Flood Insurance Update 2: Electric Boogaloo

Here we are again with more coming out about the seemingly incomprehensible new National Flood Insurance Rate Act.

The act, which was signed into law on Friday (March 21st, for those following along at home) included a grace period of 8 MONTHS for FEMA to develop guidance for insurance companies.  According to Lisa Jones, a consultant hired by the National Association of Realtors to examine the new law,  This grace period is followed by 6 month period that gives insurance companies time to revamp their software to handle the changes.

All boiled down, that means that you shouldn't expect to see immediate changes to the way the way your insurance agent details your flood insurance for some time.  In fact, FEMA Administrator Craig Fugate said when testifying before the House subcommittee on Emergency Preparedness, Response and Communications, that buyers may need to work with both their insurance agent and FEMA directly to ensure they are given correct rates under the new law.

If you do happen to have increased rates now or are not able to procure the new rates when you purchase your home.  You will be eligible for a refund of the difference in premium levels once the changes are put into effect.

Step Forward in Stalling Flood Insurance Rate Hikes

Thursday the US Senate passed a measure that would stall rate hikes on flood insurance issued by the National Flood Insurance Program.

Many Florida homeowners were seeing their flood insurance rates spike ten fold over the past year, while others were being told they now had to purchase flood insurance because of a redrawing of FEMA flood zone maps.

The rate increases have added a new fear for Florida homebuyers.  In a market that is just starting to recover,  uncertainty on flood insurance premiums have seized some small markets in the area and caused flood zoned homes to sit unsold.

The bill, which now moves to the House for approval, would stall rate hikes for 4 years so that FEMA can conduct an affordability survey to better asses how and when to raise rates to cover the $27 billion in debt that has accumulated since the program's induction in 1968.

USDA Extends 100% financing for parts of New Tampa and Wesley Chapel

Many people don't know that the USDA offers a loan program for home buyers.  My conversations with clients usually go a little something like this:

"If you're looking for a lower down payment option, the USDA offers 100% financing in certain areas of town"
"The USDA?  Aren't they the beef people?"

The USDA offers these loans based on the applicant's income relative to the area's average and if the home being purchased is in a Rural Area, as defined by the department's interpretation of census data.  The great news for a lot of Tampa home buyers is that a lot of New Tampa, Wesley Chapel and Land O Lakes is considered Rural, based on census data completed in the year 2000.

The new census data from 2010 and redrawn Rural designation maps were scheduled to take effect in Oct of 2013.  This was pushed back to January 15th 2014, and with the passing of the Omnibus Spending Bill by the US government, this was further extended to September 30th, 2014.

Interested in learning more about the qualifications?  You can visit the following links below for more info:

http://www.rurdev.usda.gov/SupportDocuments/FL%20GRH.pdf - Florida Income requirements by area.

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfhprop&NavKey=propproperty@11 - Map of approved Rural Areas

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do - Catch all site for eligibility requirements and additional information.

Selling Short and Buying Again

It is no surprise that a large portion of the population is still under water on their mortgage.  That doesn't stop the fact that things happen in life and you may need or want to move to a different home.  So that begs the question.  How long after I short sell my home can I get a mortgage for a new home?

The answer isn't so cut and dry and depends on a couple factors.

1.  If you are current on your payments with your current mortgage, you can short sell your home (given your banks approval) and can immediately qualify for a new FHA loan.

2.  If you are not current on your payments, The FHA has recently relaxed restrictions, but you still must wait 2 years from the short sale to qualify for the new loan.  If you can show certain other economic hardship variables such as a decline in household income by 20%, but have otherwise kept up to date with credit payments in 12 months time you can be eligible through the FHA's "Back to Work" program.

All is not lost when it comes to an underwater home.  A short sale is certainly better than foreclosure or bankruptcy for all parties involved.

Cheval Market Report Quarter 3 2013

In the quarter ending September 2013, there were 22 homes sold in Cheval.  Of the homes that were sold the average sales price was $592,030 with prices ranging from $229,900 to $1,345,000.  It took on average 107 days from listing to closing table to sell those homes.

As of this post there are 14 homes for sale in the Cheval community with an average price per square foot of $161.

Homes for sale in Cheval.

Need help buying or selling a home in Cheval?  Contact me at Mike Galovic Homes.  Also take a look at my buyer and seller resources available to take a step in the right direction.

Country Place Market Report Quarter 3, 2013

From July 1st to October 1st of 2013 there were 16 homes sold in the Country Place subdivision.  The 16 homes sold with a range from $128,000 to $204,900 and an average home sales price of $166,745.  On average the homes took 88 days to sell from the listing date to the closing table.

As of this posting there are 10 properties for sale in Country Place with an average price per square foot of $114.

Homes for sale in Country Place

Need help buying or selling a home in Country Place?  Contact me at Mike Galovic Homes.  You can also check out my buyer and seller resources to take a step in the right direction.

Amazon To Build Fulfillment Center in Tampa and Lakeland

Amazon confirmed on Tuesday that they will open two fulfillment centers in central Florida.  Located in Tampa and Lakeland, the two fulfillment centers will be close to each other but will serve different needs.  The Lakeland center will handle the larger items that Amazon carries like TV's and furniture, and the Tampa location will handle smaller goods.

Amazon was swayed to bring the warehouses to the area by multimillion dollar incentive deals from both Hillsborough and Polk Counties.  However the centers will bring their own stimulus by bringing an expected 1,000+ new jobs to the area.

“We appreciate the state, city and county officials who have worked with us to bring these fulfillment centers to Florida,” said Mike Roth, Amazon’s vice president of North America operations. “We’re excited to join the community, bringing great jobs and investment to the area.”

Source: Jacksonville Business Journal