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2009 FHA Loan Limits Have Been Posted

Are you looking into financing your next St. Paul real estate purchase with an FHA Loan? If so, great! Here are the loan limits for 2009, by county.

For the 11-county metro area (including Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington and Wright):

•    One-unit:       $318,550
•    Two-unit:       $407,800
•    Three-unit:    $492,950
•    Four-unit:      $612,600

For Cook County:

•    One-unit:       $282,900
•    Two-unit:       $362,150
•    Three-unit:    $437,750
•    Four-unit:      $544,050

For all Minnesota counties that aren’t listed above:

•    One-unit:       $271,050
•    Two-unit:       $347,000
•    Three-unit:    $419,400
•    Four-unit:      $521,250

Posted at 06:28 AM in FHA Information | Permalink | Comments (0) | TrackBack (0)

Open Houses - Not Just for Homebuyers!

Every Sunday, we, along with many other area Realtors, hold open houses in your neighborhood.  Our signs are seen peppering curbs all summer long, but when is the last time you visited an open house? 


Did you think that they were only for those looking to buy — and simply drive by? 



Just because you are not buying a home right now doesn’t mean that open houses can’t benefit you; in fact, they are one of the most important ways you, as a homeowner, can learn about market trends in your own community.

Savvy homeowners use open houses as research.  You never know when you, or someone you may know, may be looking to sell or buy; so, keeping up with exactly which homes are “moving” in a neighborhood gives you the inside edge! A home’s profile on the internet can only tell you so much, and many of you have learned that pictures can be quite misleading.  Your best option is to tour the homes that are similar to yours and keep a file of your observations.  Once the home sells, look up the sold price, and record that, too.  When it’s time for you or someone you know to make a move, you’ll be a market insider!

We can even help you with the record keeping.  Check out our website www.yourmarkettoday.com, enter in your home's address, and you will be sent a monthly report of homes for sale, homes sold, and volume comparisons for each.  It's simple, it's easy, and it's the best way we have found to stay on top of the market!

Savvy homeowners also use open houses as interviews.  We have been invited numerous times by homeowners to present my marketing plan for them when they get ready to sell, simply by meeting them at our open house.  Meeting agents face to face, and asking questions about current and past trends and statistics in your neighborhood, is simply one of the BEST ways to find out who really knows their market.

Stop by one of our open houses some afternoon after you have been to a few others, and you will immediately see and hear how different we are. We look forward to meeting you!

Posted at 08:01 AM in Selling Your Home | Permalink | Comments (0) | TrackBack (0)

Carbon Monoxide - Breaking the Silence

More than 500 people each year die from unintentional Carbon Monoxide poisoning, according to the Centers for Disease Control and Prevention.  We’re here to tell you what steps the government has taken to protect your family, how to stay in compliance with the law, and what things to consider if you’re buying or selling Minnesota real estate.

Effective this summer for existing single- and multifamily homes, MN statute 299.51 will ensure that Minnesotans are kept safe from the silent killer that has stolen so many lives already:  the poisonous gas Carbon Monoxide (CO).  The new law requires “every single-family dwelling and every dwelling unit in a multifamily dwelling,” be equipped with “an approved and operational carbon monoxide alarm installed within ten feet of each room lawfully used for sleeping purposes.”  The devices must be approved units according to UL2034 standards.

The law is already in effect for new single- and multifamily homes, and preexisting single family homes.  It will take effect for preexisting multifamily homes on August 1, 2009.  

As a Minnesota home owner or prospective home owner, it is important to be aware of the new law and what it means to you and your family.  First, you should make sure your home is in compliance so that you and your family are kept safe.  Also, it is important to share the news of the new statute with your friends and coworkers to avoid accidental catastrophe in their lives and the lives of their clients and loved ones.  Second, if you’re selling your home, make sure you inform your real estate agent of your compliance so that they can point that out to prospective buyers.  

If you’re buying a new home, make sure the property you are purchasing is properly equipped with Carbon Monoxide detectors.  It is the responsibility of the previous homeowner to buy and properly install the detectors.

Avoid the misconception that disclosure is enough.  If you are selling your Minnesota real estate and you want to skip the important step of buying and installing the detection devices by simply informing the buyers that the home isn’t properly equipped, you should be aware that that behavior is unlawful and could result in refusal to market and/or sell the home.  Your Minnesota real estate agent should be aware of the law, and should be able to provide you with resources for acquiring and installing a compliant device; if not, you can always give us a call – we’re happy to help!

Posted at 08:40 AM in Selling Your Home | Permalink | Comments (0) | TrackBack (0)

Spotlighting Mac Groveland!

As if beautiful homes, delicious eateries, and fantastic stores aren’t enough to make Mac Groveland a much envied place to live, the neighborhood boasts of a very rich history to boot! Bordered on the north by Summit Avenue, the south by Randolph Avenue and Highland Park, Ayd Mill Road on the east, and the Mississippi River to the west, Mac Groveland has a prime St. Paul location.  Grand Avenue runs east to west right through the neighborhood, adding to the appeal.

Before St. Paul annexed what was then known as “Reserve Township” back in 1887, the area that is now Macalester Groveland belonged to the Fort Snelling military reserve.  In 1884, Macalester College set up shop in its current location at Grand and Snelling Avenues, and began dividing the land into houses and the college campus.  A short one year later, the College of St. Thomas (currently the University of St. Thomas) established itself nearby.  To complete the trilogy of education, St. Paul Seminary was built on Summit Avenue in 1894.

In its early development, Mac Groveland was nothing more than a few starter colleges and a bunch of farmland.  Its unique residential side started coming into its own during the late 1880’s, however, when the area now known as “Tangletown” began construction.  The name stems from St. Paul’s notorious street design; Tangletown boasts of eclectic, mixed architecture along many winding, twisted streets.  Right around the same time that Tangletown was bursting into life, a farm near what is now the intersection of Randolph and Lexington Avenues began developing its land into homes.

Despite humble beginnings as a farm community, Mac Groveland didn’t waste time modernizing itself.  1890 brought about the very first electric streetcar line, built in St. Paul, which connected the Mac Groveland neighborhood with downtown.  Commercial and residential development boomed in reaction to this connector, especially along the Randolph and Snelling streetcar lines.  In fact, most of the homes in Mac Groveland were built during the streetcar’s prime operation between 1915 and the late 1920’s.

The beauty of Mac Groveland is like a handmade quilt:  a unique whole made up of handcrafted pieces over a period of time, reflecting the personalities of the contributors in each porch, street, and stained glass window.  It's no wonder it is, and remains, one of St Paul's most popular residential neighborhoods.

Posted at 11:10 AM in Neighborhoods | Permalink | Comments (0) | TrackBack (0)

Older Doesn't Have to Be Colder....

Brr! It’s getting chillier outside, the days are getting shorter, and the trees are beginning to loose their leaves.  For owners of older Minnesota homes, fall might mean something more than apple crisp and pot roast on Sundays; it might mean drafty hallways, chilly floors on bare feet, and anxiety about rising energy bills.  This year, we’re here to give you a little relief.  Yes, feel free to bake up that apple pie and smile at Daylight Savings Time! With these simple tips, winterizing your older home will be a fall breeze.

•    Problem:  Loosing warm air through drafts and crevices around doors and windows due to the settling of an older home.
Solution:  Expandable Foam.  It’s easily accessible, easy to use, and very efficient.  It comes in an aerosol spray can with a straw on it, and can be sprayed into crevices of any shape or size.  The foam will expand to fill the area and will work itself around objects for a tight seal.  Any excess foam can be trimmed with a razor once it’s dry, then sanded and painted over to match your interior.

•    Problem:  Missing trim.
Solution:  Add decorative trims and/or molding.  Use your spray foam and/or pieces of insulation underneath, and finish up with decorative trims or moldings for added protection.  This can be painted or stained to match, too!

•    Problem:  Drafts around windows and doors that aren’t tightly fitted to their frames anymore or don’t close tightly – also the result of an older home settling.
Solution:  Make sure all latches and latch plates are secure and in proper working order.  If gaps are present around the frame, use weather stripping.  Now would be a good time to make sure no additional caulking is needed around frames, casings, or individual glass panes.  Last, make sure all doors and windows are locked whenever possible to create the tightest seal against winter wind.

•    Problem:  The bottoms of doors and windows are causing a draft.
Solution:  You can purchase tubular draft stops to place on the floor in front of problematic doors and windows.  Also, use heavier curtains and blinds as an extra barrier between your family and the cold outdoors.

•    Problem:  Older, thin glass windows.
Solution:  Buy plastic window coverings that are applied with double-sided tape to the interior frame.  This is an easy, attractive solution to a costly problem.  The wrinkles in the plastic will smooth out and leave a clear surface when a blow-dryer is used, and your heavy winter curtains can cover up any evidence the plastic.

•    Problem:  Old stone or block foundations allow air access to pipes and plumbing fixtures.
Solution:  Easily accessible piping can be insulated inexpensively with pipe insulation.  It comes preformed, with a slit in the side for easy application for many differently sized pipes.  Bank your home the easy way by raking mulch and leaves against the foundation, or buy plastic sheeting and rolls of thin foam insulation to cover foundation openings.

•    Problem:  Permanently installed air conditioning units.
Solution:  Cover units, while taking care not to cover any heating vents or disturbing any gas or utility lines.

In addition to these tips, it is crucial to keep up with furnace maintenance.  On an annual basis, call a professional to clean and inspect your furnace, and be sure to replace your filters.  If you have followed all of these steps, but are still facing higher energy bills than what you expect/want, it may be time to hire a professional to update your home.  Newer windows and doors are very efficient in keeping cold air out and warm air in, and things like new siding and/or insulation can make a huge difference in the long run.

So, breathe easy as the smell of cinnamon and cocoa fill up your beautiful old home, knowing that your money can be spent on more holiday trimmings rather than a bigger energy bill this winter.

Posted at 01:44 PM in Home Maintenance and Repair | Permalink | Comments (0) | TrackBack (0)

If your considering selling...

Minnesotans are no strangers to the changing of the seasons; we know that a glass of hot cocoa and a warm sweater will get us through the cold! Let the same be true of our reactions to the current Minnesota housing market. It might be a little chilly out there, but a glass full of hearty perseverance and sensibility will get us through it. With these seven tips from the Wall Street Journal, you’ll be ready to say, “You betcha!” to the question in your mind: will my house sell?

1. Don’t twiddle your thumbs. Thousands of homeowners are hiding in the shadows, waiting for the day that the market swings back to where it was five years ago. It’s probably not going to happen; not anytime soon, anyway. Don’t be one of the wallflowers! If you want to sell your home, the only way to do it is by putting it up for sale.

2. Fix and clean it up. There’s no need to go overboard by spending all sorts of money preparing your house to be sold; just make sure everything works and looks nice. De-clutter before your first showing, remember that no one wants to see “their new house” full of YOUR stuff!

3. Price ahead of the market. Fact: homes are no longer worth what they were three years ago. Don’t exhaust yourself factoring in all the improvements you’ve made, and certainly don’t get your hopes up to bubble-level prices. Do not let your home linger on the market while gradually decreasing the price; the moment your home gets on the market, it should be priced to sell.

4. Hire the best Real Estate Agent. Hire someone who you are confident will get the job done, and get it done efficiently. We have more tools and resources than any other team in St. Paul, and will work tirelessly to get your home sold—check out our website for details on our Super Listing Program!

5. Market, market, market! We realize that over 85% of people search online, so we’ve invested a lot of time and money into getting web-savvy. With our National Listing Service, your home is marketed to over 100 newspapers and real estate search engines.

6. Be a Banker. Consider accepting all sorts of financing from your buyers. If you have no mortgage of your own to pay, your greatest advantage could be the ability to finance all or part of the home for the buyer. Unlike the banks, you aren’t being babysat by the Federal Reserve; use that to your advantage and charge a higher interest rate or get a higher sale price.

7. SOLD – to the buyer with an offer! Be prepared to accept the first reasonable offer from a qualified buyer. Of course, negotiating is still a major part of the game, but you must realize that the ball is in the buyer’s court. Your home, however fantastic and priceless it may be to you, is only worth what someone is willing to pay for it.

If you are considering selling your Minnesota Real Estate, let our experience work for you! Contact us today!

Posted at 02:33 PM | Permalink | Comments (0) | TrackBack (0)

Get Answers to Your Mortgage Questions!

We are so happy to have Val McKay, Senior Loan Officer for Integrity Associates, joining our blog network. She is going to be our mortgage guru, educating us on the ins and outs of the mortgage industry and keeping us informed on changes that will affect home buyers as well as home owners. She will be providing us with weekly tidbits and updates--beginning with this update on FHA programs effective today:

New FHA Downpayment and Loan-To-Value Requirements

FHA has announced changes to down payment requirements effective today--October 1, 2008. Previous to this change a borrower was expected to have a total investment (down payment) of 3%. Currently Down Payment Assistance funds, such as The Nehemiah Program, have been discontinued.

If you do need help with a downpayment, or with closing costs, you do still have options. FHA allows gift funds from relatives, family members to cosign on the loan, and sellers’ contribution to your closing costs (up to 6%).

Here are the 4 things you need to know about the new FHA changes...

1. One single down payment requirement of 3.5% for ALL purchases

2. Closing costs are in addition to the 3.5% down (Typically these can be estimated at approximately 2.5-3%
of the sales price.)

3. New maximum Loan-To-Value Ratios (based on lower of sales price or value) are:
• You can borrow up to 96.50% of the sales price for all purchases.
• You can borrow up to 98.28% of the homes appraised value for all regular rate and term refinances
(cash out remains at 95%).
• You can borrow up to 98.52% of the homes appraised value for all streamline refinances.

4. These changes are effective October 1st, 2008.

Bottom line, prepare for 3.5% down payment now on FHA loans for purchasing a property. Remember, these funds can be a gift from a relative!!

An FHA loan is a great loan for first time buyers and has become very popular as other types of loans have been discontinued.

Please feel free to contact me with any questions on FHA loans other mortgage needs!

Valerie J. McKay
Sr. Mortgage Banker
Mortgage and Investment Consultants
www.valmckay.com
vmckay@minnmortgage.com
651-247-9982

Posted at 03:36 PM | Permalink | Comments (0) | TrackBack (0)

Short Sale FAQ

Sometimes marketed with the phrase "lender approval required", homes being offered as a short sale are becoming more and more prominent in the Twin Cities Real Estate Market. But what exactly does that mean? Many of you have emailed us with that very question, so we put together some general answers to get you started:

What is a short sale? A short sale is when a mortgage company allows a homeowner to sell a property for less than what is owed on the mortgage.

Why would a lender do that? Mortgage companies are in the business of lending money, not selling real estate. There are significant costs involved in foreclosing on a property and then marketing it for sale. If the offer is reasonable, the lender would rather move the "asset" and take the loss, than hassle with the sale and marketing of the property.

How does a homeowner qualify for a short sale? There is a very specific process to requesting a short sale. Each lender usually has their own "package" that they require to be completed--typically requiring things such as the homeowner's W-2 forms, tax returns, and bank statements.

What offer will the lender accept? The only way to find out is to find a buyer for your home. The lender, in most cases, will not tell you ahead of time what they will accept.

For more information, please contact us. We have assisted a number of buyers and sellers through this process--and can provide you with more specific steps depending on your situation.

Posted at 03:35 PM in Selling Your Home | Permalink | Comments (0) | TrackBack (0)

Things are looking up, Twin Cities!

Our very own Minneapolis, Minnesota made it onto the list of the “Top 10 Cities Where Home Prices are Likely to Rise!” In a brief video on CNBC, the probability of home values going up in America was discussed. 

Home values share a close tie with job growth and stability, says senior financial reporter with Forbes magazine, Matt Woosley.  Cities like Phoenix, Arizona, are experiencing a worse housing and foreclosure crisis than many others, largely due to their job situation.  Their jobs were mainly construction based, Woosley says, which was found not to be a sustainable source of income and economic stability; therefore, they are not likely to see an increase in home values over the next few years.

Conversely, Minneapolis has one of the highest concentrations of “top companies” in the country.  Many big corporations, including Best Buy, Polaris, and Target, headquarter here, providing high-value jobs which contribute to lasting job growth.  According to Woosley, Minnesota has “strong economic fundamentals,” unlike Phoenix, for example.  Our projected job growth from 2007 to 2012 is 1.4%, compared to negative projected job growth in most other areas of the country.

Another contributing factor to our projected rising home values is the lack of inflation and inventory surplus that other, harder hit, areas have experienced.  Our median price range is $200,000-$300,000, which, according to Woosley, can easily respond if the economic crisis continues.

Housing prices in Minnesota started down 26.9% in the beginning of 2008.  The expected average increase for 2009? 15.6%! Single family homes are expected to go up about 20.2%, while multi-family units can be expected to increase about 4.1%.  This is good news for Minnesotans! Most places in the country are looking forward to more projected decreases in home values for an indefinite time period, while we can finally exhale with relief as our prices slowly, but steadily, begin to climb once more.

Top Ten Cities Where Home Prices Are Likely to Rise

1.    Albuquerque, New Mexico
2.    Charlotte, North Carolina
3.    San Antonio, Texas
4.    Portland, Oregon
5.    Austin, Texas
6.    Salt Lake City, Utah
7.    Colorado Springs, Colorado
8.    Minneapolis, Minnesota
9.    Atlanta, Georgia
10.  Oklahoma City, Oklahoma 

Posted at 10:59 AM | Permalink | Comments (0) | TrackBack (0)

FHA's Most Common Repairs....

FHA financing is gaining more and more popularity, so it seems timely to post a list of some of the most  common repairs required after a FHA appraisal. The purpose of a repair is to correct deficiencies which may affect the health of the occupants and the continued marketability of the property.

  1. If the home was built prior to 1978, chipping, peeling paint must be scraped and painted. This includes interior, exterior, garages, sheds, fences, etc.    
  2. Roofs should have 2-3 years of useful life remaining and no more than 2 layers of shingles. If the house is over 10 years old, you must remove snow from a large portion of the roof for inspection by the appraiser.
  3. Broken windows should be replaced.
  4. The cause of wet basements should be cured (i.e., improve drainage away from house, gutters, etc.).
  5. Electric service must be 60 amp or greater. Electric certification may be required if 60 amp appears to be overloaded (i.e., larger than 1000 sq. feet with more than 2 major appliances).
  6. Abandon inoperable wells must be capped and sealed by a licensed well sealing contractor with certification.
  7. Safety handrails should be installed in open stairwells of three or more stairs, both inside and outside.
  8. Infestation of any kind should be exterminated (i.e., insects, mice, bats, etc.).
  9. Damaged or inoperable plumbing, electric and heating systems should be repaired. The appraiser checks these areas.
  10. Structural or foundation problems must be repaired.
  11. Flammable storage tanks must be removed and filler cap sealed from the inside (i.e., buried oil tank).
  12. If there is a crawl space, it will be the home owner's responsibility to make this area accessible so that it can be thoroughly inspected.
  13. Attic space should be made accessible so the appraiser can visually inspect.

Please keep in mind that these are the most common repairs, and not a comprehensive list of all required repairs. 

Posted at 01:11 AM | Permalink | Comments (2) | TrackBack (0)

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