FHA Loans / Loxahatchee Cancer Cluster

Question: "Will I still be able to get an FHA loan in the area of Loxahatchee Florida that have been labeled as a potential Cancer Cluster?"

Answer: "You should be able to., there could be some difficulty and additional documentation required." Banks are closing FHA loans in the area of Loxahatchee that are in the "Cluster".

A recent purchase transaction in that area gave the buyers a last minute scare. The buyers used an FHA purchase loan. The day before closing, the Quality Control department of the Bank, (the people at the bank that review the loan packages that are about to close., one more last time, the same people that can kill a deal in the last hours or minutes) noticed that the appraisers had made remarks, regarding the "Cancer Cluster Scare" Since the underwriter is located out of state and this was all news to them, it took some arm twisting and additional documentation such as a hand written hold harmless letter from the buyer to satisfy the QC department.

But the loan did close and the buyers are happy that they will be able to celebrate this years Christmas in their new home.

http://www.FridayRe.com

 

561-379-7881

 

In the market to buy or sell in Palm Beach County? Call Friday Realty.

 

How your credit score affects your mortgage and how to improve your score.

Your credit score is the most important factor when applying for a mortgage. Your credit score will tell a lender what the mathematical probability is that you could default on your mortgage. Unless we have another housing bubble, than all the endless hours that MBA’s spend designing mathematical models to predict how solid of a buyer you are, go out the window. Billions of tax payer dollars proved that in the last few years. Your score will tell a lender how responsible you have been in managing your money in the past. Hoping that this does not change and making lending you a sound investment for them and the investors that have gave them money to lend. I viewed thousands of person credit reports in my 10 year as a mortgage broker. For the most part I can read a credit report and evaluate / per qualify an applicant within a few minutes. I have seen credit reports with one or two open trade line and 700+ credit score and others with 15 open account and a 600 score.

 

The most important contributing factor to a good credit score is how long you have paid you accounts on time. The second most important factor is how much of you available credit line is being used. For example if you have $10,000 worth of available credit, and charged $9500 your score will not be very good. To keep a good score you should not utilize more than 28% if your available credit. I you have a zero balance on your credit card for more than six months that that credit line will be counted towards your score. Your score is simply there to help lenders evaluate the risk to lend you money. If you pay all your bills in cash and always on time but never use your credit cards this could negatively influence   you score.

 

To obtain a good score, make sure your bills are paid on time, your credit report will not show a late payment unless it’s been paid more than 30 day late. For example if you Car payment is due on the 5^th of the month and you always pay on the 25^th, you credit report will show as having been paid on time. This hold true for all credit payment that are reported to the 3 major credit reporting agencies. Next try to obtain a balance of different types of credit. Mortgage, Car, Store Credit Card and one or two Visa and Master cards. Too many cards can bring your score down, so will to many credit inquires. Each time you apply for credit your score will go down, the lower your score the more it goes down. The credit agency will allow you a week or two window if you are shopping for a car or home mortgage. You can have one or twenty car finance companies check your credit in a couple day window and that will only count against your score as if you had one check. The same holds true for Mortgages.

 

The next factor for obtaining a good Mortgage is your income and debt to income (aka DTI) ratio. Banks will look at all your payments due on your credit report (minimum payments) and divide that number by you Gross (Pre-tax) income. I know you can only spend your after tax money. But Banks use gross to compensate for other factors. For a Mortgage evaluation lender will first look at your ratio before your house payments to see how much of a home loan you can afford.

 

If you or someone you know is in the market to buy or sell residential Real Estate in Palm Beach County please feel free to reach out to me or visit my site at http://FridayRe.com

 

 

 

Telephone (Five) (Six) (One) 379-7881

Florida Seller Disclosure Forms...

Florida Seller Disclosure Forms

 

Are you thinking about selling your Florida Home? If you plan on selling your home AS-IS, (most homes are sold that way). And think its ok to let the buyer (and or Home Inspector) figure out the defects such as that there are cracked tiles under the living room rug and that the dishwasher does not really drain all the way? Think again, may home sellers thinks it's ok not to tell prospective  buyers about property defects if the property is being sold AS-IS. 

 

As a seller of Real Estate in the Great State of Florida you must disclose all know facts of defects to the property being sold. In addition the listing agent of the property must disclose all know defects to the property, that are known to the listing agent regardless if the seller informed the listing agent or not. If the listing agent notices such defect that may not be noticeable to someone not in the business of Real Estate, then they must be disclosed. Licensed Real Estate agents must also use caution when making statements such as the “that looks fine to me” better words may be “that is a real good question for the Property Inspector”.  

 

When listing your property for sale, the listing agent will provide you with a sellers disclosure form for you to complete. It is customary for the seller to hand write the disclosure form, to show that the seller was not coursed into making a false statement regarding the condition of the Real Property. 

 

As crazy as it sounds, even if a property is in need of a complete rehab because of holes in the wall, broken sinks, signs of mold to name a few the seller obligated to disclose all KNOWN defects. Banks selling foreclosure homes try to circumvent this by providing page after page of hold harmless letters stating that they never occupied the property and do not know the full condition of the property. Technicality the Banks are not off the hook.  

 

For more tips and market data please visit:

 

http://www.fridayre.com/miarticles/

 

Thinking about selling? Please call Friday Realty LLC @ (Five-Six-One) 379-7881

 

Buying a South Florida Ocean View Condo?

Thinking about buying an Ocean View South Florida Condo? Buyer beware, there are several very important things to look for. Most of the South Ocean Blvd. Condos units were built in the 1970’s-1980’s. so look first look if the condo’s kitchen and bathrooms have been up-dated. Next has the condo building been up-dated? Have there been several special assessments? If yes that may be a good thing, especially if the current owner has already paid them. And if they have paid for overall improvements to the building. Next, what do they Condo Associations Financials look like? How much are they holding in reserve? What percentage of condos are investment and or rentals? What is the minimum rental time? How many times per year can you rent? Even if you plan on using the condo 3 months per year and not renting it out. Plans do change, and you may want to rent the condo in the future. Seasonal Furnished rentals go for good money.

 

To get the best bang for your money look for units that have been up-dated, including the building itself. Look for units were special assessments have already been paid. Of course most important is if you like the condo and the amenities the building has to offer.

 

If you are in the market please feel free to view  my feature listing at http://WaterViewCondoPB.com

 

Karl R Schulz

Broker Owner

561-379-7881

1003Karl@Comcast.net

http://FridayRe.com



 

Investing in Real Estate, to hold or sell?

Now that the Real Estate market has gained steam, investors are jumping back in the game. The question is do I flip or hold?

 

To flip a property and make money, requires more up front work in finding properties that are selling at enough of a discount to make an after expenses profit. The old rule of thumb is to own the property at 65% of the retail market value after repair. For example; if the retail value of a property is $200,000, than I you should have no more than $130,000 totally invested. If the property required $20,000 for repair work and or other outstanding liens that brings me to $110,000. I have been around Real Estate since 1999, have I seen properties sell at a close to 50% discount? Yes but they are far and few. The reason to flip is to turn your cash over as fast as possible, looking for 50% discounts does not sound to conducive to that end.  

In my option you can own the property up to 80% of after repair and still make money after you pay Real Estate commissions and standard closing cost. Example $200,000 sales price if you own it at 80% that brings you to $160,000 after repair and to $135,000 pre repair (assuming the home requires $25,000 to bring to marketable condition). That leaves your profit at $28,000 or about a 17% return on your money. Even if you only did that once per year that is a reasonable rate of return on your money. Do that 3-4 times per year and that give you an estimates 70% rate of return on your money per year.

 

If you are going to buy and hold expect to make a 5-8 % rate of return off your money. That number reflects subtracting 10% for repair, vacancy, tax, insurance and maybe Home Owner Association fees. If the market is going up with any type of steam you will be able to maximize your investment. My suggestion is not to overprice rental units, it will take longer to find a qualified tenant and then they may be more likely to leave and find a cheaper unit after the initial lease term is up. Use common scene when renting to someone that you don’t know.    

 

Hope this information will aide you with your real estate investment strategy. If you are in the market to buy or sell Residential Real Estate in Palm Beach County, please feel free to contact me Karl R Schulz Friday Realty LLC.

 

 

 

Sell your home in 60 days or less!

 

 

 

 

 

 

 

 

Dog parks in Palm Beach County

Us Palm Beach County residents sure love our dogs and love to take them to the park for some off leash fun and exercise. For residence of Wellington / Royal Palm Beach there are several to choice from:

 

Greenbriar Dog Park
2975 Greenbriar Blvd, Wellington
Operates from Dawn to Dusk and managed by the City of Wellington. Fenced park, includes 3 dog play areas, divided into small, medium, and large dogs. Includes plenty of trees and benches for shade, drinking water and pet dishes keep pets hydrated.

 

Pooch Pines at Okeeheelee Park
7715 Forest Hill Boulevard, West Palm Beach
Open from sunrise until sunset. Closed Wednesdays 12:00 noon - 3:00 pm for maintenance. Divided into two parks - dogs under 30lbs, and dogs over 30lbs. Drinking water, shade, and sitting areas included.

 

Crestwood Park
2700 Pine Road, Royal Palm Beach
This large park includes 2 basketball courts, 2 picnic pavilions, a dog park, and other open areas.

 

There is one more Dog park off La Mancha ave in Royal Palm Beach it is ajacent to the City Park. It is a fenced Park with one picnic table, open till dusk.

 

There is only one doggie beach in all of Palm Beach County in Jupiter:

Jupiter Dog Friendly Beach

Location:  2.5 Mile stretch of beach.  From Donald Ross Road go East to the end and then turn left on A1A.  Dog Friendly beach begins at the intersection of A1A & Marcinski Rd. or From Indiantown Rd. East to A1A, turn right - go past Carlin Park, Dog Beach is located after the curves of the road end and the road is straight along the beach. Jupiter, FL  33477

 

Personally I have only been to Pooch Park, Royal Palm Beach La Mancha Park and the Doggie Beach. They are all fun, but dog owners all need to pay close attention to their pets. I’m working on a list for all of Palm Beach County, I’llbe sure to post once compiled.

 

 

I hope this information is useful. If you are in need of useful information regarding the buying or selling of Residential Real Estate in Palm Beach County. Please feel free to consult the services of Karl R Schulz of Friday Realty LLC.

 

                                                             (Five Six One) 379-7881

                                                                www.FridayRe.Com

Money saving tip.....

Trying to save money off your monthly bills? Don't forget to check your cell phone bill carefully for false charges. None of us like to be on hold for endless amounts of time, but if your cell phone provider has an up-dated plans that may save you money, it may be worth the on-hold wait. Also some cell phone providers may give you discount (for a few months) if you dial the I want to cancel my service. Not only do they answer the phone faster, and are very nice, they like to give away money!

 

I just called my cable company to report a broke modem, not only did I get a new modem, with built in router and phone jack. I got free phone service for a year and a $18.96 per month discount.

 

Between the cell phone provider and cable company, I save over $300 in one year with two phone calls and about one hours time.

 

In the market to buy/sell a home in Royal Palm Beach, Wellington, West Palm Beach and other Palm Beach County towns? Please call me Karl R Schulz Friday Realty LLC.

                                                          561-379-7881
                                                      www.FridayRe.com

When is taking a lower priced offer for my home better?

 When is taking a lower price offer for my home better? Are you selling a home in Wellington | West Palm Beach | Royal Palm Beach Florida?

Today’s Real Estate Market in Palm Beach County is going up fast than sold comparable are. What does that mean? If a three bedroom home sold for $300,000 6 months ago, and a similar home comes on the market today for $340,000. With buyers willing and able to pay the higher price due to demand and low inventory. The two main ways this can successfully close $40,000 above the last sale:

 

A) The buyer pays cash (it is still legal to pay too much money with your own cash!)

B) The home appraises for $300,000 and the seller is willing to pay $40,000 above appraised value.  

 

So if you are the seller of the $340,000 home and you have two offers:

A) $350,000 buyer using an FHA loan and has no money above appraisal.

B) $340,000 buyer putting 50% down with no appraisal contingency.

 

You are better off taking the lower offer, since under scenario A) the appraisal is pretty much guaranteed to come in below that asking price. At that point you the seller can either lower your price or put the home back on the market.

 

An experienced Realtor will explain each offers benefits and draw back to you, so you can make an educated decision.

 
Are you in the market to buy or sell a Single Family Home, Townhouse, Villa or Condo in Wellington | West Palm Beach | Royal Palm Beach Florida? Don't forget to call Karl R Schulz of Friday Realty 561-379-7881 www.FridayRe.com



 



 

FHA cuts waiting time for new loan after Hard times!

Thinking of buying or selling a home in Wellington Royal Palm Beach | West Palm Beach | Palm Beach County | Florida

If you are planning on buying new home and intent to use a FHA purchase loan and have had a recent hard times, there is good news. The Federal Housing Administration (FHA) waiting requirement times have been cut to one year, waiting time after bankruptcy, foreclosure or short sale.

The previous waiting period had been two years after the completion of a bankruptcy and three years after a foreclosure or shot sale.

You are still going to have show that your income had dropped by 20% or more for at least 6 months and was tied to unemployment or other event beyond your control.  And you must complete at least one hour of approved housing counseling among other things, including showing 12 months of on-time housing payments.

FHA credit scores are and debt to income ratios are generally more liberal than Convention or Fannie or Freddie Mac loans.

Call Karl R Schulz Friday Realty LLC for your Residential Real Estate needs in Palm Beach County,

561-379-7881 wwww.FridayRe.com

 

 

Buying a Home in Royal Palm Beach | Wellington | Palm Beach County and like to ride MotoCross?

Buying or selling a Home in Royal Palm Beach | Wellington | West Palm Beach | or other Palm Beach County towns and like to Ride Moto Cross? There are 3 tracks with in 90 miles from central Palm Beach County.

Buying or selling Real Estate in Royal Palm Beach, FL | Wellington, FL | West Palm Beach, FL |
Call Karl R Schulz Friday Realty LLC. 561-379-7881 www.FridayRe.com ">

Royal Palm Beach Foreclosure Home Funny photo of the day....

I see all types of Foreclosure homes. This was from a Royal Palm Beach Florida listed Bank Owned sale. It appears the epoxy holding up the kitchen sink didn't work any more. So a house hold battery and a 1x2 will have to do.

In the market to buy or sell a home in Wellington | Royal Palm Beach | West Palm Beach Call Karl R Schulz 561-379-7881 Friday Realty LLC.

Can you still get a deal on a foreclosure?

Can you still get a deal on a foreclosure home? I get that question a lot. Despite what a lot of late night infomercials let you believe (as long as you let them charge your credit card!) finding a deal is work, it's a lot of work. No don't get me wrong there is a lot of money to be made buying rehabbing and selling foreclosure homes. You just have to do your home work first. Most of all you have to know your numbers and don't over improve. Remember its an investment first. Let me first get the negatives out of the way, and point out a few of the obstacles you are up against. 1) Clueless people, who are better off with CD's at the local bank. They have bid on 54 other homes before this one that you are bidding on and just want a home. And bid with their emotions, not their wallet. 2) Owner occupants, that are willing to pay retail for a home since they plan on living in the property for a long time, price is not that much of an issue. 3) Investors with a 5-7 year time frame. There are investors some with Wall Street money, they bid on properties sight unseen. They pay above retail, all cash and only care about current price, a rental cash flow is more important. There are hoping the home will sell for more money in 5-7 years, till then, they make their money off rental income. 4) Investors that bid crazy money just to get the home off the market. Later they may try to get the price down by saying there are issues with the property they didn't know about. I can go on and on, but like to keep my post short and sweet. Here are a few tips: Unlike buying a car off Craigslist, were you start below what you are willing to pay. In the Foreclosure game, successful bidders generally have to bid at or above asking price. There are exceptions to the rule: the home is in need of major rehab, and was not price in accordance. The home has been on the market for a very long time. Timing, I have always been a fan of bidding on items (eBay or Foreclosure homes) around major holidays. People are distracted and picking up relative at the airport a day before Thanksgiving. Terms, the Bank that owns the property may prefer to sell a home to a cash buyer $5,000 below the next buyer if that buyer needs an FHA mortgage and the seller to pay some of the closing cost. The longer the property has been on the market, the better for that strategy. Location, chances of winning a bid on a Foreclosure home that is in a "Hot" area, in great shape for a price that allows you to flip or rent, are not really that high. The more negatives a home has about it the better, or greater chance to win a bid. In the past few years Banks and the asset manager (helping Banks market the homes for sale) have climbed up the learning curve. First Banks are holding back properties for sale, there are several reasons. One being low inventory increases prices. Banks have also started rehabbing homes to a degree. I have seen many a Bank owned home with the same color carpet and paint as the last 35 Bank owned homes. I call the color foreclosure beige. Fannie Mae is also offering HomePath properties. On a HomePath property, if the buyer uses a HomePath loan, there are no appraisal requirements and no Mortgage Insurance. But like many things in life there is a price for free stuff. The Mortgage rates are higher, and the home may be priced above market value. I hope this information will assist you in your home search. If you or a friend or family member is the Market to buy or sell in Palm Beach County. Please feel free to introduce them to me. Karl R Schulz Friday Realty LLC www.FridayRe.com 1003karl@comcast.net phone 561-379-Seven-Eight-Eight-One. Sincerely, Karl R Schulz

Are Home sellers wrong not wanting to consider FHA buyers?

Are Home sellers wrong not wanting to consider FHA buyers?

As a full time Real Estate Broker, I see Real Estate listings advertised in which seller only want to  consider Cash or Conventional buyers. Fearing that an FHA buyer would require to much effort and cost the seller money.

A recently closed short sale listing of mine had multiple contracts till it closed. The second buyer was going to obtain an FHA purchase mortgage. The FHA appraiser noted that the pool was very green and  not safe to use (unless you are a frog) and a broke kitchen light switch.

The Bank would not close in the loan unless the two issues were corrected. The buyer being a first time home buyer and having little experience with pool repair’s, canceled the contract.

The next buyer (and now the proud owner of the home), used a conventional lender/loan. The Conventional lender required the same items to be repaired. The Licensed Real Estate appraiser made a note of the issues on the first visit. Once repaired the appraiser make a quick re-inspection, and submitted a report to the lender for review.

FHA appraisals do vary from conventional appraisals. An FHA certified appraiser will know all variations. The main differences are safety and functions. FHA wants to see that there are no obvious hazards such as big holes in the yard that could lead to a trip and fall or metal rebar sticking up from a concert slab in the back yard. FHA appraisers are also check that all electrical and heating and cooling are functional. Meaning they should check all the stove burns, and all the lights turn on and off. But in no way does a FHA appraisal come close to a Home Inspection.

The broad definition of a Real Estate appraisal is the estimated value of Real Property at a given time. The FHA appraiser just takes a closer look to see if the major items of a property work and that there are no major obvious dangers or hazards present.  

In my professional opinion, if your home was built less than 20 years ago. And was fairly well maintained, you should have nothing more to fear from a FHA buyer than a Conventional buyer.

A property inspection will un-cover many more defect of a property than an appraiser, but that is a topic for another story.