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More and more retirees looking to obtain a home loan may find that solid retirement accounts and a sterling credit rating are not enough.

Lenders increasingly are looking for a consistent monthly income in line with their usual debt-to-income standards. When they look at dividends, most lenders want to see a regular annual amount on the tax return paid out over at least the past couple of years.
In terms of part-time employment, borrowers need to prove they are actually working at the moment of application. In some cases, a two-year work history is required.

Social Security income is always counted, of course.
Borrowers, though, need to be informed that current Fannie Mae guidelines permit lenders to increase that income by 25 percent if the beneficiary is not paying taxes on it.

A handful of portfolio lenders are still issuing loans without verifying income.  However, their interest rates are higher and their down payment requirements — which are in the range of 30 to 40 percent.

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http://www.nytimes.com/2013/05/05/realestate/qualifying-for-a-loan-after-retirement.html?_r=3&adxnnl=1&emc=eta1&adxnnlx=1367926932-w94kghfEFawAW2B9GoN9JA&

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SOURCE: The New York Times

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Mortgage giants Fannie Mae and Freddie Mac will begin next year to  purchase only loans that meet new “qualified mortgage” requirements, the Federal Housing Finance Agency announced May 6, 2013.

In January 2013, the Consumer Financial Protection Bureau finalized new rules that would require lenders to verify borrowers’ ability to repay their loans. It capped loan terms and fees and the bureau said that qualified mortgages are borrowers whose debt does not exceed 43 percent of their income.

The requirements are to go into effect January 2014.

“Adoption of these new limitations by Fannie Mae and Freddie Mac is in keeping with [the] FHFA’s goal of gradually contracting their market footprint and protecting borrowers and taxpayers,” the FHFA, which regulates Fannie and Freddie, said in a statement.

The two mortgage giants, which do not issue loans, provide financing to banks and other lenders by purchasing mortgages that are often repackaged as securities that are sold to investors. Fannie and Freddie back about half of home loans today.

Following the 2007-2009 financial crisis, the Dodd-Frank law created the Consumer Financial Protection Bureau, which issued rules that would force lenders to make sure borrowers could pay back loans to avoid the steep losses that banks experienced before. “The law also called for a category of safer, lower-priced loans that lenders could make in exchange for some protection from lawsuits arising from ability-to-repay disputes,” Reuters reports.

The CFPB is creating a temporary qualified mortgage status, which the FHFA said Fannie Mae and Freddie Mac would be permitted to purchase loans that fit under that status to ease the transition.
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http://www.reuters.com/article/2013/05/06/us-usa-housing-mortgages-idUSBRE9450K920130506

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SOURCE: REALTOR Magazine, Reuters

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Here is an excellent article about wood floors from REALTOR Magazine. I hope you’ll find it helpful:

“Just as with ties and hem lengths, wood flooring styles change. Colors get darker or lighter; planks get narrower or wider; woods with more or less grain show swings in popularity; softer or harder species gain or lose fans; and the wood itself may be older, newer, or even pre-engineered with a top layer or veneer-glued to a substrate to decrease expansion and contraction from moisture.

Here are key categories for consideration:

Solid Plank

This is what some refer to as “real” wood because the wood usually ranges from three-eighths to three-quarters of an inch in total thickness to permit refinishing and sanding. Thicker floors have a thicker wear layer to allow for more frequent refinishing and sanding, so they can withstand decades of use, says architect Julie Hacker of Stuart Cohen and Julie Hacker Architects. It also can be stained, come from different species of tree, and be sold in numerous widths and lengths:

  • Width and length: Designer Steven Gurowitz, owner of Interiors by Steven G., is among those who prefers solid flooring for many installations because of its rich, warm look. Like other design professionals, he’s seeing greater interest in boards wider than the once-standard 2 ¾ to 3 ¾ inches — typically 5 to 6 inches now but even beyond 10 inches. And he’s also seeing corresponding interest in longer lengths, depending on the species. Width and length should be in proportion. “The wider a board gets, the longer the planks need to be, too, and in proportion,” says Chris Sy, vice president with Carlisle Wide Plank Floors. These oversized dimensions reflect the same trend toward bigger stone and ceramic slabs. The downside is greater cost.
  • Palette: Gurowitz and others are also hearing more requests for darker hues among clients in the northeastern United States, while those in the South and West still gravitate toward lighter colors. But Sprigg Lynn, on the board of the National Wood Flooring Association and with Universal Floors, says the hottest trend is toward a gray or driftwood. Handscraped, antique boards that look aged and have texture, sometimes beveled edges, are also become more popular, even in modern interiors, though they may cost much more.
  • Species and price: Depending on the preference of the stain color, Gurowitz favors mostly mahogany, hickory, walnut, oak, and pine boards. Oak may be the industry’s bread and butter because of the ease of staining it and a relatively low price point. A basic 2 ¼-inch red oak might, for instance, run $6.50 a square foot while a 2 ¼-inch red oak that’s rift and quartered might sell for a slightly higher $8.50 a square foot.
  • Maintenance: How much care home owners want to invest in their floors should also factor in their decision. Pine is quite soft and will show more wear than a harder wood like mahogany or walnut, but it’s less expensive. In certain regions such as the South, pine comes in a harder version known as heart pine that’s popular, says Georgia-based designer Mary Lafevers of Inscape Design Studio. Home owners should understand the different choices because they affect how often they need to refinish the wood, which could be every four to five years, says Susan Brunstrum of Sweet Peas Design-Inspired Interior. Also, Sy says that solid planks can be installed over radiant heating, but they demand expert installation.

Engineered Wood

Also referred to as prefabricated wood, this genre has become popular because the top layer or veneer is glued to wood beneath to reduce expansion and contraction that happens with solid boards due to climatic effects, says Sy, whose firm sells both types. He recommends engineered, depending on the amount of humidity. If home owners go with a prefabricated floor, he advises a veneer of at least one-quarter inch. “If it’s too thin, you won’t have enough surface to sand,” he says. And he suggests a thick enough substrate for a stable underlayment that won’t move as moisture levels in a home shift.

His company’s offerings include an 11-ply marine-grade birch. The myth that engineered boards only come prestained is untrue. “They can be bought unfinished,” he says. Engineered boards are also a good choice for home owners planning to age in place, since there are fewer gaps between boards for a stable surface, says Aaron D. Murphy, an architect with ADM Architecture Inc. and a certified Aging in Place specialist with the National Association of Home Builders.

Reclaimed Wood

Typically defined as recycled wood — perhaps from an old barn or factory — reclaimed wood has gained fans because of its aged, imperfect patina and sustainability; you’re reusing something rather than cutting down more trees. Though less plentiful and more expensive because of the time required to locate and renew samples, it offers a solid surface underfoot since it’s from old-growth trees, says Lynn. Some companies have come to specialize in rescuing logs that have been underwater for decades, even a century. West Branch Heritage Timber,for instance, removes “forgotten” native pine and spruce from swamps, cuts them to desired widths and lengths, and lays them atop ½-inch birch to combine the best of engineered and reclaimed. “The advantage is that it can be resanded after wear since it’s thicker than most prefabricated floors, can be laid atop radiant mats, and doesn’t include toxins,” Managing Partner Tom Shafer says. A downside is a higher price of about $12 to $17 a square foot.

Porcelain “Wood”

A new competitor that closely resembles wood, Gurowitz saysporcelain wood offers advantages: indestructibility, varied colors, “graining” that mimics old wood, wide and long lengths, quickness in installation, and no maintenance. “You can spill red wine on it and nothing happens; if there’s a leak in an apartment above, it won’t be destroyed,” he says. Average prices run an affordable $3.50 to $8 a square foot. The biggest downside? It doesn’t feel like wood since it’s colder to the touch, Lynn says.

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Bottom line: When home owners are making a choice or comparing floors, they should ask these questions:

1. Do you want engineered or solid-based floors, depending on your home’s conditions?

2. Do you want a floor with more natural character, or less?

3. What board width do you want?

4. How critical is length to you in reducing the overall number of seams?

5. What color range do you want — light, medium, or dark?

6. Do you want more aggressive graining like oak or a mellower grain like walnut?

7. Do you want flooring prefinished or unfinished?

8. How thick is the wear layer in the floor you’re considering, which will affect your ability to refinish it over time?

9. What type of finish are you going to use? Can it be refinished and, if so, how?

10. For wider planks that provide greater stability: Where is the wood coming from, how is it dried, what is its moisture content, and what type of substrate is used in the engineered platform?

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SOURCE: REALTOR Magazine

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The Federal Housing Administration plans to raise its mortgage fees in 2013 in order to help avoid a taxpayer bailout, the Obama administration announced on Friday, November 16, 2012. (more…)

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Mortgage rates held steady for the most part the week ending October 11, 2012, remaining near all-time record lows set the previous week, Freddie Mac reported in its weekly market survey.
(more…)

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American people favor home ownership over renting.

The U.S. home ownership rate continues to remain around 65.5 percent, the U.S. Census Bureau reported in October 2012. The home ownership rate is nearly the same as it was in the second quarter of 2011 at 65.9 percent.

(more…)

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30-year Fixed-Rate loans are at historically low interest rates. However, some home buyers and home owners choose adjustable-rate mortgages, or ARMs.


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Lets look at the risks and rewards of using ARM mortgage: 

REWARDS:
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A Home Buyer Poll conducted by TD Bank of more than 1,300 Americans revealed that:

  • 64% of women say home ownership is essential in achieving the American Dream,
  • 52% of men say owning a home is a vital component of achieving the American Dream.

(more…)

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Real Trends 500 ranked NRT LLC #1 Residential Real Estate Company in the U.S. for 15 consecutive years – ranked by Closed Sales Volume for 2011. NRT and Coldwell Banker Residential Brokerage is #1 real estate company with the Highest $$$ volume of sales and #1 real estate company with the lowest average days on the market.

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Contact Vivianne Rutkowski for a professional real estate representation:

Vivianne.Rutkowski@cbmove.com; VivianneRutkowski@gmail.com;

540-229-5429

http://www.cbmove.com/Vivianne.Rutkowski

http://www.RealtorVivianneRutkowski.com

Watch the video:

http://www.youtube.com/watch?feature=endscreen&NR=1&v=ihWmTChfPa4

Real Trends 500 ranks NRT LLC #1 Residential Real Estate Company in the U.S. for 15 consecutive years.

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The Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 has been signed into law. The Act includes a number of changes to the Department of Veterans Affairs’ (VA) Loan Guaranty program, including reverting back to the previous method of calculating maximum guaranty. This resulted in some loan limits increasing.

While VA does not have a maximum loan amount, the following county “limits” must be used to calculate VA’s maximum guaranty amount for a particular county. These limits apply to all VA loans closed August 6, 2012 through December 31, 2012. (more…)

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Despite rock-bottom mortgage rates in 2012, the cost of getting a loan is on the upswing, thanks to reduced competition among banks and tougher lending requirements. Some analysts say part of the reason behind the increase in fees is the increased cost to lenders of processing loans with more paperwork required nowadays. (more…)

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The majority of Americans don’t fully understand how credit scores are formulated, according to a survey released by the Consumer Federation of America. That gap in credit knowledge can cost them when applying for a mortgage. (more…)

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Increasingly, young people are delaying the pursuit of home ownership because of outstanding student loan debt — which now tops $1 trillion, according to the Consumer Financial Protection Bureau.

“Some student loan payments are as high as a mortgage,” notes Cari Sweet-Kostoplis of the Jersey Mortgage Corp.

Student loan debt now surpasses the amount owned on all credit cards issued in the U.S.

And unless Congress agrees to extend subsidies to keep student loan rates at 3.4%, the rates are set to double in July 2012.

Because most lenders’ underwriting standards limit total debt payments to just 45% to 50% of a borrower’s adjusted gross income, many first-time buyers are rejected for home financing, which usually accounts for 33% to 35% alone.

http://www.govtrack.us/congress/bills/112/s2343

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SOURCE: “Student-Loan Debts Keep Them From Buying Homes,” Sarasota Herald-Tribune

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Starting June 15, 2012 as per the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, both agencies must give short-sale buyers a final decision within 60 days. (In a short sale, a lender agrees to accept less than the balance on a mortgage.)

The new guidelines also will require the mortgage giants to respond to initial short-sale requests within 30 days of receiving an offer from a potential buyer. (more…)

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The 2012 Report is in and dozens of Virginia, Maryland and D.C. schools made U.S. News & World Report‘s list of the highest ranking high schools.

To produce the report,  21,776 public high schools were analyzed in 49 states and the District of Columbia. This is the total number of public high schools that had 12th-grade enrollment and sufficient data, primarily from the 2009-2010 school year, to analyze. (Nebraska was the only state that did not report enough data and therefore was not evaluated for any part of the rankings.)

The rankings are based on state proficiency standards, how well they prepare students for college, as well as other factors.

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In Virginia, top-ranked schools were clustered in Fairfax County, Falls Church and Loudoun County, with Thomas Jefferson High School for Science and Technology rated second out of 100 nationally.

The following schools made the top 10 list for Virginia:

  1. Thomas Jefferson High School for Science and Technology
  2. George Mason High School
  3. George C. Marshall High School
  4. McLean High School
  5. James W. Robinson Jr. Secondary School
  6. Langley High School
  7. W.T. Woodson High School
  8. James Madison High School
  9. Oakton High School
  10. Stone Bridge High School

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In the Maryland rankings, Montgomery County had seven out of the top 10 schools schools, with Winston Churchill, Walt Whitman and Thomas Wootton ranking in the top three spots. The other schools in the top 10 are in Anne Arundel, Howard and Baltimore counties.

The Following schools made the top 10 list for Maryland:

  1. Winston Churchill High School
  2. Walt Whitman High School
  3. Thomas S. Wootton High School
  4. Poolesville High School
  5. Walter Johnson High School
  6. Bethesda-Chevy Chase High School
  7. Richard Montgomery High School
  8. Severna Park High School
  9. Eastern Technical High School
  10. River Hill High School

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  • In Prince William County, Osbourn Park High made the top 600.
  • In Prince George’s County, Eleanor Roosevelt High School, made the list at No. 23.
  • The top-ranked D.C. Public Schools are Benjamin Banneker High School and Coolidge High School.

The full list of schools is available on U.S. News & World Report’s website.

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SOURCE: U.S. News & World Reports; WTOP

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More Americans are showing a preference for living closer into the city than the outer suburbs, according to newly released U.S. Census data. The annual rate of growth in American cities and surrounding urban areas recently surpassed exurbs for the first time in two decades. (more…)

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Northern Virginia Public Schools: https://viviannerutkowski.wordpress.com/category/2-re-buyer-resources/nova-schools/

Directs links to Public Schools in  Fairfax County VA, Loudoun County VA, Prince William County VA, Arlington County VA, Fauquier County VA: http://www.realtorviviannerutkowski.com/schoolinfo.shtml

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Living in a high-scoring public school district can raise home values up to $205,000 higher compared to homes located in neighborhoods with low-scoring school districts, according to a new study by Brookings Institute. Brookings analyzed the nation’s 100 largest metro areas to find the differences between living near a high-scoring public school and a low-performing school.

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“We think of public education as being free, and we think of the main divide in education between public and private schools,” Jonathan Rothwell, a senior research analyst at Brookings, told The New York Times. “But it turns out that it’s actually very expensive to enroll your children in a high-scoring public school.” The cost of living in a high-scoring public neighborhood can be higher than paying a private tuition at a school, researchers noted.

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Housing costs near high-scoring schools — those in the top one-fifth of schools in the area — were 2.4 times higher on average, or $11,000 more per year, than homes located in school districts in the bottom fifth, the study found.

Some of the areas with the largest differences in housing costs also have the widest gaps in school test scores,” reports CNNMoney about the study’s findings.

Students from low-income families — classified as those who are eligible for free or reduced-price school lunches — were found to be more likely to attend schools that score in the 42nd percentile on state tests, according to Brookings Institute. On the other hand, students from middle- to high-income households, on average, tend to attend schools that score in the 61st percentile.

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SOURCE: Brookings Institute; “Test Scores and Housing Costs” The New York Times;  “Living Near Good Schools will Cost an Extra $200k” CNNMoney; REALTOR Magazine; Vivianne Rutkowski

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Most of us know the housing bubble of 2002-2006 and the subsequent housing crash that followed in 2007 was caused by the deregulation of the lending industry by the government, which brought into the market many sub-prime lenders offering no-downpayment-interest-only-loans,  ARM loans and option ARM loans, and other “exotic” loans.

This easy credit and availability of money artificially increased demand for homes, which in turn artificially increased home prices until they became unsustainable, which led to the housing crash – all in a span of a few short years. (more…)

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As the number of people living in a household expands, builders are responding and tweaking home designs to meet the growing needs of multigenerational households.

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In recent years, the number of grown children moving back with their parents and the number of elderly parents moving-in with their adult children is increasing, causing more households to re-evaluate their use of space at home. Analysts say the number of multigenerational households will likely rise even more in the coming years, particularly among ethnic groups like Asians and Hispanics who are more likely to live with extended family.

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More builders are debuting floorplans for single-family homes that include “semi-independent suites with separate entries, bathrooms, and kitchenettes,” the Associated Press reports. “Some suites even include their own laundry areas and outdoor patios for additional privacy, though they maintain a connection to the main house through an inside door. “

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For example, homebuilder Lennar Corp. has started offering 700-square-foot suites contained in some of its 3,400-square-foot floorplan homes in Las Vegas. Homebuilder Standard Pacific Homes also has rolled out more “casitas,” which are attached to the main house but also offer more independent living.

The Family That Stays Together,”

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SOURCE: The Associated Press; The Washington Times

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What a difference a few years make.

With interest only loans gone, with no money down loans gone (with exception of VA loans) and lenders going back to more conservative lending requiring 10%-20% down for conventional loans ( FHA loans require 3.5% down), a growing number of families are moving in together, which sometimes means that three generations are living all under one roof.

The sluggish economy has caused some households to expand, taking in more family members to trim housing costs, or to simply save money for a downpayment to purchase a home.

According to Census Bureau data, 4.4 million households had three generations or more under one roof in 2010. That is a 15% increase compared to two years prior.

The “double-up” phenomena is particularly pronounced among adult children, who are increasingly moving back with their parents after college to curb costs. The number of 25-to-34 year olds living with their parents jumped by more than 25% between 2001 and 2007, according to Census data.

The larger household sizes are causing builders to take notice and redesign floorplans to accommodate multi-generational households. For example, Pulte Homes says it’s swapping out one of the garages in its two-car garage plans to allow for extra space in a home for a guest room. And Toll Brothers reports that it’s creating new floorplans to accommodate multiple generations, such as a guest suite with a kitchen added where a family room may have once been.

 “The New American Household: 3 Generations, 1 Roof,”

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SOURCE: CNNMoney

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