From the rolling farmland of the Midwest to the mountains of the East and Northwest, from bustling metropolises and peaceful small towns, we have it all here in the good ol' U.S. of A.
With that kind of geographical diversity comes a variety of folks, too, and when you put us all together, you have a quite a mix of people with very different dreams--not to mention incomes. A farmer in Texas and a policeman in New York City are as different as their accents, and you can bet they'll have different plans and needs when it comes time to buy a house.
Fortunately, in addition to many national government lending and home-buying programs, there are others designed especially for dwellers of certain states. Ask your real estate or lending professional about these and other programs and opportunities available to residents of your state.
California
Thanks to a new option being offered by First American Title Insurance Company (Walnut Creek, CA), Californians can now charge closing costs to their credit cards. First American accepts credit cards for as much as 2 percent of the sales price or loan amount, in addition to costs such as title insurance and escrow fees. "Having the ability to charge these varying amounts will take the stress and delays out of closing and make the entire process a lot easier," says First American CEO Richard P. Pauletich, noting that buyers are often otherwise scrambling at the last minute for certified checks or wire transfers to meet closing deadlines. (Scripps Howard News Service)
In June, U.S. Rep. Edward Royce (R-Calif.) and Freddie Mac announced the availability of $25 million to help California families overcome home buying obstacles such as low income, poor credit history and insufficient savings. This effort combines a 30-year, fixed-rate first mortgage with a low market-rate second loan that families can use to obtain money for a down payment or closing costs to help combat the pricey real estate market in California. This cooperative effort by the California NeighborWorks Organization, Freddie Mac, California Bank & Trust, the California Housing Loan Insurance Fund, and Impact Community Capital, this pilot program allows for low-cost mortgage insurance, flexible underwriting and little borrower contribution (1 percent of the home's purchase price).
A lottery will be conducted in Santa Clara, California, to determine who will be offered the opportunity to move into 40 new apartments built exclusively for teachers in the Santa Clara Unified School District on the site of a closed school. It is hoped that this offering, which amounts to rental rates about half the current rate in that area, will be incentive to help the school district attract and retain quality teachers.
Thanks to the California Association of Realtors and Consumers Union, legislation effective July 1, 2001, gives Californians access to their own credit scores. Under the provisions of the Credit Score Disclosure Legislation (law SB 1607), potential homebuyers in California will be able to learn more about the factors affecting their ability to borrow money and buy a home. Until now, information lenders use to determine whether or not an individual can borrow money, how much they are eligible for and under what interest rates has been kept secret from the borrower. Proponents of this legislation hope that access to this information will empower the people with knowledge that can help them protect themselves from incorrect or misleading credit information.
Illinois
Coldwell Banker is helping to clear the way for homebuyers and sellers in Illinois and Pennsylvania by offering sellers a 2 percent commission rate through a new discount real estate company called Blue Edge Realty. According to www.BlueEdge.com, Blue Edge Realty allows sellers to "Pay Less. Keep More."--a discount that can easily be enjoyed by the buyer as well. Included in the discounted service is a home seller's kit, marketing services and support, buyer screening and closing and contract services.
Massachusetts
Working with the big secondary mortgage company Freddie Mac, lenders in Massachusetts are can offer low-cost mortgages to low income families. The program, called the Massachusetts American Dream, allows homebuyers to make a 3 percent down payment with borrowed money and helps with closing costs. Six lenders in Massachusetts are taking part in the program: DeWolfe (800-793-5626); First Eastern (800-777-2240); First Essex Bank (800-552-2669); Rockland Trust (800-295-8400); Salem Five Mortgage (978 -740-5233) and Stoneham Cooperative Bank (888-402-2265). (SHNS)
Michigan
Answers to affordable housing and rental questions and other housing issues are a click away on a Web site put together by the Michigan State Housing Development Authority (MSHDA). The site (www.mshda.org) offers tips and detailed information on a variety of programs that can make housing more affordable for prospective buyers and renters, as well as info for developers, lenders and real estate agents. You'll find the nitty-gritty on qualifications and income limits, local lender lists, Low Income Housing Tax Credits, grant and award programs and more aimed at those with low to moderate incomes.
NOTE: While many of the programs listed are specific to Michigan, the links make it a good starting point for tailoring your own affordable housing plan and much of the tips and information--such as the Home Buyer's Check List--are universal. (SHNS)
This one might be in the works: On June 20, 2001, Detroit mayoral candidate Nicholas Hood, III, called for a stronger relationship with Realtors in Southeastern Michigan to help the city sell its excess real estate. Hood noted that the City of Detroit has nearly 68,000 parcels of vacant land that need to be redeveloped. He promised federal funding, such as block grants, would be allotted from the mayor's office, and lawyers would be made available to facilitate land title and clear real estate searches. Hood said he plans to recruit real estate professionals to sell city land and certain nonprofit organizations would be given land for housing and community services.
Nevada
You might have thought that Florida and California are the places to be when it comes to retirement, but new communities in Nevada are giving those equally sunny states a run for their (retirement) money. Del Webb's newest Sun City active adult community, Sun City Anthem, is the third of its kind and was ranked as the sixth best selling planned community in the U.S. in 2000. The number one spot in that survey was also a Del Webb community, Sun City Summerlin, which was the first active adult community in Las Vegas. According to the National Association of Home Builders, Nevada ranks first on the list of retirement locations for seniors age 55-64, second for seniors 65-74 years old and fourth for the oldest senior group. If you're not retired yet you'll be happy to know there's no state income tax, and Nevada property taxes are lower than most states. The dry climate is good for arthritis and allergies, too, so if you're looking for a sunny new home and you don't mind the heat, grab your sunscreen and hop on this wildly popular bandwagon. Sun Cities offer various sporting and recreational facilities as well as a country club atmosphere with restaurants and gated grounds. Learn more at www.DelWebb.com.
New York
RE/MAX of New York has formed an alliance with HomeSide Lending to provide a list of all available options to help borrowers decide whether to proceed and pay any loan fees. Supported by Fannie Mae's underwriting technology, this new venture also enables loan approval in as few as 10 minutes. Allowing agents to instantly qualify customers will help them target a potential buyer's home search and speed up the buying process.
North Carolina
The North Carolina State Employees' Credit Union has boosted the possibility of affordable home ownership to first-time buyers (or buyers who have not owned a home in the past three years) by allotting $400 million for 100 percent financing to its members. Financing is also available at 100 percent to credit union members purchasing manufactured homes. The loans are offered under the credit union's adjustable-rate mortgage programs, and private mortgage insurance isn't required. Closing costs are low and these loans have a $300,000 maximum. The new program was created because while many of the credit union's members can afford house payments, they have difficulty saving for down payments and other incidental costs that arise when trying to purchase one's own home.
Oklahoma
A new Freddie Mac program is designed to help the Choctaw Nation in Oklahoma. Members can buy a house using as little as 1 percent of their own funds. Information on the program is available from the Choctaw Housing Authority, 800-235-3087.
Pennsylvania
Coldwell Banker is helping to clear the way for homebuyers and sellers in Illinois and Pennsylvania by offering sellers a 2 percent commission rate through a new discount real estate company called Blue Edge Realty. According to www.BlueEdge.com, Blue Edge Realty allows sellers to "Pay Less. Keep More."--a discount that can easily be enjoyed by the buyer as well. Included in the discounted service is a home seller's kit, marketing services and support, buyer screening and closing and contract services.
Texas
If you live in the Lonestar State and you're in the market for a home, the time might be right, right now. Lower interest rates in Texas this year are helping potential homebuyers secure financing, according to a housing affordability index for the state. The index, which rose to 1.35 in the early months of 2001, shows that 62 percent of Texans can now theoretically afford a median-priced home. (An index figure of 1.35 means the median Texas household income is 35 percent higher than the minimum income needed to buy a median-priced home.)
