in on a still fragile housing recovery for many markets. Basically, those which need our help the most will be the most impacted,” said John H.P. Hudson, VP of regulatory affairs for Texas-based Premier Nationwide Lending.

A short sale is clearly a more favorable option than a foreclosure and with millions of individuals still underwater as a result of their mortgages, slamming folks with additional taxation and fees seems absurd. We’re only just starting to gain ground on the economic and housing crisis, so what possible reason could the government have for letting this tax break expire? Forty-two Attorneys General from across the United States sent letters to Congress asking that the tax break be extended, however; their pleas apparently fell upon deaf ears.

“These tax breaks affect the people that need it the most in this country, the lower- and middle-class Americans. Not helping where it is needed will only force more people into foreclosure and bankruptcy and will once again cause a downturn in the economy,” said Joseph Romano, CPA with New York City-based Presti & Naegele. “They hit Chase with billions in fines, why don’t they take all that money and help taxpayers out with tax breaks?”

There’s pending legislation in the House and Senate currently, there’s no guaranty that the tax break could be extended. The pending legislation would see the break extended into 2015.

“The unfortunate side effect of the federal government having addressed the recent housing debacle in a piecemeal fashion is that critical aspects of the policy toolbox can slip through the cracks. Without a retroactive extension of the debt forgiveness provision, much of the homeowner relief program will be in shambles. What homeowner, with a mortgage underwater, will seek principal forgiveness if it triggers an enormous tax liability?” said Rick Lazio, former U.S. Representative from New York, and current leader of law firm Jones Walker’s affordable housing and housing finance practice. “There may be a reasonable debate as to whether more relief is needed, but it defies common sense to have the federal government push lenders to write down debt owed by homeowners who have no ability to repay and on the other hand ignore the most important provision standing in the way of homeowners taking advantage of that help.”

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Can Housing do the Dennis Rodman type of rebound?

Bregman’s prospects probably will hinge mostly on one person: Janet Yellen.
Yellen, 67, who takes over as chairman of the Federal Reserve if the Senate confirms her in a vote scheduled for next week, will hold significant sway over the direction of the U.S. housing market in 2014. Following last year’s jump in prices that rivaled gains during the housing boom, Yellen will guide the winding down of the Fed’s bond-buying program that influenced mortgage rates for five years.

If Yellen tapers too quickly, investors could panic, causing mortgage rates to surge, said Diane Swonk, chief economist of Mesirow Financial Inc. in Chicago and an adviser to the Federal Reserve Board. If the new chairwoman goes too slowly, low rates coupled with an improving economy will cause the housing market to overheat, Swonk said.

“Mortgage rates will decide when we buy a house and what kind we can get,” said Bregman, who has been living in his childhood home in Boca Raton for two years to save money for a downpayment. “I’m hoping rates don’t spike up another percentage point, like they did in 2013.”
The average fixed rate on a 30-year mortgage was 4.48% last week, up from 3.35% in early May, according to Freddie Mac, the government-owned mortgage securitizer. Interest rates began rising after Fed Chairman Ben Bernanke told Congress he was preparing to reduce the bond-buying program.

The success of Bregman and other first-time buyers will largely determine the strength of the housing market this year, Swonk said. They have struggled to purchase property because of stiffer mortgage standards following the housing crash and a weak job market. The unemployment rate, at 7% as of November, hasn’t been below that figure since 2008.
The share of homes bought by first-timers fell to 28% in November from 30% at the beginning of 2013, according to the National Association of Realtors. During the decade ending in 2012, the average was about 40%.

“So far, first-time buyers have been missing from the housing recovery,” Swonk said. “They need to come into the market in greater numbers because they have to buy properties before sellers can move up.”
Home prices probably will rise about 5.3% in 2014, half the pace of 2013, according to the Realtors association. Sales of existing homes will total 5.1 million in 2014, matching last year, the trade group predicts.
“Whether any of the housing forecasts are accurate depends on what Janet Yellen does, and no one really knows what that will be,” said Karl Case, co-founder of the S&P/Case-Shiller home-price index. “We’ve never seen an intervention in the market like the Fed has done, so we’ve never seen an unwinding.”
With Bernanke at the helm, the Fed began purchasing bonds guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in January 2009. The Fed’s stated aim was to bolster the housing market by reducing financing costs. The program has helped to increase the Fed’s balance sheet to about $4.03 trillion. Mortgage securities make up about one third of that total, giving the Fed ownership of $1 out of every $7 of U.S. mortgage debt.
The Fed announced Dec. 18 that it will trim its monthly bond purchases to $75 billion from $85 billion while reaffirming its stance to keep monetary policy “highly accommodative.”
Yellen, currently vice chairman of the Fed, was nominated by President Barack Obama in October to lead the central bank after Bernanke’s eight-year run as chairman.
“She’ll probably continue on Ben’s path,” Case said.

Yellen has broken with Bernanke in the past, however. At a 2007 Fed meeting, Bernanke dismissed the danger posed by rising mortgage defaults, saying “the economy looks to be healthy.”
Yellen, a former University of California at Berkeley professor of economics, voiced the opposite opinion.
“The risk for further significant deterioration in the housing market, with house prices falling and mortgage delinquencies rising further, causes me appreciable angst,” she said, according to a transcript.

Yellen said in her Nov. 14 confirmation hearing that she’ll maintain the bond-buying program until a “strong recovery” convinces her to end it. She didn’t provide details on how she might taper the program.
Economists expect the Fed to cut bond purchases in $10 billion incremental moves until ending the program late in the year, according to the median estimate in a Dec. 19 Bloomberg News survey of 41 forecasters. The purchases have shaved as much as 1.2 percentage points off the Treasury yields that are used as a benchmark for mortgage rates, Bernanke said in a 2012 speech.

The economy probably will expand by 3% in 2014, which would be the fastest pace since 2005, according to a Dec. 18 forecast by Fed economists. Last year, the rate was 2.3%, they said.
“The Fed under Yellen will continue to make purchases, but at a lower rate as the economy improves,” Case said. “If the economy stays on this growth path, housing will get enough help from an improving labor market to withstand a reasonable increase in mortgage rates.”
Case said there’s a danger of a rate spike if the Fed’s tightening isn’t done correctly.
“If that happens, your guess is as good as mine,” Case said.

Bregman, the Florida lawyer, is a motivated homebuyer—he’s planning to get married at the end of May.
The bachelor now sleeps in the same room he had in high school, which is still decorated with his basketball trophies and a plaque on the door saying “Adam’s Room.”

“Living with your parents can cramp your style, but it’s a great way to save for a downpayment on a house,” said Bregman, who works for McDonald Hopkins LLC in West Palm Beach. “Just about everyone I know is either living with their parents or living four to an apartment to try to save some money.”

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Housing Demand finally rising?

Homebuilder analysts at Sterne Agee are optimistic about 2014, saying wider credit availability and an overall growing economy will drive housing demand upward.
"We see 2014 as a positive year for housing starts and housing turnover with a caveat that the timing of certain financing catalysts is uncertain," says Jay McCanless, an analyst with the Birmingham, Ala.-based brokerage firm. "We believe the notion of continued job growth, the real lack of housing inventory, and an improving economy as measured by GDP and the index of leading economic indicators are reasons to invest in the homebuilders."
“We view an expanding financing environment as another potential catalyst, albeit with an uncertain time line,” McCanless added.
Despite concerns from elsewhere in the industry that interest rates will be inching upward as a result of the QE3 tapering and new qualified mortgage (QM) rules, McCanless foresees there being more, not less residential mortgage financing available.
"Since the timing of relaxed mortgage underwriting standards is uncertain, we are forecasting average Y/Y order growth of 8.5% for the upcoming quarter, versus the consensus growth estimate of 11.3%," he says. "For the full-year 2014, our average order growth estimate of 16.4% (excluding TPH) is almost 230 basis points above the consensus forecast since we expect financing availability to grow through the year and create demand."
McCanless also says he doesn’t think the more rigid QM rules will have as much effect, because mortgage originators are already underwriting to tighter standards.
"Current mortgage underwriting standards are tighter on average than the qualified mortgage (QM) rule from the Consumer Financial Protection Bureau (CFPB), which is set for release on January 10, 2014. As of November, the average debt-to-income (DTI) ratio for completed conforming mortgages was 41% versus the 43% mandated by the CFPB's QM," he says.
McCanless says that he could not quantify the possible demand increase if the average DTI rises to 43%, but qualitatively, he anticipates implementation and a live evaluation of the rules may widen mortgage availability as originators learn the limits of the new strictures.
McCanless says he thinks homebuilder D.R. Horton (DHI) is particularly well positioned to take advantage of the 15-20% neighborhood growth.
"We believe the lack of open communities has hindered sales and unit order growth for several builders during 2013, and we estimate community count growth could resolve some of these issues," he says.
Many forecasters expect home price increases will slow to single-digit percentage increase over the next 12 months, which could shore up sales and offset the cost of mortgage rate increases to come.
But many are worried that the upswing in housing may be about to stall out, owing as much to outside forces as anything else.
David Blitzer, chairman of the index committee at S&P Dow Jones Indices, has said that monthly numbers are living on borrowed time and the boom is fading fast.  
"The key economic question facing housing is the Fed’s future course to scale back quantitative easing and how this will affect mortgage rates. Other housing data paint a mixed picture suggesting that we may be close to the peak gains in prices," Blitzer said.
"However, other economic data point to somewhat faster growth in the new year. Most forecasts for home prices point to single-digit growth in 2014," he added.


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