About Lane County, OR

100% financing has become harder to find but there are still a few options available in Oregon. One is, of course, Federal VA but this is open only to veterans and active duty military personnel. A fantastic opportunity to purchase a home for someone that qualifies.

Next would be a FHA loan with some sort of down payment assistance program, of which the only ones currently available are SHOP, HAP and PAL. Unfortunately, HAP and PAL are currently out of money according to recent reports. (Please see previous postings for what these are.)

That brings me to the USDA Rural Guaranteed Housing Program. Not only is this program available to 100% financing, you can actually finance the closing costs in the loan if the appraisal is higher than the purchase price and will go to 102% if the financing fee is included in the loan amount.

Other benefits of this program are:

•· No Mortgage Insurance. 2% funding fee only.

•· Local processing

•· Conventional underwriting

•· Moderate income to qualify. OR County Income Guidelines

•· Much of the state qualifies. OR ineligible areas

•· No maximum loan amount

•· Seller can contribute to closing costs

USDA (United States Department of Agriculture) doesn't make the loans for this program; they offer a guarantee of the loan so that lenders are more secure in the lending. USDA will sign off on the loan after underwriting is complete from the lender, so there is a slightly longer processing time. Pricing is comparable with FHA rates.

Areas of Lane County that qualify for these loans are: Cottage Grove, Creswell, Veneta, Junction City, Oakridge, Florence and many others outside the urban grown boundary of Eugene/Springfield. There is a specific address database on the website that will determine if a property qualifies.

The income qualification for the guaranteed program is quit liberal updated regularly.

According to a survey by Remodeling magazine, homeowners can expect less of a return on upgrades than in the recent past.

In the bubble years of '05 & '06, nearly half the projects undertaken could be expected to return up to 90 cents on the dollar, but in the past two years, nothing has even come close, based on the magazines' survey of thousands of real estate professionals. Consumer Reports magazine has gone a step further and surveyed licensed appraisers, but regional differences in home values make it difficult to gauge what portion of your remodeling dollar you get back at closing time.

Projects that pay:

Deck additions still top the list at 85.4% of value recovered, based on a national average.

Minor kitchen remodels can return 83% of the investment if you focus on cosmetics like cabinet door replacements, flooring, paint, and energy efficient appliances.

A bathroom remodel could return 78%, while a bath addition is only good for 66%.

Replacing windows with wood double hung units will return up to 81%, and vinyl comes in a close second at 79%.

Projects that don't pay as well:

Home office remodel- 57%, Backup power generator - 58%, Sunroom addition - 59%.

What's a homeowner to do?

• First, think of upgrades as helping to maintain the value of your home - not necessarily increase it. Unless you're filming an episode of That 70's Show, green shag carpet and harvest gold appliances aren't going to get buyers lining up with earnest money checks.
  

• Second, take care of the less glamorous maintenance items like the roof, plumbing, and crawl space moisture control. In my experience, defects in these areas can create a cascade of problems that are both costly to repair and send prospective buyers running for the next house when they pop up in an inspection.

• Finally, if you plan on staying awhile (5 or more years), forget about what buyers may want, and invest in what makes you happy. We're back in a cycle where owning a home is more about what you get out of it on a daily basis, than what your appreciation will look like next spring. Business and economic cycles are beyond individual control, but owning a comfortable and efficient home can buy more peace of mind than money in the bank!

Bobby Stevens, Eugene's Alternative Realtors
541 225-8081
bobby@alternativerealtor.com

Had a bit of time for lunch the other day, so I decided to stop at the McKenzie Stage Stop located in Cedar Flat but I would be surprised if you can find it on many maps. Cedar Flat consists of a small restaurant, a service station and a few homes between Thurston (Springfield) OR and Walterville and boasts the best food this side of The Sister's on their sign outside.

The offer Prime Rib on Friday and Saturday and I have been thinking about stopping in for that but haven't had the chance. So, I stopped in on Monday for lunch and had the Prime Rib sandwich instead. Needless to say, it was a bit dryer than if it had been fresh, but was flavorful nonetheless. It was a good sandwich but should have been served with horseradish which I had to ask for. I also had their "home made" potato salad that was tasty but the potatoes were a bit firmer than I liked.

Overall, it was a good dining experience. I was especially impressed with the bar stools. They match the regular chairs and are just a bit higher so you can sit at their serving bar quite nicely. Either the stools were custom made for the bar or the bar was custom made for the stools. Either way, that was a surprise. Most bars are uncomfortable to sit at, this was not. Maybe not a five star establishment, but very good food for a reasonable price.

Four years ago my wife and I bought a turn of the century foursquare farmhouse and realized our dream of moving to the country. The idyllic fantasy has now been tempered by the reality of improving and maintaining a big old house and extra property, but that is the subject for another post!

Creswell lacks the charm of other small towns along highway 99, thanks to a relocation of main street and subsequent destruction of the original downtown. But you can get a glimpse of the past in the quaint gothic church that is now home to Creswell's history museum.

In a town of 5,000 souls, with probably fewer than 300 jobs, most people drive to Eugene for entertainment and dining. But when you don't feel like jumping on the freeway, there are a few good options in town.

For the classic "mexican-entree-swimming-in-a-plate-of-beans-rice-and-cheese" You can't beat Los Cabos. Located on Oregon Avenue, Creswell's main street, the friendly staff serves up hot plates and a mean Cadillac Margarita.

There was much rejoicing, especially from the younger set, when we got "Old Time Scoops" our own ice cream and candy emporium two summers ago. Since then the going has been tough and ownership has changed a couple of times. We must not have enough regular ice cream eaters to comfortably support this business, but I hope they manage to stick it out, because there's nothing nicer than stopping by for a cold treat after an afternoon at the park...

Harry and Bertha Holt are pioneers of the international adoption movement, making it possible for thousands of orphaned children to find loving homes. Harry Holt park, in the heart of Creswell, is a great summer gathering spot, and a wonderful place to play with your kids year 'round.

FHA 203(k) Streamline Limited Repair Program Loan Process

What is it?

• The 203 (k) Streamline Limited Repair Program allows a customer to purchase or refinance a home and make limited upgrades/repairs to the property all under one single loan.
• There is no minimum amount for the repair costs; however the maximum is $35,000 (includes a 10% contingency).
• There is a mandatory 10% contingency required on all Streamline loans. If the contingency is not used, it will be applied to the principal mortgage balance.
• No more than two payments may be made payable to the contractor. Borrower repairs require special handling.
• The borrower is given 3 months from the closing date to complete all the repair/rehab work.

• Available on 1-4 residences, including HUD REO properties, manufactured homes, and condos. No partially completed properties allowed.

(This probably wouldn't qualify for the 203(k) Streamline loan, obviously too many units. But it certainly could use some help.)

Why would I be interested in the product?

• You or a friend/neighbor/relative want to make some limited repairs/remodeling to your personal residence but don't have sufficient value in your property. This is available to 95% of the finished value.
• You are a Realtor® selling a bank owned property with repairs required to get a loan and the bank is unwilling to make the repairs.
• You are a Realtor® selling a property on a short sale and there is no money available for repairs.
• You are a Realtor® showing someone a ‘fixer-upper" and they don't have the extra cash available to do the fixing.
• You are a Realtor® selling a home that is selling for what is owed on it and your customers would like to have new carpeting, new appliances and/or paint.
• You are a Realtor® that wants to sell more homes.

What can be done?

• Repair/replacement of roofs, gutters and downspouts
• Repair/replacement/upgrade existing HVAC systems
• Repair/replacement/upgrade plumbing and electrical systems
• Repair/replacement flooring
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Painting, exterior and/or interior
• Weatherization, including storm windows and doors, insulations, weather stripping, etc.
• Purchase and installation of appliances, including free-standing ranges, refrigerators, washer/dryers, dishwashers and microwave ovens.
• Accessibility improvements for person with disabilities
• Septic system and/or well repair and/or replacement
• Other minor remodeling

What can't be done?

• Major rehabilitation or major remodeling, such as the relocation of a wall
• New construction
• Repair of structural damage
• Repairs requiring detailed drawings, plans or architectural exhibits
• Landscaping
• Pool improvements/repair
• Anything taking longer than 3 months to complete

Who and how?

• All repairs/work must be completed within 3 months of closing
• Repairs must be completed by a contractor unless the borrower can demonstrate the required expertise/experience
• The contractor does not have to be a licensed general contractor but must provide a resume and two references
• The repairs must be reasonable

How much more does it cost?

• Normal FHA rates and fees apply with the following exception:
• $100 final lender inspection fee
• Additional appraisal charges may apply
• Additional title charges may apply
• Origination fee will be normal 1% plus .5% (minimum $350) on repair amount

Who do you call? (Currently licensed in Oregon and California. Other states pending.)

Fred Chamberlin

Senior Mortgage Consultant

FHA Mortgage Expert

Alpine Mortgage Planning

Eugene Oregon

541-342-7576

fchamberlin@alpinemc.com