What do the New FHA Lending Changes Mean to Buyers?

What do the new FHA lending changes mean to buyers?  The sweeping set of policy changes for FHA announced in late January were designed to strengthen the FHA's capital reserves to support the nation's housing market recovery, says David H. Stevens, US Dept. of HUD.  Included in those changes are:

1. An increase in the up-front MIP (Mortgage Insurance Premium) and a future increase on the annual MIP.  This will go into effect in the spring.
2. New borrowers will need a 580 or better credit score in order to only put 3.5% down on their loan.  If lower than 580 they will need a 10% down payment, beginning this summer.   This allows FHA to lower its risk and to be able to continue to provide loans to borrowers who have shown themselves to be good credit risks.
3. Increased FHA lender enforcement of adhering to FHA guidelines and standards, also going into effect this summer.
4. Reduction of seller concessions from 6% to 3%.  The current level exposes FHA to excess risk by creating incentives to inflate the appraised value of the home.  This, too, will go into effect this summer.

So what do these changes really mean for future borrowers?  It means a return to the sound business practices lenders used to follow whereby the borrower needed good credit and a substantial down payment before becoming a homeowner. 

The borrowers who benefit from future FHA loans will be more likely to be able to repay those loans and not end up in  foreclosure like many folks today.  Fewer people will be able to purchase homes through the FHA, but those that do, will be able to pay their bills!  And FHA should be financially stable and around many more years to help future home buyers.  It's a good thing.

Sellers Beware! Top 10 Ways to Turn off A Homebuyer!

We work with both sellers and buyers, and see a lot of San Antonio homes.  Some are ready to be on the market, and others not so much.  Sometimes it is hard to communicate to sellers what it takes for a home to be ready for prime time!  This list from Jay McDonald, 10 Ways to Turn off a Homebuyer, says it very well.

10 Ways to Turn off A Homebuyer....

• Dirt  Cleanliness IS Godliness!  No one want to buy your dirty home and have to clean it!
• Odors  Smoke odors or pet odors make buyers walk right back out the door!
• Old fixtures  You didn't replace them because it cost so much, why should the buyers want to do it?
• Wallpaper  A big no, at least at the present time.  Buyers don't want it -- take it down!
• Popcorn acoustic ceilings  Can be removed, but it's a messy job.  Younger buyers hate it!
• Too many personal items  You're not selling your family or possessions, just your home!
• Snoopy sellers  When the home is being shown, LEAVE the HOUSE!
• Misrepresenting your home  If buyers are expecting too much, they'll be disappointed and won't buy your home.
• Poor curb appeal  Preparing the outside of the home is just as important as preparing the inside, maybe even more crucial!
• Clutter  Piles of clutter tell the buyer that the home is TOO SMALL.  Ditch the clutter and organize the home's contents to emphasize the existing storage.

Were You a First Time Homebuyer in 2009?

Were you a first-time homebuyer in 2009?  When you get around to doing your taxes this Spring, do you know what IRS will need from you in order to get your tax credit? 

According to the IRS website,  there are five items you need to have in order to verify the details of your home purchase for the purpose of getting your tax credit.  They are:

• A copy of the final closing contract (HUD-1 Statement)
• A copy of your most recent monthly mortgage statement 
• If the home was newly constructed, a copy of the occupancy permit

Plus two of the following four items:

• Copy of your current drivers license showing home address
• Copy of a recent pay statement showing your name and home address
• Copy of a recent bank statement showing your name and home address
• Copy of a current auto registration showing your name and home address

So, get your records in order, homebuyers, and enjoy the one-time benefit you are receiving.  And, welcome to the club of home-OWNERS!

Maintaining Your Kitchen Countertops from the DIY Network

From the DIY Network comes an excellent article about maintaining your kitchen countertops .   The article addresses the three most common types of countertops: plastic laminate tops, solid surface  and natural stone countertops.

Plastic Laminate Countertops
These are fairly easy to maintain, and therefore to increase their appearance and life.  Common sense tips like: wipe off spots and spills with a damp cloth and mild soap.  Don't allow water to stand on the seams or on the backsplash.  Don't use the countertop as a cutting board.  Be careful of cigarette burns, or damage from anything else that is hot that touches the tops.  Re-apply caulk as needed to keep out water penetration.

Solid Surface Countertops
Clean up spills immediately, but don't use abrasive pads.  Dry the top after cleaning.  Do not put hot items directly on the surface.  Don't use the surface as a cutting board.  Do not allow acetones, such as are found in paint cleaners and nail polish, to come in contact with the surface.

Natural Stone Countertops
Clean regularly with soap and water, but don't use abrasive pads. Wipe dry after cleaning.  Dust the countertop regularly.  Repair chips, scratches, burns and stains following the manufacturer's instructions.  Check to see if you should have your stone countertops sealed to prevent staining.

San Antonio Area Companies Are On the "Best to Work For" List

Three San Antonio area companies are ranked in the "100 Best Companies to Work For" list from Fortune Magazine.  A relatively new company, NuStar Energy LP is ranked at No. 21, while nearby New Braunfels company Scooter Store is ranked No. 38, and San Antonio insurance giant USAA is ranked No. 45.  The score is determined by a random survey of employees and the pay, benefits, hiring, communication and diversity of the company.

NuStar showers employees with no-cost health insurance for them and their families, and an old fashioned pension plan.  Full time turnover is a low 3%!

The Scooter Store practices celebrations for employees, including quarterly pep rallies and daily birthday parties.  40% of employees are salespeople who earn commissions based on their performance.

USAA boasts top of the line benefits such as a 401(k) match of up to 8% of pay and performance bonuses up to 18% of pay for their almost 22,000 employees.

Congratulations for these three fine area companies in the Alamo City area!

Do's and Don'ts for Maintaining Your Kitchen Cabinets

The Do It Yourself Network has some great tips for maintaining your kitchen cabinets.  Whether you are getting your San Antonio home ready to sell, or just wanting to keep your cabinets looking like new,  follow these easy steps.

Do inspect the caulk around sinks and backsplashes to prevent water damage to cabinets.
Do clean knobs and drawer pulls using mild soap and warm water.  Dry with a soft cloth.

Do lubricate and adjust drawer slides periodically.  Use a little silicone spray lubricant.
Do lubricate and adjust door hinges.
Do tighten loose knobs or pulls.


Don't put wet dishes in cabinets - dry thoroughly before putting them away.

Don't clean cabinets with harsh abrasives.


Don't hang wet dishcloths on the edge of the countertop or on cabinet doors or drawers.


The DIY article also gives specific tips for wood cabinets and plastic laminate cabinets.  Check it out!

San Antonio Housing Forecast for 2010

On Monday, Jan 4th, local San Antonio Realtors, builders, developers, and other experts, gathered to hear the predictions for the 2010 San Antonio housing market.   They describe their outlook for new housing starts and closings as cautiously optimistic, expecting it to be as good or better than the '09 market.  Fueling the optimism is the expectation of an influx of jobs into San Antonio in the coming year.

In 2009, San Antonio housing starts and closings dropped 18% and 25% from the previous year.  But by the end of the year, the market showed signs of bottoming out, leaving builders and developers anticipating a much better year.  Currently San Antonio has a healthy inventory of available homes, and about 2,000 homes under construction, making us one of the top housing markets in the United States.