This question comes up all the time from the buyers especially new home buyers. My answer, there are lot of options but you need to consider the location of the home and your budget. For Houston, Brick is a common selection from almost 90% of the buyers which is budget friendly as well. But for luxury homes, Stucco and Cultured stones gives a unique look to your house.
In a recent article from Realtor.org magazine, author talked about various siding options and explained their Pros and Cons briefly shedding light to the buyers. So buyer can make educated decision instead of just going with the predefined options provided by Home builders. Roof, Sidings, Floors are important parts of the home which helps to sustain the value home for long term. Buyers should find out more available options and select the one which helps them save money in long run and keep the home in good condition depending on the location.
Here are few options mentioned in the article,
To know more options and read full article, go to realtors.org.
Riverstone
A Fort Bend area master-planned community where luxurious homes, water features and resort-style amenities define the landscape, Riverstone is one of Fort Bend County’s most desirable addresses. Riverstone residents enjoy an enviable lifestyle with a superb selection of new homes with Sugar Land and Missouri City addresses. Plus, with varied highway access and an array […]
Sienna
Sienna is a comprehensive 7,000-acre master-planned community. Sienna is more than houses inside one of the top Fort Bend County subdivisions. Neatly tucked between the acclaimed cities of Missouri City and the City of Sugar Land, it is a community in the truest sense of the word. Every effort is made to maintain a sense […]
Bridgeland
Imagine a place with vast open spaces and spectacular sunsets. An 11,400 acre master-planned community in northwest Houston where flocks of waterfowl glide across natural lakes. A refuge from the chaos of your workday. A place where you can find true balance. The new home community of Bridgeland is such a place. Bridgeland attracts and […]
Towne Lake – Master Planned Community, Cypress
Towne Lake reflects its Texas-sized appeal in a 300-acre lake, with beautiful views. Lake coves allow neighbors easy access to the water and to the many amenities and destinations throughout, bonding the community together. Towne Lake Charm is all these things and more, reflected in a community steeped in Texas pride. Caldwell Companies has perfected […]
Cypress Creek Lakes
Cypress Creek Lakes is a beautiful master-planned new home community nestled in the charming Northwest Houston suburb of Cypress, Texas. Mischer Development has carefully designed the 1,600-acre community to respect the natural beauty of the land while developing approximately 2,000 new home sites. Its convenient location on Fry Rd. just off of Highway 290 also […]
What should be the best Exterior option – Brick/Cement Siding?
What is BIG about Texas? – A Short Movie
Texas has always been a nations lonestar state being one of the biggest state but in recent years it has got more attention for the recession proof economy and by the Republican Presidential Contenstant Governor Rick Perry. He talks lot about the miracle happened in Texas and Why people moving to Texas?
Here is a short movie which is created by Better Homes and Garden Real estate. This movie gives a good picture about Texas recent economy revolution.
Home Buyers don’t gain much by waiting, unless…
According to the recent article published in this week Bloomberg BusinessWeek, Home buyers don’t really gain much on the waiting game by postposning their home purchase.
Many buyers who were planning to buy their first home are either putting off till next year or delaying their decision. The reason, they are hoping the market will get worse more to bring down the home price down more than this year. If it happens, they are also hoping it will take down the interest rates much below 3.94%, we witnessed this month. But what they don’t realize is the fact that it is not easy to win by timing the market. Currently, Good houses at cheap prices are plentiful, and mortgage rates are at record lows—an average of 3.94 percent for 30-year loans during the first week of October. “It’s hard to see the possibility of losing on a home purchase right now, with these mortgage rates,” says Dean Baker, an economist who in 2005 predicted that house prices would tumble. “Prices may go lower, but not by much.”
Buying a $300,000 home with a 4 percent mortgage means a monthly payment of $1,145, assuming a 20 percent down payment. The Mortgage Bankers Assn. predicts that prices may decline an additional 3.5 percent by mid-2012, while mortgage rates will increase by a half-point. If that proves accurate, that home would sell for $289,000, while the monthly mortgage bill would be $1,171. “Even if there is another recession, people who can qualify for a mortgage won’t gain anything by playing the waiting game,” says Nariman Behravesh, chief economist at IHS in Englewood, Colo.
If you see numbers above, you will notice that even with home price drop an increase in rate, buyer will end up paying more on the mortgage payment. Bottomline, Home prices down 31 percent since 2006 and mortgage rates averaging 3.94 percent mean bargains for buyers with good credit ratings. You cannot predict the future so just make use of the current low historic rates and low home prices and buy your dream house.
Just go ahead and buy it now unless you have control over rates and can predict much lower rates. You will sure to be satisfied that your rates are much lower than millions of Americans It is similar to any deals. If you think the deal is too good to miss by 30-50% from previous deals, just don’t expect for more and lose this opportunity.
Source: Bloomberg BusinessWeek
HOUSTON FORECLOSURE PREVENTION EVENT
Homeowners needing mortgage assistance might find it at a special event on Friday, Nov. 4, in Houston. The Help for Homeowners Community Event is an opportunity for homeowners to meet with mortgage lenders or a HUD-approved housing counselor to find out whether they qualify for the federal Making Home Affordable program or other options.
When: Friday, Nov. 4, 2011
Where: Hilton Americas–Houston at 1600 Lamar St.
Time: 11 a.m. to 7:30 p.m.
Charge: FREE
Homeowners must bring:
a monthly mortgage statement,
information about any other mortgages on the home,
two most recent pay stubs for household members contributing to mortgage payment,
tax returns for last two years,
most recent quarterly or year-to-date profit and loss statement (if self-employed),
documentation of other income,
two most recent bank statements,
utility bill showing homeowner name and property address, and
unemployment insurance letter, if applicable.
For more information, call the Homeowner’s HOPE Hotline at 888-995-HOPE (4673) or visit MakingHomeAffordable.gov or HopeNow.com.
The event is sponsored by NeighborWorks America, the U.S. Department of the Treasury and the U.S. Department of Housing and Urban Development
Seller/Owner Financing – Is it truely Win-Win deal?
Last week, my investor mentor and also my current client called me up and asked about owner financing. I told him it is a very detailed topic which I cannot explain over the phone and need to talk to you in person. Later I met him and had an elabroate discussion on it. He liked the idea but don’t like the complication involved and plan to research more before doing it.
In the past, I was also approached by one of my tenant asking for owner financing on the house they lived in. I made a consicious decision to stay away from it after some research. I didn’t like what I heard and read, especially some complications involved in the state of Texas. Recently, I read an article about this very topic titled, “Know the risks of seller financing” at inmannews.com and thought it might help other investors out their if I can share my acquired knowledge and research on the owner financing.
First of all, What is owner/seller financing?
To simply put, its like the seller/owner acting as a mortgage lender to help out the tenant who won’t qualify to buy a house otherwise. For that very reason buyers are willing to pay high interest rate and high price for the property. From the landlords perspective, it might seem easy to sell the house to the tenant and get monthly mortgage payment but if things doesn’t work out or buyer defaults on the loan, thats when the problem starts.
Is it surely WIN-WIN or WIN-LOSE?
It might seem that way but one will know only at the end of it. For Seller/Investor, it is always good you get to sell a house at premium price and get paid high interest. For buyers/tenant who get to own the house and make changes to house since they will own after the pay off the amount and they get to have the house without worrying about mortgage company and credit problems.
At the sametime, if things didn’t go as planned and buyer walk away, its the landlord/seller who will be on trouble. Landlords can even lose their house if the contract was not put in place properly. They have to foreclose on their own house and get it back on their name.
Does the law in Texas allows Seller/Owner Financing?
As per my research, Texas law does allow seller refinancing for homeowners and investors with caveat after SAFE Act . The SAFE(Secure and Fair Enforcement for Mortgage Licensing) Act went into effect during 2008 timeframe, the law that institues the National Mortgage Licensing System and Registration NMLSR, contains a caveat that could effectively eliminate the ability for sellers to offer most types of owner financing to buyers in Texas as of April 1, 2010.
The Safe Act requires that anyone originating mortgages must be licensed and registered through NMLSR, Nationwide Mortgage Licensing System and Registration, which means anyone offering seller financing must also be licensed. The law provides for an exception for a seller’s financing of his/her homestead or to a direct family member. Meaning if you are homeowner, you can do seller financing for anyone or to your direct family member. Other than the two exceptions above anyone who originates a mortgage loan or provides seller financing without being licensed will be committing a misdemeanor.
This means that Investors that own multiple properties and like to seller finance for people who have less than stellar credit, or even people with good credit, can no longer provide this service without being a licensed RMLO, Residential Mortgage Loan Originator.
But Dodd Frank Act which was signed last year 2010 proposes a different mortgage origination rule which only takes effect in Jan 2013. The DFA definition of mortgage originator exempts an individual (or an estate or trust) that provides mortgage financing for no more than 3 properties in any 12 month period, but only if the financing meets certain rules like loan is fully amortizing (no balloon mortgages allowed), The seller determines in good faith and documents the buyer has a reasonable ability to repay the loan and few more. Read more about it at realtor.org and noteinvestor.com websites.
Do I have Tax Implications?
Yes for sure. You cannot claim any property taxes paid under your tax return after executing the contract/agreement. Also you need to show your installment payment in your tax return and how much interest you are getting apart from return of principal and pay proper taxes for it.
Where do I start?
1. Talk to investors and people who have done seller/owner financing and gather as much information possible.
2. You can wait for a year or two to monitor how the tenant pays the rent and make a decision accordingly.
3. Run credit report on the tenant Social security before making the decision to see whether the tenant doesn’t have lot of collection or charge offs.
4. Hire a real estate attorney to draft your contract. This is very important because an attorney knows the current rules and regulations and can put together the agreement to safe guard both parties.
4. Hire a Real estate Loan originator to originate your loan if you are an investor. They usually charge around $400 for helping out.
5. Finally, make sure you clearly explain all the rules and limitations to your tenant about seller financing. They will be responsible for paying property taxes, insurance and keeping up the house. If they don’t pay it, you have chances of losing your home. That’s the risk you are taking by doing seller financing.
To conclude, Seller/Owner financing is a good option whether you are a homeowner or investor ONLY if you do it right by following the law and putting the contract in a right way.
