Even a great design can be done in by the sort of unavoidable, nuts-and-bolts infrastructure items every building requires — visible pipes, wires, vents, flues, meters and what have you. As unsexy as they are, don’t fail to think through these kinds of details, don’t put them off to the last minute, and never, ever leave them up to installers to figure out as they go along.

Gas meters, electric meters, and electrical entrance panels — none of which are very lovely to look at — should be assigned to a spot that’s completely invisible from the street, ideally in a recessed or screened area. Never place these items on the front of the building. Since meters are increasingly read remotely, access is less of an issue than it used to be, but you should still check with your local utility for any restrictions on placement. (more…)

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Winter can be brutal on your home. Your homeowner’s insurance covers burst pipes and ice dams in your gutter. Ice dams are caused when ice forms on your home’s eaves, and water from melted snow flows from your roof, gets backed up behind the ice and flows under the shingles and into your home. You’re also covered (to a degree) if a tree hits your home. Remember, you’ll only be able to recoup the cost of removing the tree up to $500. But if a tree just falls in your backyard, you’re on your own.

If you live in colder areas prone to icing and heavy snowfall, you should have a strong de-icer on hand, like Calcium Chloride. It costs about 10 times more than rock salt, but it’s also much more powerful. If you live in more moderate climates that have occasional snowfall, you’re probably better off just stocking up on rock salt according to the Salt Industry. A 50 pound bag can costs just under $10. Whatever you do, make sure you don’t oversalt. Both rock salt and calcium chloride can be corrosive to concrete that has not been mixed or finished properly. If you have a driveway that is full of chinks and scars, be very cautious when using salt. To get the best results from salt de-icers, you’ll want to put it on the ground before the first flakes begin to form. (more…)

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Parts of the Northwest and Rocky Mountain regions were still digging out of four weeks of snow as temperatures iced California’s citrus crop. San Francisco Bay Area residents kept an eye out for the first snow flurries in years. Frigid air flowed into New England as wind chill factors pushed some temperatures in the upper states’ hinterlands to 35 below zero. Ocean-effect snow showers were forecast for Cape Cod. New Orleans shivered through 30 degree temperatures and Mother Nature put central and southern Texas into the deep freeze. The Deep South and Southern California held onto “heat waves” with temperatures in the 40s and 50s.

The U.S. Department of Energy (DOE) and the Comfort Institute, an indoor comfort research, training and consumer protection organization based in chilly Bellingham, WA, offer these tips to get your house in order for what’s likely to be a long, bleak winter even Punxsutawney Phil can’t stop.The DOE says the typical duct system loses 25 to 40 percent of the energy put out by the central furnace, heat pump or air conditioner. That puts a strain on your wallet as well as comfort levels in your home. Heating ventilation and air conditioning (HVAC) contractors can diagnose and pinpoint duct leak locations and check the static pressure in your ducts and ventilation system. The exam is often part of an energy audit used to also examine insulation, air leaks and other energy inefficiencies in your home. (more…)

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Mortgage fraud is being called the country’s fastest-growing white-collar crime. It costs lenders more than $1 billion a year and has turned increasing numbers of federal agents into experts on real estate paperwork. These days, they quickly crack cases that once took years to work, experts say.

Mortgage fraud occurs when somebody lies or misrepresents a fact on a statement that a lender uses to make a loan. Banks and mortgage lenders generally are the prime victims when loans are not repaid, but the fallout from a large-scale scam also can devastate individual investors, who sometimes must file for bankruptcy. Communities also suffer when swaths of properties sucked into a scheme go vacant and deteriorate as they fall into foreclosure. Estimates of mortgage fraud losses vary widely, but experts said trend lines pointed up. Although schemes can prosper during good times — such as the recent mid-decade boom when as much as $2.5 trillion in mortgage loans were made each year — they also can flower as the market cools. (more…)

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The Web frontier for vacation-home owners is vast and continuing to grow as they tap into new resources to market their properties. And networking Web sites can offer a support network for owners navigating the apparently bump-filled rental market. “Making a video is so much better than trying to put all that into words.” Mr. Gilbert has two videos, both on YouTube and Google Video: One showcases the house and some of its features, like the brand of mattresses in the home. The other focuses on the community, Bear Trap Dunes, which has three golf courses and two swimming pools.

Any vacation-home owner is likely to confess that marketing the house to renters is only half the battle. And, perhaps the easy half, once you read through the postings on Lay my Hat (www.laymyhat.com). The site allows vacation homeowners to hash out the apparently neverending string of problems that arise when renting out their second home. Owners vent about problem guests, like those who complain about the lack of ketchup and mayonnaise in the refrigerator or refuse to obey the no smoking policies. Some get advice on larger issues, like what to do when an hour before a renter arrives the electricity in the house fails. The solution, wrote one poster, is to light candles and “gets lots of drinks” for the guests. (more…)

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The growing influence of home inspections on residential real estate sales has been rapid and unmistakable. Inspections were available in the 1970s and ’80s but were relatively unknown to most people during those years. By the early 1990s, home inspectors emerged as a significant presence in most real estate transactions, affecting the majority of purchases. Two reasons stand out as the basis for this surprising rate of growth:

Accompanying the growth of home inspection services has been a parallel increase in liability claims against inspectors. Two circumstances stand out as primary causes for these claims: 1. Some claims are clearly due to inspector negligence. A contributing cause has been the rapid growth of the industry, prompting an influx of inexperienced and unqualified inspectors. The result has been incomplete or incorrect reporting of property conditions; hence, claims. 2. Many claims, on the other hand, are frivolous, owing again to the litigious nature of the business environment. While unqualified inspectors are subject to claims due to incompetence, even the best inspectors may be targeted, regardless of whether they are truly at fault. (more…)

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If one of your goals in 2007 is to become a landlord by buying a house, condo, or even small apartment complex, the first thing you should do, if you haven’t already, is begin to educate yourself about becoming a landlord. If you’re already a landlord then you likely know that ongoing education in this ever-changing industry is a must.

Here are some areas that landlords should be certain to record: mileage to and from the rental property, advertising for the property, cell phone use, computer equipment and office supplies, desk equipment, telephone line (if you have a separate line the office line can be fully deducted), Internet access, and house cleaning for the rental. “If you have a cleaning company come in to clean your rental unit, after somebody moves out, those costs are deductible. If you need to buy office supplies it might be computer paper, pens and printer cartridges, postage if you’re mailing out reminders [to] somebody [who] might be mailing the rent late or you need to send somebody a lease to sign — [all are] also deductible. Working with a qualified tax person can help you discover any deductions you might be missing and also make sure that you are operating by the appropriate IRS laws. (more…)

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An elderly homeowner who wishes to continue living at home can get access to money that doesn’t have to be repaid until he or she sells the house or dies. The upfront costs of the reverse mortgage loans are high, and they are not recommended for those planning to sell their house in the near future. Paiva’s closing costs were $13,325, which included a payment of $5,760 for mortgage insurance from the U.S. Department of Housing and Urban Development’s Federal Housing Administration. FHA insures an estimated 90 percent of reverse-mortgage loans issued in the United States. Most borrowers roll over the loan costs into their balance to keep their initial outlay of cash to a minimum.

To be eligible for a HUD-insured reverse mortgage, borrowers must be at least 62 years old. The amount that can be loaned depends on the borrower’s age, the amount of equity, and the interest rates. Loans insured by the government cannot exceed a certain limit currently $362,000, according to Peter Bell, president of the National Mortgage Lenders Association, even if the value of the house is much higher. Uninsured loans are offered at higher amounts, and at higher costs. In the fiscal year that ended September 30, 2006, 76,351 federally insured reverse mortgages, also known as home-equity conversion mortgages, were issued, up 77% from the previous fiscal year, White said. In Rhode Island, the number of reverse mortgages increased from 198 to 338. As the baby-boom generation begins to retire, the numbers are expected to grow. (more…)

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At risk of oversimplifying, credit standards in the conventional market range from A+ to D-, and within that range, FHA would be about B- or C+. FHA credit requirements overlap the higher levels of subprime requirements. A good illustration is the underwriting rules applicable to a prior foreclosure. With exceptions, FHA won’t accept a loan applicant who has had a foreclosure within the prior three years. Subprime lenders may have a three-year rule for their best credit grade, but the period scales down by degrees and might be only one year for the lowest grade.

Similarly, the maximum ratio of total debt service to income acceptable to FHA is 41 percent, which is generally high relative to prime standards, but well below what passes in the nonprime sector. A borrower who meets FHA credit standards will usually do better with an FHA loan than with a subprime loan, despite having to pay a mortgage insurance premium. The rate will be lower, the borrower will have access to a large menu of mortgages, and there are no prepayment penalties. Most mortgages in the subprime market are 2-year adjustables with large margins, which means a high probability of a rate increase after two years, and they have prepayment penalties, usually for three years. (more…)

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U.S. home prices may have dipped over the past year, but many American workers would still struggle to afford a median-priced home in major cities, a new study said Wednesday. “American workers are really not gaining ground and they’re so far behind in the first place,” said Barbara Lipman, research director for the nonprofit Center for Housing Policy, which conducted the study. While the median home price in the 202 largest metropolitan areas declined 2 percent from a year ago to $248,000 in the third quarter of 2006, mortgage rates rose enough over the year that homes actually became less affordable as pay did not keep pace.

Other ways families cope with high housing expenses is to work longer hours or extra jobs, or by crowding in more income producers, she said. An October 2006 survey by the group found families who seek to buy less-expensive homes in further-out suburbs - adding to urban sprawl - pay so much more for transit that it eliminates the savings. While home prices range widely across the country, wages for low-wage jobs - from teachers to janitors - are about the same no matter where they are located, Lipman said. The report cited housing aid programs offered by some big-city hospitals that have plenty of modestly-paid workers. (more…)

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