Housing Affodability News

If you have been considering a move to ownership or changing what you own, now is a great time

The housing affordability index shows how affordable housing is.

Yes prices have gone up and there are not piles of foreclosures but rates are down and some wage growth.  We are at a great place looking back to 1990.

Affordability has gone down a little since 2012 but still well above the 100 base line.

If you are thinking about selling, this means that Buyer's are very able to buy your home.

To see how this impacts your unique situation, call, text or email

Why We All Need a 'Phil Dunphy' on Our Side

Whether or not you’ve ever seen an episode of Modern Family, or know who Phil Dunphy’s character is, the concept of knowing that you have someone in your corner who is looking out for your best interests is something we all want.

When it comes to buying a home, whether you are a rookie homebuyer or have gone through the process many times, having a local real estate expert who is well versed in the neighborhood you are looking to move into, and the trends of the area, should be your goal.

For those who aren’t familiar, the character Phil Dunphy is a Realtor with a huge heart who always strives to do the best for his family and his clients.

In one recent episode, Phil even shared the oath that he created and holds himself to:

"On my honor, I promise to aid in man's quest for shelter, to recognize I'm not just in the business of houses -- I'm in the business of dreams in the shape of houses. To disclose all illegal additions, shoddy construction, murders, and ghosts. And to put my clients' needs before my own." 

While this might seem silly, and it was definitely written with humor in mind, the themes of helping someone achieve the American Dream and putting a client's needs above your own are not to be taken lightly.

Bottom Line

When you make the decision to enter the housing market, as either a buyer or a seller, make sure you look for an agent who exemplifies these values and will help you through every step of the process.

Your help is only a call, text or email away.

Homebuyer Education

Homebuyer education – the member perk that keeps paying off

September 9, 2016by TAMMY TREFNY, FANNIE MAE

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Buying a home is complex – and many people just don’t understand the process or what it takes to get a mortgage.

Consumer surveys conducted by Fannie Mae’s Economic Research and Strategy Group (ESR) have shown 85 percent think they need to put more down (12-15 percent) than is actually required (3 percent for Fannie Mae’s HomeReadyÒ program, for those who qualify).

Research from ESR’s National Housing Survey shows that this common misunderstanding is even greater among households of modest means and minority households. More than half (54 percent) of those with income below $50,000 did not know what the minimum down payment could be. Similarly, 47 percent of African Americans and 48 percent of Hispanics were unaware.

Credit Education is Important

A home is the largest investment most consumers will ever make. Yet, few seek out the advice of independent professionals who could help them through the process like HUD-approved housing counseling agencies. “The availability of high-quality and independent professional housing advice could be the best kept secret in the industry,” says Joe Weisbord, a director in Fannie Mae’s Single-Family business who works on access to credit.

Although not well known, it’s an approach that works.

A study of the two-year loan performance of more than 18,000 pre-purchase counseling clients from the NeighborWorks America’s network found clients who received counseling were one-third less likely to become 90 or more days delinquent in the two years since obtaining their loan when compared to similar borrowers who did not receive pre-purchase counseling.

Empowering Borrowers

All HomeReady borrowers complete an online education course offered by Framework Homeownership.

Framework continues to get high marks from first time and repeat homebuyers. It provides the essential knowledge to prepare borrowers for homeownership.

But we’ve recently added flexibility for more in-depth help for buyers still facing real barriers like weak credit and limited savings. We’ve expanded our guidelines to accommodate one-on-one counseling, so consumers who meet with advisors for customized consultation (involving a comprehensive review of goals, household budget, and credit) can fulfill HomeReady’s educational requirement and be qualified with higher LTVs. Because these borrowers have gone through counseling that includes a thorough review of their budget and credit, so they can sustain that level of debt to income ratio (DTI).

We think this change opens the doors to homeownership for borrowers who were unable to qualify in the past based on their DTI. They can complete one-on-one counseling, and move into homeownership when they are ready.

The counseling industry is very excited about this change, and happy to be recognized for the great work that they do.

Hitting Home

Homeownership advisors are the untapped resource that can prepare today’s homebuyers for sustainable ownership.

Fannie Mae will continue to work with credit unions, real estate professionals, and housing counseling agencies to promote homebuyer education and responsible homeownership.

Like you, we want members to make housing decisions that reflect positively on all parties involved.

When you are in need of answers or education, call, text or email

New tool for home value

Three computer generated estimates of your home's value

Let me know what you think.

Of course, no program can factor in the things that make your home unique.

Call, text or email me

GUIDE TO SELLING YOUR HOME

It’s difficult to know when is the best time to sell, or how to get the most money for your house, but you don't need to go through the process alone.

You may be wondering if prices are projected to rise or fall...or if you should rent your house instead of selling it. The free eGuide below will answer many of your questions and likely bring up a few things you haven’t even thought about yet.

Check it out, and feel free to get in touch if you have any questions.

Just call, text or email.

Setback Thermostats - how they help and when NOT to use them

Advice and explanation from This Old House

When you need a new place to save energy, call, text or email.

Be Aware of what can increase your insurance

8 Things That Can Push Your Insurance Rates Through the Roof

Insurance companies are mysterious entities, and divining how they determine your home insurance rates, minimum liability, and every other confusing aspect of your policy is hardly a sport for the faint-hearted.

Even worse than the gobbledygook is when they surprise you—a new trampoline suddenly jacks up your premium, or that sweet new puppy means immediate cancellation.

Don’t get caught off guard—make sure you know what raises red flags over at your insurer’s HQ.

1. Swimming pool

There’s nothing better than splashing in a pool on a hot summer’s day, especially if it’s right outside your door. But insurance companies don’t care if you need to beat the heat. They see your new pool as an “attractive nuisance”—and nothing more.

“People play in and want to use these things, and they are inherently dangerous,” says Michael Thrasher, a research analyst who specializes in the insurance industry at ValuePenguin, a personal finance research and analysis company. “If they happen to fall in, you as a homeowner are responsible.”

And nothing concerns insurance brokers more than potential lawsuits. Standard policies come with $100,000 of liability coverage—which barely covers the attorney fees in a wrongful death, much less potential payouts.

“Every attorney I talk to recommends you purchase additional liability coverage if you have a pool,” Thrasher says.

2. Trampoline

These babies are also considered “attractive nuisances,” and most insurance brokers strongly recommend avoiding them completely because of the high risk of injuries or death.

While he admits it’s unusual, Thrasher says he’s heard of situations where a homeowner either can’t get coverage or is completely dropped by an insurance company because of a trampoline.

And as tempting as it might be, don’t hide the fact you have one from your insurance company. Some folks might assume there won’t be incidents because their kids are responsible, or because the trampoline is covered with a net or buried in the ground. But accidents happen—including neighbors’ children sneaking onto your property.

“If you don’t report a trampoline to your insurer, you’re opening up a door to have a claim denied,” Thrasher says.

3. ‘Dangerous’ dog breeds

Few insurance companies will outright tell you to ditch your beloved pup, but they might beg you to reconsider before adoption … and drop you if you pick the wrong breed.

Common no-no pets are Akitas, pit bulls, Rottweilers, and German shepherds, although you should check with your insurance company before heading to the breeder or shelter.

While this restriction might seem silly to a dog lover—some pit bulls are as sweet as pie—Thrasher says there’s a reason for it. The number of dog liability claims has decreased, but the cost of each has increased 16% year over year, thanks to increased medical costs and larger settlements and judgments.

Costwise, “these incidents are up there with a fire,” Thrasher says.

4. Upgrading your home’s exterior

Brick might look better, but don’t upgrade your exterior without letting your homeowners insurance agent know first. If a fire or natural disaster occurs and you’re forced to replace your home, you should remember that nicer materials like brick and stone are much more expensive than vinyl or aluminum siding. That can affect the amount of liability you need.

It’s rare to downgrade your exterior, but if you’re eager to replace that attractive stucco with something a little cheaper (OK, and admittedly easier to clean), check in with your agent. If your new selection isn’t fire-resistant or can’t handle weather damage, the insurer may cancel your policy.

5. Treehouse

Here’s another attractive nuisance your kids might be begging for: treehouses. (No, we’re not talking about freestanding jungle gyms or slides. We mean the ones literally built around a tree.)

Kids see an oasis of fun and happiness and come running, not caring the slightest that they might fall from 10 feet and break an arm, Thrasher says. Before building, discuss your plans with your agent, and expect it to affect how much liability you need to purchase—and by extension, your monthly premium.

6. Vacation homes

No, it doesn’t seem fair that your insurance company can ding you for a home you’re not even living in most of the time, but you should prepare for it to happen.

“People roll their eyes and say, ‘Well, there’s nothing different about this home—why do I pay more?'” Thrasher says. “But when you think about it, it makes sense.”

After all, your primary home is where you live most of the time—making burglaries less likely and meaning you can quickly fix any major problems that arise. If water starts leaking in the basement of your primary residence, you’ll know. If a damaging drip forms in your upstate cabin, it might be a few weeks (or even months) before you notice. That means higher risk, and thus, a higher premium.

7. Frequent Airbnb-ing

Don’t jump onto the home-sharing trend without remembering the golden home rentalrule: fewer than 90 days.

“If you rent out your home a few times a year via Airbnb and something were to happen, your insurance will probably cover them,” Thrasher says. That all changes when you reach the 90-day threshold. Because they’re covering you as an individual, not a business, it’s likely they won’t cover any claims on a property used for frequent home-sharing.

If you insist on going that route, work with your agent to figure out exactly what coverage you need. Or be prepared to shoulder the enormous burden of paying to repair damage from a fire or flooded basement all by yourself.

8. Lots of claims

Some people are naturally butterfingered. And while none of us blames you, your insurance company might. Consider the severity of each incident before filing a claim, otherwise you run the risk that your policy might be terminated.

“If you file four claims in a year for small things, all of a sudden you are starting to appear like someone who is very accident-prone,” Thrasher says.

At the very least, expect a premium increase after a couple of claims. And while it’s rare to be completely dropped, it might happen if your insurer determines you were at fault for most of the accidents.

Feeling hemmed in by all the rules? It’s a tricky process to navigate, but do one simple thing and you can avoid the chaos: Talk to your broker before making any major change. You’ll save yourself headaches—and potentially huge costs—down the line.

As always make and informed decision.  Need a way to comparison shop for coverage and cost?  Just call, test or email