Archive for March, 2012

We’re doing an ever increasing number of what I call, ‘ lot loans with houses on them’.

March 26th, 2012

I probably hear it at least once every day.  “Kate, we’ve looked at everything that’s available and it’s all junk.  All of the good houses are getting multiple offers and are gone before we can even put pen to paper. “

 We are seeing more and more people make the choice to buy a house, tear it down and build new.  Edina and Minneapolis are certainly hot spots for this activity.

However,  the practice is gaining momentum all over the Metro area. 

So just how do you finance such a project?  It’s as simple as 1-2-3. Read the rest of this entry »

Red sky at night. Sailor’s delight. Red in the morning. Sailors take warning.

March 19th, 2012

Normally on a Friday, I wake up at the lake and work from our porch overlooking the water.  We needed all hands on deck at the office today so I drove into Bloomington to lend a hand.   As I was driving in, the sun was this huge, perfectly circular blaze orange-red orb in the sky straight ahead.  Maybe you saw it too.    Then I recalled this incantation that I’ve heard from childhood and wondered if storm clouds were gathering.  Read the rest of this entry »

It pays to Check before you Dig! I’m not talking about Gopher One Call

March 12th, 2012

It’s been a while since the New Construction market was this red hot!  With the Spring Parade of Homes in full swing, discerning clients are weighing the cost of building new vs trying to make someone else’s dream theirs. Over the past two months nearly 50% of our team’s loan volume has been for new homes.   The competition is on for developed lots and land and the rock bottom prices of the past many years have stabilized and started to climb.  We are just coming out of the winter and holiday months where distressed property sales have dominated the markets for the past several years.  The combination of these two things is setting up an increased possibility for a low appraisal on a new construction project.  Read the rest of this entry »

Mortgages Backed by the Federal Housing Administration are going to get more expensive….

March 5th, 2012

In a press release Monday, HUD announced some changes that will impact FHA loans where Case Numbers(obtained as soon as we have a fully executed purchase agreement and an application) are assigned on or after April 1, 2012.

“Washington-As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA)Mutual Mortgage Insurance Fund, Acting FHA Commissioner Carol Galante today announced a new premium structure for FHA-insured single family mortgage loans. FHA will increase its annual mortgage insurance premium(MIP) by .10 percent for loans under $625,000 and by .35% for loans above that amount. Upfront premiums(UFMIP) will also increase by .75%.” Read the rest of this entry »