The share of space covered by the laundry room – which is present in the vast majority of homes, irrespective of their size – is 3.7% and varies only to a minor extent with the size of the house.  Entry foyers account for 3.4% on the average, kitchens get 11.9% of space in small homes, versus 11.1% in larger ones over 3000 square ft.  The family room accounts for just 11% in all size homes, while the living room accounts for nearly 12% in smaller homes and 7.5 in the large one.  All of this from the National Association of Home Building in the October 1 SPECIAL STUDY at HOUSINGECONOMICS.COM

Single-family price & cost breakdowns for a 20,614 sf lot & 2311 square foot house are:  (a) finished lot cost 21.7%, (b) total construction cost is 59.3%, (c) financing cost 2.1%, (d) overhead & general expenses 5.2%, (e) marketing cost is 1.5%, (f) sales commission 3.3%, (g) profit is 6.8% and total sales price 100%.  These are figures from a 2011 survey by the National Association of Home Builders (NAHB).  Percentages do not change much on the square footage.  MORE TO COME!

You just have to remember to spend time and maybe money with an architect or design person to get the room arrangement you want.  Some folks even measure room sizes and furniture and places the pieces on a drawing of the floor plan.  Storage space is so important.  We sold a medium-size garden home recently in a subdivision that allowed no outside storage bldgs, so the owner built a huge garage with 3 sizable storage rooms to store his belongings and lined the walls with shelves.  Clever way to handle storage!  We all need to spend time cleaning out closets, garages, storage bldgs and getting rid of “stuff” with a garage/estate sale, give to children or others or to your favorite charity.  JUST PLAN AHEAD!

5 to 6 months from permits to completion on spec. houses & as long as 7 months on custom-built homes.  This is a factor you need to weigh in on whether you want to build, as you need a place to live till completion.  Some folks do NOT want to be the owner of 2 homes.  This from the 2012 Survey of Construction (SOC) from the Census Bureau.  Spaces are similar with 2,000 square foot homes to 3,000 sf homes.  Bedroom space accounts for just under 29% of floor space in new homes, irrespective of overall size of the homes.  Bathroom space is allotted 12.3% of total floor area on average with more space allocated larger homes.  All this from the National Association of Home Builders.  Part 2 coming.

(1)  Starting November 2013 Fannie Mae down payment goes form 97% LTV to NOW a minimum down payment of 5%.  This will drive higher credit profiles to FHA, but is still a reasonable down payment.  (2)  Lenders are competing, so call for the best rate if you need to refinance a home that you owe LESS than $625,500.  It is the HARP Refinance Loan.  No out-of-pocket closing costs, close in 30 days or less and more.  Just call YOUR lender.

VICTORY for HOMEOWNERS & FUTURE of HOMEOWNERSHIP in this COUNTRY.  This version of the QRM rule will give creditworthy buyers access to safe & affordable loan products without overly burdensome down payment requirements.  The new standards are stringent enough to protect consumers from unscrupulous lending practices while also creating new opportunities for private capital to re-establish itself as part of a robust & competitive mortgage market.  REALTORS were among the most vocal opponents to the first QRM rule proposed in 2011 that would have required 20% down to get a loan.  Some even wanted  30%, but it would take the average American more than 25 years to save enough money for that type loan.  From the National Association of Realtors.

In Texas builders can’t keep up, while usually when the market is strong home builders build more.  Real Estate Center Research Economist Dr. Jim Gaines told Bloomberg he projects about 100,000 single-family permits in TX this year, up 20% from a year ago, but still 30,000 short of what is needed.  Home prices rising not only state’s major metros, but also rural areas such as the West TX oil fields & in the South Texas’ Eagle Ford Shale region.  So much so, Gaines is concerned that the state will loose its reputation for being an affordable place to buy a home.  We are going the path of California & Florida if we don’t think of some way not to do it.  You can SEE IT COMING!

If you live in Texas and thinking about putting your home on the market, you couldn’t have picked a better time, according to an article this week from Bloomberg News.  With housing inventory down, prices up and employment on the rise – which means more folks are looking for a place to live – they are experiencing what the news source called a “suburban land rush.”  Home builders are caught off guard by the ferocity of buyer demand, are exhausting construction-ready lots as they struggle to recruit workers to complete houses quickly.”  PART 2 TO COME!

SOCIAL SECURITY ADMINISTRATION (SSA) – The Social Security Administration is closed and has suspended most customer service functions.  According to the SSA Contingency Plan, verifying Social Security numbers through the Consent Based SSN Verification Service will also be suspended during the shutdown, a further complication for mortgage processing.  As with IRS income verification (discussed on this blog yesterday), policies may vary with each lender.  Fannie Mae and Freddie Mac have also adopted policies to allow for closing subject to subsequent verification and before GSE purchase of the loan.  END OF THIS SERIES OF BLOGS!  NEW SUBJECT TOMORROW.

INTERNAL REVENUE SERVICE (IRS)  is closed & has suspended the processing of all forms, including requests for tax return transcripts (Form 4506T).  While FHA & VA do not require these transcripts, they are required by many lenders for other kinds of loans, including FHA and VA, if the shutdown is prolonged.  Some lenders are waiving this requirement but with income verification to follow, as long as the borrower has signed a Form 4506T requesting IRS tax transcripts.  Fannie Mae & Freddie Mac have also relaxed their provisions allowing for closings, but subject to tax transcript verification before the GSE’s purchase of loans.  MORE TO COME!