Here we go again, we are in the top 10 ranking at number 5 according to Kiplinger.
Call me and find out why we are the best place to live. I am more than happy to show you around town.
Jay Carden
719-322-4939
2008 BEST CITIES
No. 5: Colorado Springs, Colo.
By Jessica Anderson, Staff Writer, Kiplinger's Personal Finance
July 2008
LAID-BACK ENERGY
Population: 600,444
Population Growth Since 2000: 10.5%
Percentage of Workforce in Creative Class: 34.1%
Cost-of-Living Index: 95.3 (100 being national average)
Median Household Income Since 2000: 53,486
Income Growth Since 2000: 16.1%
Be ye crunchy or conservative, the common thread in Colorado Springs is a love of the outdoors. The air is better up here. At 6,000 feet, it's crisp and clean, much like the city itself. From snow-capped Pikes Peak to the red rocks of the Garden of the Gods, natural beauty abounds, and with an average of 300 days of sunshine annually, citizens of "the Springs" are always off on their next adventure to bask in it.
VIDEO EXTRA:
Take Our Walking Tour Through Colorado Springs
This undercurrent of energy has helped bring Colorado Springs from sleepy spa town to thriving city. A strong military presence -- with U.S. Army and Air Force operations, as well as the U.S. Air Force Academy -- adds fuel to the economy, as does the aerospace and defense sector attracted by the military. Customer service and information technology are taking off, with companies such as Fed-Ex, T. Rowe Price and Progressive Insurance all adding jobs.
Downtown, the streets are wide, and because most buildings aren't more than ten stories, you can take in nice views of Pikes Peak. Tejon Street is the main drag, where people congregate for weekend brunches and weekday lunches. It's peppered with boutiques, bars and great cuisine.
The laid-back ease of the city infuses its downtown. People don't walk, they amble; they don't talk, they ramble. The slow pace in the Springs contrasts with the energy of the people -- they're not in a hurry to get anyplace, but they're always going somewhere. Colorado Springs has grown quickly and suffers from one telltale sign of expansion: traffic. But city officials are working on the issue -- in 2004, a 1% sales tax was added specifically for transportation projects. More green lights take the sting out of a 7.4% sales tax, but so do the other financial advantages of the city. You can buy a four-bedroom, turn-of-the-century home a couple of miles north of downtown for $235,000, or a five-bedroom, contemporary house near the Broadmoor hotel and the country club for $450,000.
The city is adept at attracting newcomers -- after all, the biggest business for years was tourism (which now trails aerospace and information technology). The easygoing lifestyle and wide-open spaces beckon cramped city dwellers. Andy and Pat Fejedelem moved to the Springs in 1993 from northern Illinois. "We were on vacation here, and I could hardly bear to leave. I felt as if my heart had stayed," says Pat. They bought a home, converted it into a bed-and-breakfast and gave it a name that matched their sentiments: Our Hearts Inn.
Though smaller than the major metro areas, Colorado Springs has fine amenities. The newly remodeled Fine Arts Center offers traveling shows, theater and art classes, and it has a permanent exhibit that rotates through more than 23,000 works.
Showing posts with label colorado springs FHA Limits. Show all posts
Showing posts with label colorado springs FHA Limits. Show all posts
Wednesday, November 19, 2008
Thursday, September 4, 2008
Tighter Lending
Would-be Buyers Find Loans Are Out of Reach
Posted in: Real Estate, Finance and Economy
By Monica Hatcher
RISMEDIA, Sept. 4, 2008-(MCT)-Thanks to the housing slump, professional couple Gladys and Raul Castillo finally found homes they could afford-new condo units in foreclosure within walking and biking distance of their jobs in Miami’s Brickell financial district.
They also had the credit record to meet lenders’ standards. But they couldn’t land an actual loan.
“Almost all of them want 20 percent,” said Gladys Castillo, an administrative assistant, speaking of lenders they had approached. The Castillos had saved only 10%, and lenders were loath to get into units in buildings rife with foreclosures.
So the couple stopped searching while saving for a bigger down payment.
Reeling from an estimated $300 billion in losses from bad mortgages, lenders last year began making it tougher for would-be buyers to get financing, especially in places hard hit by the housing crisis, like Florida. They boosted the credit scores needed to qualify and eliminated loans to borrowers with less than perfect payment histories. They asked for bigger down payments and solid proof of income and assets.
Back then, though, no one was buying.
Now, as buyers tiptoe back into the market, lending trends are frustrating real estate agents and mortgage brokers. They say they are losing deals because byzantine underwriting standards are forcing financially sound, mostly middle-income buyers back onto the sidelines of the housing market.
In some areas, “there is no way to get a loan unless a borrower is willing to put 30 or 40% down,” said William Zalaquett, a Keyes Co. Realtor who specializes in the Brickell district and Miami’s Biscayne corridor. “Europeans, wealthy Northeasterners and the wealthy locals who have the cash can buy. The average working class here, they are left out.”
As a result, more buyers are paying cash at closing. Ron Shuffield, president of brokerage Esslinger Wooten Maxwell, said 31% of the firm’s clients in July paid cash for their homes, up from 15% historically.
“(It) is the highest percentage that we have ever seen,” Shuffield said. He attributed the rise to tighter lending standards, but also the increased ability of buyers to negotiate better deals if they did not make them contingent on getting a mortgage.
Even wealthy individuals needing financing are having a tough time, said Alex Doce, president of Baron Mortgage, a Boston-based lender.
“Right now, I have a couple of $4 million and $5 million loans, and it’s a nightmare to try and finance these people who have high net worth. The few people that were buying these loans, like Indymac, have gone out of business or don’t have the capital to lend,” Doce said.
Fannie Mae, the nation’s largest backer of home loans, announced earlier this month it would raise its “adverse market premium”-extra money charged in stricken markets-by a quarter of a percentage point. That could translate to an additional $750 on a loan of about $300,000.
Fannie Mae and Freddie Mac earlier this year had implemented a declining market policy in which it required bigger down payments. After being criticized for penalizing hard-hit regions, the two government-sponsored companies instead imposed stricter lending guidelines nationwide.
Because most major lenders sell their loans to one of the two companies, many followed suit.
Some lenders appear to have maintained distressed market policies, including Wells Fargo. In an e-mail, a spokeswoman wrote that Florida borrowers were subject to higher down payment requirements. Earlier this spring, private mortgage insurers, who cover lenders when borrowers default, also implemented their own distressed market rules, requiring heftier down payments even when lenders do not.
To top it off, investors who buy mortgages in the secondary market are leery of buying loans originating in South Florida, where fraud has reached epidemic levels.
Doce said lenders like him had been burned by some condo developers, who in desperation to close sales misstated the rate of buyers who planned to live in the residences as opposed to investors.
Consequently, some buildings have been blacklisted. Doce said it had been impossible for him to find investors for loans for some Fort Lauderdale condominiums. High foreclosure rates are exacerbating the trend.
To avoid wasting time, Doug DeWitt, a Miami-based real estate agent who lists bank-owned foreclosures for sale, has begun requiring potential buyers to get preapproval for themselves and the condo building before submitting an offer.
The difficulty in lending for some buildings is worsening a bad situation. Condo associations are behind budget and must raise assessments to cover costs, increasing the financial strain on unit owners.
That risk of special assessments being unexpectedly levied on borrowers puts off lenders as well, said Richard Swerdlow, chief executive of Condos.com, because it could affect their ability to pay their mortgages.
Loan programs for foreign nationals have also withered, crimping a significant market that has bolstered luxury condominium sales.
Javier Noriega, a broker with First Southeast Mortgage in Hollywood, Fla., said a recent trip to the Florida Association of Mortgage Brokers convention yielded only one flier from among a hundred or so financial institutions with a foreign national lending program.
“That was amazing. I was disappointed coming out of the thing,” Noriega said, adding most of the lenders were peddling FHA programs and not much else. FHA loans are guaranteed by the federal government and offer down payments of as little as 3%. They have become the loan of choice for many bust-era buyers.
The lending environment forces him to turn away about five of every 10 calls he gets, Noriega said.
Solange Keough, an engineer who recently bought a home in Weston, Fla., said had she known the difficulties and cost involved in borrowing, she would have opted to rent.
Though she was prequalified for a 10-percent-down loan, once her Boston-based loan officer found out her property was in Florida, the game changed entirely. Her closing was delayed several times, each time requiring more original documentation, and her down payment requirement kept rising.
In the end, she had to put down 25% on a $460,000 home, forcing her to decide between borrowing from family or depleting her personal reserves.
“It was a horrific situation,” she said, “They were trying every which way to have me give up. They didn’t want to give me the loan.”
© 2008, The Miami Herald.
Distributed by McClatchy-Tribune Information Services.
This is very accurate and true in this day of financing. If you are thinking of purchasing a home in Colorado Springs this is not necessarily the case. In our market many homes still qualify for FHA 3% down financing. Most lenders in Colorado Springs are also VA qualified. If you qualify for a Colorado Springs VA loan the limits are $417K while the FHA limit is $325K. Please call me to discuss your options on purchasing a home in Colorado Springs.
Jay Carden
Search the Colorado Springs MLS
719-322-4939
Posted in: Real Estate, Finance and Economy
By Monica Hatcher
RISMEDIA, Sept. 4, 2008-(MCT)-Thanks to the housing slump, professional couple Gladys and Raul Castillo finally found homes they could afford-new condo units in foreclosure within walking and biking distance of their jobs in Miami’s Brickell financial district.
They also had the credit record to meet lenders’ standards. But they couldn’t land an actual loan.
“Almost all of them want 20 percent,” said Gladys Castillo, an administrative assistant, speaking of lenders they had approached. The Castillos had saved only 10%, and lenders were loath to get into units in buildings rife with foreclosures.
So the couple stopped searching while saving for a bigger down payment.
Reeling from an estimated $300 billion in losses from bad mortgages, lenders last year began making it tougher for would-be buyers to get financing, especially in places hard hit by the housing crisis, like Florida. They boosted the credit scores needed to qualify and eliminated loans to borrowers with less than perfect payment histories. They asked for bigger down payments and solid proof of income and assets.
Back then, though, no one was buying.
Now, as buyers tiptoe back into the market, lending trends are frustrating real estate agents and mortgage brokers. They say they are losing deals because byzantine underwriting standards are forcing financially sound, mostly middle-income buyers back onto the sidelines of the housing market.
In some areas, “there is no way to get a loan unless a borrower is willing to put 30 or 40% down,” said William Zalaquett, a Keyes Co. Realtor who specializes in the Brickell district and Miami’s Biscayne corridor. “Europeans, wealthy Northeasterners and the wealthy locals who have the cash can buy. The average working class here, they are left out.”
As a result, more buyers are paying cash at closing. Ron Shuffield, president of brokerage Esslinger Wooten Maxwell, said 31% of the firm’s clients in July paid cash for their homes, up from 15% historically.
“(It) is the highest percentage that we have ever seen,” Shuffield said. He attributed the rise to tighter lending standards, but also the increased ability of buyers to negotiate better deals if they did not make them contingent on getting a mortgage.
Even wealthy individuals needing financing are having a tough time, said Alex Doce, president of Baron Mortgage, a Boston-based lender.
“Right now, I have a couple of $4 million and $5 million loans, and it’s a nightmare to try and finance these people who have high net worth. The few people that were buying these loans, like Indymac, have gone out of business or don’t have the capital to lend,” Doce said.
Fannie Mae, the nation’s largest backer of home loans, announced earlier this month it would raise its “adverse market premium”-extra money charged in stricken markets-by a quarter of a percentage point. That could translate to an additional $750 on a loan of about $300,000.
Fannie Mae and Freddie Mac earlier this year had implemented a declining market policy in which it required bigger down payments. After being criticized for penalizing hard-hit regions, the two government-sponsored companies instead imposed stricter lending guidelines nationwide.
Because most major lenders sell their loans to one of the two companies, many followed suit.
Some lenders appear to have maintained distressed market policies, including Wells Fargo. In an e-mail, a spokeswoman wrote that Florida borrowers were subject to higher down payment requirements. Earlier this spring, private mortgage insurers, who cover lenders when borrowers default, also implemented their own distressed market rules, requiring heftier down payments even when lenders do not.
To top it off, investors who buy mortgages in the secondary market are leery of buying loans originating in South Florida, where fraud has reached epidemic levels.
Doce said lenders like him had been burned by some condo developers, who in desperation to close sales misstated the rate of buyers who planned to live in the residences as opposed to investors.
Consequently, some buildings have been blacklisted. Doce said it had been impossible for him to find investors for loans for some Fort Lauderdale condominiums. High foreclosure rates are exacerbating the trend.
To avoid wasting time, Doug DeWitt, a Miami-based real estate agent who lists bank-owned foreclosures for sale, has begun requiring potential buyers to get preapproval for themselves and the condo building before submitting an offer.
The difficulty in lending for some buildings is worsening a bad situation. Condo associations are behind budget and must raise assessments to cover costs, increasing the financial strain on unit owners.
That risk of special assessments being unexpectedly levied on borrowers puts off lenders as well, said Richard Swerdlow, chief executive of Condos.com, because it could affect their ability to pay their mortgages.
Loan programs for foreign nationals have also withered, crimping a significant market that has bolstered luxury condominium sales.
Javier Noriega, a broker with First Southeast Mortgage in Hollywood, Fla., said a recent trip to the Florida Association of Mortgage Brokers convention yielded only one flier from among a hundred or so financial institutions with a foreign national lending program.
“That was amazing. I was disappointed coming out of the thing,” Noriega said, adding most of the lenders were peddling FHA programs and not much else. FHA loans are guaranteed by the federal government and offer down payments of as little as 3%. They have become the loan of choice for many bust-era buyers.
The lending environment forces him to turn away about five of every 10 calls he gets, Noriega said.
Solange Keough, an engineer who recently bought a home in Weston, Fla., said had she known the difficulties and cost involved in borrowing, she would have opted to rent.
Though she was prequalified for a 10-percent-down loan, once her Boston-based loan officer found out her property was in Florida, the game changed entirely. Her closing was delayed several times, each time requiring more original documentation, and her down payment requirement kept rising.
In the end, she had to put down 25% on a $460,000 home, forcing her to decide between borrowing from family or depleting her personal reserves.
“It was a horrific situation,” she said, “They were trying every which way to have me give up. They didn’t want to give me the loan.”
© 2008, The Miami Herald.
Distributed by McClatchy-Tribune Information Services.
This is very accurate and true in this day of financing. If you are thinking of purchasing a home in Colorado Springs this is not necessarily the case. In our market many homes still qualify for FHA 3% down financing. Most lenders in Colorado Springs are also VA qualified. If you qualify for a Colorado Springs VA loan the limits are $417K while the FHA limit is $325K. Please call me to discuss your options on purchasing a home in Colorado Springs.
Jay Carden
Search the Colorado Springs MLS
719-322-4939
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