CNN Is Spilling the Beans on Houston's Real Estate Secret!

By Eric Sandler   8.14.13 | 12:38 pm

It's good to be a little quirky.

by Hugh Hargrave/Greater Houston Convention & Visitors Bureau

CNN Money has named The Heights one of America's 10 Best Big City neighborhoods. The article cites the neighborhood's "walkable area with a cohesive neighborhood vibe" as something that sets it apart from other Houston neighborhoods.

The something for everyone shopping district on 19th Street is the best example of how The Heights sets itself apart. Boutique clothing stores sit next to antique shops. Across the street from Boomtown Coffee, a shop that roasts its own beans and regularly hosts food trucks, Vinal Edge Records sells turntables, records and cool toys.

Kristal Kirksey, a Heights resident and business owner, tells CultureMap that the neighborhood's "spirit of community" makes it a great place to live.

"We all shop locally and support one another," she says. "We also do a lot of volunteer work and take care of our own neighborhood."

Kirksey's boutique Jubilee sells T-shirts with slogans that demonstrate pride in the neighborhood like "I'd rather be in The Heights."

If upcoming eateries are any indication, the neighborhood's growth looks set to continue well into the future. While iconic clothing store Harolds may be gone, that building is being remodeled rather than torn down and two new restaurants are moving in. Across Shepherd, CK Steakhouse, a restaurant that will unite Hubcap Grill's Ricky Craig with steak master Ronnie Killen, may be delayed by permitting hassles, but it should emerge in 2014.

Then there's Coltivare, an Italian restaurant from Revival Market, set to open this fall on White Oak.
What are the downsides to The Heights? The article notes "less than stellar" public school options and limited bus routes, but says residents typically "seek out alternatives like magnet schools."

Reproduced with Permission from CultureMap.com

12 Causes & Cures for Common Home Maintenance Problems

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  12 Causes and Cures for Common Home Maintenance Problems

  Many sensory clues give you early warning of home maintenance problems—if you can decode the symptoms. Read

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Copyright 2013 NATIONAL ASSOCIATION OF REALTORS®

Great D-I-Y Projects for Memorial Day Weekend

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  5 Awesomely Easy Landscaping Projects

  Ramp up your curb appeal with cool landscaping projects you can easily pull off in a weekend. Read

Visit houselogic.com for more articles like this.

Copyright 2013 NATIONAL ASSOCIATION OF REALTORS®

The Guillory Group Is Growing!

We're well into the new year, but new things are still happening at The Guillory Group. For us, it was time for a new LOOK! And everyone here at The Guillory Group is super excited. Our new look will be rolling out this week, appearing first on our yard signs.

The Guillory Group has targeted marketing efforts in Katy and Cypress, so that's where you're most likely to see our signs.

So, what do ya think? We love it!

Some Basics About VA Home Loans

  Since 1944, when home loan guarantees were part of the original GI Bill, the VA has guaranteed more than 18 million home loans worth over $911 billion. In 2008, 180,000 veterans, active duty service members, and survivors of veterans received VA home loan valued at about $36 billion. More than 90 percent of those VA loans were no-down payment loans.

    The VA Home Loan program allows veterans with qualifying income and credit to purchase a primary residence without putting any money down towards the sale price of the home, as long as that sale price does not exceed the appraised value of the home. Veterans do need money towards closing costs as well as earnest money, which the seller generally requires when a sales contract is signed. Closing costs may be paid by the seller, which can be negotiated when the sale price of the home is set.

      If 100% financing isn't enough, there are even more benefits to applying for your VA Home Loans for veterans who are ready to purchase a home:

• VA Home Loans are assumable, provided the person assuming the loan is qualified.
• Veterans' closing costs are limited by VA, making sure you won't be asked to pay more than a fair price for closing costs.
• You have the VA behind you offering additional assistance if you ever find you are having problems making your home loan payments, at any time in the future.
• Veterans can prepay their VA Home Loans without a penalty.

Check these facts about the purchase of your next home with a VA Home Loan:

• VA does not have a maximum VA Home Loan amount. However, lenders do sell loans on the secondary mortgage market, so they will generally limit loans to $417,000 ($625,500 in Hawaii, Guam, Alaska and U.S. Virgin Islands) with no down payment. With a down payment, your VA Home Loan may even exceed these amounts.
• The veteran does have to qualify income and credit wise.
• The veteran does have to occupy the home as their primary residence.
• The veteran does not have to be a first time home buyer and may reuse his/her benefit.
• The lender, not VA, sets the interest rate and discount points, so they may vary from lender to lender - shop around for the best rates as always.
• There is no private mortgage insurance, but VA does charge an up front VA funding fee, which may be financed. The exception would be if a veteran is in receipt of VA service disability payments each month; then, he or she does not have to pay a VA funding fee.
• With a VA Home Loan, the seller can pay your closing costs. There is a requirement that seller concessions do not exceed 4%, but only certain items are considered as part of the concession including payment of pre-paids, VA funding fee, payoff of credit balances or judgments on behalf of the veteran, and funds for temporary buydowns (not discount points).
• The veteran is not allowed to pay for a termite inspection report; it is paid for by the seller.
• VA does not approve the majority of loans. The majority of transactions are handled directly by the lender with little VA intervention.

Source: www.MilitaryHub.com

What You'll Need to Apply for an FHA Loan

When you apply or pre-qualify for an FHA home loan, there are several important pieces of information required. These are designed to give the lender the information needed to start the approval process. It’s true that a home loan application or even an online pre-qualification form can be a bit time consuming, but you are basically providing all the relevant details needed to get started.

If you've never applied or pre-qualified for an FHA loan before, The list of requirements can be daunting. The application is designed to help the lender obtain a range of details including:

• general mortgage “credit analysis” documents
• evidence of Social Security Number
• verification of deposit
• verification of employment
• federal income tax returns
• appraisal documentation

That list is reprinted from the FHA loan rulebook for lenders, HUD 4155.1, which also says, “Lenders must obtain the most recent documents required to perform the mortgage credit analysis. 

“Most recent” refers to the most recent document available at the time the loan application is made.” If your most current paperwork (tax forms, for example) are from one year ago, include those since they are the most recent. If you have a collection of pay stubs or similar paperwork, use the one most recently issued.

“General mortgage credit analysis documents” can include credit reports, which must be obtained directly from the reporting agency. This paperwork cannot come from the borrower, even if you have access to them. 

Social Security number evidence may be as simple as providing a copy of your Social Security card or filling out the number on the credit application form. Your lender will tell you what is needed in this case if it isn't listed on the application itself.

“Verification of deposit” may include bank statements or other documents or you may be required to provide an account number for the loan officer to check. 

“Verification of employment” may include both pay stubs or other proof of employment, but the lender may also call your employer to verify you are still working at the company--a standard practice. 

This is not an exhaustive list of the paperwork and other data needed to process an FHA mortgage loan application, but it does give you an idea of how the loan application process works. If you don’t have all of this information ready before pre-qualifying or applying, take the time to get it all together in one place before getting started--you’ll save a great deal o

f time.

Source: www.FHA.com

Do Older Homes Qualify For FHA Loans?

A common question about FHA loans involves the age of the home and whether an “older” home is suitable for an FHA guaranteed mortgage. Some FHA loan applicants want to know if a home built in a certain decade is eligible for an FHA mortgage.

It’s an interesting question--does the FHA have any regulations that specify a home’s age as a factor when it’s time for the lender to approve or deny the loan? Look in the FHA loan rules and you will not find any reference that states “a home built before (insert decade here) is ineligible for an FHA guaranteed loan.”

What the FHA does specify are the guidelines that must be followed related to the condition of the property rather than its specific age. The home must meet FHA “minimum property standards” as well as federal, state, and local building code that may apply.

Again, search through the FHA loan rules as described in HUD 4155.1 and you will not find any specific rule, regulation or standard that says how old the property can or must be. Is the home safe? Habitable? Does the age of the home affect the resale value?

That last detail is an important factor to keep in mind. FHA loan rules are concerned with the property’s “remaining economic life”. A lender may deny a loan application for the purchase of a property with an FHA guaranteed mortgage if the property has little economic life remaining. After all, the borrower should be able to sell the property at a reasonable rate as determined by current market conditions at any point during the lifetime of the FHA loan.

Remaining economic life issues can be circumstantial and standards may vary greatly from market to market. Regardless, it’s important to know that an older home is not necessarily without value in the eyes of the FHA or the housing market--and that market does play a part in how the home’s value is determined. It is not safe to assume that older property you’ve had your eye on isn’t a good investment for a home loan, but it’s best to approach older homes knowing there are age-related issues that may need addressing as a condition of loan approval.

To discuss buying your older home, call Broker Michica Guillory of The Guillory Group at (832) 768-1711.

A Little Something About FHA Loans & Credit Scores

 

Many FHA loan applicants have worked hard to build up their credit scores yet aren’t sure whether they can qualify for an FHA loan. A common dialogue from potential buyers about FHA loans goes more or less like this:

“I have a credit score of 536. Can I get an FHA loan? I applied for a conventional loan but could not get approved.”

One thing that’s important to remind borrowers of when it comes to questions like this--some wrongly assume that the FHA is responsible for loaning money. It is not. FHA loan standards are set in two places--one is the FHA loan rulebook, which states that a minimum credit score of 500 is required for consideration. But since the FHA does not lend the money for a home loan, the participating lender’s own credit score requirement is also a factor.

This point is very important. To reiterate: the FHA does not loan money or disburse funds. Instead, it guarantees the home loans which are issued by a participating lender. The lender is responsible for processing, approving or denying the FHA loan applications it receives.

If the borrower does not meet minimum FHA standards, the loan application will be denied. If the borrower meets minimum FHA loan standards, but cannot meet the lender’s additional requirements--which may include more stringent credit or income criteria depending on the loan and the situation--the loan may be denied.

FHA minimum credit scores are listed at 500 and above. Financial institutions can and often do require higher FICO scores. Among many lenders, the accepted basic minimum FICO score is 620 or better.

If you are considering applying for an FHA loan but know your FICO score is lower than 620, contact the FHA directly for a referral to a pre-purchase housing counselor who can give advice on how to improve credit scores and the overall chances of loan approval. Also, if it's not in your budget to hire third-party companies to “repair your credit,” then contact the FHA and ask for a referral to an FHA approved housing counselor on how you can accomplish the same results yourself.

Call the FHA directly for this type of assistance at 1-800 CALL FHA.

 

Then call Michica Guillory of The Guillory Group at (832) 768-1711 when you're ready to buy or sell your home.

BUYER BEWARE: On FHA Loans, Mortgage Insurance To Be PERMANENT

Changes are on the way as the Federal Housing Administration begins implementing new lending policies on April 1. These changes will significantly raise the cost of purchasing a home for anyone borrowing from an FHA-backed lender.

Effective next month, Mortgage Insurance Premiums (MIP) will increase and raise the cost of borrowing for purchasers short on funds for their down payment. MIP rates will increase by about 10 basis points (.10 percent) on most mortgages.  Two months later, on June 3, HUD will increase the minimum time a borrower must pay for mortgage insurance. The biggest surprise to the uninformed will be the change in rules making it impossible for most borrowers to cancel the MIP without refinancing into another loan not administered by the FHA. In other words, the MIP on an FHA loan will be PERMANENT for many.

Under current guidelines, buyers could request that the MIP be eliminated when the loan-to-value (LTV) dropped to 78 percent of the original loan and the annual MIP had been paid for at least 60 months. Most FHA borrowers will find it more difficult to eliminate paying for the insurance in the future. The new changes vary depending on the original terms of the loan. Anyone borrowing greater than 90 percent LTV will be stuck paying MIP for the life of the loan. The only way to eliminate this expense would be to pay off the loan or refinance. Borrowers with an initial LTV between 78 percent and 90 percent may eventually qualify to eliminate MIP, but only after a minimum of 11 years.

FHA backed loans are popular for several of reasons. FHA allows for a 3.5 percent down payment, refinances without appraisal, and its rates are usually low.

In order to avoid the MIP rate increases, home buyers should plan to apply with a lender no later than March 25. Borrowers hoping to avoid the new terms on canceling the insurance should apply by May 24.

Don’t wait before it’s too late to take advantage of today’s low rates.

Sorting through the maze of mortgage options is just another reason to seek professional advice from a qualified and experienced mortgage lender. Depending on your financial situation, there may be other loan products that meet your needs and cost less when everything is taken into account. The lowest mortgage interest rate does not always equal the best deal when all costs are considered.

For more information or to get started with your home search, call Michica Guillory, Broker, at (832) 768-1711.