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Bellingham Farmers Market

Live Whatcom Team — Wed, 02 Jun 2010 16:35:00 GMT

This last weekend I had some alone time with my daughter and the weather seemed like it was going to hold. I didn't really have anything planned for a Saturday morning and I hadn't yet gone to the Bellingham Farmers Market since it had opened in early spring, so we decided to pack up and head out. The Bellingham Farmers Market is one of my favorite things that happens in Bellingham during the Spring and Summer months. You can count on being fed and entertained all at the same time. If my kids don't want to go, which is the usual, I just bribe them with the opportunity to get some fresh Kettle Corn from one of the vendors. I take food pretty seriously, so the first thing I like to do is survey the options. The food options have doubled in size since its opening. We walked the perimeter and inside of the market building. The main structure is a cool piece of Bellingham architecture. Many of the structural beams etc. are recycled bridge beams from (I think ) the Nooksack River bridge. Anyway, my usual purchase would be a Mt. Bakery berry scone and a ham and cheese croissant. As I walked the fresh cooked food isle, passing by Hemplers hot dogs, Fresh Bread, Ethiopian, Mexican, Mallards Ice cream and others were all very good and appealing. I was just ready to go with the usual until I stumbled upon a wonderful find. I saw a dad with his kids on a Saturday, like myself probably giving mom a much needed break and it caught my eye. (I was on a similar mission) Both kids were sitting on bikes attached to a custom wood counter and seemingly attached again to a blender of all things. This was defiantly worth checking out. I am a gadget guy... I look above and I see the sign that says Smoothie Peddler..of course! We decided to give it a try with a mixed berry medley. My 4 year old couldn't reach the peddles, so we shared the seat. Within minutes, if not seconds we had a "smooth" smoothie that was well worth the work and the $5. We took our smoothie and the experience "to go" and walked through the rest of the market. The hula-hoop lady is always a favorite. My son has become quite the natural hula-hooper, I don't know where he got the skills, I know he didn't get them from his mother or I, but nonetheless, he found them at the Market. I recommend spending some time listening to one of the street musicians or checking out the Balloon guy, he's actually pretty funny, not to mention talented in all that is balloon. Lots to see and do; Pick up a creative handmade gift, experience food from different a different culture or a local producer, fresh vegetables and fruits and much more. This is no Seattle Public Market, but is well worth the trip and worth doing every few weeks. I hope you have a memorable trip to the market the next time you go. If you have a fun story or experience that you would like to share, please do. Comment on this blog entry or email us at info@LiveWhatcom.com and we will share it with the community.

Please share with us your stories of ï¿½Living Whatcomï¿½ and we will share them with the community. Email us at Info@LiveWhatcom.com

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Choosing a home inspector

Live Whatcom Team — Wed, 19 May 2010 14:54:00 GMT

Choose your Home Inspector Wisely

Home Inspections are an important part of the buying process. Inspections are always suggested, but only sometimes required. Inspections are most commonly paid for by the buyer. Finding the right home inspector for you may require more than just taking the suggestion of your Realtor. Every inspector has a different style and expertise; some provide written reports, some provide web based or digital reports. Some take pictures where others take notes. Some have moisture meter s and electrical testers and others have high tech devises that can read heat and moisture even inside walls with an thermal imaging camera. Most inspectors charge within a few dollars of each other in price. Quite often inspections can pay for themselves. Inspectors crawl inside, on and around the home working through an elaborate list of inspection items and categories including building code requirements, safety and maintenance issues. These are things that a seller probably was unaware of and if they knew about, would have taken care of them beforehand. It is not uncommon for an inspector to more than cover their fee in the inspection findings and subsequently save the buyer thousands of dollars in repair costs of unknown defects. With a little research and work, you can find the most effective and efficient inspector to match your desired level of detail and you needs. Here are a few good questions and information that will help you in the process:

1. What are the items covered in the home inspection?

(I.e. Structural, pest etc.)

2. How long have you been a home inspector or in the building industry?

Ask them to provide you with referrals or recommendations.

3. How long does the inspection take?

Depending on how detailed the inspection and how large the home is, it could take up to 4 hours.

4. 4. What format of report do you use?

Ask if they have a sample of the report that they can provide to you. Most inspectors have a digital format that can easily be emailed.

5. 5. How long will it take for you to deliver the finished report?

It is important to make sure that the inspector is available and able to meet the inspection response deadline.

6. 6. Will I be able to be there during the inspection?

Most inspectors prefer to have you show up toward the end of the inspection so they can summarize the findings and be efficient with their time.

7. 7. Are you a member of an Inspector trade organization, association or affiliation or do you hold any credentials?

It is a good idea to check to make sure that they are actually members and are active vs. just using the logos.

8. Do you participate in ongoing education or training?

This is important for an inspector to stay informed on new materials, products, building and safety code changes and other beneficial advancements in construction and the home inspection industry.

9. How much does the inspection cost and are there any additional fees for additional services or inspections?

Some inspectors provide one complete service, other are more ale cart. Inspections vary based on size, age and type of home.

10. What kind of liability or insurance do you cary?

It may not be a bad idea to ask if they have some form of insurance (ie. Errors and Omissions) insurance, to cover them for any neglagable errors.

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Save Public Transit

Live Whatcom Team — Thu, 15 Apr 2010 12:19:00 GMT

I am not a big user of public transit, but I like that its there and I know many people that do use it. Many times in the Spring and Summer my family and I will ride the transit to the Bellingham Farmers Market and it seems to be quicker for us, not to mention a little more of an adventure than just jumping in the SUV and driving strait to where we are going. Many people who live and travel around downtown and into the outskirts of the county rely on public transit to get to work, visit friends etc. Bellingham and Whatcom County is trying to be a "green city/county" I feel that this is a basic necessity in making this happen long term, not to mention sustaining the transportation options for the locals who have sold their second vehicles and are committing to ride the transit or ride a bike. My kids are not even close to the driving age yet, but when they get to the age of choosing to ride, walk or take a bus, I hope that there will be this option available. Check out the website that is working to address this topic. Go to Preserve our public transit

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Are you on the Real Estate Fence?

Live Whatcom Team — Sun, 24 Jan 2010 16:07:00 GMT

Taken From Melanie Roussell (Hud No. 10-016)

FHA Announces Policy Changes to Address Risk and Strengthen Finances

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.

The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.

“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”

Announced FHA Policy Changes:

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending

The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

Update the combination of FICO scores and down payments for new borrowers.

New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

Reduce allowable seller concessions from 6% to 3%

The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

Increase enforcement on FHA lenders

Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.

This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.

Enhance monitoring of lender performance and compliance with FHA guidelines and standards.

Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.

Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process

Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.

HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:

Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

###

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development ad enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

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False Illusions & What You Need to Know

Live Whatcom Team — Mon, 04 Jan 2010 16:49:00 GMT

This article was sent to us by a friend and was written by Barry Habib and Sue Woodard, The Mortgage Market Guide

Homebuyer Alertï¿½For prospective homebuyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts for two reasons.

The first of these, the coming expiration of huge tax incentives, may be a bit more obvious to most borrowers. April 30, 2010 is the last day to enter into a home purchase contract and still potentially qualify for a federal income tax credit of up to $8,000 for first-time homebuyers and up to $6,500 for repeat homebuyers. The credit can be claimed only on contracts that close by June 30, 2010.
Secondly, beyond the waning benefit of the Federal income tax incentive, another form of stimulus will soon disappear, as the Federal Reserve winds down a program that has been keeping home loan rates artificially low.

Rate Alertï¿½The lowest rates of 2009 were driven down to their attractive levels because of the Fedï¿½s Mortgage Backed Securities (MBS) purchase program. Home loan rates have an inverse relationship with the value of MBS. When these securities trade higher on the market, rates move lower and vice-versa. So when the Fed originally agreed to be a big buyer, it helped provide a market for MBS, which helped keep prices high and, as a result, helped push home loan rates low.
And while the Fed continues that program through the end of March 2010, the reality is that the Fedï¿½s ï¿½extensionï¿½ was really more of a rationing intended to prevent home loan rates from spiking as the program is phased out. Itï¿½s sort of like weaning the market off of its life-saving treatment instead of forcing it to go cold turkey.

Already, some in the media have mistakenly reported the extension of the program through March as good news, telling consumers that rates will continue to decline, and remain low into the spring. This gives a false sense of security that homebuyers and refinancers simply cannot afford.
The problem isï¿½Those reports do not accurately report whatï¿½s going on or where rates are really headed. That can have a very costly impact on consumers who may miss out on historically low rates if they listen to these media outlets.

Hereï¿½s whatï¿½s really going onï¿½

In May 2009, the Federal Reserve's purchases of MBS peaked at an average of $25 Billion per week. As of November, the average weekly purchases dropped down to $14 Billion. At the end of November, the Fed had already used over 80% of the allocated funds for MBS, meaning less than 20% remained to be used over four months.

Making the problem worse is that the Fed now has less money available to purchase MBS while at the same time, the supply of these securities has increased as a result of refinance and purchase activity that was triggered by lower rates.

Why is that important? As the Fed now has fewer funds to last through the remaining months of the program, its ability to keep rates low will wane.

As the Fed's program winds down and ends, weï¿½ll likely see two things happen:

First, we will probably see higher levels of volatilityï¿½with rates sometimes shifting dramatically in the middle of the day. That means it is more important than ever for buyers to work with a knowledgeable mortgage professional who has a finger on the pulse of the market at all times and can provide trusted, proven advice.

Second, since MBS will have less support from the Fed, rates are likely to rise over time.

In short, while rates are still very good, they may not be for long.

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First Time HomeBuyer Credit

Live Whatcom Team — Sun, 27 Dec 2009 16:21:00 GMT

The following information is from the following link:
IRS.Gov Newsroom Link - Tax Credit

First-Time Homebuyer Credit

Updated Nov. 17, 2009, to add more information on the new legislation

New Legislation

New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:

Extends deadlines for purchasing and closing on a home.
Authorizes the credit for long-time homeowners buying a replacement principal residence.
Raises the income limitations for homeowners claiming the credit.

Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.

For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.

People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.

Several new restrictions apply to homes purchased after Nov. 6, 2009.

Purchasers must attach a properly executed settlement statement to their return.
No credit is available if the purchase price of the home exceeds $800,000.
The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
A dependent is not eligible for the credit.
The new law gives the IRS broader authority to deny first-time homebuyer credit claims, without having to first audit a taxpayerï¿½s return. Known as math error authority, this authority applies, retroactively, to credits claimed on original and amended 2008 returns, as well as to claims yet to be filed.

Additionally, there are new benefits for members of the military and certain other federal employees:

Members of the uniformed services, members of the Foreign Service and employees of the intelligence community serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit.
In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community.

More information on these new benefits for the military, Foreign Service and intelligence community serving outside the U.S. is available.

General Information

Homebuyers who purchased a home in 2008, 2009 or 2010 may be able to take advantage of the first-time homebuyer credit. The credit:

Applies only to homes used as a taxpayer's principal residence.

· Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.

· Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405, which you file with your original or amended tax return.

For 2008 Home Purchases

The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.

For 2009 Home Purchases

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1. However, the new Worker, Homeownership and Business Assistance Act of 2009 has extended the deadline. Now, taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010. [Added Nov. 12, 2009]

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.

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