More Affordable Than Ever

The Housing Affordability Index reached a record high of 192.3 for February, 2011. Two contributing factors to the Index are the price adjustments homes have experienced in recent years combined with the unusually low mortgage rates make this an outstanding opportunity for buyers who can qualify.

Before the housing bubble burst in 2006, the index average for the year was 108. The high prices and higher interest rates restricted many buyers from purchasing. As the market started to deteriorate, which resulted in declining values and lower interest rates, the index started to rise.

The opportunities are not being seized by buyers and some real estate professionals feel that it's because there is confusion in the marketplace. Buyers are uncertain whether they would qualify and whether now is a good time to be purchasing a home.

All markets are different and every situation is unique. The only certain way to determine would be to investigate your individual situation. You owe it to yourself and your family to visit with a real estate professional who can show you the real cost of housing and recommend a lender.

The National Association of Realtors releases the index at the end of each month with a two month lag time for compiling the information. When the index is at 100, a median income family can afford a median price home. As the index increases, housing affordability increases.

Fort Worth Housing Assistance Program (HAP)

 

The City's Housing Assistance Program (HAP) provides mortgage assistance for income-eligible first-time home buyers with the City of Fort Worth.

Qualifying home buyers can receive a subsidy of up to $14,999 for a home located in targeted areas of Fort Worth's Central City. The buyer can use the full $14,999 subsidy for mortgage assistance or use $3,000 of this amount for closing costs and/or down payment.

Qualifying first-time home buyers purchasing homes outside of targeted building areas can qualify for Deferred Payment Loan Assistance subsidies of up to $8,500 from which the buyer also can use $3,000 for closing costs and/or down payment.

Eligibility

The following are program requirements:

• The property must be located within the Fort Worth city limits.
• You cannot have owned a home in the last three years. Displaced homemakers are also eligible.
• The home buyer agrees to live in the home as his or her principal residence.
• The combined family income must not exceed 80 percent of Fort Worth-area median income as established by the Department of Housing Urban Development (HUD).
• A city-approved lender must be selected.
• The home buyers' minimum contribution from their own money is the lesser of $1,000 or two percent of the purchase price of the home.
• The property must pass the Housing Quality Standard Inspection (HQS), Environmental Review and Lead Hazard Evaluation conducted by the City of Fort Worth at no cost to the home buyers.

All home buyers must attend a city-approved home ownership educational workshop. 

Similar programs are available in Arlington, TX also.

 

Well, HUD (US Department of Housing and Urban Development) didn't waste any time getting back to work this week.  At the top of their agenda, it appeared, the demise of "seller funded" Down Payment Assistance programs.  I understand their ruling is to take effect October 31, 2007.  No tricks - No treats!  Sources in the Lending community say that two of the the major downpayment assistance providers, Nehemiah and Ameridream, have filed suits with HUD to block this final rule.  As my kid says, "LOL". 

From a Realtor perspective, this action further reduces the base of qualified buyers by eliminating those prospects that have no money to put down.  It will also have a profound effect on Days on Market, and ultimately, an increase in inventory.  On the other hand, this tactic just might have a long-term positive impact on the rising number of HUD foreclosured properties.  Too many home buyers are caught in the trap of purchasing beyond their means.  Buying to their lending and qualification limits without consideration of their overall budget. 

You will be convinced that you do when you receive that offer from the various Drilling companies or their designees for a signing bonus to lease YOUR rights.  The results of my investigation indicate that these companies are merely scratching the surface to determine the likely owner(s) of Mineral Rights before starting their campaign. 

News about the Barnett Shale is slowly spreading throughout the North Texas community, currently affecting approximately 18 counties.  Unfortunately, it is the signing bonus letters that raise awareness and have become the most talked about issue in many neighborhoods.  All too often, the recipients, having no intent to ever utilize their minerals, are signing away and collecting their bonus.  Mortgage companies have now become involved and looking for their piece of the action as the property lienholder. 

What is the Barnett Shale?  The Barnett Shale is a natural gas source bed rock that stretches over 16 to 21 North Texas counties and is still actively being discovered.  Its 6,000 + square-mile reservoir is already the second largest producing on-shore domestic natural gas field in the United States after the San Juan Basin in New Mexico and Colorado. 

If you are unsure of your Mineral Right ownership, you owe it to yourself to get the facts.  A likely and reliable source can be found on file in the County Cleks office.  Also available, usually for fee, are professionals such as "Landmen", Real Estate Attorney's, etc.

As a Residential Specialist in Real Estate in the north Texas area, Mineral Rights are certainly a "hot topic" these days.  The Barnett Shale and its potential for Natural Gas production in these parts has Gas companies and property owners alike in a quest for the opportunities which present themselves.  Local property owners are receiving letters from major corporations, or their designees, with offers to lease their mineral rights.  Many of these property owners are not even certain that the rights are theirs to lease.  What about you?