New FHA Rule

Have you heard about the new rule for mortgages insured by the Federal Housing Administration?

Starting on April 1st, 2012 the FHA will no longer be insuring mortgage commitments to borrowers that have more than $1,000 in ongoing credit disputes in the file. What this means is that you will have to either pay off the amount or enter into a payment plan for the balance in order to qualify. Just saying you have set up a payment plan isn't enough though. The plan has to be documented with and submitted to the FHA and you have to have made at least 3 payments.

There are some exceptions though. Of course if it's listed as fraud/identity theft then that will not count against you. Also, any disputes that are older than 2 years will not be held against you either.

The FHA has said that part of the reason is because their reserve, which is mandated by congress has fallen bellow the limit (which is why they will also be increasing the insurance premiums on the 1st as well).

So what are you thoughts? Oh....and as always....

Keeping the Plants Frost Free!

Most of us here in Western New York may have gotten a little too excited too soon by the summer like weather. But really, who can blame us? It was floating between 70 and 80! Then last night, in true WNY fashion, we were at 30 degrees and everything was freezing. Farmers were putting tents and blankets over crops to prevent them from killing the early blooms. They even added heaters and fans! But do you need to go to that extreme to keep away the freeze?

The answer is actually pretty simple and for some of you...you may actually be on it right now. The answer? A sheet! But hey, what about that tarp you have? Won't that work? According to garden shop owners, plastic is actually worse than doing nothing at all. The plastic will create a "freezer burn" effect that will kill the plants so stick with a sheet. Hold it down with a few rocks, and don't remove it until the sun has had plenty of time to warm it up.

Discount Points

The name alone sounds enticing doesn't it? I mean, who wouldn't want a discount...ESPECIALLY on the largest purchase most of us will ever make! But what exactly are discount points and how do you get them?

Discount points (also know as closing or mortgage points)are a type of prepaid interest that mortgage borrowers can purchase to lower the amount of interest they will have to pay on subsequent payments. Just like with origination points, 1 point is equal to 1% of the total loan. So, on a $100,000 loan each point would be equal to $1,000. Each point you pay can lower your interest rate from 1/8 to 1/4 of a percent. Another great thing (as if lowering your interest rate wasn't enough) is that discount points are also tax deductible in the year that they are paid.

So give one of our Mortgage Specialists a call!

Mortgage Origination Points

Especially if you are a first time home buyer you may be sitting there, reading this, and thinking to yourself...."Mortgage points? Who's keeping score?" Well hopefully this will clear it all up for you!

To start with let's explain what a mortgage point is and don't worry...it's not that complicated. A mortgage point is a fee based on one percent of the total mortgage. So if your mortgage amount was $100,000 then each point would be valued at $1,000. There are two different types of points though.

Origination Points are used to pay for the costs of getting the loan in the first place. Typically it is a fee to compensate the lender or loan officer for evaluating, processing, and approving the loan. Origination points are also not tax deductible.

In the next post we will be talking about Discount/Closing Points. Until then...check us out below!

What is a Short Sale?

Short sales can be a great deal for a buyer but a stressful situation for a seller. Not to mention that the short sale process can be a complex transaction altogether!

What makes a home sale a short sale really are two factors:
-The house is valued less than the owner owes (also known as "underwater")
-The homeowner must have a qualified hardship

But what exactly makes a hardship qualified? "I owe more than my house is worth? Isn't that alone a hardship?" The answer to that would be a no. What makes it a hardship is an event that will make it hard for the home owner, whether it be now or in the future, to pay the mortgage.

Here are some examples:
-Job Relocation
-Medical Hardship
-Business Failure
-Death in the Family
-Divorce/Speration
-Loss of Employment

Of course, each situation is different so please consult a professional (like our Mortgage partners) and speak with them!

First Time Buyer Incentive for Rochester

For the 20th year in a row, Rochester will be holding it's "City Living Sundays" event starting on the 18th (with another on the 25th). At both of these events, the city will be offering advice to first time home owners on neighborhoods, financing, and the market.

The events will be attended my Realtors, Lawyers, the Greater Rochester Association of Realtors, as well as lenders and other professions. On top of that, you will be able to find seminars on both home owning and finances.

Agents will be showing their listings in the $45,000 to $200,000 range on Sunday with the Landmark Society of Western New York holding bus tours of the areas the Saturday before. Margot Garcia, senior community housing planner for the city, stated that 62% of homes that had an open house last year sold!

It's Moving Day!

Moving day is both exciting and stressful. Are you ready? Here are some ideas to help you be as prepared as possible (and hopefully knock down the stress a few levels).

Even if you have hired one of our Home Service partners to pack for you, it is still best to be around when it's happening. This let's you know what is where as you start to unpack and place things in your new home later on. Also, if you have hired someone they will give you a list of items. Make sure that not only everything is on it but that you can read the list before you sign it. Last thing you want as you are putting everything in their new places is to find out something is missing...and wasn't on the inventory list.

Draw out the new living space as well and list what you want where. This helps the movers and yourself out! Making a diagram of where you want everything makes it easier when the movers ask and keeps you from having to move everything around afterwards. Doing this should be a great stress reliever for everyone involved. besides, no one wants to stress out over where the large furniture items go!

Make sure pets and children are out of the way. As adorable as they all can be, you don't want them slowing the process by getting in the way of yourself or the professionals. Keep them occupied. outside, or have them spend the day with a family member or friend! Speaking of clearing the way...make sure there is plenty of space for the truck and you know where you want to put it.

Check with any of our Moving Professionals for a free quote! And don't forget to check out today's "Showcase of Homes!"

Adding On or Moving Up?

To finish out this week of home projects that could increase your home value and utilize your space we will look at two last things....Adding On or Moving Up? Of course, many many factors apply here and it is always best to consult a professional like you will find in Nothnagle Home Services.

As time moves on, things change. Children are born, they grow older and yearn for freedom, family moves back in. We mentioned earlier that a use for your basement could be an in-law suite or teen apartment. But have you thought about adding on? Whether it will be a garage to hold the things that were in your basement as you convert it...a three season room so you can get all the benefits of outside but without the bugs from outside...or if you are adding on an apartment, adding on may be a best option for you. Adding on gives you total control as to what it looks like on both the inside and out. You won't be restricted by support beams or the water heater.

But not all of us have the yard space. So what are we to do? Move out? Why not...move up? Attic spaces can sometimes be converted into additional bedrooms or even better yet, a master suite! After all, why not do something for yourself? Of course there can be restrictions with this when it comes to plumbing and supporting the extra weight. So once again you will want to contact a professional that can look at everything and help you make the decisions that are best for you.

Please check out our contracting partners and check us out on both Facebook and Twitter.

Best Exterior Home Improvements

Thinking about changing something outside but want to re-coop your money if you decide to sell soon? Here are some great improvement ideas for the exterior of your home! Stand outside and look at your home as if you were someone who was interested in purchasing it. What are some things that you would change? What sticks out to you in either a negative or positive way?

Siding can make quite the impact on your curb appeal. Whether it be color, fixing damaged pieces, or adding trim...siding can make a great positive improvemnet. If you have cracked or missing pieces of siding, it can be much cheaper to just have those pieces replaced rather than having all of your siding replaced. Exterior decorative trim made of high-density polyurehane foam can also be easily added to "dress-up" the exterior of your home. (Check out our Siding Professional partners)

Next to grab your attention may be the windows and your front door. Not only would these updates benefit your curb appeal but upgrading to higher efficiency windows and doors can also gain you additional tax credits. A new front entry door is generally an easy change to make and makes a great instant home improvement. With a US average home age of 35 years and an average of 73 years in Rochester and 76 years in Buffalo...a buyer can greatly appreciate new windows. Both of these improvements help lower home energy costs and stand up to weather extremes. (Check out our Window/Door Professionals here)

Best Interior Home Improvements

Are you looking for some ideas to bring the interior of your home up to date but may be selling soon? Here are some great interior home improvement ideas that have a great return!

Think about when you were purchasing a home. What were the two areas that you most commonly thought, "This is nice...but it looks a little old." Both kitchens and bathrooms can age quickly if they contain design cues from certain eras and fads. Try to neutralize these areas to create a space that never seems dated. In a bathroom, update the vanity and install more neutral lighting fixtures. Kitchens can change dramatically with projects as small as refacing cabinets or just changing the hardware. Some of the most common kitchen upgrades include new counter-tops even upgrading to newer appliances. (See our Bathroom, Kitchen, Counter-top and Appliance partners)

Another great idea is finishing your basement! Even if you only finish part, that is still additional space that you are adding to your home. Plus the uses are endless! You can turn your basement into a playroom, theater, office, or even an apartment for teens/inlaws or to rent out. The possibilites are endless and it's a great way to appeal to multi-generation households. (Check out our Basement Remodel partners).

Have you ever lost power? It can especially be toublesome in the winter when ice has taken down the power line and you can't get out of your driveway. A back-up power generator can really help out! They aren't they large, loud, and smokey generators many of us remember. Most can be installed right outside next to your AC unit and bring power back within seconds!

Great Events this Weekend! (March 2nd)

Looking for something awesome and exciting to do this weekend? There is ALWAYS something fun going on in the Rochester area! So take a look below and make some plans.


This weekend be sure to stop by the National Museum of Play! Aside from their usual mix of the Berenstain Bears, Monopoly, and countless other exhibits...they have The Wizard of Oz! Until May 13th they have an educational exhibit based completely on The Wizard of Oz. From talking like a munchkin to climbing the witch's castle, they have it all! While you're there don't forget to stop by the Rainbow Reef and Sea Anemone tanks. Admission if free under for those under 2, $11 for those ages 2 - 15, and $13 for 16 and up.



Not to far from the Museum of Play you will find the Rochester Museum and Science Center which is currently has their Extreme Mammals! From the biggest mammal to the smallest of the small...RMSC has them all! Tickets are free for children under 3, $13 for 3-18, and $15 for adults.