CAAR Blog

Where are people moving from and to which state are they moving to.  NAR has published a report that shows California, Michigan, Ohio, Massachusetts, and Connecticut are losing population due to migration faster than other states.  In general, folks are leaving the north and mid-west to head west and south.

Virginia shows a moderate net growth due to migration, but our neighbors to the south all grew at the fast rate.  North Carolina saw the largest increase in net migration with over 39,000 more people moving in than moving out.  In Charlottesville, we never like it when North Carolina beat Virginia - in anything!

Courtesy of Andy Zemon, CMPS. The Zemon Team at Greenwood Lending

Summary of HR 3221

More commonly known as the Housing and Economic Recovery Act of 2008, HR 3221 is without doubt the widest sweeping legislation ever seen in the mortgage industry. This bill was signed into law by President Bush on July 30, 2008 and by October 1, 2008 you can count on the fact that the mortgage market as we know it today will look wildly different. Below is a very brief summary of the 700+ pages of this bill that deal directly with the mortgage and real estate industries.

For ease of understanding, I have broken the bill down into the five main categories of reform and noted the items of most pressing significance. This bill is charged with taking the current housing market and turning it around. The overall impression is that it has the possibility of doing just that. It also appears that while we are getting close to the point where buyers are waiting for the market to bottom out, they may have waited too long. Only history will tell but this is certainly a BIG step in the right direction!

Issue 1 – Fannie and Freddie Reform

Without getting too technical; one first must understand that these agencies are not really private corporations but are also not really government agencies. Confusing right? They have decided that the new conforming loan limit, currently $425,000 will go to 115% of our HUD median home price or $417,000, whichever is lower. Well since we really don’t know what the HUD home price is yet, we must assume that we will actually see a drop in this loan limit to $417,000 starting in Jan. 2009. This will no doubt affect homebuyers next year so stay tuned for further details!

Issue 2 – HOPE for homeowners

This new FHA program is probably the most exciting part of this bill and has the greatest possibility to help CURRENT homeowners who are struggling to make their payments or who about to adjust in payment because of an ARM loan program. It basically provides a provision that will allow homeowners the opportunity to refinance into a low rate fixed mortgage they can afford by negotiating the payoff on their current loan. That’s right…refinance your loan for less then you OWE! There’s a lot more to it so make sure you get responsible advice when looking into this and if this is a need you have I’ll be happy to refer you to someone who can handle this. There is also a very important provision that has the homeowner sharing their equity with Uncle Sam. Still, not a bad option when the alternative is foreclosure!

Issue 3 – FHA reform

Now the bad news… FHA cash requirements are increasing to 3.5% of the purchase price and the new mortgage insurance will be more expensive but still tax deductible in certain cases. The good news is that this loan has some little-known secrets that will still allow for 100% financing, although Down Payment Assistance funded by sellers is no longer an option.

Issue 4- Loan Officer Licensing

This is something that should have happened YEARS ago but finally the people who help you manage your largest debt and asset will have to prove to the government that they are qualified and knowledgeable enough to do so! Loan Officers will have to take a licensing test and pass with at least a 75% (isn’t that a C?) so starting in January you’ll be advised before you ask what’s your rate, to ask…What did you score? They will also be subject to ongoing education requirements and credit, criminal and net worth background checks.

Issue 5 - The TAX CREDIT!

One of the most exciting parts of this bill is that first time homebuyers and those who have not owned any home for at least three years will now be eligible up to a $7500 tax credit for buying a home. THIS IS HUGE as it can be used for anything the homeowner wants including home repairs, debt payoff, etc. Anyone who buys between April 9, 2008 and July 1, 2009 that qualifies will get this credit! It does have to be repaid at a rate of $500 a year for the next 15 years but that’s an interest free credit from Uncle Sam and those do NOT come around often.

In closing, I think this bill is going to be a HUGE help to our market if used correctly. There is quite a bit more to this bill then what you have read here and I would encourage you to talk with your Realtor or Lender if you have more questions.

There are many things to enjoy about Charlottesville and it was very difficult to narrow it down to 50. The basic criterion used to develop this list was uniqueness to Charlottesville. In other words, the Top 50 are things that can only be found in Charlottesville or things that we have at least in some way put our unique stamp on. There were no scientific methods used to develop this list and there are many worthy things that are omitted. In addition, these 50 items are not ranked, but are displayed in alphabetical order. If you enjoy the list, you will enjoy Charlottesville.

(Note: each of the 50 has been posted as a separate item so you can comment about each item and add more detail.  If you have additional items you wish to mention, or have general comments, please make them under this introductory post.)

There are two places in the country that must always celebrate the 4^th of July – Philadelphia and Charlottesville. In the shadow of Thomas Jefferson’s home, Charlottesville hosts a fantastic 4^th of July Festival at McIntire Park. The show is put on by the all volunteer Save the Fireworks Foundation and up to 25,000 people enjoy the spectacular fireworks display each year.

Thomas Jefferson was a big fan of agriculture and the Albemarle County Fair is a great celebration of his emphasis on placing your hands in the earth. The Albemarle Fair is similar to other fairs around the country, but Albemarle has a great story to tell. Throw in a funnel cake, some cotton candy and carnival rides and you have a great time for the entire family.

The number one thing people miss when they move away from Charlottesville is Bodo’s Bagels. Eating at Bodo’s is an experience. At peak times there is always a line that moves amazingly quickly. Breakfast and lunch are both very popular and the price is also a hit with students and townsfolk.

The Charlottesville-Albemarle Rescue Squad (CARS) is an all volunteer service that serves the City of Charlottesville, half of Albemarle County and the University of Virginia. With 160 volunteers they run 16,000 calls each year which earned them the title of the busiest volunteer rescue squads in the country. Funding for CARS comes primarily from donations making CARS a special community service.

If you want a stunning view of the Charlottesville area, Historic Carter’s Mountain is the place to go. There are many reasons to visit Carter’s Mountain, but the best is the Apple Harvest Festival. Plan a few hours for this trip because there is only one windy road in and one road out. The cider, fritters, fresh apples, and pumpkins make the trip enjoyable, but the views are worth the trip. At other times of the year you can pick peaches and nectarines.

It is no secret that there is a lot of money in Charlottesville or that locals are very generous in their support of local non-profit programs. There are two special Charlottesville twists to philanthropy that are notable. First, we have the Charlottesville Area Community Foundation (CACF) that serves as a master foundation for many of the local funds. With only a small minimum deposit, anyone can start a charitable giving fund and have the strength of CACF behind it. There are many large and small funds held by CACF, but the most recognized is the Bama Works Fund of Dave Matthews Band. Bama Works has given millions of dollars over the years to support local activities that better the community.

Radio is big in Charlottesville. We seem to have a bunch of good radio stations for a small community and most of those stations are part of the Charlottesville Radio Group. The main station in the Group is WINA which features news and talk and is the flagship station for UVA Sports. Music, news, talk, and sports are nice, but the real great thing about the Charlottesville Radio Group is that they are very supportive of the community. From Plug Away Monday, where callers are allowed to promote their non-profit organization, to partnerships with many charity events, the Radio Group is a great corporate citizen.