Condo Lending Rules Are Changing for Boulder Buyers

Nationally, condos and condo-style townhouses have come under increased pressure by lenders. Most of this is due to over-building and high rates of default in other US markets, causing Fannie Mae, Freddie Mac and FHA to tighten some requirements for Condo Complexes. Here are a few of the major changes we are seeing:
· Owner-Occupancy - minimum rate of owner-occupancy is now 51% for conventional loans, as well as for FHA. Sometimes this can be waived on a conventional loan if the property will be owner occupied. It cannot be waived for FHA, or conventional Investors.
· Loan-to-Value - for loans with LTV over 75%, we are seeing about a .25% rate adjustment.
· "Walls-In" Insurance Coverage - Lenders are now REQUIRING this type of coverage
· "Condotels" - lenders are carefully scrutinizing complexes in resort areas to determine if they allow nightly rentals (if management "promotes or assists" nightly rentals in any way, offsite or online, the loan will be very difficult to obtain).
· New Construction Condos have changed dramatically – particularly the Pre-Sale requirements, which are now 70%.

Beautiful Longmont Home on Almost 1/4 Acre

This home sit on almost a 1/4 acre and is surrounded on 3 sides by some of the 38 acres of community open space. The house is spotless with hickory cabinets and floors to match. This is a contemporary floorplan with a great room for entertaining. The views of the backrange, Pikes Peak and the Foothills are fantastic. Extras include wonderful landscaping, stainless steel appliances, granite countertops and a main floor study.

For more information call Gregg Ashburn @ RE/MAX of Boulder, Inc. 303.875.4907 or visit his real estate website www.move2boulder.com and look for the featured listings button.

Asbestos Still a Concern in the Real Estate Industry

Known as the silent killer, many citizens are still unaware to the dangers associated with asbestos. This material was a hot commodity until the 1980’s as a prominent form of thermal insulation, piping, roofing and flooring. Asbestos is a highly fibrous mineral that was mined and manufactured throughout the world. Asbestos fibers are thing and strong, and once inhaled by an individual, can become lodged in the lining of the lungs and cause significant health concerns. Any industry in Colorado that used heat or corrosive chemicals, asbestos was used. Homes and buildings built before 1980 still could harbor asbestos-containing materials. When remodeling or purchasing an older home, there are many issues to consider in the Boulder real estate landscape.

Frequent exposure to asbestos can lead to the development of serious illnesses such as asbestosis and mesothelioma. Mesothelioma is a serious form of asbestos lung cancer that takes the lives of thousands every year. Mesothelioma metastasis can occur when the illness spreads through the lymph nodes or the blood stream. This is usually followed with poor patient prognosis. With a latency period that lasts anywhere from 20 to 50 years, mesothelioma treatment has varied affects on victims because the disease has reaches its later stage of development when diagnosed. Those involved in the real estate industry are now receiving indications and information towards the risks they face.

There is no need for any products used in construction to be made from asbestos, yet over 3,000 work and home-based materials still contain this toxin. Some green eco-friendly options that should be considered include the use of cotton fiber, cellulose and lcynene foam. In 2001, Israeli researchers at the Technion-Israel Institute of Technology began production of a thermal ceramic insulator becomes a safe and economical substitute for asbestos and other harmful substances. The foam is made of aluminum oxide, a high temperature ceramic noted for great insulating powers from its tiny air bubbles. These alternatives not only allow for a healthy and safe home, but can bring down annual energy costs.

The Colorado Asbestos Compliance Assistance Group assists public facilities and home owners to comply with state and federal regulations in regards to the inspection and abatement of asbestos. Prior to removing the substance, it is suggested home owners leave the material alone. A professional inspector can determine if the material present is dangerous and the proper course action should be. The removal process must be performed by a licensed abatement contractor.

To speak with Gregg Ashburn at RE/MAX of Boulder call 303.875.4907

Boulder Surveys for House Size Limits

Below is an announcement that the City of Boulder will survey over 13,000 households about home expansions and the compatable development. I want to advise you how important it is that you respond to the survey to protect their use of your property and its future resale value. It will be important for city officials to hear from a truly representative group of homeowners, not just those with strong feeeling about home expansions.

Compatible development surveys to be delivered to single-family homes in BoulderAs part of the Compatible Development in Single-Family Neighborhoods project (formerly known as "Pops and Scrapes"), a survey will be mailed to all potentially affected property owners around Friday, Oct. 24. The purpose of the survey is to garner homeowner input regarding residential development in relation to neighborhood character.

A total of 13,036 addresses will receive the survey. Affected property owners include the following residential zoning districts:
· Residential Low Density (RL-1)
· Residential Low Density (RL-2)
· Residential Estate (RE)
· Residential Mixed Density 1 (RMX-1)
· Residential Rural 1 (RR-1)
· Residential Rural 2 (RR-2)

The survey was developed by the city's consultant Winter & Company with assistance from RRC Associates - a private firm that specializes in market research and collecting and analyzing customer feedback.

Along with the recently completed community workshops, the survey is part of the first step of the project to "Define the Question." A workshop summary is currently available on the project Web site.

In the project's next step, the information gathered in the survey and workshops will be used to develop a recommended strategy. This strategy will be introduced to the public at a series of community workshops that are expected to occur in mid-January. Public feedback will be used to refine the strategy before it is considered by the Planning Board and City Council.

For more information about the project, visit http://www.boulderplandevelop.net/ and click on "Hot Topics and Current Projects" or contact Senior Planner Julie Johnston at 303-441-1886.

House and Senate Agree on Housing Bill (Boulder Mortgage Update)

A comprehensive Housing Bill was agreed upon by the House, the Senate, and the President this week, and it was successful in increasing confidence in the guarantees provided by Fannie Mae and Freddie Mac.

As a result, mortgage rates ended the week modestly lower. Formal passage of the Housing Bill is considered a sure thing. One primary feature is that it authorizes the Treasury to provide credit to and buy shares in Fannie and Freddie, if needed. According to industry trade publications, Fannie and Freddie, along with the FHA, accounted for 90% of US home mortgages originated in the second quarter of 2008, up from just 49% one year earlier. Keeping the two firms healthy is vital for the US housing market.

Besides providing support for Fannie and Freddie, the Housing Bill will also help the housing market in other ways. One program will allow the FHA to insure up to $300 billion in new loans targeted at troubled homeowners. Another program adds tax credits for first-ti me homebuyers, which in essence will be a 15-year interest free loan for up to $7,500. In addition, the bill provides funds for more low income housing and grants to be made for local community redevelopment. A wide range of smaller programs are included as well.

The economic news in the housing sector was mixed. June Existing Home Sales fell slightly, and inventory levels of unsold homes increased.
In contrast, New Home Sales were significantly higher than expected in June, and the May figures were revised higher as well. High inventory levels will probably need to come down to achieve a meaningful recovery in the housing market, but the chief economist of the National Association of Realtors (NAR) believes that the Housing Bill will play a major role in helping the housing market to rebound. In particular, he expects the first-time homebuyer tax credit to boost future home sales.

Friday will be the big day next week. The important Employment report will come out that day. As usual, this data on the number of new jobs created, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month, since the health of the labor market is perhaps the single biggest factor in the performance of the economy. Early estimates are for a loss of 70K jobs in July.

The first reading of second quarter 2008 Gross Domestic Product (GDP) will be released on Thursday. GDP is the broadest measure of economic activity. The two national manufacturing indexes, the ISM and the Chicago PMI, will come out on Thursday and Friday. Consumer Confidence and Construction Spending will round out the schedule.

For Mortgage Information call Dave Schell at Insight Financial in Boulder Colorado 303-444-2885