A Fort for a Home?

The calligraphy hanging in their entry alcove says, it takes some back-and-forth to arrive at the answer—and even then, I suspect, it is only the closest ap-proximation the English language could offer. “‘We don’t have much, but friends are welcome,’” Ken replies. To which Shino adds, “‘This house is empty, that’s why you can get smarter.’” Smarter? “If you don’t have things, you have to think to accomplish things,” Ken explains. “Basically, you don’t have to have much.”
And the Wabi House, which architect Sebastian Mariscal designed for the couple three years ago, is, on its face, not much. In fact, from the perfectly ordinary suburban street on which it sits, it’s little more than a white cube rising from a black rectangle. But just as the calligraphy encourages the home’s residents to find greater meaning within, so too does the Wabi House itself.


With doors open, Shino and Ken pull an Eames LCW chair for Herman Miller outside to enjoy the space.
“From the list of what Shino and Ken wanted and didn’t want, I could sense that they were sub-consciously requesting an introspective house,” says the bicoastal Mariscal, who has offices in Woodstock, New York, and San Diego, California. “They didn’t want a show-off house; they wanted somewhere they could live forever.” After find-ing out that the property was subject to neither design restrictions nor neighborhood reviews, Mariscal’s San Diego–based design-build team transformed the typical ceramic-shingle-roofed rancher (after completely deconstructing it) into a one-of-a-kind architectural achievement.

But while the Wabi House fits Shino and Ken’s lives like a perfectly tailored suit, the pair didn’t dictate any of the design. “We wanted Sebastian to come up with his own style and ideas,” says Shino. “We tried not to tell him too much—the minimum.” So after an initial series of discussions about what the home should and shouldn’t be, Mariscal (in Ken’s words) went dark. “It was slightly uncomfortable,” Ken chuckles, “but after a few months he pretty much came back with the house you see today.”

“It’s great when you find a client that challenges you to do something more meaningful,” says Mariscal. “They really trusted me.” And so the Wabi House serves as an object lesson in how the most spectacular creative results are accomplished: through the confident patron-age of dedicated, willing clients. Read more: http://www.dwell.com/articles/the-hidden-fortress.html#ixzz1fDmZok7E

Home of the Day-Utah Contemporary

This breath taking modern home located in Salt Lake City. This contemporary home was built in 1984 at 8,100 square feet which was formerly owned by NBA player Andei Kirilenko. It sits on two lots and has beauitful mountain views of Utah and the valley. This home is very stunning in all sense of the word. If you are looking for modern I think you have found it. For more information visit http://online.wsj.com/article/SB10001424052970204262304577068231184446896

Life on the Waterfront

It took nine months before Michael McCarthy and Marcia Myers fully realized what they’d actually purchased in Harbor Springs, Michigan. “We saw this white house listed on the Internet with a lot of glass looking out at the lake,” says Myers, who, along with her husband, had searched for years for a waterfront property. They scouted lake houses and talked about beachfront property in New Jersey and Delaware. “But we kept going back to the Harbor Springs house,” she recalls. “The price kept going down when prices everywhere else were going up.” So they traveled to Lake Michigan to see it in person. They knew about the basics of architecture and modernism, but they were only vaguely aware of Richard Meier. All they really knew was how deeply they wanted the house. At 3,200 square feet, it was set among the trees on the steep side of a cliff, commanding views over a turquoise lake and 970 feet of private beach. The 1973 home had issues, but McCarthy, an engineer by training, cataloged them all and used the information to negotiate a lower price. The house had been renovated once before, in 1988, but it was structurally sound. Looking for yet more information before they bought the house, McCarthy decided to contact the three previous owners. That was when he began to discern the home’s pedigree.Friends started to rave about their purchase. Architects and professors began knocking on their door, requesting tours. “That’s when we realized that what we’d gotten was an American masterpiece,” Myers says. The structure, known as the Douglas House, was conceived in the late 1960s when Jim and Jean Douglas of Grand Rapids reached out to Meier after seeing his 1967 Smith House on a magazine cover. “I wanted a Bauhaus sort of a house, very open,” Jim Douglas recalls. “We didn’t put any parameters on him because architects do their best work when they do it the way they want. Read more: http://www.dwell.com/articles/on-the-waterfront.html#ixzz1fDagKW6R

A Family of Four in a 700sqft Apartment

I read this article about to make a small space worth while in New York a family of four is making full use of thier 700sqft space.

They hired Oliver and McGrath after hearing of the pair’s skill with small spaces. One of the first steps was to eliminate several inches of dry-wall along the eastern side, increasing the floor area slightly. Finger restored the remaining exposed brick himself, leaving a groove in the rear of the apartment between the reclaimed pine floor and wall that enables a convenient cleaning strategy—simply sweep dust into the channel, then run a vacuum hose through it. “A pretty thorough cleaning only takes an hour,” he says. With a job that demands frequent travel, he values saving time as much as space, maximizing weekend hours for family and his favorite pastime: cooking.

The new kitchen sits along one wall of the connective passage between the living room and the rear of the apartment. Finger had initially envisioned an all-black, showroom-style kitchen, but ultimately they went with CaesarStone and a gray color scheme, which kept the kitchen from dominating. Though the area is narrow, there’s still enough room for Jonah to set up a battleground for several brigades of army figurines near his father’s collection of lime green Le Creuset pots. Pantry goods are stored in a narrow sliding shelving unit that doubles as a screen when extended fully, providing some peace and quiet in the bedrooms if the kids need to go to sleep while the parents entertain. The floor slopes up at the bathroom, where existing plumbing necessitated some extra elevation.

In the found space above the original floor, recessed lighting provides a subtle night-light, partially filtered by a mahogany grill over the top. The pillbox lavatory was strategically placed so that the shower could share one of the kitchen skylights. “We believe that natural light is important in a shower,” Oliver explains. “It can transform a standard bathroom into a spa-like space.” Birch plywood and jade green stone mosaic floor tiles add to the Japanese feel.

The end of the corridor becomes a slender office/bedroom, with a tall north-facing window that looks out onto a tree and offers glimpses of Manhattan’s minimally varied wildlife. “We have a squirrel and a nesting pigeon,” Finger tells me, “but of course New Yorkers don’t like pigeons.” Jonah quickly interjects: “Excuse me, it’s a turtle dove, and there were two eggs, and two doves mean good luck.”

Clearly Jonah considers himself lucky to have had his pirate ship aspirations honored. He demonstrates the easy transformation of his sleeping berth from desk into bed, which he can do by himself. The floor hatches are also kid-friendly, he readily proves, with each section of mahogany floor lifting up to reveal cavities approximately eight inches deep for storing electronics, clothes, and toys.

Read more: http://www.dwell.com/articles/a-narrow-victory.html#ixzz1f1dYqXHt

A New Vision

New York design firm LOT-EK is known for incorporating recycled industrial materials—shipping containers, truck beds, even airplane fuselages—into its projects. So when Maurice Russell and Jorge Fontanez asked their friend Giuseppe Lignano, a principal at the firm, to renovate their 1,100-square-foot apartment in New York’s East Village, it came as little surprise that Lignano hauled in a truckload of recycled commercial doors.

The apartment had issues. In the mid-1980s, the building co-op combined each floor’s two narrow units into single dwellings encircling the central staircase, which resulted in wasted space, awkward connections, and dark interiors. In 2009, Russell and Fontanez gave LOT-EK three requirements for their renovation: Maintain the apartment’s circularity, bring more light into its middle, and maximize every inch for storage.

Lignano and his LOT-EK partner, Ada Tolla, put their industrial aesthetic and upcycling expertise to work. “We wanted to turn the problem on its head so that the forgotten and least-interesting areas—the two dark corridors—became the most important, most beautiful spaces,” Lignano says. With the help of contractor Andreas Scholtz of Craft Workshop, they tracked down 63 reclaimed commercial steel doors from Build It Green! NYC and built two tunnels through the apartment. What was formerly dead space is now packed with action. “We compressed everything functional or mechanical into the middle portion so the living room and bedroom could be open spaces,” Lignano says. “It was a puzzle—and a bit of a masterpiece—how we wedged everything in.” Now there’s a brightly lit place for everything.



Read more: http://www.dwell.com/articles/tunnel-vision.html#ixzz1eYwgDf5s

Lenders Suck....

I was at an event the other day and I heard one realtor talking to another realtor about a particular lender. The one realtor said that lender's suck!

Do we really need lenders? There are sites now telling realtors that they can be the lender on their own deal. I can tell you that the most successful realtors, the ones that are tearing it up, have a realtor partner that they trust implicitly. A competent lender does a myriad of things, but the qualities that will help a good realtor to become great

1) Do they want to build me up. I'm not talking about coop advertising....I'm talking about do they care enough about me that they'll invest in me as a person. The great lenders buy their partners life changing or motivational books to help keep each other accountable for greatness.

2) Does your lender fully disclose to your borrowers, educate them and fully realize that all of the business of the future is built upon the investment of their clients today? It's not about low rates, it's about the best program for each client with a fair rate attached. The lender needs to be vested into creating leads from the current clientele.

3) Can they walk towards the cannon fire? Don't you hate a lender that hides. They're happy to receive your referral, but can't communicate if something goes awry. Lenders who can walk towards the cannon fire are lenders you can trust. They're up front honest and truthful.

4) They educate. That's it. That's the bottom line. They said "Larry: This helped to get one buyer off the fence and to a lender for me today. Next step, buying something." Don't think that I'm not aware that knowlege is power.

5) The bottom line is "do they care." We can cross refer all we want, but if my realtor partner doesn't care about me, I'm transactional and not relational. Relational is a system built on trust and mutual investment in the welfare of the other. I have title companies, appraisers and wholesalers offering to buy me this, lunch that, take me here, but I'm not interested. People who are invested in me I will shine for all day long. If you want to schmooze me, challenge me and show me that you believe that I'm capable of great things. Then, you have me for life.

For realtors to become great, they need great partners and great accountability. Most realtors have been disappointed and let down by lenders who promise the world and deliver a grapefruit. But, if you're going to be a great realtor with a great career in this business, then you need to partner with someone who is growth oriented and like minded.

There's a lot of business to be had out there. Life is too short not to enjoy it. Work with someone who is likeminded. Flush them out. They're out there. They may be rare to find, but if you want to be the best of the best, then partner with someone who is just that. So which is it? Do lenders suck or are people just partnering with the wrong lender. A great lender will help a good realtor become a great one.

Remodeling Ideas....

The couple interviewed five architects before settling enthusiastically on Roberto de Leon of Louisville’s De Leon & Primmer Architecture Work­shop, drawn to his “clear understanding of how to use light and space in a thoughtful way,” says Gray.From the outset, there were challenges. For one, the century-old house sits in a historic preservation district. De Leon and project manager David Mayo had to design a structure whose modern flair wouldn’t clash with its surroundings, while also passing muster with Louisville’s strict Historic Landmarks and Preservation Districts Commission.De Leon and Mayo documented every structure within a six-block area, taking design cues from the lean-tos and semi-detached sheds found in many of the neighborhood’s backyards. They proposed cladding the addition in fiber-cement lap siding and painting it dark forest green, a color commonly found on historic Kentucky plantation houses. “That was a way for us to make a case for the scale of the addition, the materials, and even the detailing to the landmarks board as a way to say, ‘This is really in character with everything that’s around this neighborhood,’” de Leon says. Read more: http://www.dwell.com/articles/a-well-grafted-home.html#ixzz1eNHnepp7

Contemporary Problem Solving....

Bringing to you compelling custom solutions to off-the-shelf problems are often hard to come by. But landscape architects James A. Lord and Roderick Wyllie relished the challenge of making a standard hot tub the most exciting element in the garden. The American Association of Landscape Architects gave Surfacedesign a Residential Design Honor Award for the project.Read more: http://www.dwell.com/slideshows/stoked-to-soak.html?slide=1&c=y&paused=true#ixzz1eNCPEKlc

Weekend Mortgage Rates

Foreclosure? Why not...

Forelosures....

What happens more often is the owner of the fore-closed property ends up thanking the buyer for saving him from debtors’ prison. Foreclosure is the legal process by which an owner’s right to a property is terminated. This is usually caused by an owner defaulting so heavily on a loan or tax debt that 
the bank or government steps in to sell the owner’s property to reclaim monies owed. “The deeper into the foreclosure process the owners are, the more of a discount you can get,” explains Jonathan Ainscow, real estate partner in The Johns. An early stage 
of preforeclosure called “financial distress” is when the owner tries to sell a house quickly before the bank or government takes it over, often at a discount.

But Ainscow touts the real deals as being in bank-managed short sales. “Banks are 
not in the business of acquiring properties,” explains Ainscow. “Once they foreclose on 
a house they want to get rid of it quickly.” Short sale properties can sell for 10 percent below their value. It’s this kind of foreclosure that Peter Bracher of Dayton, Ohio, bought. “This 
guy didn’t pay his property taxes, so the government took over,” explains Bracher. 
“It went to auction and we bought it for $15,600.” Though it took Bracher four months of legal wrangling and court proceedings to get the property, he was eventually rewarded for his perseverance.Read more: http://www.dwell.com/articles/foreclosure.html#ixzz1e56vX4iT

Probate Sale?

Thinking about buying something in probate...

Legally, probate is the court’s procedure to determine the validity 
of the deceased’s will and verify the identity of the beneficiaries. A typical scenario is that Grandma Smith died. She bequeathed everything to her loser son, Bobby. Bobby doesn’t have the money 
or fortitude to fix up the house, so he sells 
it, as is, through probate. “Most of the time these houses have worn shag carpet from 1978, rhinoceros wallpaper, and will smell like an 80-year-old woman,” explains real estate agent John Barnette. “This is exactly what you want.” Because of the often poor condition and the insanely frustrating and complex purchase process (every state’s is different, 
but can include putting 10 percent down at the time of the sale), these houses generally sell for 5 to 10 percent under their value. 
In real estate, these are huge numbers.Furthermore, if the deceased died in the house, the property could be even more undervalued. Many cultures view living 
in a house where someone died as strictly taboo; others simply view it as gross. But if you don’t mind having a clay-stained Patrick Swayze massaging your shoulders every time you do the dishes, a probate sale is a gold-mine opportunity for the truly adventurous (and nonsuperstitious).Read more: http://www.dwell.com/articles/probate-sale.html#ixzz1e53VMywK

Modern Home Staging.....

Modern Home Staging.....

And more sellers than ever are staging modern. Modern design befits a staged living environment because of its clean lines and purity of form. It delivers a sense of cool urbanity, blissfully free of that icky lived-in feeling. You may relish the nostalgia of country floral wallpaper or grandpappy’s hand-whittled bar stools, but potential buyers do not. They don’t care about your kickin’ eight-track collection or your Lynyrd Skynyrd airbrushed 
pool table—even if it is ironic.

The homeowner’s equivalent of hiring a celebrity stylist for Oscar night, the modern stager’s goal is to accentuate all architectural assets, making spaces that could be perceived as austere or intimidating feel warm and inviting. Hands-on staging services can cost anywhere from $1,000 for a small condo (utilizing existing furnishings) to $10,000 or more for larger homes in desirable markets.Beth Ann Shepherd, the president of Dressed to Close, a full-service staging company based in Los Angeles, explains the physics-defying effect that staging can have on a home. “It makes small rooms larger, outdoor areas more dramatic, and expands overall square footage,” 
she explains. And it’s not merely about looks. “In my experience, [staging] always increases the sale price,” 
she continues. “It’s a short-term, high-yield investment.” High-end staging companies such as Shepherd’s can turn an empty house into a swingin’ mod paradise in 48 hours. They source from vendors all over the world, scouring the Milan and High Point furniture fairs for the latest “it” item.

Your home can be custom designed (“done-done” in the industry vernacular) with lighting, rugs, upholstery, bedding, chairs, sofas, and even custom artwork. Shepherd calls these homes “designer perfect.” As design is increasingly democratized, buyers are adopting new ideas of what constitutes desirable decor. “People want modern,” Shepherd continues. “Modern has become symbolic of success, of happiness.” And modern home staging is particularly adept at communicating a lifestyle—that elusive symbiosis of good design and subtle luxury that says, “I’ve made it. Not that I care…”The most popular staging pieces represent a cadre of design classics typically found in five-star boutique hotels or the pages of, well, this magazine. Italian and mid-century chairs. Low-rise sofas. Modular sectionals. Pony-skin rugs. And, of course, our friend the Barcelona chair. “Everyone loves a Barcelona chair,” Shepherd says. “It’s the epitome of modern staging.”But the clincher is, surprisingly, the humble ottoman. “Oversize movable ottomans are the hot item right now,” Shepherd explains. “They allow people to improvise their living spaces.” As the popularity of staging increases, so does the number of buyers who purchase homes completely furnished. “Homes are selling ‘to go,’” Shepherd says. “Especially single men. They buy it all.”Good news for the swanky bachelor set. But does this result in a sort of assembly-line design, the aesthetically principled version of the McMansion? Or perhaps the to-go home typifies the point of modernism, to simplify, embrace functionality, and celebrate essential objects.

Either way, business is booming. Shepherd is even launching a new product line website, fabulousbyfriday.com, built around pieces used for staging purposes.Paul Kaplan, a Palm Springs, California–based real estate agent who specializes in modern homes, also notes that staging can educate owners about the assets of their own spaces. “Often I get listings from sellers that may not have an appreciation for the modern design of their home,” he explains. “Staging shows people how a space can be used.”Perhaps the most persuasive argument for modern staging is in the numbers. In a 2004 survey of almost 2,800 properties in eight U.S. cities, staged homes, on average, ended up getting 6.3 percent over their asking price. For anxious would-be sellers, that’s reason enough.Read more: http://www.dwell.com/articles/all-the-homes-a-stage.html#ixzz1e51U1Ob8

By: Heather Wagner
Illustrated by: Rinah Lang

Real Estate in Copehagen....

Jamie Gross at Dwell Magazine just returned to the office from a trip to Copenhagen spent reporting a handful of stories for the magazine and scouting future projects. A highlight of the trip was my visit to HAY, a fantastic store dedicated to contemporary Danish design that's set in a historic building overlooking Strøget, the city's main pedestrian thoroughfare. I spent more than an hour in the store in a kind of happy design daze, gawping over the lovely sofas, chairs, rugs, tables, and miscellaneous gifts and gadgets. Here are some photos from my visit. I'll share some of my other favorite Copenhagen discoveries online over the next couple weeks.Read more: http://www.dwell.com/articles/a-visit-to-hay-copenhagen.html#ixzz1du8i6tVw

Market Analysis For Our Area

Setting the Right Price

I know most sellers hate having this converstation with thier agents. But the thing is, it must be done. The knowledge of knowing that the list price is a set price in time and it must change as the market changes. Sometimes its all about setting the right price and letting the buyers determine the value that they are willing to pay.

Fannie and Freddie Detail New HARP Guidelines

11/15/2011 By: Carrie Bay
Enter your email to receive Daily Email Updates:
Fannie Mae and Freddie Mac have released highly anticipated guidelines for the revised Home Affordable Refinance Program (HARP).

Both GSEs have posted details of the program modifications and procedural changes on their respective business sites for mortgage servicers to follow (Fannie’s, Freddie’s).
Among the key program revisions, the GSEs have eliminated or raised the loan-to-value (LTV) cap, and relaxed representation and warranty stipulations – changes that officials expect to at least double the number of homeowners with a HARP-refinanced mortgage. Since the program was launched in 2009, just under 900,000 borrowers have participated.
Negative equity typically excludes a homeowner from refinancing through traditional channels. Removing previous LTV ceilings will allow homeowners who are severely underwater due to plummeting property values to take out new loans at today’s lower interest rates. There are, however, some LTV conditions depending on loan type.
There are no LTV restrictions for fixed-rate mortgages with terms up to 30 years, including those with terms of 15 years.
For fixed-rate loans with terms between 30 and 40 years, LTV is limited to 105 percent. Likewise, a 105 percent LTV cap has been placed on adjustable-rate mortgages (ARMs) with initial fixed periods of five years or more and terms up to 40 years.
Any borrower with an LTV ratio below 80 percent is not eligible for HARP.
As previously announced, across the board, the original mortgage must have been sold to Fannie or Freddie prior to April 1, 2009.
In the October notice announcing their intent to modify HARP to increase participation, the GSEs said they would “waive certain representations and warranties” on loans refinanced through the program. Analysts said at the time
that depending on what exceptions would be made, such a move could spark increased competition among lenders to refinance borrowers through HARP.
In Tuesday’s guidance, the GSEs provided specifics on which liabilities would be lifted and noted that the rep and warranty adjustment is one of the most important components of the new program.
The lender will not be responsible for any of the representations and warranties associated with the original loan.
The lender is also relieved of the standard underwriting representations and warranties with respect to the new mortgage loan as long as the data in the case file is complete and program instructions are followed for collecting information on income, employment, assets, and fieldwork.
The lender is not required to make any representation or warranty as to value, marketability, or condition of the subject property unless they obtain a new appraisal.
Lenders will, however, be held accountable for any fraudulent activities.
Administration officials are hoping that eliminating the risk associated with reps and warranties – whether transferred from the original loan or on the new loan – will spark healthy competition among lenders to help homeowners get into the program. And Fannie and Freddie are making it easier for the competition to flourish.
The GSEs are modifying their policies to allow lenders to solicit borrowers with Fannie- and Freddie-owned mortgages for a refinance. The only condition is that the lender “simultaneously applies the same advertising and solicitation activities” to borrowers of both GSEs, and for loans both owned or securitized by the GSEs.
In the new guidelines, the GSEs detail specific language that must be included in any borrower solicitation material.
Regarding program eligibility as it relates to delinquencies, the borrower must not have been behind on their payments at all within the most recent six-month period, and had no more than one 30-day delinquency within the last year.
The GSEs are also removing the requirement that the borrower (on the new loan) meet the standard waiting period following a bankruptcy or foreclosure. The requirement that the original loan must have met the bankruptcy and foreclosure policies in effect at the time the loan was originated is also being removed.
The new HARP program has been extended through December 31, 2013

One Thing That Still Concerns Us

There is no doubt that the housing market is stumbling to a recovery. This past week Lawrence Yun, NAR’s chief economist, predicted a 4% increase in sales next year. Last month, Celia Chen of Moody’s Analytics projected sales to increase over 20% in 2012. Any increase in transactions will be welcomed.
However, we believe there is one headwind that could jeopardize a recovery: fragile consumer confidence. Consumer sentiment, as measured by the University of Michigan, has seen modest improvement in the last few months after nose diving over the previous several months. Moving forward, any hit to consumer confidence will impact a real estate rebound.
Prices are predicted to soften through the first two quarters of 2012 before reaching modest levels of appreciation by year’s end. Falling prices will force more homeowners into a position of negative equity. Being underwater is one of the triggers that cause people to strategically default on their mortgage obligations. If this happens, there will be an increase in the number of foreclosures. This, in turn, could cause a relapse in consumer sentiment.
Bottom Line
We believe that there will be a dramatic increase in residential real estate transactions (both existing sales and new construction sales). The only thing that may stand in the way is a loss of confidence in a housing recovery. The next six months will tell us a lot regarding this possibility.

Best day to list real estate for sale: Friday

Sellers should list their home on a Friday for the best chance of selling it, according to Seattle-based brokerage Redfin.

Redfin analyzed data for 1.2 million listings in 16 markets nationwide over the past 21 months. The brokerage found that of all listed homes in those 16 markets, those listed on a Friday were 12 percent more likely to sell within 90 days, and homes listed on a Thursday or Friday sold, on average, for slightly closer to list price: 94.4 percent compared with 93.9 percent when homes are listed on a Sunday or Monday. Put another way, that's a $1,000 difference on a $200,000 home.

Homes listed on a Friday were also 18.8 percent more likely to be toured by Redfin customers. Homes listed on a Sunday or Monday were the least likely to be toured.

"Our theory is that since homebuyers tend to tour homes on the weekends (Saturday and Sunday have 2.5 times more tours per day than weekdays), homes listed on Fridays are the freshest in buyers' minds when they're making their weekend plans. It also seems likely that many homebuyers sort their weekend 'must see' lists by date listed, going to see the freshest homes first so they have the best chance of getting in on a potential good deal before other buyers," the brokerage said in a blog post about the findings.

Hud Home for $100 dollars down!!?

The U.S. Department of Housing and Urban Development (HUD) is offering its foreclosed homes for a mere $100 down from now until October 2012.
HUD like other federal agencies, are anxious to unload properties they hold, because they can be a financial drain.
Of course you'll have to qualify for a mortgage, you may have to pays some closing costs, the deal isn't available everywhere and the condition of the homes is strictly "as-is."
If you can handle those qualifiers, here's the deal:
• You can only buy HUD homes. Go to the HUD Homes For Sale web page.
• You must use a HUD-registered real estate broker or agent.
• You must qualify for and use Federal Housing Administration (FHA) financing.
• You must plan to be an "owner-occupant," buying the property to live in and not as an investment.
• The home's purchase price must be no more than the appraised value of the property. If you bid a higher price you can pay the difference in cash, minus $100.
• The $100 down incentive must be on the executed contract. That means you have to specifically request the incentive. Your real estate agent should be aware of this provision.
• In some cases, HUD will also cover up to 3 percent of the closing costs.
• The $100 down payment program is eligible for the FHA 203(k) loans. The loans allow borrowers to use a portion of their purchase loan to repair and renovate run-down homes.
That's a good thing because HUD homes are sold in an "as-is" condition -- what you see is pretty much what you get. You could find a diamond in the rough or fool's gold. HUD homes often include a property condition report, but that is not a warranty.
The property report can resemble a home inspection report, but HUD home buyers are always encouraged to get a home inspection to determine just what "as is" is.
The deal is offered in states in two HUD regions:
Denver Homeownership Center
Arkansas Colorado Iowa Kansas Louisiana Missouri Minnesota Montana Nebraska New Mexico North Dakota Oklahoma South Dakota Texas Wisconsin Wyoming Utah
Atlanta Homeownership Center
Alabama Florida Georgia Kentucky Illinois Indiana Mississippi North Carolina South Carolina Tennessee
Published: November 10, 2011

Rate on 30-year mortgage below 4 pct. for 2nd time

WASHINGTON (AP) -- The average rate on the 30-year fixed mortgage fell below 4 percent for just the second time in history.
Freddie Mac said Thursday the rate on the 30-year fixed loan fell to 3.99 percent, down from 4 percent last week. Five weeks ago, it dropped to a record low of 3.94 percent, according to the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage fell last week to 3.30 percent from 3.31 percent. Five weeks ago, it too hit a record low of 3.26 percent.
Mortgage rates track the yield on 10-year Treasury note, which fell this week as investors shifted money into safer Treasurys amid fears Europe's debt crisis could worsen.
[Click here to check home loan rates in your area.]
Low mortgage rates have down little to boost home sales. Rates have been below 5 percent for all but two weeks this year. Yet home sales are on pace to be the lowest in 14 years.
Refinancing activity jumped more than 12 percent last week from the previous week, to the highest level in a month, according to the Mortgage Bankers Association. But refinancing is down 13.5 percent from a year ago and the four-week moving average for purchase and refinancing mortgage applications is down slightly, suggesting the low rates are failing to entice many Americans.
High unemployment and declining wages have made it harder for many people to qualify for loans. Many Americans don't want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have.
The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent.
Just five years ago they were closer to 6.5 percent. Ten years ago, they were above 8 percent.
The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for the 30-year fixed mortgage was unchanged at 0.7. The average fee on the 15-year fixed loan rose from 0.7 to 0.8.
The average rate on the five-year adjustable loan rose to 2.98 percent from 2.96 percent, which had been a record low. The average rate on the one-year adjustable loan increased to 2.95 percent from 2.88 percent. It fell last month to 2.81 percent, the lowest on records dating to 1984.
The average fees on the five-year and one-year adjustable loans were both unchanged at 0.6.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.