Jennifer Arsenault

One result of such woeful housing news is that more and more people are turning to FHA mortgages. FHA was created when the federal banking system was restructured in 1934. The National Housing Act was passed and the legislation created the Federal Housing Administration (FHA) with the intent to regulate interest rates and mortgage terms on the loans that it insured. This was a result of the Great Depression in 1929 when millions of Americans began to lose their homes to foreclosure. Sound Familiar? Since 1934, the FHA and HUD have insured over 34 million mortgages.

When housing prices began to spiral upward in the 1990s, lenders developed mortgage products designed to help people buy homes that had suddenly been priced beyond their reach. FHA loans fell by the wayside when lenders sold these loans by offering 100% financing vs. the 3% required by FHA. As home prices continued to rise, the qualifications for loans were loosened and the result is the part of the mess we are in now with foreclosures etc. But this topic is a whole other blog....so back to FHA Loans.

Until this point FHA loan growth has been widely assumed, but now we have real numbers from the Office of the Chief Economist at Freddie Mac.

To get some perspective of what's going on consider these figures from Freddie Mac:

2005 - Loans worth $$3.167 trillion were originated, including VA and FHA mortgages worth $90 billion (2.84 percent of the total marketplace).

2006 - Loans worth $2.858 trillion were originated. The value of VA and FHA loan originations dropped to $80 billion (2.80 percent).

2007 - Loans worth $2.312 trillion were originated while VA and FHA mortgage originations amounted to $120 billion (5.19 percent)

2008 - Loans worth $1.490 trillion were originated - less than half the 2006 total. As to FHA and VA loans, they rose to $291 billion (19.53 percent - almost seven times the 2005 percentage).

The projection for 2009 is even more telling: Freddie Mac estimates that home loans valued at $1.560 trillion will be originated - but that FHA and VA financing will amount to $440 billion (28.21 percent).

What these numbers tell us is that both lenders and borrowers are running from so-called "non-traditional" loan products as quickly as they can and turning instead to mortgage programs which are reasonable and reliable.

If you are considering a home purchase in the near future remember knowledge is power. Don't fall for these myths about FHA loans.

MYTH #1: FHA is only available to First Time Buyers. NOT TRUE!

• FHA Loans are available to home buyers whether it is their first, second or fifth home purchase. The truth behind this is you can only have 1 FHA loan at a time. Also, you are able to have a co-signer on an FHA loan. Only one borrower needs to be an occupant.

MYTH #2: FHA Loans are more difficult to obtain. They are a painful process and require more paperwork and special inspections. NOT TRUE!

• FHA Loans require a different set of paperwork for lenders but not necessarily more paperwork. Also, there are no "special inspections" required. HUD requires an appraisal to be made which is common with home loans.

In conjunction with the appraisal, the appraiser will inspect the home for serious issues that need repair and may require the issues to be remedied. Some of the things your FHA appraiser will look for are...

1. Missing floor covering, fixtures, outlet covers, and/or exterior siding
2. Rotten wood
3. Defective lead based paint if built prior to 1978, chipping or peeling
4. Dysfunctional windows. (not opening or closing/ broken glass)
5. No bars allowed on windows without a safety latch to open
6. Roof with less than 2 years of economic life
7. Roof with missing or damaged shingles
8. Crawl space must be at least 18 inches
9. No water or debris in the crawl space
10. Attic must have insulation and access if there is an attic
11. HVAC & plumbing & electrical must function properly
12. Electric garage door must have a reverse stop
13. Garage must have drywall on any wall adjacent to living areas
14. Any safety and security issues

MYTH #3: FHA Loans are impossible to qualify for. NOT TRUE!

• If you are considering a home purchase ask yourself the following questions.

1. Do you have steady employment?
2. Do you have excessive debt: if so, you may not qualify if your debt is too high compared to the amount of money you are bringing in each month.
3. Do you have a down payment: Down payment amounts are much lower for FHA loans, but some money to put down is necessary. Currently FHA requires a 3.5% down payment. In Oklahoma you may qualify for down payment assistance with Community Action. Also, FHA allows the down payment to be a gift from family.
4. Do you have good credit or better: Those with very low credit scores may not qualify for a home loan right now. If your credit score is below 580 it may be more difficult to obtain a home loan.

MYTH #4: FHA Loans are only for small loan amounts. NOT TRUE!

• In Oklahoma the FHA Loan limit is $271,050. Currently the average home price is about $145,000 in OKC. As you can see this limit is well above the average home price.

If you have questions on FHA loans please contact me and I will put you in touch with a qualified FHA loan officer. Only a few Mortgage brokers are actually FHA approved. Today I spoke with a lender at Canadian State Bank who said they had a new loan program offering FHA rates at 5% while other banks were still offering 5.5%.

It just goes to show the right Lender along with the right Realtor

can make all the difference in guiding you through your biggest investment!

When you're talking about $900 Billion dollars everyone has an idea on how it should be spent along with who should spend it and why. And none of the ideas are skinny by any stretch. So what is all the hub about and what does it really mean? Here's the lowdown on what I've learned so far...which is pretty skinny in comparison to this 647 page bill.

Last week the House passed it's version of the Stimulus plan on to the Senate, which was good news. Part of the plan the U.S. House of Representatives passed was The American Recovery and Reinvestment Act, H.R. 1, which includes a number of provisions that the National Association of Realtors has been advocating for.

• As predicted, the legislation would restore the 2008 Loan Limits for FHA, Fannie Mae and Freddie Mac to 125 percent of median home price - up to $729,750.
• It also would eliminate the repayment provision on the $7,500 first-time home buyer tax credit.
• The House bill also would expand tax-exempt housing bonds, increase funding for the Rural Housing Service program, and provide additional funds for the Community Development Block Grant program
• Finally, it would expand the Hope VI low-income housing construction and rehabilitation program and provide other incentives for energy efficient homes.

This week, the Senate is considering its version of the bill. On Monday Republicans released the following list of items they considered to be wasteful spending which are as follows.

• $2 billion earmark to re-start FutureGen, a near-zero emissions coal power plant in Illinois that the Department of Energy defunded last year because it said the project was inefficient.

• A $246 million tax break for Hollywood movie producers to buy motion picture film.

• $650 million for the digital television converter box coupon program.

• $88 million for the Coast Guard to design a new polar icebreaker (arctic ship).

• $448 million for constructing the Department of Homeland Security headquarters.

• $248 million for furniture at the new Homeland Security headquarters.

• $600 million to buy hybrid vehicles for federal employees.

• $400 million for the Centers for Disease Control to screen and prevent STD's.

• $1.4 billion for rural waste disposal programs.

• $125 million for the Washington sewer system.

• $150 million for Smithsonian museum facilities.

• $1 billion for the 2010 Census, which has a projected cost overrun of $3 billion.

• $75 million for "smoking cessation activities."

• $200 million for public computer centers at community colleges.

• $75 million for salaries of employees at the FBI.

• $25 million for tribal alcohol and substance abuse reduction.

• $500 million for flood reduction projects on the Mississippi River.

• $10 million to inspect canals in urban areas.

• $6 billion to turn federal buildings into "green" buildings.

• $500 million for state and local fire stations.

• $650 million for wild land fire management on forest service lands.

• $1.2 billion for "youth activities," including youth summer job programs.

• $88 million for renovating the headquarters of the Public Health Service.

• $412 million for CDC buildings and property.

• $500 million for building and repairing National Institutes of Health facilities in Bethesda, Maryland.

• $160 million for "paid volunteers" at the Corporation for National and Community Service.

• $5.5 million for "energy efficiency initiatives" at the Department of Veterans Affairs National Cemetery Administration.

• $850 million for Amtrak.

• $100 million for reducing the hazard of lead-based paint.

• $75 million to construct a "security training" facility for State Department Security officers when they can be trained at existing facilities of other agencies.

• $110 million to the Farm Service Agency to upgrade computer systems.

• $200 million in funding for the lease of alternative energy vehicles for use on military installations.

I personally am very hopeful that the economic stimulus will become law later this month, we certainly need changes . Everyone has their opinions but the truth is we've not been here before, in this time with the troubles we are currently facing. It seems that everything is speculation to some degree. Yes, the democrats have included many proposals they have wanted passed for quite sometime. Does that mean the Republicans should say no? Do any of these items create jobs to "stimulate" our economy?

Everyone is anticipating much more debate and some changes in the days ahead. As soon as the Senate passes their bill, lawmakers are expected to hold a conference to work out the differences, before sending it along to the President.

The ice started on Monday and has made quite a mess around metro.  Many of us left work early on Monday and had the kiddos home from school on Tuesday and Wednesday…and now Thursday?!  So far I’ve done every “snow day” activity imaginable.  Playing in the ice (ouch), gathering wood for the fire, baking cookies, roasting marshmallows, meeting our hot cocoa quota for the year, scrabble, gin rummy, monopoly, re-organizing our toys, checking the mail, running to the window to watch cars slide and most of all eating and eating plus more eating!  Now I am terribly full and out of ideas.

How will we entertain the kids on Day #3?  I’ve done a little research and found some great activities that may help our sanity, give our children special memories and most importantly give everyone the opportunity to share in excellent bonding time

1. Making Snow Ice Cream Make snow ice cream with clean snow, sugar, milk and vanilla extract. Send your children outside with a large bowl to gather as much clean snow as they can. In a separate bowl mix about a cup milk, half cup sugar and tablespoon of vanilla. Add snow and stir until the ice cream is the right consistency. The amounts of milk, sugar and vanilla are approximate and you should mix the ingredients to taste. You can add chocolate syrup or other toppings as well. 

2. Home Made Play Dough

   Playdough Ingredients

   First, you need the ingredients:
   • 1 cup flour
   • 1/2 cup salt
   • 1 cup water
   • 1 tablespoon cream of tartar
   • 1 tablespoon vegetable or canola oil (or any light-colored oil)
   • approximately 20 drops of food coloring

   Combine the Playdough Ingredients

   First, mix all the dry ingredients together, then all the liquid ingredients separate. The reason is because then the dry ingredients are incorporated together well.

   Cook and Knead the Playdough

   We then combine all the ingredients in a saucepan, and stir on medium heat. Continue stirring until the dough begins to lose its stickiness.
   Remove from the heat, and turn dough out onto a floured surface and knead until smooth. Be careful - the dough will be very hot!

   Enjoy the Playdough With Your Kids

3. Home Made Valentine Cards – Save money & get a head start! 

These cute little homemade Valentines are much easier than they look! Whether you use construction paper or card stock, the results will be charming and your child will be very proud. A perfect Valentine's day gift for teachers, the babysitter, or even school friends. 

 

Visit About.com’s main Valentine's Day page, as well as their Valentine's day crafts, Valentine's coloring pages, Valentine's recipes, and Valentine's games for more fun.

 

What you'll need:

• 8.5 x 11 construction paper or card stock in various colors and/or patterns
• Valentine and/or heart stickers
• scissors
• pinking shears (optional)
• glue stick or white craft or school glue
• glitter (pink, red, white)

1. How to make it:

   1. Begin by cutting a piece of construction paper or card stock into four equal pieces.
   2. Fold quartered paper in half to make a card.
   3. For the easiest version, appropriate for preschoolers, use stickers to decorate or cut out hearts from a different color of construction paper or card stock to glue onto your cards. Experiment with different patterns, florals look great contrasted with stripes on a solid background.
   4. Younger children love glitter! Use a bottle of glue to “draw” on a heart or phrase (such as “Be Mine”). Sprinkle glue generously with pink, red or white glitter and let dry over night. Tap off excess glitter when completely dry.
   5. For the older set, let them use pinking sheers to cut out heart shapes and glue onto cards. Again, use contrasting patterns and colors to create a charming design.
   6. Once glue is dry, cards may curl up a little. Place cards between the pages of a heavy cookbook or phone book and leave over night.

   Tips:

   Finding the perfect paper. Card stock is available in literally hundreds of different designs. The scrap-booking aisle at your local craft store has individual sheets or pads of various colors and patterns. Caution, these papers can get costly, watch for sales or purchase these papers with other projects in mind as well. Construction paper is inexpensive and children love it just as much.

   Save on stickers. Discount department stores, such as Wal Mart and Kmart carry a large variety of stickers. You may also want to check your local dollar store.

Be Safe & Be Merry…after all we only get so many “Snow Days” per year…before too long we’ll all be looking to beat the heat! 

If you’re from Yukon, chances are you’ve driven by the Czech Hall.  For those of us who are longtime Yukon residents you’ve almost certainly been to the Czech Hall for one of their infamous dance nights, a wedding reception or party. 

The Czech Hall was built in 1901 on land donated by local Czech immigrants.  The building is recognized as a State and National Historic Site.  Since its beginning, the Yukon Czech hall has been the center of Czech-American culture in Oklahoma as well as serving as a social center and meeting place for non-Czech residents in the surrounding community.  My own sister, Jaley, actually had her wedding reception there in 2005.  It was loads of fun with a dance floor that never ended.  Truly the dance floor is the largest in Oklahoma with 3400 square feet of hardwood flooring, perfect for sliding & twirling!

A polka dance has been held at the Yukon Czech Hall every Saturday night since 1930 and this continues today!  The dances are run by the voluntary efforts of the members of the lodge and are always open to the general public.  The two polka bands in the area, Masopust Polka Band and the Bohemian Knights, play for the dances.

The Yukon Czech hall is operated with the goal of preserving the Czech-American heritage.  Everyone is welcome at the weekly polka dances whether they are of Czech heritage or not.  Families are especially encouraged to attend.  They begin at 7pm every Saturday night and are truly a boisterous and lively adventure! 

For more information on activities and rental for the hall you may visit http://www.czechhall.com/Rentals.html 

The Czech Hall is located between NW 10th Street & Reno Ave on Czech Hall Road in Yukon at 205 N. Czech Hall Road. 

Just another great thing about Yukon’s unique history.  So make a plan to check out the Czech Hall! 

City Council approves new downtown tax increment district

(December 16, 2008) - City Council approved a plan today to create a new tax increment financing (TIF) district to fund approximately $175 million in public improvements and economic development efforts in downtown Oklahoma City.  The new TIF district was spurred by Devon Energy’s planned development of a new world headquarters building in downtown Oklahoma City.

The Devon development was contingent on two conditions: the City improving the infrastructure such as utilities, streetscapes and enhancements of Myriad Gardens; and committing to economic development policies and incentives to attract other quality investments, businesses and employers in the surrounding area.

Ad valorem and construction sales tax revenues generated by the Devon development will fund approximately $115 million in public improvements, which will occur in an area that includes NW 13 to SE 27 and Western to Eastern/Martin Luther King Jr. Ave and approximately $40 million for economic development efforts to be invested in the area adjacent to the Devon building. 

In addition, the new TIF will fund $20 million in projects for other public entities such as the Oklahoma City Public Schools, Oklahoma County, Metro Tech, City-County Health and the Metropolitan Library System. 

It is estimated that Devon will pay at least $11 million per year in ad valorem tax and $20 million in city sales tax during construction.  The building will be completed in 2012 and the first TIF revenues are expected to be received in 2014.

The proposed development on a site located east of Hudson and north of Sheridan Ave. alone is estimated to stimulate $750 million in direct new investment in Oklahoma City’s downtown area and will generate an annual economic impact of over $900 million increasing to $1.9 billion.

“The City Council’s approval of this new downtown TIF district is yet another step towards ensuring a bright future for Oklahoma City.  The long term economic vitality of the downtown area with improved aesthetics and amenities will enhance the quality of life for Oklahoma City residents for decades,” City Manager Jim Couch said.

The Downtown/MAPS Tax Increment District Review Committee that includes representatives from each taxing jurisdictions in TIF districts 2 and 8 as well as representatives of the public reviewed and recommended approval of the plan.