Huntsville, Alabama Real Estate Agent's Blog

Huntsville Alabama Market Report for July 2008

2008-08-17T18:24:52Z

With our July 2008 sales statistics firming up, I thought it was time to take a look at the months results and monitor the trends we have been following. The Huntsville Alabama local metro market has experienced a slow down in sales over the last 9 months and July continues this trend with demand down ~23% year-over-year. However for the last three months including July we have witnessed a declining inventory trend with July's supply numbers down ~4% year-over-year.

With unit sales trending largely lower and inventory only slowing moderately, one would expect to see some weakening in our home prices, yet the trend we have been monitoring can only be characterized as a seasonal flattening of prices. Moreover as we have written about previously, July's prices have broken out of this flattened seasonal range and are up ~3% over last month and year-over-year. Are we witnessing a return of price appreciation despite the slower sales volume? ...It's too early to tell but we will be watching closely.

The one thing that seems abundantly clear from the stable and firm pricing is that the Huntsville Real Estate Market is a pocket of strength and can certainly be characterized as healthy. The North Alabama Region overall is not fairing as well as the Huntsville Alabama Metro Area as detailed in a recent post from one of our colleagues to the south.

It is difficult to speculate about the various reasons prices are firming despite a large slow down in demand, other than to say that Huntsville is in a unique position with the BRAC relocation slated to occur over the next few years. Thus our market does have some pent up demand, sellers know this, and are patiently standing pat on pricing contented to endure a longer time-on-market than in previous years. Moreover the localized and recent decline in inventory is likely helping moderate the effects of the slower sales volume.

If you would like more detailed information, feel free to contact me. www.Huntsville-Realestate.com

It's not the size of your lender, but how ethical your loan officer is !!!!!

2008-08-17T16:52:14Z

In trying to provide the best possible service to my buyers and sellers here in Huntsville Alabama, I feel it is very important to have as much knowledge of our ever changing Mortgage Industry as possible.

There are TWO very important factors when purchasing or selling a home. Make sure you have a Realtor that you trust, AND a lender that you trust. As a Real Estate professional, it is very important to me to have lenders that I CAN TRUST as well. Jeff Belonger is one of these! Lenders must be on top of the mortgage "game" at all times. The rules are changing daily and can make or break a sale.

Jeff Belonger has graciously allowed me to reblog several of his articles. I think you will find them very helpful. If you ever need a lender, I highly recommend Jeff Belonger. He can be trusted, and has proven this time and time again!

I have been a full time Realtor for almost 10 years. Unfortunately, I have had to deal with less than scrupulous lenders my buyers have chosen, from time to time. It caused my buyers undue stress and many times money. By simply asking the right questions you can save yourself much undo stress. Ask your Realtor for a lender referral if you don't have a lender in mind. If you feel uneasy about who you have chosen and things are not going as "promised" be sure to get your Realtor involved. We work for you and have your best interests in mind.

The following post that Jeff Belonger wrote will help guide you down the right road when beginning the mortgage process. Enjoy!

Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages -- Mortgages :

How many of you usually shop with those that have a better name or what we think, those who have a better brand name? I know I do. When I shop for clothes, I love shirts made by Polo. And yes, I generally pay for it in price, but I am also buying very good quality.

But what about it when it comes to you shopping for a mortgage? It doesn't matter if it's an FHA loan or a conventional loan, do you go for the best recognized name? Such names as Countrywide, Wells Fargo, Bank of America?

Here is the skinny of it. No matter how big nor small may that company be, we all get our money from the same place when all said and done. With that said, you should seek out a mortgage professional. One who is honest and ethical. By not doing so, could cost you thousands of dollars in the long run.

Here is why I decided to write about this. I received this from a consumer last night.

"I am in the process of purchasing a new condo from Taylor-Morrison. They told me if I used their lender then I would get 10k towards closing costs . I wanted an FHA loan and they told me they were in the process of getting their FHA approval. So I filled out an application form on the spot and got pre-approved, gave them a deposit of around $7500 and then set-up and appointment for the design center. On to the story, I had an appointment with a loan officer from Countrywide who is the builders lender and at the time rates were 5.87 I wanted to lock-in and she told me " my gut tells me that rates will drop in the week to come " and she thought that I should hold out. Well 2 days later rates went down to 5.75 I immediately called her then I get " you know since you're doing an FHA loan I don't think you would get that rate ". She told me she would look into the matter and get back to me. I email her about it and never got a response. Til about 2 weeks ago someone from the underwriter's office calls me asking about my 2007 taxes."

The story goes on to where he might now seek a lawyer to get out of this contract. But the main theme to this post is that you might not always deal with a true professional or one that has experience or knowledge, that works for a large lender. Those loan officers that you talk to at large mortgage companies that work in a centralized area or state, ie. call center, they are usually not experienced. And you also have to be careful of those lenders that are used by builders. You need to keep in mind that nothing is ever free in this business. They might credit you $10,000, but they are getting it from you one way or another. And by tacking on that amount to your purchase price, might cost you more money in the long run.

Lastly, always be careful of Red Flags !!!!!. This particular loan officer used the term, "gut feeling". Would you work with a stock broker, who was investing your money, and say, "I am going to go on a "gut feeling" and pick x,y,z stock"? I don't think so. So why would you want to work with a loan officer that uses the same term, when it comes to locking your rate in? Or giving you advice on what strategies that you should take when it comes to rates and mortgage programs. You want to speak to a professional loan officer that knows the market, knows the market indicators, knows how to read the market reports, and understands how the bonds work and the mortgage back securities. Advice? Seek someone with knowledge and expertise, and not just someone that can quote a rate.

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For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

FHA loans vs Conventional loans - Knowing the true numbers....

2008-08-17T16:41:34Z

Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages -- Mortgages :

FHA loans have been the choice of mortgages as of lately in many parts of the country for numerous reasons. What I do hate hearing is that they have taken the spot of the subprime loans. This is not true by any part of the imagination. This statement is from those that are inexperienced in both the mortgage industry and the real estate industry.

The subprime loan for many years could go down to a 500 credit score, as long as you had more money down. But your rate was usually higher. The better your score, the less you needed to put down, the lower your rate. Sounds good, right? Wrong, because the subprime rate was always higher than the FHA rates.

To compound this, so many thought just because you had a conventional loan, that you had the better loan. This was not always true when putting zero percent down or 3 percent down. In most cases, you were told this, because that particular lender was not FHA approved. Now? Even with 10% down and credit scores less than 680, FHA loans in most cases, will be the best mortgage for you.

Okay, you could argue the fact that this is just my opinion. True, even though I have almost 16 years of experience as a loan officer in the mortgage industry. But numbers don't lie. Let me show you.....

The example below is based on a $300,000 purchase price with 10% down. One reason why conventional rates are a little higher in this scenario as in FHA rates is because Fannie Mae and Freddie Mac have added penalties per se. If you are putting down less than 30% and your credit score is less than 680, certain fee penalties would apply to you, which would increase your rate. The FICO (credit score) that I am going to use is 659, which is above the average credit score and I will still show in this example that FHA loans are cheaper, even with 10% down.

***And keep in mind, some lenders have penalties on FHA mortgages with credit scores under 620. It all comes down to the investor. We don't have penalties on any credit score above 580. And I can still do credit scores down to 500 with a manual underwrite. Many lenders can't go below 580.***

Type of loan

Conventional Loans

FHA Loans

Purchase Price

$300,000

$300,000

Mortgage amount w/ 10% down

$270,000

$274,275

Mortgage Rate with zero points

6.625%

6.00%

Principal & Interest Payment

$1,729.73

$1,644.42

Mortgage Insurance Payment

$117.00

$111.97

Total Mortgage Payment with P & I & Mortgage insurance

$1,846.73

$1,756.39

Savings

$90.34

Disclaimer : These rates are based on today's rates for a 30 year mortgage and can change any time because of various market conditions. To compare this scenario apples to apples, the fees would are the same and with zero points. The conventional rate also includes the penalty for the 659 credit score.

Some of you might be saying that you will be adding $4,275 onto your principal balance if you did the FHA mortgage because of the FHA one-time mortgage insurance premium. This is correct and I don't want to confuse you with more numbers and charts. But here is a quick breakdown. If you kept your house for 5 years, which most people sell in a 6 year period, you would have saved $5,420.50 in payments in 5 years. This is a difference of $1,145.50 that you have saved!!! And one other thing that is very small, but still makes a difference. You will be subtracting a few more dollars per month from your principal because your interest is lower, which would offset the interest that you would write off on the 6.625% rate. Just something else to remember, but consult your tax consultant or CPA.

FYI -- If you sold your house in less than 3 years, you are entitled to a refund of the upfront mortgage insurance premium (UFMIP) of $4,275.

How dto I find an FHA approved lender? You want to make sure who you are dealing with is FHA approved.

Why do I say this? Not all lenders are approved FHA and some may tell you that you don't qualify FHA because in reality, they aren't FHA approved.

You can find a HUD approved lender in your area by going to the following HUD website: http://www.hud.gov/ll/code/llplcrit.html DISCLOSURE (just be careful of the spelling of the lender. If I put in my company's full name, Infinity Home Mortgage Company, Inc, it tells me that there is no such company. If I put in Infinity Home Mortgage, it shows my company as being FHA approved. Just keep this in mind. You can always call HUD also. (202) 708-1112

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For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

Good Faith Estimate - Good Faith Estimate - Good Faith Estimate -- Did you get one?

2008-08-17T16:36:06Z

Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages -- Mortgages :

If you are a consumer looking to purchase or refinance, this is a must read. It could cost you thousands if you don't pay attention. This is not a threat, but a warning from someone that has almost 16 years of experience in the mortgage industry.

When shopping for a mortgage, no matter if you plan on using the person that you first spoke to, or you have spoken to 3 different lenders, you want to get a good faith estimate from everyone that you speak to. You also

So, you need to understand how to read a Good Faith Estimates and not just what the loan officer tells you. There are many things to look at, but the two main things are the interest rate and the lender's fees. Just don't go to the bottom of the good faith estimate and compare the total costs. Why? I explain a lot of that in this post : Good Faith Estimates - FHA loans or conventional loans -- A true understanding One main reason not to compare total costs and use this as one of your major decisions is because the title insurance fees are just an estimate in which they vary. And another reason is because some loan officers don't properly estimate your property taxes, which would be a part of your escrows.

So, here is my pet peeve. This is a major red flag..... if you speak to a loan officer and when you get off the phone with them or leave their office, and they didn't offer you a good faith estimate.... Run Away !!!

Let me ask you this. If you are shopping for a car, don't you want to see your payment, interest rate, and total costs? I certainly do. Do you know how many people that I qualify on a weekly basis that never received a good faith estimate from the loan officer that they spoke to? At least 1 out of 3. Sometimes two out of 3. My clients never have to ask for one before we are done talking.

Overall, it doesn't matter if you are applying for a FHA loan, a conventional loan, or any other type of mortgage. And my biggest complaint? If they pre-qualified you or pre-approved you, the numbers are already in their system then. Meaning, that it wouldn't take more than 3 minutes to either print it out for you or to e-mail it to you.

Summary : If you don’t get a Good Faith Estimate once the loan officer pre-qualifies you over the phone or in person within the first 24 hours, don’t go with that lender. In all honesty, it doesn’t take more than 10 to 15 minutes once I pre-qualify you. If the loan officer pulls your credit,asked income questions, and told you your monthly payment, the good faith estimate is already in the system. There is NO EXCUSE then. Any excuses other than the loan officer died in a plane crash is not acceptable. I am very serious about this. Unless you like games at the end of your closing, why trust this loan officer. The loan officer usually has a reason if they don't share a good faith estimate with you. I am pre-warning you. Don't be a shopper that shops themselves right out of the market. I basically want my clients to be educated and not in the dark. To alleviate this issue, make sure that you speak to a mortgage professional, not an order taker.

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For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

FHA Loans & FHA Mortgages -- Legislation Update -- August of 2008

2008-08-16T21:34:06Z

Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages -- Mortgages :

As many of you are aware, the mortgage industry has been going through some major changes in the last 6 months. Well, get ready for some more changes. In my honest opinion, many of the changes are for the worst. Sorry, but it's reality and we need to pay attention more than ever.

I am going to list the important changes next. I will list from the most important to least, but based on my opinion.

1. Seller funded downpayment assistance programs - Know as DPA's or Downpayment assistance programs. Seller's can't participate as of October 1st, 2008, unless the borrower is approved prior to this. FHA confirmed the definition of "borrower approved" by stating that cases run through the FHA scorecard, eligibility will be determined by the date of the last scoring time. For manually underwritten loans, the eligibility will be determined by the date of the underwriter's signature on the MCAW or the loan transmittal form. ** Ask your loan officer for definitions in what was just mentioned. ** FYI - Even though the new bill was passed by Congress, Bill HR 3221, there is a new bill that will hit the floor soon to oppose the banning of DPA programs.

2. Cash Investment from borrower - Not only do they kill the DPA program, which helps buyers to purchase a home with little or no money out of pocket, but HUD now raises the cash requirement. The previous requirement was 3% from the buyer and the new investment from the buyer is now raised to 3.5%. FHA should be publishing a mortgagee letter in the next 30 to 60 days and this should go into effect on January 1st, 2009. My opinion? It's tough to save as it is. On a $200,000 property, the buyer will now need an additional $1,000. You will still be able to get 100% gifted to you by a relative and still be able to get 6% seller contributions.

3. Risk base pricing - FHA is going back to the old method of upfront mortgage insurance premiums. The new changes were mentioned here : http://www.fhaloansfhamortgages.com/fha-mortgage-insurance-new-risk-based-pricing-guidelines-effective-07-14-08 So, FHA will be going back to the old method, which is just one calculation. This will go into affect with new FHA case numbers assigned on or after October 1st, 2008.

4. Mortgage Limit Decrease - As many of us know, when the Stimulus package was approved and signed by the president, FHA loan limitswere increased, but only up until December 31st, 2008. The mortgage limits will be lowered in high cost areas to 11% of the area median sales price up to a maximum of $625,000. HUD is still trying to decide whether it is $417,000 across the board, $417,000 "floor" and higher limits in high cost areas or $625,000 across the board.

Overall, as you can see, there are some important changes in the mix. And in my opinion, this will hurt real estate more than help it. But nothing is confirmed until FHA publishes their mortgagee letters to reflect the changes.

For those that of you that want to help save the DPA program, Gerry Suarez wrote this post. http://activerain.com/blogsview/621419/we-have-one-more Please read this and vote, let your government officials know how you feel. Voice your opinion.

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For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

Dining out at Monaco Movie Theater, Huntsville Alabama

2008-08-16T21:10:30Z

I love going to Bridge Street Towne Center, here in Huntsville Alabama. Yes, it is a shopping center, but I can honestly say it is the only shopping center I can get my husband excited about going to!

We have a weekly "date" with each other and last week, we chose to go to a movie at the new Monaco Theater, at Bridge Street. WOW! We were both impressed when we first stepped in the door. Incredible! Talk about atmosphere. You will find it hard to believe you are in a movie theater, really!

We weren't quite sure which movie we wanted to see, so we walked up to the "concierge desk" where they proceeded to give us the low down on all of the movies playing. Really, it is a Concierge desk...need anything? Just ask! Very impressive.

We went early enough to eat lunch at the Scene Restaurant, located IN the Monaco. The Scene is very hip, and chic with a full bar and a Sushi Bar. I can honestly say the food was pretty darn good! I had the Chicken Quesadillas which was $9.00and my husband had the Derby salad which was $11.50. Tim's salad looked delicious and was very large. Both were very tasty! Our waiter, James, was new, but you would never have known it. He was all smiles and never missed a beat. Our service was wonderful. The prices were reasonable. The seating was very comfortable. We had a nice, relaxing lunch, at the movie theater!

After lunch, we strolled upstairs to the Prive', the private 21 and over area of Monaco. We found a full service bar, a wine tasting bar and plenty of seating in the open lounge areas. We were both awed by all of the chic surroundings. At a movie theater no less! This is how they describe the Prive' area on the web site: I found this description to be very accurate!
A private glass elevator awaits the Prive' guest, taking them to the exclusive 21 and over Prive' level of Monaco. Prive' guests can enjoy an elevated lounge featuring a Wine Tasting Bar, appetizer dining, and upscale concessions. Enjoy a glass of wine while watching the show along with reserved seating in our custom-designed high back leather recliners. Prive' VIP delivers the ultimate luxurious experience.

Guests can experience the Prive' lounge before, during, or after the movie. No time for a movie? Prive' is also the perfect place for gathering with friends after a long day of shopping or winding down after work. Must be 21 and over.

Menu | Wine Tasting

The movie was about to begin, and I just HAD to get my buttered popcorn. I now love Monaco even more, if that is possible. There is a popcorn bar, to add your own butter! Yes, I was in buttered popcorn heaven, to say the least! The seating in the theater was great! Our movie choice, well, not so great, but that was our fault:)

I can't wait to go to the Monaco again. We will definitely dine there again. They offer wine tasting parties and so many different events. Be sure to check out the web site for all of the latest happenings! Going to the Monaco is definitely an experience you don't want to miss!

Monaco offers a Kids Summer Movie Festival each Monday and Wednesday at ll:00 am. FREE to the entire family. FREE!

For your convenience, here is the website. http://www.monacopicturesusa.com/index.html

Madison Alabama guide to home shopping

2008-08-16T20:28:30Z

Market Snapshot - Madison City Limits

If you are shopping for a home in Madison Alabama this summer it would be good to have a general feel for the market in your particular price range, prior to visiting neighborhoods and viewing specific Homes. I have put together a few of the Neighborhoods you are likely to run across while house hunting in Madison at various price points. These include:

$100k-$200k Colinwood Estates, Towne Centere, Shamrock, Stone Crest
$200k-$300k Buckingham, Hardiman Place, Liberty Knoll, Oakstone
$300k-$400k Browns Ferry Crossing, Rainbow Landing, West Highlands
$400k-$500k Rainbow Landing, Heritage Plantation, Cambridge
$500k-Up Chapel Hill, Clifts Cove, Highland Lakes, Whitehall

[ Utilize these links to view current listings in these neighborhoods ]

Now that you have a feel for the homes currently available here in Madison Alabama, review the following chart to get an understanding of current market conditions across the various price ranges.The chart takes a snapshot of the seasonal demand and current inventory of homes. It also captures the absorption rate inventory and average price per square foot across these categories. Price per square foot could vary from home to home, depending on the amenities offered. Remember: compare apples to apples!

Be sure to note the variety of market conditions and especially the market bias in your particular price range. For example, if you are a buyer in the upper end price range you can expect some seller flexibility. With a 17.5 month supply of inventory these sellers are likely experiencing some longer than normal time on market.

Southwest Huntsville - May 2008 Market Snapshot
Price Range	Demand Per Month	Current Inventory	Months of Supply	Price/SqFt	Market Bias
$100k - $200K	30	158	5.26	$93	Seller
$200k - $300K	20	146	7.3	$98	Buyer
$300k - $400K	10	91	9.1	$116	Buyer
$400k - $500K	6	63	10.5	$127	Buyer
$500k - $600K	6	38	6.33	$128	Balanced
$600k & Up	2	35	17.5	$147	Buyer

When you find a few homes you really like and have put together a short list, be sure to have a knowledgeable REALTOR® perform a Comparative Market Analysis(CMA) on your properties of interest before finalizing any offer. By taking this more detailed look into specific neighborhood mini markets you may find that the neighborhood's pricing model may vary either up or down from the average price across Madison provided in the chart above. CMA's should be very neighborhood specific, if possible, to gather a true value for the home you are interested in.

Please feel free to visit my web site, www.Huntsville-Realestate.com for more information.

Happy house hunting! Elizabeth

Mt. Carmel Subdivision, Huntsville Alabama

2008-08-09T19:31:17Z

Driving from downtown Huntsville Alabama, drive up and over the mountains. To the east on highway 72, and within a few miles, you enter a lovely valley surrounded by Alabama's Appalachian foot hills. At 8 miles from downtown Huntsville, you will find this charming neighborhood. Nestled up against the Flint River Nature Preserve covering several hundred acres, is the northeast Huntsville Neighborhood of: Mt Carmel - By The River.

The neighborhood's amenities include 2 community pools, lighted tennis courts, playground, and an attractive club house known as the Manner House. The Manner house features an open air cabana and stacked stone outdoor fireplace.

In addition to these man-made features, there are over 50 acres of stocked lakes available for community use and over 100 acres of common area adjacent to the Flint River Nature Preserve for picnicking, launching a canoe, taking a hike, fishing, etc.

Three of the lakes within the community have spillway capability. They seem to cascade from the top of a local bluff downward and into the Flint River watershed. They are simply lovely, with many water front homes, some of which have swimming pools surrounded by wrought-iron fences open to the views of the lakes.

[Show as slideshow]

The schools include Buckhorn High School, a national school of excellence, along with Mt Carmel Elementary, and Riverton Middle School. The elementary and middle schools are actually adjacent to the neighborhood and thus very conveniently located. An interesting tidbit is that the High School is located at the site of the American Civil War Battle of Buckhorn Tavern, fought on October 12, 1863.

Close by shopping is located on Winchester Drive and with downtown only 8 miles away entertainment and cultural events are only a 10-15 minute drive with Redstone Arsenal and Research Park employments centers only an additional 5 miles away.

There are currently ~20 Huntsville Homes listed in the neighborhood ranging in price from $209,000 - $492,100 ...click here to view the current listings...

If you are searching for real estate in Huntsville Alabama, this area is a true must visit!

Knox Creek Subdivision, Madison Alabama

2008-08-09T16:22:49Z

This unique little neighborhood has been a long time favorite of First Time Home Buyers and Real Estate Investors alike. Its location is also somewhat unique, just a couple of blocks from Hwy 72 and 2-3 miles from one of Madison's major shopping areas. It is located on the Huntsville / Madison city limits off of Balch Road...(there are some strange boundaries) and is found on the MLS in the Northwest Huntsville Area. The school system supports the neighborhood via the Providence K-8 and Columbia High Schools. http://www.hsv.k12.al.us/schools/k-8/providence/index.htm

When I drove through Knox Creek Subdivision located in Madison Alabama, I took several pictures of a few homes for you to view. It is so hard to find homes in Madison Alabama in this price range and I think Knox Creek has so much to offer! A creek borders the back of the subdivision and there is a neighborhood park.

In the following chart you will see a 6 year history of sales and prices explicit to the Knox Creek Neighborhood. The sales rate has slid over last couple of years, while during the same period days-on-market (DOM) has improved and prices have continued to appreciate.

The history of price appreciation in the Knox Creek neighborhood is an investor's dream with an average annual appreciation rate of 7.5% since 2002. While past performance does not guarantee future appreciation rates, the 2008 year-to-date price history indicates a current appreciation rate of 3.3% over last year.

There are currently 16 Homes on the Market in Knox Creek, ranging from $85,000 to $129,900. With a seasonal average sales rate of 4 homes per month the current absorption rate indicates a 4 month supply of inventory and thus the neighborhood should be considered a sellers market when contemplating an offer. To view more properites, feel free to visit my web site www.Northernalabamahomes.com

The Deal, the Catch, and the Plain Ugly

2008-08-04T15:37:06Z

HR 3221 - The New Housing Bill

The Deal:

All homeowners who do not itemize their income taxes can deduct between $500 and $1,000 from their 2008 federal taxes.
Anyone buying a first home between April 9, 2008, and July 1, 2009, will receive up to $7,500 in federal income tax credits. A tax credit is much better than a tax deduction as it is subtracted dollar-for-dollar from your tax bill. And the bill's definition of ‘first time home buyer' includes anyone who has not owned a home in the last 3 years.
Homeowners facing possible foreclosure or struggling to make payments on high-interest mortgages can contact their mortgage company and transform their loans into government-backed, 30-year fixed-rate mortgages.
A permanent increase of conforming loan limits from $417K to $625 depending on your market is definitely some good news.
Homeowners living in neighborhoods stricken by foreclosures, where vacant properties were left run down with overgrown yards, may see improvements.

The Catch:

The new non-itemized income tax deduction is of course limited to the few homeowners who do not already itemize and it is only applicable for the 2008 tax year. Nevertheless, if you qualify don't forget to take the deduction.
The tax credit is also applicable for a limited time period, so to take advantage of it you must purchase your home prior to July 1, 2009. The big rub though is that this is in reality an interest free loan that must be paid back over 15 years. It is also phased out as a function of income up to $75,000 for single taxpayers $150,000 for joint filers.
To qualify for refinancing into a fixed rate government-backed mortgage, borrowers must live in an owner-occupied home and have a high mortgage-to-income ratio of 31% or greater. The new loan cannot exceed 90% of the home's current value and borrowers must prove they can repay the loan. Furthermore, the lenders must agree to write down the loan principle to 90% of its current value and this may discourage some lender participation.
The end of any seller provided "down payment assistance" programs like Nehemia and Genesis are going to be banned effective in October 2008. This of course will affect builders who have used such programs to get buyers into their homes.
The bill also places a moratorium on the use of risk-based pricing at the FHA for one year beginning October 1, 2008 - September 30, 2009. Thus FHA loans during this period will not be able to lower interest rates for good credit applicants, thus likely raising the cost of mortgage financing for everyone during this period.

The Ugly:

The most controversial proposal of the new housing bill is related to the public propping-up of Fannie Mae and Freddie Mac both private companies. The new bill will allow the Government Treasury to take an equity stake in Fannie and Freddie by using tax payer funds to buy stock in the companies; historic no matter how you view it.
The taxpayers will of course incur the cost of this program expected to exceed $50 billion dollars along with $300 billion in loan guarantees. Of course our Government doesn't have this cash just sitting around so it must be borrowed (i.e., added to the national debt and the interest to the national debt will add to the overall taxpayer cost of this bill).

Just a note: Both Alabama Senators (R) and two Representatives (D) voted for the bill, the other five Alabama Representatives (R) voted against the measure.

www.Northernalabamahomes.com

Huntsville Alabama Real Estate Market Conditions

2008-08-03T22:37:13Z

We have had some improvement in Absorption Rates in the Huntsville Metro Area over the last couple of months. As readers may recall, absorption rate is a simple statistic easily calculated, and gives us a feel for what the current pricing pressure may be in a particular market segment. It basically takes the current inventory divided by current unit sales rate and eventually results in a ‘months of supply' measurement.

It is a very good indicator to know, whether a buyer or seller, in a particular market segment. The MLS areas that have shown the most improvement over the last few months have been the South East and East Huntsville areas. Overall the Huntsville Metro absorption rate has gone from over 8 months supply in April to ~ 6 months of supply at the end of June.

While sales rates have shown seasonal improvement month-to-month, year-over-year sales rates are down significantly no matter the measurement tactic deployed. Thus the cause of our current inventory improvement and price stability is a combination of a seasonal sales increase and the suspension of supply growth and the small inventory decline we have seen over the last couple of months, as illustrated in the following chart.

One thing of special note to keep in mind, is that these market statistics are presented within the context of the Huntsville/Madison Metro Area. The North Alabama Region is not fairing as well as the metro area. When using these indicators in setting an offer or listing price, be sure to have your REALTOR® run these numbers in a Comparable Market Analysis specific to your location of interest.

My Love Affair with Historic Huntsville Alabama Twickenham

2008-08-03T20:36:29Z

A love affair began one day while trying in vain to find a bank in downtown Huntsville. I took the wrong turn, but to my surprise, my frustration soon turned into a love affair. As I drove deeper into the Historic district, my love grew stronger. I am in awe, each and every time I stroll the beautiful streets, that are steeped in Southern charm and history. Each time I drive through Historic Twickenham, I am quickly reminded of my love of the area and it's history. Once you turn onto one of the majestic tree lined streets, you too, fall in love!

Twickenham was the original name for Huntsville Alabama. LeRoy Pope purchased land at auction and donated land for the town. He chose the name Twickenham. to honor the London suburb which was home to poet Alexander Pope, a relative. However, it was later renamed "Huntsville", after the first settler John Hunt (Hunts-ville), during the war of 1812.

Twickenham is Alabama's largest antebellum district.. Here you will find outstanding examples of Federal, Italianate and classical architecture. Walking tours of Twickenham are offered. For information, visit www.huntsville.org or call 256-551-2230. You will also be able to tour the oldest home in Alabama, the Weedlen House.

The historic district in Huntsville has 3 defining areas. Twickenham, Old Town and Five Points. Each area has a distinct street sign. Twickenham signs have a tree, Old Town has the name Old Town, and Five Points has a star. You will see photos of the signs in my slide show. I will write about Old Town and Five Points at a later time. Today, I am focusing on my true love of Twickenham.

Home prices in the Twickenham Alabama neighborhood begin in the mid $200's, that are in need of major renovations and go upwards in the millions. Finding a home in the lower price range is a rarity. Most of the homes in Twickenham have been lovingly restored and are simply stunning.

If you live in Huntsville and have not taken the time to visit our own piece of history, don't wait any longer. If you are visiting our fine city, I would put this on my list of things to see here in Huntsville Alabama. I'm sure you will soon fall in love, just as I did! I hope you enjoy my slide show as much as I enjoyed having the opportuning (excuse) to photograph these beautiful homes.

To search homes for sale in the Twickenham area, be sure to visit my website, www.northernalabamahomes.com

Ketchup, Huntsville Alabama, Bridge Street Towne Center brought to you by Huntsville Alabama Real Estate and News

2008-07-28T22:00:58Z

Looking for a "hip" new experience in dining in Huntsville Alabama? Ketchup is a true must go! Right out of Los Angeles, California! Ketchup takes classic American cuisine and puts a modern spin on it! While shopping at the new Bridge Street Towne Center here in Huntsville Alabama, my husband and I took our daughter to Ketchup, for a quick bite to eat. We loved the atmosphere. Sleek, modern and up beat would best describe Ketchup!

We were greeted by a very pleasant hostess! We weren't aware that dinner did not begin until 5 pm, but she sat us anyway, and was happy to do so. We arrived about 4:45. Our waiter, Dylan, appeared with a big smile on his face, waiting to make our experience great one!

The interior of Ketchup is very modern! Of course, they have a HUGE ketchup chandelier and a wall of ketchup bottles, that separates the dining area from the very hip bar area. The center of the restaurant features an enormous, round seating area. In the bar area, I noticed a private meeting room, with a large flat screen TV. Perfect for a small get together or meeting. I loved it.

This was my second visit, but a first for my family. We decided to just snack. We shared the "3 Some" which is a French Fry platter, featuring 3 varieties, and a sampling of 5 ketchup's. I highly recommend this platter. I loved the Sweet Potato fries and the homemade Mango ketchup and the Chipotle ketchup. All of them where delicious! Next, we shared the "Barking Dogs". Mini Kobe beef hot dogs, with Kobe chili, cheddar cheese and of course, ketchup! Again, delicious! We shared the Mac and Cheese that is made with white truffle and dungeness crab. Yum! I was surprised my daughter loved it.

Ketchup turns into the local hot spot in the evening with a full bar. They serve ultra hip martini's made with tang, yoo hoo and kool aid, just to name a few! Their milkshakes are supposed to be delicious as well and feature alcohol and non alcohol versions.

During you next visit to Bridge Street Towne Center, stop in and see Dylan and enjoy the truly "hip" experience of a Los Angeles diner, right here in Huntsville Alabama!

For all of your Huntsville Alabama Real Estate or Relocation Needs call or email me for a FREE no hassle consultation to discuss your Real Estate Needs.

Huntsville Alabama and Madison Alabama Schools start August 6, 2008, Welcome to Huntsville Alabama Real Estate and News

2008-07-28T20:27:32Z

Huntsville Alabama Schools and Madison Alabama Schools begin August 6th!

It's school time already! Where did the summer go? I am personally not ready for school to begin, but my daughter is anxious and excited to get back to see all of her friends! Miranda is entering the 9th grade this year, at Liberty Middle School, here in Madison, Alabama. How did my little girl grow up so quickly? Regardless of my feelings, school time is fast approaching.

The first day of school will be Wednesday, August 6th. with a full day their first day back.

Here is a link to the Madison City Schools. http://www.madisoncity.k12.al.us/

Remember, if you are new to the area, you must register FIRST at the central office.
                          Madison Central Office   211 Celtic Dr.
                         Madison, AL 35758    Phone: (256) 464-8370

The link for the Huntsville Alabama Schools is: http://www.hsv.k12.al.us/index.php

If you are new to the Huntsville area city schools, here is the registration location:

Office of Pupil Services ~ 200 White Street ~ Huntsville, AL 35801
Phone: (256) 428-6890 Fax: (256) 428-6896

If you are new to the district you MUST have a current Alabama Blue Health record, showing all immunizations are up to date. Immunization certificates are available from the Madison County Health Department, (301 Max Luther Drive, Huntsville, 35811, 256-539-3711) and from local physicians or military clinics.

Have a great 2008-2009 school year!

For all of your Real Estate or Relocation needs in Huntsville Alabama please call or email today !

Hampton Cove, Huntsville Alabama Real Estate

2008-07-21T22:08:40Z

From the moment you pass this gorgeous waterfall when entering Hampton Cove, until the moment you leave, you will experience a true love affair with this community here in Huntsville Alabama.

Nestled in the foothills of Monte Sano Mountain, Hamptom Cove is a community with 2800 acres of perfection! You will find three Robert Trent Jones Golf Trails, for the golf lovers! The development offers 20 different neighborhoods. There is truly a neighborhood that will appeal to everyone, with homes ranging from 1800 square feet, to 8000 square foot homes. From Patio homes to Estate homes, finding the home of your dreams here will be no problem! Hampton Cove offers highly rated schools, making this the perfect place to call home.

In Hampton Cove you will discover 28 lakes, many parks and over 20 miles of sidewalks and paths, in addition to the Big Cove Creek Greenway. Here is a link to the map: Big Cove Greenway Map Hampton Cove has one of the largest swimming pools in Northern Alabama! The membership based Hampton House offers a workout facility, tennis courts and much more.

I love showing property here. I fall in love with Hampton Cove, over and over again. If you want to truly experience lifestyle living, look no further! Hampton Cove has it all, and then some. Here is a link to the Hampton Cove website, where you can view a video. Enjoy! www.HamptonCove.com

Hampton Cove is truly a city within a city. If you would like more information about homes in Hampton Cove, feel free to visit my web site! www.Huntsville-Realestate.com.

If you are wanting to relocate to Huntsville Alabama or need information on Real Estate in Huntsville Alabama please call or email.

Huntsville Alabama's First Public RETS MLS Search Engine!!! Brought to you by Huntsville Alabama Real Estate

2008-07-21T18:43:50Z

Well the day has finally arrived! We have been working diligently behind the scenes for the last 2 ½ months on replacing our MLS gateway solution with a new RETS based database solution.

What is RETS you ask? The Real Estate Transaction Standard (RETS) is a new web-services protocol standard that facilitates the exchange of data between Multiple Listing Services (MLS) and Brokers/Associates. The current Internet Data Exchange (IDX) system is not a standard at all and in fact one of the main problems with the current system is that it is often proprietary to a particular MLS. RETS will solve these compatibility problems and ease communication issues across the industry, thus benefiting consumers as well.

But there is more! Since RETS is web-service based there is no longer any need to download the entire local MLS database in the wee hours of the morning or do weekly updates. RETS facilitates a near real-time database update procedure that deals only with modifications that have occurred since the last query and also supports queries on individual properties. No more out of sync distributed IDX databases littered with already sold properties!

Don't get me wrong, the last 2 ½ months have been plenty painful and full of bug fixes on both sides of our MLS link. Nevertheless, we are proud to have served (even as a guinea pig) in blazing this technology trail for our local Huntsville market. The National Association of Realtors has mandated member MLS' support this standard by June of 2009 and our North Alabama MLS (NAMLS) is already compliant.

The new RETS website can be accessed via the normal links of our Huntsville Real Estate Blog or it can be accessed directly at www.NorthernAlabamaHomes.com . The public interface is free to the public without registration, however registered Users and Members receive advanced property search services.

I want to thank my husband Tim, for working so hard developing this for me. Every moment, of every weekend for the past couple of months. Literally! I"m so proud of my new MLS search tools but more importantly, I"m so proud of Tim.

Enjoy and Thanks for Visiting - Elizabeth

Relocating to Huntsville Alabama or need information on Huntsville Alabama Real Estate please call or email me today.

Type of loan	Conventional Loans	FHA Loans
Purchase Price	$300,000	$300,000
Mortgage amount w/ 10% down	$270,000	$274,275
Mortgage Rate with zero points	6.625%	6.00%
Principal & Interest Payment	$1,729.73	$1,644.42
Mortgage Insurance Payment	$117.00	$111.97
Total Mortgage Payment with P & I & Mortgage insurance	$1,846.73	$1,756.39
Savings		$90.34