SunCrest March 8, 2013

SunCrest Market Update – February

Uncategorized February 27, 2013

Big Changes to FHA Loans

 

The 3.5% down payment on FHA loans could be more expensive for buyers than expected. Beginning April 1, 2013, the mortgage insurance premium will go up by .1% to 1.35% which may not even be noticeable to most would-be homeowners.
 
The staggering increase will occur on 6/3/2013 when FHA’s policy on the duration of the required mortgage insurance will be increased for the life of the mortgage. It basically doubles the amount of total MIP if the loan is paid to term.
 
(Regarding the current MIP duration: When the unpaid balance reaches 78% LTV of original purchase, the MIP can be released. In any event though, the minimum time must be five years.) 
 
Currently, the MIP is required for approximately 9 years 9 months with normal amortization. The new program would require the MIP for the life of the loan. In this example, the initial monthly MIP is $196.88 which decreases based on amortization.
 
There are buyers that qualify on income and credit who may not have the necessary additional down payment required for 80% and 90% conventional loans. The 3.5% FHA program has provided a great vehicle to get into a home with a minimum amount of cash.
 
For homeowners that expect to stay in their home for ten years or less, the new changes might not have much financial impact. Homeowners who expect to be in their home long term can refinance with a conventional loan without mortgage insurance once the equity has increased due to amortization and appreciation.
 
For buyers to avoid these increases, they will need to act now to get the FHA commitment issued prior to these change dates.
 
Source: http://www.kcmblog.com/2013/02/19/fha-more-expensive-than-expected/

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SunCrest January 25, 2013

SunCrest Market Update – January

SunCrest December 18, 2012

SunCrest Market Update – November

Uncategorized November 29, 2012

Cost of Waiting a Year

Thinking about waiting a year to buy? May want to rethink, it could cost you. The above graphic shows both the projected appreciation* and projected interest rate*. What would you do with an extra $127.87 a month ($1,546 a year!)? 

 

*nar.com, marketwatch.com

SunCrest October 18, 2012

SunCrest Market Update – September

SunCrest October 16, 2012

SunCrest Residents Q&A with Draper City

Draper City Representitives met with SunCrest Residents on Thursday, October 11th 2012. Below is a recap of the meeting. 

In addition to SunCrest residents others in attendance were our representatives to the HOA Paul Tonks, and HOA President Tod Bean, Suzanne Thomas, city manager Dave Dobbins and city councilmen Jeff Stenquist (who fielded the majority of the Q&A format)

TRSSD: 
At the last council meeting, the TRSSD fund was paying for the modification of the 4 way stop atop Traverse Ridge Road. Following the opposition and questions regarding this not being related to a higher elevation issue, the city council reversed their original use of the TRSSD Fund. Now general funds are being used to pay for the modification. Mr. Stenquist confirmed that the TRSSD is here to stay, there are no plans to abolish it. Draper City, as the new owner of the 2200 acres will not be paying into this fund. The funds are intended to be used for “higher elevation” issues. No definitive answer was given whether the TRSSD tax would be increased or decreased in the future. From the meeting, so far the majority is used and will continue to be used to snow plow and salt the roads. Funds have also been used to purchase a large snow thrower, install the blinking stop signs, and install the information sign as you start up Traverse Ridge Road. Decisions of the expenditure of the funds and how they are used are up to Mayor and City Council, but Mr. Stenquist reiterated its intent is for issues regarding higher elevation. Deer Ridge Drive was mentioned in the meeting, acknowledged that “its nearly gravel” but not definitive answer was given as to whether TRSSD funds would pay for it or general funds. Stenquist acknowledged its much-needed repair and that “right now we are trying to get as much life out of it as we can.” 

Conservation Easement: 
Many passionate SunCrest residents expressed their desire to get a guarantee from DC that the 2200 acres will remain as open space and be granted a conservation easement. Draper City indicted that this is their intent, but pointed out that 'we need to own the land before we can decide what to do with it"
Of the 2200 hundred acres DC is purchasing, their “intent” is only to have developments on lands already platted. Builder DR Horton has purchased platted lots from Zions Bank in various neighborhoods throughout SunCrest for an undisclosed amount. That deal was separate from this and DC was not involved. 

With the purchase, the SunCrest master plan as we knew it will be eliminated. The total number of rooftops is being downsized from an originally proposed maximum density of 3800 rooftops to the current 1140 rooftops plus development of another 300 to 400 homes. 
Mr. Stenquist talked about the difficulty that any developer who wants to build any homes in SunCrest other than what is platted because our water pipe is running at close to capacity and future development of homes would require another pipeline up the mountain at a cost to that developer. Mr. Steninquist added DC may partner with developers to sell off portions of the land, but not definitive answer was given as to how much and where, if any, and noted that issues that previous that would be purchaser MCO had with future development, others will continue to have (he gave the examples of water basins, roads, and water pipeline to name a few) 

Existing SunCrest Buildings: The SunCrest Clubhouse (fitness center, pool, village green park) belong to SunCrest HOA and will remain in the SunCrest HOAs ownership. The existing SunCrest market has been purchased by DC and no definitive plan was given for its use. The Welcome Center was purchased by DR Horton and will presumptively be used as a sale office showroom for their upcoming sales. 

Comcast: HOA President Bean confirmed that this purchase would have no effect on our agreement with Comcast. 

HOA: President Bean indicated that with the decrease in the current total number of rooftops, we are currently at the necessary 75% build out that our CC&R’s state that at this point, SunCrest residents can have full representation on the board. Membership and representation on the HOA is based on improved dwellings not ownership of unimproved land. 

Verizon Tower: Stenquist confirmed Verizon Wireless is beginning to build their tower. Improved cell service is critical to SunCrest residents and has long been a problem that we anticipate getting better with the tower.

Many residents in attendance talked about the importance of knowing what exactly would happen with the land. Stenquist said that residents would have an opportunity in the future to express their desires as to the many uses of the newly acquired property. The possibility of more parks, ball diamonds, a dog park, trails etc. were some suggestions residents would like to see incorporated for its use At this point, Mr. Stenquist reiterated Draper City’s intent is to preserve as much of the purchased acreage as open space with the exception of the already platted 200 units. Since DC technically does not own the land yet, Mr. Stenquist said nothing can be in writing but again focused on their intended plans.