FHA Loans Are Changing for the Better

FHA loans are government backed loans which are good for buyers with less than perfect credit and allow low down payment requirements, but they did not come without stringent requirements compared to conventional loans. As a result, these loans have negative appeal amongst real estate industry, because it almost requires a home to be in great condition and requires more work on behalf of the seller to bring the home up to FHA standards. FHA has taken several steps to move into the 21st century by making significant changes.

• To keep up with increasing home prices, the new maximum amount allowed to borrow is up to $362,790 which was a $50,000 increase. There is another proposal to increase the amount to $417,000 in certain high cost areas.
• Certain items on inspection reports were required to be fixed prior to closing even cosmetic issues. Now only structural or safety issues are require to be fixed.
• Obtain a FHA 203k loan will allow the borrower to borrow up to $35,000 in repairs to be completed after the closing. Borrowers can now replace worn-out appliances and carpet without the need for a second more costly mortgage.

It is still wise for a buyer to try to obtain conventional mortgage if they can. To learn more about FHA financing options, please contact First Choice Financial at eric@specialtymortgage.com Courtesy Orlando Sentinel 7/9/06.

Real Estate Closing Costs

Closing costs are require costs by both the buyer and the seller at the end of a real estate transaction. When you purchase a home in Orlando, it is decided in the contract who will pay for title insurance. Whoever pays for title insurance, gets to pick the title company. Title insurance, is one of the many costs, and is approximately .6% of the purchase price. Orlando Sentinel Article, http://www.orlandosentinel.com/business/orl-title1606jul16,0,1163540.story discusses that consumers are choosing their title companies due to varying costs. Allan Michaels with Title USA has straight forward fees and competent title agents which takes care of all the issues for both sellers and buyers alike. If you need an Orlando based title company, contact Title USA http://titlesourceusa.com/

Winter Park Residences No Big Development

Winter Park residences have opposed big building development in down town Winter Park stating it will take away from the charm. As in with the case of the Carisle project, which is on hold for final approval. In a commissioner meeting it was voted to move forward on a moratorium which would halt development of buildings of 10,000 sq. ft. or more, except single family homes until the city can revisit/review their building guidelines. The final vote is expected to be later this month. Courtesy Orlando Sentinel 7/11/06.

Jumbo Loan Are Big and Pricey

With rising real estate prices across the country, jumbo loans are more common. Jumbo loans are loans starting at $417,000 and above. Jumbo loans are offer in fixed rate, interest only and adjustable rate types and, also in addition to a traditional 30 year loan, it comes in 40 and 50 year loan. Jumbo loans carry a higher interest rate than a conventional loan, such as a quarter of a point higher for someone with good credit history etc. Interest rates are dependent on your individual financial history. You have to take into consideration Interest Only loans, because at some point in time the monthly payment will increase. When considering a jumbo loan you need to ask can I afford a $3,000 monthly payment. What will happen if I become sick or lose my job. Jumbo loans are pricey and can become pricer depending on these above factors.
Courtesy Orlando Sentinel 7/2/06.

Florida Termite Contract Have New Rules

State's Commissioner of Agriculture and Consumer Services announced new rules for termite contracts which were effective June 1, 2006 which holds pest control companies more accountable and avoid loop holes. 50% of homes have termite protection in other words termite insurance in which they inspect your home usually annually or upon request and treat the problem if needed. Changes that in effect are contracts are specifiying the type of termite they cover, redo treatments to be done no longer than 90 days, and specifiying where treatment is a spot or full treatment. Now Florida home buyers will know if the home was "treated" whether spot of full treatment occurred. In addition, companies can no longer deny repair of structural damage from termite infestation. These new rules are the strictest and will be changing the pest control company nationwide. Courtesy Orlando Sentinel 7/7/06.

Modular Homes Coming to Orlando

An affordable home in Orange County, the home to the City of Orlando, is anything priced under $211,500. With the gap in wages from prices of homes people are looking at other affordable options such as Modular homes. Modular home have seen a 26% increase in sales since 1995. These homes are 80% built in the factory and come with all styles such as town homes and single family homes. With computer design the styles are updated and quality is better as workers are more specialized when building these homes. Other prebuilt homes include concrete, log, modular, and panelized homes. Art in Architecture and sponsorship by Orlando Regional Realtor Association are going to have modular 2000 sq. ft. townhomes built in Holden Heights area, selling for $175-195K. These profits will go back into the program to build more modular homes. These modular homes are most popular in Midwest and Northwest where building season is shorter. These homes can withstand wind gust of 120mph and some noted on the east coast of Florida are built to withstand 140mph winds. Courtesy of Orlando Sentinel 7/2/06.

Lake Mary Delay Downtown Development

Lake Mary Commissioner approved a plan to develop downtown Lake Mary 5 years ago, but little has happened since then. The location of the new downtown would be on 74 acres located around the city hall. This would consist of one and two story town homes, apartments and retail-residential buildings. There has been one viable developer to submit their plans. The big obstacle is developing a downtown around existing neighborhoods. Many residents are opposed saying it will take away the historic character. Some homeowners will sell their lots significantly over fair market value, while others are willing to sell joint lots with their neighbors. This would be an expensive and big job, and will have improve infrastructure. Right now everything is at a stand still. There is still projects in the works, such as, a new community center, park improvements, an interactive fountain and band shell. Recent renovations to City Hall include clock tower and gazebo. Courtesy of Orlando Sentinel 6/25/06.

Florida Foreclosure Trends

As many buyers took out interest only loans and other creative loans, their payments are likely to increase at some point in time. Industry experts indicate we may see more foreclosures as a result. Realty Trac, an online marketplace for foreclosed property, reported that foreclosure continue to increase in May, but appear to be leveling off nationwide. In May foreclosures were up 28% than May 2005. Florida ranks 8th for the busiest foreclosure filing with one filing out of 821 households. The national rate is one filing for every 1,247 households. Courtesy Orlando Sentinel 7/1/06.

Orlando Luxury Market

Even though Orlando home inventory is at an all time high and turn over is slow, Orlando luxury home market remains brisk. A recent report from ORRA says homes priced over $ 1 million increased 270% over last 3 years. Real estate agents says they are having no trouble unloading homes and luxury builders say they cannot build fast enough. There for demand for luxury home industry experts say, people are cashing out of their northern homes before interest rates are too high, Orlando expanding job market relocating executives, and simply prices have just increased. Home priced over a million represent 3-4% of the Orlando market and are on the market an average of 60 days which is same average for a home in the state of Florida. A trend occuring in the luxury market is being seen outside of Metro Orlando. Luxury homes are now found in DeLand's Victoria Park located in Volusia County.

Orlando Real Estate Seeing Gains

Compared to the rest of Florida, Orlando real estate market remains strong with median price of homes at $267K which is a 22% increase from last year. Statewide sales slowed down by 24% while Orlando down by 21%. Orlando sales down 12.2%. Condo sales fell 31% statewide, but Metro Orlando condo sales are up 10%. Median price of Orlando condo is $163,300 compared statewide at $220,000. Nationally home sales have declined but new home sales rose 4.5%. Other areas that remain flat are Fort Lauderdale, Fort Myers-Cape Coral, Sarasota-Bradenton, and Naples. Courtesy of Orlando Sentinel 6/28/06.

Clermont Going to Expand?

Center Lake Properties wants the City of Clermont to annex 584 acres of land known as Black West located southwest of Florida's turnpike to built 1,300 homes and up tp 200,000 commercial space. This is the second time Center Lake Properties has visited this proposal as it was originally turned down by complaints of residents about crowded schools. Also Clermont is suppose to have joint planning review with Lake County on of any development outside the city. This would leave 140 acres within boundries of joint planning with the county. If approved the county could limit homes to 1,100 due to sewage capacity and schools and roads would need to be improved to handle increase in resident schools and traffic. This meeting is scheduled today to vote on this request.

Four Corners In Southwest Orlando

The Four Corners is located in southwest Orlando at the intesection of Highway 27 and I-4, just minutes from Disney. This area is unusual as it is the corner of Polk, Osceola, Lake, and Orange counties and fast growing region with more than 80 developers building homes, but what is homes without a community which is what residents are complaining of. Becuase 4 government entities make up this area, there is no clear planning and collaboration amongst the governments. There are not enough schools built, roads are not consistent (wide in one county but not the other) one county has a library to share, no parks exist, water is a shortage where north Polk county residents can only water their lawn once a week, emergency services are set up by who can get there the fastest. Residents are angry the Public Services are not more cooperative. A study by Urban Land Institute indicated that government cooperation is neither widespread or encourage despite 5 million residents moving to Florida by 2020. Courtesy Orlando Sentinel 6/26/06.

Mercedes Homes 96 Homes in 96 Hours

With the slow housing market nationwide a new home builder is trying something different. Merecedes homes is reducing the cost of their inventory to sell 96 homes in96 hours which would save a homebuyer an average of $73K per home. This event kicks off today through Sunday and occuring a Mercedes locations in Florida, Texas, North Carolina, and South Carolina. The family owned company came up with this idea after building the first Central Florida Home on Extreme Makeover TV show which took 96 hours to build the home. This home is actually located in Altamonte Springs. Builders and sellers alike are creating incentives to bring in buyers.

Metrowest Suburb of Orlando Due For Name Change

Metrowest a suburb located southwest of Downtown Orlando may get a name change. Metrowest like many other Central Florida cities is getting a new town center, retail, office and condo complex called Veranda Park. The developer of Veranda Park is the president of Metrowest Home Owners Association has gotten mixed reviews on whether to change the name or not. MetroWest to some people sounds like a industrial park where others feel Veranda Park sounds like a nursing home. The developer has improved and maintained parks and signs of MetroWest through increases in home owners dues. The developer also proposed to change the name of MetroWest Blvd. to Veranda Park Blvd. and feels the name change is needed for continued growth of the communities. For more information on housing prices and to view homes with great pictures click on the link.

Lake County More Condos to Come

Lake County Florida located West of Orlando is seeing more condos being built in Tavares, Mount Dora, and Eustis geared toward people downsizing in ages 50-60's. There are 3 builders meeting the demand which will be priced from high $300's to $500's. Lake County has had a surge of single family homes, but condos and townhomes were at short supply, but things are changing for Lake County.

Good Time to Buy Orlando Real Estate

Now is a great time for buyers to buy Orlando Real Estate compared to last year. With 18,000 properties on the market now, compared to 3,500 properties, buyers have more to choose from. Sellers are unwilling to lower their prices, lower than last years market, instead both sellers and builders are offering incentives or beefing up marketing on their home. But selling realtors advise sellers to drop their prices even if below thier expectations to move properties. Properties are staying on the market for twice as long as last year an average of 49 days, and negotiations are taking longer. The market has done a 360 turn compared to last year and moving to a buyers market. Median prices of homes are dropping in other areas such as South Florida, but Tampa and Orlando prices have remained stead, but prices did not rise degree as compared to other areas.

2006 FCAT Scores Just Released

FCAT scores for the State of Florida were released yesterday. 30 schools statewide must be restructed as they fail to meet federal academic standards. These schools are title 1 schools which receive certain federal funding, in addition, these school have failed the FCAT 5 years in row. Restructing consists of state taking over the schools with private firms running them, instead of the county. Among some Central Florida schools are Catalina, Ivey Lane, Palmetto Elementary schools in Orange county and Endeavour Elementary in Brevard. In addition, Jones Highschool in Orange county is being considered. No Orange county highschool received A rating. To see a school grades contact the counties website for more information.

Housing Market Demand Seen Again

With strong economy the housing market will rebound after excess inventory from speculators has been shaken out. The pent up demand for housing will be driven after the slow down has passed. This demand will be driven by buyers who are bidding their time waiting for better incentive or lower prices, a nation luxury home builder stated. Also, the second home market should remain strong. Courtesy of Orlando Sentinel 6/9/06.

New Multi Currency Loan for Foreign Buyers

Lloyds TSB, a banking giant in Britian and Asia has introduced its "mulit-currency mortgage" to several states in the US and countries across the world. Foreign buyers will now be able to buy and sell real estate in different currencies. Today 8,000 Britians own homes in Central Florida mostly in Polk and Osceola counties. By offering this option makes it easier for the British as well other foreign buyers to purchase real estate in Central Florida. Courtesy Orlando Sentinel 6/7/06.

Deland's Victoria Park Development

St. Joe the builder of Victoria Park is the largest residential development seen in Volusia county in past 4 decades. Deland is located 30-45 minute drive from Orlando conveniently located off Interstate 4. This master planned communities offers various types of homes for all ages from first time home buyers to retirees, although there are no assisted living on site there are facilities near by. This is the selling point is families can live in one community. It is projected to built out 4,000 homes which will be a population of 10,000. This community offers a 18 hole golf course, 55+ community, nature trails, schools, shops and retail space. The community is 25-30% sold and anticipates further growth now that road work along Interstate 4 and around community have been widened. St. Joe is building another successful development near Celebration close to Disney. Courtesy of Orlando Sentinel 6/5/06.