Changes coming this summer to FHA loan program

Significant changes coming this summer to FHA’s loan program

Be in the know before the June 15 changes go into effect

by Tony Davis on Apr 29, 2015

For FHA case numbers assigned on or after June 15, 2015, there will be significant changes to current guidelines, which will impact the typical FHA borrower both positively and negatively. Here are some of the most game-changing aspects of the new FHA rules:

Student loans

Underwriters will no longer be able to exclude student loan payments for FHA loans. Currently, student loan payments in deferral for at least the next 12 months can be excluded from debt ratios.

Gift funds

If down payment proceeds are gifted to the buyer, lenders will soon be required to obtain a bank statement from the donor’s account, as well as source any large deposits to the account in order to document that the donor’s funds came from an acceptable source.

30-day accounts  

For 30-day accounts such as Amex, mortgage companies will soon be required to verify the borrower paid the outstanding balance in full on every 30-day account each month for the past 12 months. 30-day accounts that are paid monthly will not be included in the borrower’s DTI. If the credit report reflects any late payments in the past 12 months, the lender must utilize 5 percent of the outstanding balance as the borrower’s monthly debt to be included in the debt ratios.

Authorized user accounts

Accounts for which the borrower is an authorized user will be included in a borrower’s DTI ratio unless the lender can document that the primary account holder has made all required payments on the account for the previous 12 months. If less than three payments have been required on the account in the previous 12 months, the payment amount must be included in the borrower’s DTI.

Employment

If an employee has changed jobs more than three times in the previous 12 months or has changed lines of work, the lender must take additional steps to verify and document the stability of the borrower’s employment income. Gaps of employment greater than six months will require six months on the new job, regardless of what created the gap. Raising a family is no longer an acceptable reason for the gap.

A prolonged period of low housing supply has made the Atlanta real estate market extremely competitive, with many more buyers than sellers. When these changes roll out, it will become crucial for real estate agents to have their buyers underwritten and approved before making any offers.

Given the extent of the new documentation requirements, lenders will need to make sure to be very thorough upfront to prevent deals from falling out of escrow. A prequalification letter based on stated income/assets and a cursory review of the credit report is no longer going to be enough.

Please keep in mind these changes are not all encompassing — more details are expected soon. Click this linkto see the full manual that will go into effect June 15, 2015.

https://www.inman.com/2015/04/29/significant-changes-coming-this-summer-to-fhas-loan-program/

Tony Davis is a Senior Loan Officer with Movement Mortgage, in Atlanta, Georgia.

What if Your Teenager Doesn’t Want to Move To A New City?

You’ve got a new job offer across the country and you are planning to pack your things, buy a Florida home and make the big move. However, when you tell your 17 year old daughter your plans, she lets out a mournful wail and cries that it is not fair. How can you possibly take her away from all of her friends, her favorite hangout spots and the cute boy she just started seeing?

Moving house is a difficult transition and it is even more traumatic for teenagers. The teenage years are an important stage where young adults establish their individuality and independence and during this time their social circle is extremely important to them. Being removed from that against their will can make any teen feel sad, confused, angry and resentful. Also, fitting into a new social scene in a different location can be a challenge for a teen that might be singled out as the “new kid”.

How can you help your teen during this transition so that the experience will be easier on them?

How to Help Your Teen Move

Here are some tips that will make the experience of moving house a little bit easier on your teenager:

• Give them as much notice as possible so that they have time to adjust to the idea of moving. They will feel like they have enough time to say goodbye to their friends and close a chapter of their lives.
• Try to schedule the move around the school calendar, as moving in the summer is much less disruptive to your teen’s life than relocating in the middle of the school year.
• Make sure that they have ample time to spend with their close friends before they leave and once you arrive, understand that they might go through a grieving process of missing their old pals.
• When you get to your new home, make sure that your teen has plenty of ways to keep in touch with their old friends, such as an internet connection and a cell phone plan.
• Encourage your teen to get involved in the community of your new hometown, such as joining sports clubs or attending events. This can help them to [make new friends][2].

Can They Stay Behind?

In some situations, the better option might be to let your teenager stay behind. If they are in their older teens, they will have finished high school, maybe have a job and be independent people of their own. Perhaps they could stay with a family member or parents of a friend for a while until they are old enough to move out on their own. This might make them a lot happier in the long run, rather than taking them along with you if they really don’t want to move.

For more advice on moving to your new home, feel free to contact us at info@optimaonerealty.com or phone us at 352-243-6784.

Links:

Angry: http://everydaylife.globalpost.com/talk-angry-teen-5913.html

make new friends: http://www.lifehack.org/articles/communication/how-to-make-a-bunch-of-new-friends-in-any-new-city.html

have a job: http://voices.yahoo.com/5-reasons-why-teenagers-after-school-331714.html?cat=25

[2]: http://www.lifehack.org/articles/communication/how-to-make-a-bunch-of-new-friends-in-any-new- city.html

Home Design Trends for 2015

According to Details.com here are the top 10 Home Designs of 2015;

Big Comfy Sectionals

Shades of Blue (also a big hit on the 2015 home color trends lists)

Old Table, Mod Seats

Black Window Sashes

(One of my Favorites) Vintage Tubs

Decor Libraries

Pale Driftwood Finishes

Hexagons and Honeycombs

Four-Poster Beds

Light Fixture Statements

Source: By Houzz.Com Editor Sheila Schmitz

http://www.details.com/culture-trends/home-interiors/201412/interior-design-trends-2015#/slide=2

Questions to Ask Your Home Inspector

When you buy a Florida home, you need to know exactly what you’re buying. Imagine how frustrated you’d be to find out that the hot water heater wasn’t working—in the middle of a shower! This is why you should have a home inspection before you buy your home. A home inspection is an important part of buying your home. Before you hire a home inspector, ask candidates a few questions to make sure you hire a trustworthy inspector.

1. What does your inspection cover? Not all inspections are the same. Ask for copies of previous home inspections so you can see exactly what they will check inside the home. If you are concerned about something specific, like a leaky faucet in the bathroom, mention that to the inspector so they can check it out.
2. Are you licensed or certified? If you live in a state that licenses home inspectors, ask to see their license. At the very least, choose a home inspector who belongs to American Society of Home Inspectors. This shows a level of professionalism and education that you can trust.
3. What kind of report will you give me? You should expect a written report detailing what the inspector found. Most inspectors will give you a typed report within a week of the inspection. Make sure the inspector will be available to explain anything on the report that doesn’t make sense to you.
4. Will I be able to attend the inspection? If the inspector refuses to let you be present during the home inspection, find someone else. This is your chance to know exactly what you are buying and what potential repairsyou or the seller will have to make.

As your real estate agents, We will guide you through the home buying process. Let us help you find your newCentral or Southwest Florida home. Call us today at 352-243-6784 or email us at info@optimaonerealty.com.

LINKS:

1. Home inspection – http://en.wikipedia.org/wiki/Home_inspection
2. American Society of Home Inspectors. – http://www.ashi.org/
3. Easy household repairs. – http://home.howstuffworks.com/home-improvement/repair/5-home-repairs-you-should-do-yourself.htm

Why buy a home? The reasons have changed

Why buy a home? The reasons have changed.

IRVINE, Calif. – April 27, 2015 – The first quarterly Homeowner Sentiment Survey finds that people’s perception of home value in the post-crash era runs deeper than standard measures of price and location. Today’s owners and prospective buyers define value in broader terms – personal confidence in their housing investment and how a property will meet their family’s needs now and in the future.

The study was conducted by Berkshire Hathaway HomeServices, part of the HSF Affiliates LLC family of real estate brokerage franchise networks.

“Homeowners today seem to have a longer-term perspective for their properties,” says HSF Affiliates CEO Gino Blefari. “Owners are telling us a home is more than its price tag, and they’re placing more value in a home’s intrinsic qualities of wealth building, safety, satisfaction and a place to raise a family.”

A large majority of owners (89 percent) expressed satisfaction with their home and current living situation; about a third said they’ve considered selling their home in the near future. Those selling their homes seek properties that better fit their changing lifestyles and life events, among other reasons.

Home-value perception varies through the lenses of different age groups. Boomers and Gen Xers embrace homeownership first as a “smart, long-term investment.” By contrast, millennials are “thinking in the now” about real estate, placing highest priority on the “ease of a purchase decision,” including the ability to close quickly on a property, secure financing and afford monthly payments.

Of homeownership’s benefits, millennials want a place they’re proud to show family and friends. They value a community with great schools, and they seek locations that encourage healthier lifestyles. They also want a lively neighborhood: 61 percent said it’s important to live in a neighborhood with a variety of trendy dining and retail options.

“As millennials become a larger part of the home buying market, their preferences become better defined and seemingly more traditional,” says Stephen Phillips, president of Berkshire Hathaway HomeServices. “We have always believed there is more similarity than difference among home buying groups, and this new data seems to support that view.”

With an eye toward enhancing long-term value, 88 percent of current homeowners say it’s important to update or renovate their home over time, and they want improvements that stress energy efficiency and eco-friendly systems and materials. More than 60 percent of current homeowners favored “green” improvements even before kitchen, bath and flooring projects. Millennials are most enthusiastic about renovating: 61 percent want a home they can upgrade to their preferences.

Overall, homeowners and prospective buyers believe housing has turned the corner. A full 94 percent said homeownership is important to their long-term financial planning. With interest rates hovering near historic lows and the economy and job market growing, respondents said today is a more ideal time to buy a home than a year ago.

Still, a strong majority of respondents expect more competition for homes as housing inventory remains tight in many U.S. markets. A skilled sales professional will help in the search: Of prospective homeowners who hired agent, 93 percent said the agent has been effective in that home-finding process.

“This magnifies the value of sound real estate guidance today,” says Blefari. “Sales professionals are the local-market experts with a keen understanding of home value, availability and negotiation. All things considered, when your agent finds you a great home in the right location and price point, it’s time to make your move.”

© 2015 Florida Realtors®

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=322570

2015 Trending Spring Colors

Looking to make some updates or changes in your home this Spring? Here are the top color trends of Spring 2015

#1: Marsala- Pantone

#2: Guilford Green- Benjamin Moore

#3: Noir- Pratt & Lambert

#4: Coral Reef- Sherwin-Williams

#5: Essential Teal- Behr

#6: Tanner’s Brown- Farrow & Ball

#7: Caribbean Sea- Glidden

#8: Coal Blue- Dutch Boy

#9: Coastal Surf- Kelly-Moore

#10: Blue Paisley- PPG Pittsburgh Paints

#11: Metal .05- Colorhouse

#12: Divine Iguana- Devine Color

#13: Burgandy- Chalk Paint by Annie Sloan

#14: Sapphire- Fine Paints of Europe

Make Your Move Less Stressful

After the long home buying process, you are moving close to the date of the move. The last thing you want is more exhaustion, fatigue, stress and disappointment.

Prepare well in advance for a smart move that leaves you excited and enthusiastic, as you set foot in your dream home. Find out what you can do to make the move less stressful on yourself and your family.

• Remember to send your new address to
• Family and friends
• Post office
• Department of Motor Vehicles (DMV)
• IRS
• Utility companies – allow an overlap when switching utilities in case of delay. These companies will include electric, water, telephone, DSL or Internet cable, and the TV cable companies.
• Doctors, dentists, optometrist and your vet
• Banks and other financial institutions
• Your employer
• Any other organizations of which you are a member

• Arrange a date and time with your moving company.
• Get an estimate for all your items and any additional services that you may require.

• Make sure all the boxes are labeled and you’ve reviewed the list before signing the bill.

• Take pictures of valuable items before the move just in case you need to provide a proof for damage claims later.

• If you are going to use professional packers, organize your belongings for your        convenience when unpacking.

• If you are doing the packing yourself, make a list of the number of boxes and packing materials that you will need. Be sure to get them in advance of your move to prevent a last minute rush.

• Label the boxes clearly so that you will be able to readily identify them after the move. The label should include the room they will go to and the name that represents the type of contents in the box. Fox example, “Kitchen/Glass” or “Michael’s Room/toys.”

• Make a list of emergency phone numbers of those you may need to call if you need help.           Inform them in advance that you may need their help. Add these numbers to your cell phone contact list.

• Create a separate survival box for all the items you may need on “day one” of your move into the new home. Make sure that you carry this box with you and load it last, so that it            is the first one you can unload. Some of the items that you may want to put in this box    are:

Medicines, First aid kit	Snacks	Light bulbs	Toothpaste	Slippers
Blankets and Pillows	Paper plates	Soap	Pots and Pans	Sugar, Cereal
Water	Forks & Spoons	Paper Towels	Milk	Tape
Scissors	Few clothes	Milk, Coffee	Pen/Pencil	Trash Bags

All information in this report is deemed reliable, but not guaranteed. 

©2012 PropertyMinder, Inc.