U.S. Dept of HUD Building Bridge (loans) to First Time Columbus Home Buyers

Written by: Joe Peffer

1st Time Home Buyer Stimulus Monies coming to a Closing Table near You

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidlines, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can’t be used to cover the minimum 3.5 percent. 

Of course I’m wondering exactly how long this will take to be a reality in Central Ohio and how much longer it will delay a potential closing that may already have been delayed by new appraisal restrictions.

In addition, The Ohio Housing Finance Agency has developed its own tax credit bridge loan programs, so Ohio home buyers can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.

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Will the newly opened and refurbished Lincoln Theater revive Columbus Near East Side?

Written by: Joe Peffer

Only time will tell. The theater is in my backyard and we’ve been watching and hearing the progress for over two years now. All the hoopla regarding the opening has been a bit over the top and I’ve not been happy with the lack of objectivity regarding what the surrounding community and the lack of interest in those who live here. Today, though, I’m leaving all that aside because the finished product is spectacular and I can’t wait for my kids to grow up half a block away from this great Columbus treasure.

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Relocating to Columbus? Columbus is the Midwest’s Best City ‘For a Fresh Start’

Written by: Joe Peffer

Thinking New Albany/Gahanna? How about Harrison Pond?

Relocating to Columbus?

Using factors such as housing affordability and economic outlook, here is a list compiled by Relocation.com ( I know, I know, Columbus is top ten in yet another Awesomeness Ranking. You know what though? there is a reason Columbus is continually in the top tiers of these things!) of the top 20 places to relocate to.

I can’t believe we tied with (gulp) Indianapolis

The top 20 cities:

    1.  Austin, Texas                    10.  Las Vegas, Nev. (tie)
    2.  Dallas-Fort Worth, Texas         10.  Seattle, Wash. (tie)
    3.  Charlotte, N.C.                  13.  Minneapolis-St. Paul, Minn.(tie)
    4.  Denver, Colo.                    13.  Raleigh-Durham, N.C.(tie)
    5.  Columbus, Ohio (tie)             15.  San Antonio, Texas
    5.  Indianapolis, Ind. (tie)         16.  Portland, Ore.
    7.  Washington, D.C.-Baltimore, Md.  17.  Cincinnati, Ohio
    8.  Atlanta, Ga.                     18.  Pittsburgh, Pa.
    9.  Oklahoma City, Okla.             19.  Memphis, Tenn.
    10. Houston, Texas (tie)             20.  Cleveland, Ohio

With the unemployment rate climbing as the national economy sags, more people are searching for communities that offer greater economic opportunity and a better standard of living. To help, Relocation.com, the leading online consumer resource for moving services, has compiled its list of “Best Cities for a Fresh Start.”

Unlike many lists that focus solely on the economy, Relocation.com took a wide-ranging look at factors that would appeal to someone looking for a fresh start: city ‘popularity’ based on consumer requests for moving quotes to move to that city; economic-growth prospects; home affordability; and the strength of a community as reflected by volunteerism rates.

Austin achieved the top spot with its high ranking on each of those criteria. Buoyed by a vibrant tech community and anchored by government institutions such as the University of Texas and the state capitol, Austin ranked in the top 10 for popularity, job growth and its volunteerism rate, and a higher ranking for home affordability.

It was followed by the Dallas/Fort Worth area, an economically diverse region that benefits from Texas’ energy riches – and also by the fact that its housing market didn’t get too inflated during the big run-up in housing prices. In the third spot is Charlotte, N.C., which has a more diverse economy, with strength in finance, and high rankings for popularity and volunteerism.

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HUD Secretary says Columbus area Home Buyers don’t have to wait for the Eight Grand tax credit

Written by: Joe Peffer

Wait a minute. All I have to do is pick a house and HUD will give me an $8,000 down payment?

Although nobody called me for the panel of distinguished guests at the mid-year meeting of the National Association of Realtors today in Washington D.C., I have found out that Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, decreed today that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.

Secretary Donovan went on to say, “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,”  According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Is this great for Columbus area first time home buyers? You bet! You can read more about it here.

On the flip side, It seems to me that this is typical of the American ‘gotta-have-it-now’ mindset and all too reminiscent of the sort of ‘lend to anyone with a home buying twinkle in their eye’ mentality that got us into this mess.  Don’t have enough money for a down payment? No problem, here’s $8,000.

And, since you’re wondering anyway, that means that you could purchase about a $228,000 Columbus area home with no out of pocket down payment if you’re going with an FHA loan product and their 3.5% minimum down.

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