The FHA is A-OK

THE FHA IS A-OK

The federal Housing Administration, generally known as FHA was created in 1934 in part to help a housing industry that was flat on its back as a result of the great depression which had started in the 1920’s. During the 1940’s , FHA programs helped finance military housing and homes for returning veterans and their families after the war.

In the 50’s, 60’s and 70’s they helped spark production of millions of privately–owned apartments for elderly, handicapped and lower income Americans and when soaring inflation and high energy costs threatened their survival, FHA’s emergency financing kept many cash-starved properties afloat.

During the last two decades the FHA has struggled. Like so many government agencies the years had taken its toll; they were no longer the aggressive problem solving entity they had been; the bureaucracy became un-wielding and un-responsive: slowly their influence waned. Most business institutions and much of the general population had lost faith in the FHA.

The good news that was then and this is now --- the FHA is back, better than ever. Under new aggressive leadership they have developed many new loan programs that are now available to everyone; in fact even Bill Gates can get one. Loans can be as high $ 800,000 and due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that the FHA is their best bet. Lenders don’t mind lending when the federal government assures them repayment.

Compare these FHA loan figures from previous years; 2007 FHA lending volume was a mere $ 60 billion dollars, in 2008 the amount tripled to almost $200 billion and in 2009 it was close to $300 billion and in 2010 they have requested a whopping $ 400 billion dollars to insure new mortgages. What an amazing turn-around for an agency that had fallen on hard times. In a recent poll, 87% of home buyers indicate they plan to use FHA loans. They are the largest insurer of mortgages in the world, currently insuring over 34 million homes and they are the only government agency that operates entirely from its self-generated income and costs the taxpayers nothing. What a novel idea!!!!

As a realtor the new FHA program I like the most is the- 203 K loan. How many times have you had a buyer that absolutely loved the house you were showing them but the old kitchen turned them off or they hated the rugs and would rather have all hard wood floors or the bath rooms were dingy and out of style ? Sound familiar? Most times the buyer could not afford both the mortgage payments and the rehab costs related to the home and as a result they continued looking and moved on. Another sale was lost.

Now there’s hope, through the new 203 program the FHA will escrow up to $ 35,000 dollars for repairs and related expenses from your loan for materials and labor along with a 10-20% contingency reserve and up to six months worth of mortgage payments. It’s a gift from you federal government. According to the FHA,” all persons who can make monthly mortgage payments are eligible to apply” for this program. You’ll be surprised by the variety of home repairs and improvements that are covered by this loan; these include, but are not limited to: painting, room additions, decks and patios, kitchens including appliances, heating, plumbing and roofing. Yes, there’s paperwork and certain procedures must be followed and the property must appraise but I encourage all realtors to learn more about this program and to search out banks that are experienced with the 203K program; its one more tool to help make a sale in this difficult market.

I have touched briefly on this new program, there is of course much more to it. To get more information I encourage you use the search tool at http:/www.hud.gov/ll/code/llslcrit.cfm and check box for 203(K).

Dick Clark
Alpine Lakes Real Estate
Campton NH
800.926.5003 or 603.726.4580

Building Family Memories in Lincoln

South Peak offers opportunity for your family in the beautiful White Mountains that will ensure your fondest memories for a life time.

The town of Lincoln is quaint and very hospitable affording many great experiences for mind, body and soul. There are Fireworks, foliage, hiking, canoeing and fabulous skiing to start of with and between the towns of Lincoln and Woodstock there are a number of Religious Communities offered.

The South Peak - Mountain community is a special place with ski back trails throughout the resort, and a river walk trail with access to local swimming holes and cross-country trails when snow covers the ground.

The South Peak neighborhood is a short stroll to shopping, entertainment and eateries of all kinds. The conveniences are close but the community is very private. The South Mountain slopes of Loon feature easier cruiser runs and one of the only double black diamond trails in the east. South Peak Home owners group has their own warming hut at the Pemi base camp, where the high-speed quad whisks you up the mountain, and all trails lead back to your door. Much thought went into designing the resort, the common areas, fire pits and shuttle service. Water frontage make the grounds friendly for neighbors to share the common bond of mountain living. The owners have frequent get together that involve music, food, fun and recreation. Snow cat rides, golf outings, bike rides, dog sledding and group nature hikes are just some the planned activities that take place throughout the year.

If you are looking to forge those strong family bonds, a mountain retreat can offer family recreation, relaxation and reconnection away from the stress of life. Many of our second home owners will one day retire to their beautiful mountain home to enjoy all the seasons and look forward to visiting family and friends. When you offer recreation as part of your trip they will always come home. This writer knows as I had come to Loon Mountain 40 years ago as a boy with my family on vacation. With those memories always alive it brought me here as an adult and I never want to leave.

Steve Loynd
Alpine Lakes Real Estate