If the Government shuts down, will Columbus Real Estate follow?
What is a Government shutdown’s impact on real estate? As it turns out, not too much…
WASHINGTON – April 7, 2011 – The federal government may or may not shut down after Friday. Lawmakers have drawn a line in the sand and, as of today, it appears they won’t reach agreement by the current deadline of budgeting. However, that could change. Or lawmakers could agree to extend the budget by only another week or two to give themselves more time to negotiate. Or lawmakers could surprisingly pull out a budget agreement at the last minute.
If the government does shut down, it won’t impact all federal programs equally. A specific impact depends on whether the agency is privately funded, semi-separate from the government, and other factors. Even insiders aren’t sure what will happen if the government shuts down.
However, the National Association of Realtors issued a list of likely scenarios on how Realtors may be impacted if the federal budget fails to pass:
Federal Housing Administration (FHA)
FHA cannot offer endorsements for any new loans in the Single Family Program and cannot make commitments in the Multi-family Program in the event of a shutdown. FHA will maintain operational activities including paying claims and collecting premiums. Management and marketing contractors managing the REO portfolio can continue to operate.
VA Loan Guaranty Program
Lenders may continue to process and guarantee mortgages through the Loan Guaranty program.
Flood Insurance
The Federal Emergency Management Agency (FEMA) confirmed that the National Flood Insurance Program (NFIP) would not be impacted by a government shutdown.
Rural Housing Programs
The U.S. Department of Agriculture’s field staff is not considered essential personnel, and only essential personnel continue to work during a government shutdown. As a result, the people who typically issue conditional mortgage commitments, loan note guarantees, and modification approvals will not be able to do so, and lenders will not receive approvals during the shutdown.
However, a lender that already received a conditional commitment from the Rural Development office may proceed to close those loans during the shutdown. A conditional commitment, good for 90 days, is given to a lender once a USDA underwriter approves the loan. If a commitment was issued, funds were set aside at that time, and the lender may still close the loan at its leisure.
Fannie Mae and Freddie Mac
The Government Sponsored Enterprises will continue operating normally, as will their regulator, the Federal Housing Finance Agency. Fannie Mae and Freddie Mac back over half of all mortgages originated in the U.S.
Treasury
No official word as of yet, but the Making Home Affordable program, including HAMP and HAFA, may not be affected since the program is funded through the Emergency Economic Stabilization Act, which is mandatory spending and not discretionary.
Internal Revenue Service (IRS)
Should the federal government shut down, the IRS cannot process federal income tax returns or issue refunds. If a buyer expects a refund and hopes to use it toward a downpayment, the closing may have to wait.
© 2011 Florida Realtors®
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How Does Franklin County Arrive at Your Home’s Value?
Click here to download or open a short PowerPoint presentation from the Auditor’s office about how Franklin County – or really most any county in Ohio – figures out how much your home is worth so that they can then figure out how much tax you should be paying on your home. > caao-yourhomeyourvalue-07-08
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New Numbers out today – Franklin County Real Estate Update
The Columbus Board of Realtors released official February numbers today…
2011 Central Ohio home sales off to a strong start
click picture to expand
(March 22, 2011) Home sales for the first two months of the year are just 1.1 percent behind the same period last year suggesting a strong start for the central Ohio housing market according to the Columbus Board of REALTORS® (CBR).
There were 2,178 homes closed in January and February compared to the 2,202 closings during the first two months of 2010.
February home sales dipped slightly to 1,128, just 1.3 percent less than the 1,143 homes sold during the same month one year ago.
“Why are we pleased at the small decrease in sales this year” asks Rick Benjamin, CBR President? “At this time last year, the first-time home buyer tax credits were significantly impacting our sales volume. To remain at nearly the same level without that incentive is a positive sign of a strengthening market.”
“Additionally, there were 1,812 residential homes put in contract in February which is 18.7 percent more than February of 2010 (1,527). This also bodes well for March closing activity.”
Franklin County saw 658 homes sell last month and 1,637 more listed for sale, while 137 homes sold and 302 homes were listed in Delaware County. The City of Columbus topped the charts with 423 sales and 1,023 new listings. Other cities which saw higher sales and listing activity include Dublin, Hilliard, Westerville, Gahanna and Pickerington.
School districts experiencing higher sales and listing volume in February included Columbus, South-Western, Olentangy, Hilliard, Westerville, and Dublin.
“Although, the actual numbers of sales and listings for these districts were higher, we’re fortunate to have many strong school districts in central Ohio, several of which showed larger activity gains when compared to last year,” adds Benjamin. “Every area is different so it pays to ask a REALTOR® to help you interpret the data.”
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FHA vs Conforming Mortgage Loans in Columbus…Which Costs Less in the Long Run?
Do put some thought into your mortgage...You'll be glad you did later on
I have a feeling this is something that many buyers constantly wonder about but rarely verbalize. Aside from short and long term costs of the loan, there is more to both than meets the eye.
Take, for instance, the possibility of a big promotion in another city only two years after you moved in to your new Columbus home. If you put down 10- 20% on your conforming loan, you’re in a better position to sell and move. Dan Green explains the basic long and short term costs from his Mortgage Reports blog….
FHA And Conforming Mortgages : Key Differences
People tend to assume that a 30-year fixed is a 30-year fixed is a 30-year fixed. The market doesn’t work that way. It’s like saying a car is a car is a car. There are traits that make each product unique.
Yes, both the FHA and Fannie/Freddie back a product called the “30-year fixed rate mortgage”, but beyond their identical, 30-year amortization schedules, the products are hardly similar.
As examples:
- FHA mandates mortgage insurance on all loans. Fannie and Freddie do not.
- FHA mortgage insurance lasts 60 months. Conforming mortgage insurance lasts until there’s 20% equity in the home.
- FHA mortgages can be assumed by a subsequent, qualified buyer. Conforming mortgages cannot.
- FHA-backed homes must be free of defects and “issues”. Fannie/Freddie homes may have small defects.
- Fannie/Freddie require loan-level pricing adjustments. The FHA does not.
And, lastly, the FHA requires a minimum downpayment of 3.5% on a purchase. Fannie and Freddie want to see 5 percent, at least; oftentimes, 10 percent.
Lots more great information on this post which is continued here….
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Canoe and Kayak registrations have doubled in Ohio since 2000-Is There Waterfront Living in Central Ohio?
For $179,000, this could be your view from a nearly 1000 sf 2 bedroom cabin in Hide-a-Way Hills on Lake Eagle Claw
Isn’t that fantstic?
In 2010, the State of Ohio registered 424,700 watercraft–an increase of over 5,000 over the 2009 year.
As of today, there are 276 homes active in the Central Ohio MLS that are ‘Waterfront’ of one sort or another. 29 of those homes come in asking $1,000,000 or more but they range all the way down to a $56,000 1 bedroom vacation home on the banks on the Muskingum River, 90 minutes from Columbus just outside Stockport.
I’d love to help you find your waterfront property this Spring to enjoy this Summer.
Get out and Go Paddling!
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