If you are in the market to buy a new home, it is definitely the right time for you!

The Fed’s just cut rates by .5 point yesterday. What does that me to you? No much, except it has lowered the prime rate from 4.5% down to 4%.

The rate cut is helping strength the market out there. Today is the first time in about 1 1/2 weeks that we are starting to see some improvements in the interest rates.

Everyone is getting MEDIA over kill. Everyone I talk with thinks that they have to have AMAZING credit and at least 20% down to buy a home. That is not true. I am still doing government loans down to a 540 credit score as long as you have at least 3 open lines of credit - i.e. - a couple of credit cards and a car note and you just have to put down 5%. I am also working with normal credit as well. With scores as low as 580 and an approval, I can still do FHA loans with very competitive 30 year fixed rates.

On the conventional side, you can get a loan with as little as 3% down as a FIRST TIME HOME BUYER with a 720 credit score. And below the 720 score, you just need to put at least 5% down and you can still get into a affordable home.

On government loans and first time home buyer programs, I still allow gift funds from a blood relative to put towards your down payment.

As far as JUMBO loans (over $417K loan amount), I am still doing these as well with as little as 10% down.

I am still doing aggressive Investment Properties with 20% and unbelievable rates with 25% down. You have the choice to escrow or NOT to escrow.

I have the ability to close a loan in 3 days, if I have a complete package from the homebuyer.

Sales are up over 17% in Williamson and Travis County compared to this time last year!

For those who do not have great credit, I know of several credit repair companies that can help remove the negative items off your credit report within about 4-6 months.

It has been a crazy year in the mortgage industry and with the continued increase of home selling; we should be coming out of this mess hopefully by early spring!

by Abha Bhattarai
Wednesday, October 15, 2008 provided by Forbes

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Your money will go farthest in Austin.
The economic storm sweeping the country has left Americans with few places to hide.
But those looking to hunker down might want to head to Texas, where they can get the best value for their dollar.
That's because Austin and San Antonio lead our list of places where your money goes farthest. Residents of both enjoy affordable housing and promising prospects for job growth in coming years. Houston and Dallas also land in the top 10, at Nos. 4 and 7, respectively.
"Texas, as a whole, is one of the few economies that's performing extremely well because of the energy and technology sectors," says Andrew Gledhill, an economist at Moody's Economy.com. Plus, he added, military bases in San Antonio have continued to draw a steady steam of personnel and federal employees to the city, spurring widespread job growth.
The state's manufacturing sector has also grown in recent years, and a reputation for affordable housing continues to lure people to the South. When accounting for median household income, a house in Dallas, for example--with a median price of about $150,000--is four times more affordable than a house in Los Angeles, the worst-ranked city on our list.
A house in New York is three times less affordable than in Charlotte, N.C., and four times less than in Denver, two cities where your money goes far and where the median house costs $245,000, according to the National Association of Realtors.
Housing has remained affordable in the South and Midwest, thanks to growing populations, relatively lax building regulations and "lots and lots of land," said Daniel McCue, a research analyst at Harvard's Joint Center for Housing Studies.
Plus, he added, housing in cities like Houston "grew at a more controlled pace and didn't go overboard like in Phoenix or Las Vegas," which means houses won't lose much value in coming months.
Three Midwestern cities round out the top 10: Indianapolis; Columbus, Ohio; and Minneapolis. The worst-ranked cities, after Los Angeles, were Providence, R.I.; New Orleans; Philadelphia; and Cleveland.
Behind the Numbers
To ensure that our list reflected future value instead of past bargains, we began by looking at projected job growth through 2012 in the 40 largest U.S.-Census-defined metropolitan areas of the country with data from Moody's Economy.com.
Texan cities were a clear winner, with economists predicting job growth of at least 2% by 2012 in Austin, San Antonio, Dallas and Houston. By comparison, job growth in cities at the bottom of our list, including Los Angeles, Philadelphia and Cleveland, is expected to be about 0.2%.

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Los Angeles was the worst-ranked city.
We then calculated the ratios between each city's median house price and median household income, using 2000 U.S. Census figures, the latest available, and 2007 data from the National Association of Realtors. Next, we compared median income to Moody's cost of living index.
Final factors included the average gas price in each city on a given day in October as collected by AAA, and year-over-year inflation growth as calculated by Moody's and Forbes.com.

Top Spots
The factors that make the cities on our list valuable--affordable housing, relatively low gas prices, sluggish inflation, a job market that's more vibrant than most--are more than an indication of cheap deals. Instead, they give us a glimpse of the cities that are likely to offer value. Cities like Detroit (which didn't make it to our list) are cheap, but low-income figures and a fading job market won't do much for sustaining worth.
The cities where you'll get the least value include areas like Los Angeles, New York and Washington, D.C., where median house prices are more than $400,000 and relatively few people can afford them. Cities like Providence, R.I., and Philadelphia are suffering from large waves of out-migration as more and more residents decide to pick up and leave. As a result, local economies stagnate, and prospects for job growth seem bleak--economists predict the number of jobs in Philadelphia will grow by 0.2% by 2012 and by 0.1% in Providence.
But, economists say, no state has been as hard hit as California.
"California is being faced with a combination of a zillion things--the state's been in a prolonged recession, and at the same time, you have some of the least affordable housing in the country,” says Gledhill. "We'll probably start seeing a bottom in the housing market late next year, but it'll be a while until we see a real recovery."
Los Angeles' misfortunes, however, have helped boost the economy in cities like Portland, Ore. It and Seattle have become attractive alternatives for those looking to leave California in search of affordable housing and lower costs of living.
The value of a dollar in different cities is also closely linked to local inflation rates. In Austin, for example, year-over-year inflation rates rose by 5%, while in Portland, that figure was nearly 5.7%. Local inflation rates ranged from 3.2% in St. Louis (No. 8 on the worst list) to 5.82% in Dallas (No. 7 on the best list).
But keep in mind, even cities that ranked well on our list aren't immune from the forces of today's downturn. Gledhill says economic growth in Portland, which has already begun to slow, will be compounded further by California's slowdown.
Things won't be much better in Columbus, according to Bodhi Ganguli, an economist at Moody's. So far, the city has weathered the storm better than its local counterparts. But he said, "an extremely high foreclosure rate" and bleak expectations for job growth will begin to take their toll on the city's economy.
Things may turn for those in Charlotte, which has fared relatively well so far. That's because housing prices never reached exorbitant highs, which shielded the city from a major housing bust.
But as the Charlotte-based Wachovia get swallowed by Wells Fargo, Gledhill says, "a more measured deterioration is on its way."

Mortgage Rates Improve

The first week of government control of Fannie Mae and Freddie Mac passed with little disruption in the mortgage market. Mortgage rates fell early in the week on the takeover news and then held at the lower rates for the rest of the week.

During the week, investors' attention shifted to the condition of the investment banks, particularly Lehman. Some investment banks are struggling with large losses from the credit crunch and need to raise significant amounts of capital. Investment banks are responsible for much of the trading in mortgage securities, and a highly liquid market is important for making capital available for mortgage loans and keeping rates low. After stepping in for Bear Stearns in March and Fannie/Freddie this week, government officials have expressed reluctance in providing more federal assistance. Mortgage investors will be watching closely to see how the investment banks will resolve their capital needs.

Somewhat overlooked, this week's economic data was generally favorable for mortgage markets. The August Producer Price Index (PPI) inflation data reflected the drop in oil prices and showed a large decline from July. Core PPI, which excludes food and energy prices, matched the consensus forecast with a small increase. August Retail Sales were much weaker than expected, and Jobless Claims remained at elevated levels. Mortgage investors liked the signs that inflation may have peaked and considered it favorable news for mortgage markets that the economy and labor market are displaying weakness.

Builder discounts scrutinized in wake of Ryland Mortgage settlement

Ryland Mortgage has agreed to adopt new business practices as part of a six-figure settlement with North Carolina regulators on allegations of charging excessive closing costs. The modified practices restrict the way Ryland can incent buyers to use its affiliated appraisers, mortgage and title companies. The regulators are also promising to serve up additional settlements over builder discounts soon. Read on for the scoop.

By Robin Wardzala

Ryland Mortgage, a mortgage affiliate of Ryland Homes, has agreed to adopt new lending practices to improve competition and fairness in the mortgage market for new home buyers as part of a settlement agreement with the North Carolina Office of the Commissioner of Banks (NCCO.

In addition to improved lending practices, Ryland has agreed to refund North Carolina homeowners $220,851 and pay a civil money penalty of $161,000 to the State.

"As a result of this agreement, North Carolinians that buy homes from Ryland will be better able to shop around to get the best deal on their mortgage loan," said Deputy Commissioner of Banks Mark Pearce. "Homebuyers will benefit from increased competition for their mortgage loan when they buy into a Ryland Homes neighborhood."

Investigation outcome

As a result of a routine market examination of Ryland Mortgage, NCCOB believed that Ryland Mortgage charged some homebuyers closing costs that exceeded the legal limits in North Carolina.

Curiously, the settlement agreement did not detail any specific findings related to Ryland Mortgage's use of affiliate incentives. The agreement stated only that the examiner "found several instances in which the respondent charged or permitted to be charged fees in excess of those permitted" under North Carolina law. The rest of the findings focused on licensing issues.

Ryland Mortgage did not admit to any wrongdoing, but agreed to make refunds to approximately 850 homebuyers to settle the allegations. On average, these borrowers will receive a refund of $250. Ryland Mortgage has also agreed to pay a civil money penalty of $161,000 to settle allegations that some loan officers at Ryland Mortgage were not licensed to originate mortgage loans in North Carolina. Further, Ryland Mortgage will pay the state $8,500 in investigative costs.

Ryland spokeswoman Marya Barlow told the Wall Street Journal that the company does not believe it overcharged any homebuyers and that it adequately disclosed its buyer incentives.

In a statement, the NCCOB noted that many large homebuilders have affiliated mortgage lenders that make loans to home buyers that purchase homes in newly-developed subdivisions.

"Builders commonly provide an incentive to the buyer if the buyer gets a loan from the builders' affiliated mortgage company. This incentive should lower costs for homebuyers, but it can also harm home buyers if these incentives are recouped indirectly through inflated or excessive mortgage costs," the NCCOB said.

Modified business practices

To ensure this does not occur, the state asked Ryland Mortgage to agree to the following practices for loans offered to purchasers of homes by Ryland Homes:

* Rates and fees on Ryland Mortgage loans will not exceed general mortgage industry standards, regardless of whether or not its affiliated entities pay for any portion of the charges.
* Ryland Mortgage's settlement charges shall not exceed amounts which could be directly imposed against any borrower under any North Carolina or federal law.
* Ryland Mortgage shall not permit settlement services provided by Ryland Title (or any affiliated service provider) to be marked up above the cost of the service, and any such costs shall not exceed general mortgage industry standards.
* All discount points charged by Ryland Mortgage shall provide a meaningful rate reduction based on market rates, regardless of whether or not one or more of its affiliates directly or indirectly pays for any portion of these points. Ryland Mortgage will also not charge, impose or receive any yield spread premium or similar fee on any loan which contains discount points.
* Incentives offered for use of Ryland Mortgage will be true discounts from the market price of the home. Ryland Mortgage shall not make or broker any loan where the affiliated builder provides incentives or discounts tied to the use of Ryland Mortgage where such incentives or discounts are not bona fide reductions from the market value of the home. An incentive or discount can't exceed 3 percent of the final sale price. This does not prohibit the affiliate from providing additional market-driven incentives and/or discounts which are not tied to the use of Ryland's services.
* Applicants will receive a disclosure that reflects the specific discount offered for the use of Ryland Mortgage which will be separated from other discounts and incentives.
* Ryland Mortgage will use at least three different, unaffiliated appraisers in each Ryland Homes development, and will monitor its third-party service providers to ensure that no single appraiser or appraisal company conducts more than 33 percent of the appraisals in any given development in any given calendar year.

"We hope that other mortgage companies affiliated with homebuilders will adopt similar practices to give home buyers' added confidence they will be treated fairly," said Pearce.

He indicated that a number of other builder-mortgage affiliates are currently under investigation, and added that "high 'discounts' tied to the use of an affiliated mortgage company will receive heightened scrutiny during examinations of these builder-affiliated mortgage companies to make sure these affiliated relationships do not stifle competition in the mortgage market."

BOTTOMS UP!

SAN ANTONIO (San Antonio Express-News) – Newell Commercial Property LP has sold the Lone Star Brewery, a 22.8-acre vacant landmark that will soon become an urban mixed-use community for the city’s South Side.

Austin-based B. Knightly Development & Construction has plans for the site near Roosevelt Park including multifamily housing, commercial space, a bar, beer garden, microbrewery and boutique hotel.

The developer also plans to refurbish the Olympic-size swimming pool and beer-tasting area and apply for LEED certification.

The project is estimated to cost from $200 to $250 million.

The site has been vacant since 1996 and sits along the San Antonio River at 600 Lone Star Blvd.

GROUND BREAKS ON WIND PLANT

McGREGOR (kwtx.com) – RTLC Windtowers broke ground Friday on a 170,000-sf wind tower plant that is part of an initiative to reduce energy costs and find alternative energy sources.

The 100-acre site was purchased from the city and is at McGuffy and Judith roads.

The facility will hire about 70 new employees as welders, fitters, computer operators and accountants. The completed site will eventually employ about 400.

The site will begin operating in January 2009.

CYPRESSBROOK NABS INTERCHANGE CENTER

HOUSTON (Houston Chronicle) – Cypressbrook Development Co. has purchased a 102,278-sf office and industrial property from K.B. Fund.

The 7.7-acre Interchange Business Center is a three-building property at 301-305 Wells Fargo Dr. near I-45 and FM 1960.

Transwestern Commercial Services represented the seller. Tim Warren represented the buyer.

AT&T SELLS TOWER

DALLAS (Dallas Morning News) – AT&T has sold its 37-story One AT&T Plaza tower to New York-based Icahn Enterprises but plans to stay in the building on a long-term lease.

The skyscraper at 208 S. Akard St. is currently being remodeled to house the company’s corporate executive offices.

The company is relocating about 700 people from San Antonio. Most of the workers will go into the 17 floors that are being refurbished.

The building contains more than one million sf of office space and is valued at almost $60 million.

REPUBLIC UNLEASHES WAREHOUSE PROJECT

IRVING (Dallas Business Journal) – Atlanta-based Republic Property Co. has broken ground on a $24 million, 374,000-sf spec warehouse project southeast of Dallas Fort Worth International Airport.

The three-building complex will be called DFW/161 Distribution Center.

The first phase will include warehouses of 176,000 and 103,700 sf.

The larger building will be a cross-docked facility with 30-foot clearance and will accommodate tenants needing 45,000 sf or more. It will lease for $4.25 per sf.

The 25-acre site is northeast of Northgate Dr. and Valley View Ln.

SATTERFIELD ROUNDS UP RETAIL GROUNDS

HOUSTON (Houston Chronicle) – Satterfield Helm Management has purchased a 215,887-sf shopping center at 11077 US 290.

The Northway Center is anchored by an Academy Sports + Outdoors and Conn’s Audio & Video.

Live Oak Capital arranged financing through Wells Fargo Bank.

CHESTNUT PROJECT COMING TO EAST AUSTIN

AUSTIN (Austin Business Journal) – A new transit-oriented development is taking shape as Sustainable Food Center, PeopleFund and nonprofit partnership Will Meredith and Tom Patton are collaborating to create a nonprofit hub in east Austin.

Chestnut Plaza will bring several nonprofits, a seven-acre park and a community garden to the 30-acre subdivision of Chestnut Commons. The plaza has been designed with Capital Metro’s MLK RailStation—currently under construction—in mind.

The Meredith family is building a 30,000-sf mixed-use building designed by MiroRivera Architects, where nonprofits, local businesses and retail such as a small grocer, a coffee shop and dry cleaning will fill the space.

The Austin Children’s Museum will build a small neighborhood community science workshop in the plaza as well.

PeopleFund has plans to move its headquarters to the community, where they will build a $3 million building designed by Lawrence Group Architects.

The Sustainable Food Center (SFC) plans to build a two-story, 6,000-sf building that will house a commercial kitchen, community room and offices designed by Clark Architects. SFC also plans to build a 1.5-acre community and teaching garden on the park grounds at Chestnut Plaza.

DISCIPLES VILLAGE PART II

ODESSA (City of Odessa) – The City of Odessa has approved construction for Phase II of the Disciples Village project, a Christian human services agency that provides housing for individuals and families.

The $2.6 million multifamily project consists of a 30-unit structure at 2430 E. 11th St.

MENLO'S FREEPORT VI DEAL

COPPELL (globest.com) – California-based Menlo Worldwide Logistics has signed a lease to take 155,172 sf of Freeport VI in the 228,210-sf Freeport North Industrial Park by Duke Realty Corp.

Terms of the lease also call for a one-year expansion option.

The new tenant is currently prepping for the move from 1110 Executive Dr. to 601 S. Royal Ln.

When the move is complete, Menlo plans to boost its employee count from 40 to 140.

Robert Lynn Co., Grubb & Ellis Co. and California-based Transportation Property Co. represented Menlo in the transaction.

NORTHMARQ SECURES LOAN DUO

DALLAS & HOUSTON (Real Estate Business Online) – NorthMarq Capital has secured $25.75 million in financing for two properties in Texas.

In Dallas, $19 million in construction financing was arranged for a 165,400-sf retail property called Sam Moon Center Alliance within Hillwood’s Alliance Town Center mixed-use development.

The lender was Prudential Mortgage Capital Co.

In Houston, NorthMarq’s Kansas City office arranged $6.75 million in first-mortgage financing for Fountains of Westchase, a 287-unit multifamily complex.

The lender was Freddie Mac, and the borrower was ELP Simon.

JPS PURCHASES, MIXES IT UP

FORT WORTH (CoStar) – Medical service provider JPS Health Network has purchased the former St. Joseph’s Hospital at 1401 S. Main St. from Diversified Capital for $5.1 million.

The new owner plans to convert the 598,000-sf property into a 270,000-sf mixed-use complex. The planned redevelopment will feature 20,000 sf of retail space and 250,000 sf of office.

A 550-space parking garage was also included in the purchase.

NAI Huff Partners represented the seller.

HOUSING PERMITS PLUNGE IN JULY

WASHINGTON (MarketWatch) – U.S. home builders significantly dropped the number of new homes starting construction in July and reduced the number of new single-family permits to the lowest level in 26 years, the Commerce Department estimated.

Housing starts fell 11 percent to a seasonally adjusted annual rate of 965,000 in July–close to the 960,000 expected by surveyors—marking the lowest level for housing starts in 17 years.

For single-family homes only, permits fell to 584,000, a 5.2 percent drop. Overall, single-family permits have plunged 41.4 percent in the past year.

The number of single-family homes under construction in July fell to 491,000, a 3.5 percent drop and the lowest in 16 years. The number of single-family homes completed dropped 7.2 percent to 791,000, the lowest since March 1983.