While the Internet is a great resource to locate information about food, travel and a number of other things, it isn't necessarily the best place to find a local service provider.

Sure, you can run the search, get quick results and may even see some fairly impressive websites. The problem is that sometimes, those sites are run by companies that sell the leads to providers who may not be as experienced as you're expecting.

Instead of taking a chance on a total stranger, a personal recommendation could yield you more satisfactory results. Most real estate transactions require some work to be done to the house either in preparation prior to the sale or to meet requirements from the buyer or inspector after the sale is made.

Looking for a service provider on the Internet is easy. Contact me for a recommendation is easier still and you can trust that they'll be reputable and reasonable. I want to be your personal source of real estate information.

When it comes to buying a house, location is key. If you’re looking to purchase a home in a rural location, now may be the time to do so in order to take advantage of the robust market. Buyers looking to purchase in a rural environment can even get some assistance with their mortgage, thanks to the USDA Rural Development Guaranteed Housing Loan program, insured by the U.S. Department of Agriculture.

While USDA loans aren’t being advertised all over the place and only a small percentage of lenders even offer them, these loans (also called Section 502 loans) allow for 100 percent financing as well as some very friendly terms, making it a wise idea to try and secure one.

The requirements for obtaining a USDA Rural Housing Loan are simple: Obviously, your home must be located in a rural area, however, the USDA’s definition of “rural” is really quite liberal. Many small towns meet the USDA requirements, as do suburbs of most major U.S. cities.

While the USDA offers only 30-year fixed rate mortgages, there is no down payment requirement. In addition, USDA loans can be used by first-time buyers or repeat buyers. The rates associated with USDA loans are often as low as comparable conventional 30-year fixed mortgage rates and because mortgage insurance rates are lower, with a small down payment, USDA loans can often be a better deal.

This fall, the Rural Housing Program is undergoing a drastic change in that the loans will be entirely self-funded instead of taxpayer-subsidized. Because of that, the USDA is changing how it charges mortgage insurance.

The USDA Rural Housing Program also allows sellers to pay closing costs for buyers. These costs can include state and local government fees, lender costs, title charges and any number of home and pest inspections.

As of October 1, USDA mortgage insurance rates for purchases include a two percent upfront fee paid at closing, based on the loan size. For refinances, it will also be a two percent upfront fee paid at closing, based on the loan size. For all loans, a 0.40 percentage annual fee will be assessed based on the remaining principal balance.

Let’s say someone is taking out a $200,000 USDA loan. It would require $4,000 in mortgage insurance at the closing and $66.66 of mortgage insurance paid monthly.

Most lenders have already moved to the new mortgage insurance model, so if you’re in the process of buying a home via USDA, make sure to talk to your lender about the changes.

For more information, the USDA website maintains a list of lenders in the Rural Housing Program at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.

Some people believe they shouldn't refinance more often than once every two years. The determining factors are if you'll lower your payments and plan to stay in the home long enough to recapture the cost of refinancing. If so, you should consider refinancing.

Interest rates have actually come down significantly in the past 12 months and even more in the past 24 months. According to the Freddie Mac Primary Mortgage Market Survey®, rates on a 30 year fixed rate mortgage are down to 3.6% in August, 2012 compared to 4.27% one year earlier.

Refinancing in the example below would save the homeowner $67.04 per month and they would recapture the cost of refinancing in 3 years and 9 months based on approximately $3,000 of closing costs.

Click Here to make your own projection on a Refinance Analysis calculator.

A: There are a few things to consider, including cost, individual needs, and what will add value down the road. Also important: your emotional attachment to the existing home.
As designer and builder Philip S. Wenz, the author of Adding to a House: Planning, Design & Construction, notes, an addition is much cheaper than building a new home and can offer a “new” home without the heartache of moving.

Other considerations:

• Can you finance the home improvement with your own cash or will you need a loan?
• How much equity is in the property? A fair amount will make it that much easier to get a loan for home improvements.
• Is it feasible to expand the current space for an addition?
• What is permissible under local zoning and building laws? Despite your deep yearning for a new sunroom or garage, you will need to know if your town or city will allow such improvements.
• Are there affordable properties for sale that would satisfy your changing housing needs?
• Explore your options. Make sure your decision is one you can live with – either under the same roof or under a different one.

A: You can find out more about an existing property and neighborhood before you buy than you can a new home in a newly developed community.

When the home is on the outskirts of town, ask the developer about future access to public transit, entertainment venues, shopping centers, churches, and schools. Also review local zoning ordinances. A remote area can quickly turn into a fast food haven.
You want to ensure the neighborhood will not spiral out of control and lose its residential appeal.
Other things to consider:

Ask homeowners already living in a development about the builder. If none currently live there, find out where the builder has previously built and speak to those owners to find out if the builder followed through on promises and needed repairs.
Ability to make changes. Most homes in a development resemble each other. But the developer may impose restrictions on house color, landscaping, renovations, and other items that a homeowner may want to alter.
Do not buy into the highfalutin images created by marketing experts. Form your own opinions about a property and only buy where you feel comfortable. After all, you are the one who will be living there.

The U.S. Census Bureau and HUD reported new home sales for August remained virtually unchanged from a revised July level at 373,000. The last two months set the highest levels in new home sales since the momentary bump provided by the home buyer tax credit in 2010. The current levels are driven by underlying pent up demand, buyers taking advantage of record low mortgage rates and very affordable home prices.

The median home price rose 17 percent from August 2011, which is the largest year-over-year increase since 2004. The increase is more likely to be a result of the kind of home sold than any significant change in underlying home prices. There was a small shift in the sales distribution from the lower cost South (down 9,000 seasonally-adjusted annual sales rate) to the more expensive Northeast (up 6,000 SAAR) and 21 percent of the homes sold were over $400,000 compared to 14 percent in calendar 2011.

The increase is also the likely impact of move-up buyers taking a larger share of the market. Because of the overly strict lending standards, current new home buyers are more likely to have a down payment, be continuously employed and have sufficient credit scores to qualify. Those same characteristics are more likely to occur in the move-up buyer who purchases a more expensive home.

The inventory of unsold new homes once again established a historic low at 141,000 and the number of completed new homes within that group also dropped to a new all-time low of 38,000. In a normal market where potential home buyers have a wider selection of alternatives, there would be 100,000 completed homes ready for immediate occupancy.

The steady level of new home sales supports other housing data showing continued improvement in the housing sector as the number of markets seeing improvement continues to grow.

View this original article on the NAHB blog, Eye on Housing.

More great market news came through yesterday: According to S&P/Case-Shiller, in July, the average home price rose to the same level as those seen during summer 2003, when the housing boom first started its journey toward the 2006 peak. While this may not signify that we are currently standing on the cusp of a market boom, it does show a significant turnaround, and perhaps hints at a definite end to real estate’s bleak streak.

The recent S&P/Case-Shiller national home price index showed that in July, prices increased by 1.5 percent for the 10-City Composite and by 1.6 percent for the 20-City Composite.

This improvement marks the third straight month that prices rose in all 20 major markets followed by the index--which covers more than 80 percent of the US housing market. Additionally, numbers show that if not for a .06 decline in Detroit in April, there would have been a four month improvement streak.

When compared to a year earlier, the index proved to be up 1.2 percent, an improvement from the year-over-year change reported for June. This marked the first month that prices were higher than they were the previous year.

“The news on home prices in this report confirm recent good news about housing,” said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, in a recent release.

“Single family housing starts are well ahead of last year’s pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing. All in all, we are more optimistic about housing. Upbeat trends continue. For the third time in a row, all 20 cities and both Composites had monthly gains. Stronger housing numbers are a positive factor for other measures including consumer confidence.”

Real estate professionals located outside of the top metros are seeing movement inside their markets, too.

“We’ve been seeing a strengthening market for some time now but August sales are evidence of a major turning point,” says Jamie Moore, president of the Rhode Island Association of REALTORS®. “We may still experience a step or two backward in the months ahead but the forward momentum has clearly become more evident. The market is much stronger than it has been.”

And Dorothy Martwick, Broker/Owner of a real estate company in Minot, N.D., comments on her unique market, which never saw much of a real estate recession due to the oil boom in western N.D. and their proximity to the Minot Air Force Base.

“My opinion of the future of real estate here in Western N.D. is that the market will level off and stabilize in the near future and, depending on the national election results and the oil pipeline, capabilities may either stay level or boom again next year and for the next several years. “

“Overall, we’re thrilled to see hard evidence that the market is recovering. Great pricing and low interest rates have really helped turn things around,” says Rhode Island’s Moore.

To view the complete home price index, click here.

Home Sales are up!

The president of the Hilton Head Area Association of Realtors said median prices are up 34 percent in Spanish Wells Plantation and 19.5 percent in Wexford Plantation so far in 2012, compared to the same period last year. Prices for Hilton Head Plantation and Palmetto Hall homes also are rising.

"When sales start to go up and inventories start go down, supply and demand kicks in, and that's when prices will start to firm, and they will gradually start going up."

Read more here:

islandpacket.com

When it comes to buying a home, 25 percent of Americans would like to know who the next president will be before they would feel totally comfortable putting their money down, according to a recent poll conducted by Harris Interactive on behalf of MortgageMarvel.com. Another 53 percent said the election would have no effect on the timing of their decision.

The online survey was conducted in early September among 2,570 U.S. adults age 18 and over and 13 percent said that if they were considering purchasing a home, they would delay their purchase until after the election because of the uncertainty it creates. Another 12 percent said they would take the election into consideration, and it might cause them to delay buying a home.

"It's understandable that a considerable number of people say the upcoming election would give them pause for thought," says Rick Allen, chief operating officer of Mortgage Marvel. "There has been speculation that tax policies could change depending upon who wins. Some have even indicated that the longstanding deduction for mortgage interest could be eliminated. It appears that mortgage interest rates will remain low for the foreseeable future, so there's no pressure on people to act before rates rise. In such an environment, I can see that cautious people would take a wait-and-see attitude before making a home purchase."

In the survey, U.S. adults were asked this question: "Assuming you were considering purchasing a home, would the upcoming presidential election cause you to delay your purchase?"

Their answers were as follows:
• 53 percent - "No, it would not affect my decision at all."
• 4 percent - "No, it would prompt me to purchase a home before the election."
• 13 percent - "I would delay buying a home because there is too much uncertainty due to the upcoming election."
• 12 percent - "I would take the presidential election into consideration, and it might cause me to delay buying a home."
• 17 percent - "Not sure."

Overall, men's and women's answers tracked closely across all age groups. Interestingly, as men's ages increased, they became less concerned about the possible effects of the election. In the male 18-34 age group, 42 percent said the upcoming election would have no effect on the timing of their purchase. At age 55+, 57 percent gave the same response. Fifty-two percent of women age 18-34 said the election would have no effect on their decision, and that increased only to 59 percent at age 55+.

Regional Differences throughout the Country
Regionally, the South had the highest percentage of people -- 17 percent -- who said they would delay buying a home because of uncertainty attributable to the election. Another 12 percent in the South said the upcoming election might cause them to delay buying a home. The West had the greatest number of people -- 61 percent -- who said the upcoming election would have no effect for them on the timing of a home purchase.

Methodology
This survey was conducted online within the United States by Harris Interactive on behalf of PR Unlimited from September 5-7, 2012 among 2,570 adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Ana Tackett at 480.318.1238.

For more information, please visit www.harrisinteractive.com and www.MortgageMarvel.com.

In the wake of Hurricane Isaac in Louisiana and Mississippi last month, the Federal Housing Administration (FHA) is reminding its approved lenders to quickly release hazard insurance payments so struggling families can rebuild their homes.

FHA recently published a Mortgagee Letter to reinforce its existing policy requiring lenders to release insurance payouts to homeowners eager to rebuild their damaged homes following disaster. In the past, the U.S. Department of Housing and Urban Development (HUD) noticed some lenders would instead use these insurance funds to pay off the outstanding mortgage balance, leaving many homeowners without the resources they need to rebuild their homes.

“FHA Lenders are always required to follow our guidance and, particularly following a devastating disaster like Hurricane Isaac, it is important that FHA take affirmative steps to ensure that is the case” says Carol Galante, FHA’s Acting Commissioner. “By issuing this reminder today, we are confirming that these insurance payouts are intended to help rebuild a family’s home.”

Sen. Mary Landrieu of Louisiana added, “I applaud HUD Secretary Shaun Donovan and Assistant Secretary Galante for working with us to take quick action to remind lenders of FHA’s policies. This ensures that the actions of several unscrupulous mortgage lenders after Katrina will not be repeated during recovery from Isaac. It is important that homeowners themselves receive their insurance proceeds so they can begin to rebuild their homes and lives impacted by this storm.”

In its loan documents, FHA requires that the mortgage lender be named as a “Loss Payee” on a homeowner’s hazard insurance policy. This requirement helps ensure that insurance proceeds are available once the rebuilding of a damaged property begins. It also protects lenders in the event properties cannot be rebuilt and some or all of the insurance proceeds are required to pay off the outstanding loan indebtedness.

Timely receipt of flood and hazard insurance proceeds allows homeowners to rebuild their homes and provide some stability for their families. Therefore, lenders are strongly encouraged to assist homeowners by: (1) providing copies of hazard insurance policies and information when requested; (2) promptly releasing hazard insurance claim proceeds when a viable repair plan has been approved; and (3) following standard procedures to ensure that hazard insurance claims are filed and settled in an expeditious manner.

In addition, if a lender receives funds from an insurance company for coverage of a homeowners’ personal property, temporary housing, and other transition expenses, then the lender must promptly release such proceeds to the borrower. The mortgagee may not withhold disbursement of such proceeds to cover an existing arrearage without the written consent of the homeowner.

Excess hazard or flood insurance can only be used to cover arrearages and/or pay down principal if: insurance funds exceed the cost to repair the property or; insurance funds are insufficient to repair the property based upon the repair estimate, and the homeowners is unable to demonstrate that he/she has the funds necessary to cover the difference of the repair costs.

For more information, visit www.hud.gov.