Construction Loans How They Work
22.March, 2009
Construction loans how they work in a Nutshell
1. You need to own land first in order to obtain a construction loan. The reason you need to already own land is because the bank is going to want a set of house plans and permits. Unless you purchase land that comes with a set of plans you should obtain a land loan 1st until you are ready for the construction loan and its requirements.
2. You need to find and hire a builder to provide you with a cost breakdown unless you are an owner builder. The best banks with the best interest rates and programs usually require that you hire a home builder/contractor or manager/contractor.
3. The owner builder banks that specialize in owner builder loans are usually single close construction loans with average loan programs.
4. You will need to apply for a construction loan with a broker or a bank. No matter who you pick to work with make sure they are a construction loan specialist. A experienced broker can tell you the banks that are actually closing construction loans and which banks are not.
5. Most lenders in todays market require full documentation, tax returns etc.
6. A typical construction loan full approval takes about 45 days to closing.
7. Most construction loans today are one time close construction to perm with one set of loan fees.
8. The type of construction loans available are fixed arms and the standard 30 years fixed loans.
9. Your credit score needs to be in the high 680’s or higher in the 700’s.
10. The construction loan period part of your construction loan is usually 12 months to 18 months.
11. Upon completion of the building of your new home the loan will convert into the permannent part of the mortgage.
12. You will need construction insurance during construction and homeowners insurance upon completion.
13. You will need to move into your new home and and are required to live happily ever after
Thanks,
Rick Gomez
CaliforniaConstructionLoans.com and NationwideConstructionLoans.com
Home Sales Slump in Bend Oregon
11.November, 2008
The real estate market in Bend Oregon continues to slump. It is now a buyer’s market.
Prices are coming down and will continue to fall through the winter as the inventory continues to build. It is taking longer for homes to sell and there are more homes for buyers to choose from.
The real estate markets in California, Arizona, Florida and other key states are leading indicators on how the market in Bend will do. In1989 real estate values in Bend jumped 35%.
Out of state buyers from California, Florida, Arizona, Washington State and other hot markets were selling their homes for large profits in 1989 and moving to Bend to buy larger homes. 1990 and 1991 saw the out of state markets dry up with prices falling. The Bend market followed these markets before it picked up again.
Today’s market looks very similar to the 1989-1991 market. 102 single-family homes on less than one acre in Bend closed in October 2006 according to the Multiple Listing Service of Central Oregon. That is a decrease of 59 percent from the active market in October 2005.
The median sales price was down slightly but that does not include homes that have been on the market for almost a year and haven’t sold. There are homes that have been listed with one Realtor for six months and then listed with another. Many of these homes still have not sold.
One newer home that was listed in December 2005 at $399,500 is still on the market. The seller refused an offer of $379,500 the first month it was listed. That home is now listed with another Realtor at $329,500 and that is just the asking price. The owner would now entertain any offer.
This winter is the time to buy real estate in Bend. There are homes on the market now that have been substantially reduced with seller’s willing to take any reasonable offer. Some homes are vacant and can be bought with a lease-purchase. We look for the market and prices to pick back up next spring.
A report recently released by the Federal Deposit Insurance Corp., or FDIC reported that Bend is the 35th fastest growing job market in the country for the second quarter of 2006, wit a job growth rate of 4 percent during that period. The FDIC reported sales activity in Oregon fell 12 percent in the same quarter. This indicates demand for homes in will continue.
Some builders are starting to offer more incentives if you buy one of their homes. Upgrades in appliances, floor coverings, wood work, landscaping and other aspects of construction are now free. Some builders are also willing to pay points in order to help buyers qualify for lower payments on their loans.
The National Association of Realtor’s chief economist, David Lereah, predicted that sales through the rest of 2006 will be lower than earlier predicted. “This year, sales are slowing, homes are plentiful and sellers are negotiating,” Lereah said. “Under these conditions, we will probably see prices dip temporarily below year-ago levels as the market works through a buildup in housing inventory.”
There are still many home for sale in Bend that are over priced for today’s’ market. But there are also a good variety of homes that are for sale that are very good buys. Sellers that have to sell are forced to lower their prices and offer to pay closing costs, include appliances in the sale and replace carpets prior to close and many other “freebees” in order to sell their homes.
New home developers and builders were able to sell homes in the past few years before they broke ground. They had buyers waiting in the wings to purchase these homes as soon as the lots were developed and the builder priced the homes. The buyers chose their finish materials and waited for construction to be finished.
Today large builders particularly cannot afford to sit on their vacant homes during the winter and pay interest, taxes, insurance and utilities. These builders are offering “free” perks to sell their new homes today. Prices are being lowered substantially.
Interest rates are still low, the economy is good and gas prices are stable or falling, all good signs that the real estate market in Bend will be picking up next spring. If you have ever thought about buying real estate in Bend Oregon now may be the best opportunity you will have in a long time.
Prices are falling. Interest rates are low and there are some good buys in today’s market. Look for prices to start going up this spring.
Poema de Ventura Gassol dedicat a la mort del preident Companys.In The Red and Brown Water - www.youngvic.org/dream
04.November, 2008
Visit www.youngvic.org/dream
A new play by the explosive Tarell Alvin McCraney whose The Brothers Size had Young Vic audiences on their feet.
It’s the story of a dream - of change, of freedom, of becoming the person you are.
Featured - Ashley Walters and Ony Uhiara with music by Abram Wilson.
Duration : 0:1:17
Bend Oregon Real Estate - A Buyer’s Market
24.October, 2008
Real estate prices in Bend have been going up steadily over the last five years. According to statistics from the Multiple Listing Service of Central Oregon home prices have almost doubled in the last four years. The MLS shows that the number of sales of homes in the third quarter of 2006 was down 19.32%. However the average sales price was up 25.09% during the same period. These statistics can be misleading because of the lag time of the new home sales and the final closing date.
Some new homes are put under contract before the foundation is poured. This can leave 6 to 12 months before the home is completed and closed. All statistics from the MLS are based on the “Sold” date. Therefore these statistics are skewed. The sale is not reflected properly.
Prices are actually coming down this fall and probably will continue through the winter as the inventory continues to build. It is taking longer for homes to sell and there are more homes for buyers to choose from.
The real estate markets in California, Arizona, Florida and other key states are leading indicators on how the market in Bend will do. In1989 real estate values in Bend jumped 35%. Out of state buyers from California, Florida, Arizona, Washington State and other hot markets were selling their homes for large profits and moving to Bend to buy larger homes. 1990 and 1991 saw the out of state markets dry up with prices falling. The Bend market followed these markets before it picked up again.
This winter is the time to buy real estate in Bend. There are homes on the market now that have been substantially reduced with seller’s willing to take any reasonable offer. Some homes are vacant and can be bought with a lease-purchase. We look for the market and prices to pick back up next spring.
A report recently released by the Federal Deposit Insurance Corp., or FDIC reported that Bend is the 35th fastest growing job market in the country for the second quarter of 2006, wit a job growth rate of 4 percent during that period. The FDIC reported sales activity in Oregon fell 12 percent in the same quarter.
Building permits for single family homes have been constantly falling but the pace of building takes a while to slow down from the torrid pace of 2005. Builders have to develop the lots, get permits and start the construction. Construction of the average homes takes about six months. There are still new homes coming on the market today that were in the planning stages in 2005.
Some builders are also starting to offer more incentives if you buy one of their homes. Upgrades in appliances, floor coverings, wood work, landscaping and other aspects of construction are now free. Some builders are also willing to pay points in order to help buyers qualify for lower payments on their loans.
The National Association of Realtor’s chief economist, David Lereah, predicted that sales through the rest of 2006 will be lower than earlier predicted. “This year, sales are slowing, homes are plentiful and sellers are negotiating,” Lereah said. “Under these conditions, we will probably see prices dip temporarily below year-ago levels as the market works through a buildup in housing inventory.”
The Central Oregon Association of Realtors is the best place to track the home sale statistics in Bend and Central Oregon. You can find these statistics on their web site. Keep in mind that these statistics include many new homes that were put in escrow months before the official closing date.
If you are a real statistics buff you can go to the web site of the Office of Federal Housing Enterprise Oversight. It has a housing price index for all states individually, a house price calculator and other useful tools. However, keep in mind that these reports lag behind reality somewhat. Real estate prices in Bend are falling now and will continue through the winter.
Interest rates are still low and gas prices are falling, all good signs that the real estate market in Bend will be picking up next spring. If you have ever thought about buying real estate in Bend Oregon now may be the best opportunity you will have in a long time. There are some good buys in today’s market. Look for prices to start going up this spring.
Readers weigh in on economy
15.October, 2008
Readers comment on last week’s financial mess.
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Fed, other countries cut rates
15.October, 2008
The Federal Reserve announced a half-point interest rate cut in a coordinated move with other central banks in Europe.
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Los Angeles Synagogues: A Century Ago
15.October, 2008
The Breed Street Shul, which housed the Congregation Talmud Torah, has quite an interesting and significant history.
Located at 247 North Breed Street in the Boyle Heights district on the Los Angeles River’s east bank, he Breed Street Shul served a once thriving Jewish neighborhood in Boyle Heights that has since become predominately a Latino community.
The property on Breed Street was purchased after 1910. In 1915, Beth Hamedrash was built on the back of the property. Construction on the shul itself began in 1920 and it was dedicated in 1923. The large building is constructed of brick and the interior fixtures are polished wood.
The Breed Street Shul served as the focal point of the neighborhood that was the heart and soul of the Los Angeles Jewish community. Even if you have never been to Los Angeles, you might very well have seen the shul. Both the 1927 original and the 1980 remake of “The Jazz Singer” featured the Breed Street Shul.
The Breed Street Shul was, at one time, one of the largest synagogues on the West Coast and home to the largest Orthodox congregation west of Chicago.
After World War II, The Jewish presence in Boyle Heights began to diminish as the area became more of an industrial area. An influx of other cultures resulted in young Jewish men returning from military duty during the war to use their VA loans to move to other areas. This resulted in the shrinkage of the congregation at the shul.
In 1987, the Whittier Narrows earthquake caused damage to the building. After that, the Breed Street Shul was only used intermittently until it was finally abandoned in 1996. Shortly after that, there were attempts to renovate the building. The Jewish Historical Society of Southern California took over the project in 1999 and set up the Breed Street Shul Project as a nonprofit organization to oversee the renovation.
The project was not only to preserve an historical Jewish site but to also serve the current community as a community center. To this end, several Latino organizations and the J. Paul Getty Museum worked with the Jewish Historical Society of Southern California to clean up and refurbish the building.
By the time the renovation project really got under way, there was a large hole in the ceiling, the inside walls were covered with graffiti and a razor wire topped fence surrounded the building. Many living in the area did not even have an idea of what the building was.
Young Latinos from the Imaginando Manana program (translation: Imagining Tomorrow) of Impacto worked on the clean up. In addition to learning the Jewish history of their neighborhood, the youths also learned tolerance and respect for other cultures. The youths were helped by Impacto Director Christine Sanchez to understand and care about the need to renovate the shul by having them imagine how they would feel if it were a site of significance to them.
During the clean up, Sunday clean up events became very popular with, not only the youths, but the community at large. They were advertised and well attended. Participating in the project served to strengthen community bonds and formed a bond with the Jewish heritage of the neighborhood.
Directing the youths from Impacto in the clean up were JHS President, Stephen Sass and Robert Chattel Brent Riemer of Chattel Architecture, Planning and Preservation, Inc. The specialty of Chattel’s company is historical preservation. Chattel also served as vice president of JHS. He lent his building expertise to the renovation project.
In view of plans to make the site a community center, he is quoted as saying, “This building should continue to be a place of congregation.” Among the ideas for merging service to the current community and preserving the site’s Jewish history is a computer lab with displays depicting the history of the site as a Jewish legacy.
With the dedication and input of the leadership of the JHS and local organizations, the renovation of the Breed Street Shul will not only serve as an historical preservation and community center, it will also advance to tolerance and understanding between two cultures. The very nature of this project exemplifies the truest essence of Jewish tradition of serving the community, whether it is Jewish or not.
California Construction Loans FAQ
10.October, 2008
California construction loans is the ultimate source for obtaining the best construction loan available in the state of California. Whether you are planning to build your dream home or doing a major remodel to your existing home we can help. Download the free construction loan inside secrets ebook at http://www.californiaconstructionloans.com
Duration : 0:3:7
California Construction Loans FAQ
10.October, 2008
California construction loans is the ultimate source for obtaining the best construction loan available in the state of California. Whether you are planning to build your dream home or doing a major remodel to your existing home we can help. Download the free construction loan inside secrets ebook at http://www.californiaconstructionloans.com
Duration : 0:3:7