Real Estate Listing

San Francisco Chronicle: Real Estate Thursday, December 29, 2005 Search By : County | City | Address Filter By : Chronicle Ads Open Homes County Select County ****Any County Alameda Contra Costa Marin Napa San Francisco San Mateo Santa Clara Solano Sonoma City Please select a county Min. Bedrooms Studio 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 5+ Bedrooms Max. Price No Limit 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000 750,000 800,000 850,000 900,000 950,000 1 Million 1.5 Million 2 Million 2.5 million 3 Million Advanced Search E-mail Alerts Saved Listings -- New Home Developments New Home Videos -- Out of Bay Area Open Homes Recent Home Sales Search By : County | City | Address Enter City or Neighborhood Advanced Search Search By : County | City | Address Enter Address You may enter a full or partial address. Advanced Search Click on the map for Bay Area home sales listings. How To Guide Information to help you select and buy goods and services. - Advertorial Find a contractor and get tips from great professionals with ImproveNet.com, America's Home Improvement Resource. Bay Area school scores and profiles at Great Schools.net . SF Gate's SF and East Bay neighborhood guides. Bay Area Maps Real Estate and Rental display ads from the Chronicle. See the Chronicle's New Homes Section. Save Searches, Listings, & Activate E-mail Alerts! View All Featured Properties Today's Rates Product Avg. Rate 30-yr Fixed 6.020 15-yr Fixed 5.394 30-yr Fixed Jumbo 6.146 5/1 ARM 5.525 Current Mortgage Rates Mortgage calculators Apply to online lenders Rates current as of 12/29/2005 powered by MortgageTrak Surreal Estate An overwrought home for the holidays Carol Lloyd Best of a bunch Real estate authors were prolific in 2005 Robert J. Bruss At the end of each year, it is my custom to select the 10 best real estate books out of the hundreds of published that year. This article takes 52 weeks to prepare because I read at least one real est... Clarification on home-sale tax exemption Robert Bruss Q: I am confused about your answer to a home seller who wants to add her mother to the title. You said the mother would be eligible for an Internal Revenue Code 121 principal residence sale tax exempt... Normal wear and tear covers reasonable use of unit Robert Griswold Answers are provided by Robert Griswold, a property manager certified by the Institute of Real Estate Management and author of "Property Management for Dummies"; and lawyers Steven R. Kellman, directo... Transbay planners see new landmark Dan Levy Transbay Terminal planners are viewing their controversial idea for a new San Francisco high-rise as nothing less than the signature building of our time -- much like the Transamerica Pyramid defined ... Holidays evoke true meaning of home Carol Lloyd "I just want to bake a Christmas ham," says my friend, a slight note of desperation rising in her voice. "Is that so much to ask?" She has just confided that because of her husband's 8-year-long, self... HOME SALES FOR 5 BUSINESS DAYS Alameda County Total sales as of Dec. 7 484 Median price $590,000 . Contra Costa County Total sales as of Dec. 7 489 Median price $576,500 . Marin County Total sales as of Nov. 22 81 Median price $808... Perry turns pretty profit on compound Actor buys condo after selling his Beverly Hills home Ruth Ryon Former "Friends" cast member Matthew Perry has racked up his second big deal of the year. The actor, 36, sold his Beverly Hills-area home for $6.1 million. He purchased it in 1999 for $3.2 million. Wh... Real reading -- best of a big bunch Robert J. Bruss "Reverse Mortgages for Dummies" By Sarah Glendon Lyons and John E. Lucas Wiley, $16.99, 249 pages This is the best of several excellent 2005 books about the pros and cons of tax-free reverse mortgage ... ARM indexes CHART: BC: . Last Previous Year Index week week ago 6-month CD 4.62 4.61 2.67 6-month T-bill 4.22 4.18 2.46 1-year TCMS(Y) 4.34 4.35 2.66 3-year TCMS(Y) 4.39 4.42 3.18 1-month LIBOR 4.38 4.37 2.41 6-m... Ignorance no excuse in avoiding foreclosure Kenneth Harney What would happen if you got sick or suffered a drastic loss of household income in 2006, and then fell seriously behind on your mortgage payments? Think about that, even for just a moment, because no... Solar power for the home a hot deal in 2006 Tax incentives can help cut energy bills Jennie L. Phipps If the thought of rising energy bills has you rushing out to buy insulation, hold off a week until after New Year's Day, when the recently enacted Energy Tax Incentives Act of 2005 kicks in. The act i... Real Estate: Neighborhood Homes Sold . Sunday, December 25, 2005 Back to... Help | Contact us | Privacy ™ ©2005 Hearst Communications Inc. --

Denver Real Estate Lawyers

Spotlight: Denver Real Estate Lawyers on Denver Citysearch 7 BOC Spa & Beauty: 7 days till voting begins -- New to Citysearch? Sign In · Help · Dec 29 2005 Home Restaurants Bars & Clubs Hotels Shopping Spa & Beauty Movies Events See More Categories » Search Business name, category, and/or keyword Search by name only Address, city & state, or zip | Neighborhood Address, city & state, or zip | Neighborhood Address, city & state, or zip | Airport Address, city & state, or zip | Attraction Select a Denver Neighborhood Adams County Arvada Aurora Boulder Broomfield Castle Rock Central Denver Cherry Creek Colorado Springs Denver Intnl Airport Denver Tech Ctr Downtown Englewood Evergreen Golden Highlands Ranch Lakewood Littleton Longmont Louisville Park Meadows Parker South Denver Westminster Select an Denver Airport Select an Denver Attraction My Locations Add/edit locations Recent Locations Clear recent locations Spotlight: Denver Real Estate Lawyers Find top real estate lawyers in Denver. Citysearch has recommendations, ratings, tips and more for real estate lawyers in and around Denver. On This Page: Real Estate Lawyers Real Estate Lawyers Back to Top Drantch, Mitchel S - Mitchel S Drantch Law Offices 1780 S Bellaire St Ste 584, Denver, CO Lees, Robert A - Robert A Lees & Associates 5290 DTC Pkwy Ste 150, Greenwood Vlg, CO Meinhold, Don H. - Castle Meinhold & Stawiarski, LLC 102 N Cascade Ave Ste 350, Colorado Springs, CO Lewis, Robert - Ducker Montgomery & Lewis 1560 Broadway Ste 1400, Denver, CO Castle Meinhold & Stawiarski, LLC 999 18th Street, Suite 2201, Denver, CO Holt, Jennifer Ilene - Jennifer Ilene Holt Suite 2525, 1660 Lincoln Street, Denver, CO Ducker, Montgomery, Aronstein & Bess, P.C. Suite 1400, 1560 Broadway, Denver, CO Kerr Brosseau Bartlett O'Brien, LLC 1600 Broadway, Suite 1600, Denver, CO Bennington Johnson Biermann & Craigmile, LLC 370 17th Street Suite 3500, Denver, CO Stutz, Miller & Urtz, LLC 1660 Lincoln Street Suite 2850, Denver, CO Fowler, Schimberg and Flanagan, Professional Corporation 1640 Grant Street, Suite 300, Denver, CO Holland & Hart LLP 555 Seventeenth Street Suite 3200, Denver, CO Pryor Johnson Carney Karr Nixon, P.C. 5619 DTC Parkway, Suite 1200, Denver, CO Jacobs, Paul - Jacobs Chase Frick Kleinkopf 1050 17TH St Ste 1500, Denver, CO Go to Website McElroy, Deutsch, Mulvaney & Carpenter, LLP 1700 Broadway, Suite 1900, Denver, CO Castle, Lawrence E - Castle Meinhold Stawiarski LLC 1099 18TH St Ste 1600, Denver, CO Myer, Swanson, Adams & Wolf, P.C. 1600 Broadway, Suite 1480, Denver, CO Davis Graham & Stubbs LLP 1550 Seventeenth Street, Denver, CO Thomas N. Scheffel & Associates, P.C. 3801 East Florida Avenue, Suite 600, Denver, CO Plotkin, John C. - Sterling & Gregory, LLC 1331 17TH St Ste 602, Denver, CO Related links: Search anything in Denver · Search Yellow Pages in Denver · Search other Cities · Browse Other Denver Editorial Lists About Us | Advertise with Us | Contact Us | Press Center | Site Guide | List Your Business on Citysearch | Become an Affiliate | Job Opportunities | Other Cities | Get a Business Website | Submit an Event | Privacy Policy | Terms of Use | Denver Yellow Pages Citysearch is a registered trademark of 720619 Ontario Inc. and is used under license (C) 2005 Citysearch.com All rights reserved. partner sites: Evite - Entertainment.com - Gifts.com - TripAdvisor - ServiceMagic - Ticketmaster - Expedia - Hotels.com - Hotwire - HSN - LendingTree - Match.com - RealEstate.com - ReserveAmerica - Zerodegrees - CondoSaver - ClassicVacations - Ballard Designs - Frontgate - Garnet Hill - Smith+Noble - The Territory Ahead - Travel Smith

Buy Home

HUD - 100 Q&A for Homebuyers Housing About Housing Contact us Keywords Single Family Audience groups Buying a home Events & training FHA insured loans Common questions Housing counseling HUD homes/ REO Owning a home Reference guide Regulatory programs Hospitals Multifamily OAHP Reading room Online forums Work online HUD news Homes Communities Working with HUD Resources Tools Webcasts Mailing lists Contact us Help 100 Questions & Answers About Buying A New Home Information by State Esta página en español Print version Email this to a friend Dear Future Homeowner: Homeownership is becoming a reality for more and more Americans. During 2000, the US homeownership rate reached 67.7%, the highest rate ever. Yet many Americans don't realize that homeownership is within their grasp. A home is a financial asset and more: it's a place to live and raise children; it's a plan for the future; it's an investment in your community. That's why we at the U.S. Department of Housing and Urban Development want all Americans to have an opportunity to enjoy the benefits of owning a home. And we are especially proud of our work to help first-time homebuyers: thanks to our special programs, more than 81% of FHA-insured loans went to first-time homebuyers during 2000. Knowledge is said to open doors. This is literally true when it comes to buying a home. To become a first-time homebuyer, you need to know where and how to begin the homebuying process. The following questions and answers have been carefully selected to give you a foundation of basic knowledge. In addition to helping you begin, this brochure will give you the tools necessary to navigate the entire process - from deciding whether you're ready to buy, all the way to that final proud step, getting the keys to your new home. Calling for this brochure was your first step. Now you can use this information to determine if you're ready to buy a home. if you are ready, contact a real estate agent, lender, or a housing counseling agency. They can help you decide your next step. HUD's FHA has helped more than 30 million people become homeowners since 1934. We want to help you open the door to your own home. After all, HUD and FHA are on your side. Good Luck! TABLE OF CONTENTS Introduction Part I Getting Started Part II Finding Your Home Part III You've Found It Part IV General Financing -- Questions:The Basics Part V First Steps Part VI Finding The Right Loan For You Part VII Closing Part VIII How Can HUD And The FHA help Me Become a Homeowner Part IX Mortgage Insurance Part X FHA Products Glossary GETTING STARTED 1. HOW DO I KNOW IF I'M READY TO BUY A HOME? You can find out by asking yourself some questions: Do I have a steady source of income (usually a job)? Have I been employed on a regular basis for the last 2-3 years? Is my current income reliable? Do I have a good record of paying my bills? Do I have few outstanding long-term debts, like car payments? Do I have money saved for a down payment? Do I have the ability to pay a mortgage every month, plus additional costs? If you can answer "yes" to these questions, you are probably ready to buy your own home. 2. HOW DO I BEGIN THE PROCESS OF BUYING A HOME? Start by thinking about your situation. Are you ready to buy a home? How much can you afford in a monthly mortgage payment (see Question 4 for help)? How much space do you need? What areas of town do you like? After you answer these questions, make a "To Do" list and start doing casual research. Talk to friends and family, drive through neighborhoods, and look in the "Homes" section of the newspaper. 3. HOW DOES PURCHASING A HOME COMPARE WITH RENTING? The two don't really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing. Owning a home has many benefits. When you make a mortgage payment, you are building equity. And that's an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep- which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it. 4. HOW DOES THE LENDER DECIDE THE MAXIMUM LOAN AMOUNT THAT CAN AFFORD? The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. According to the FHA,monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, 4 should total no more than 41% of income. The lender also considers cash available for down payment and closing costs, credit history, etc. when determining your maximum loan amount. 5. HOW DO I SELECT THE RIGHT REAL ESTATE AGENT? Start by asking family and friends if they can recommend an agent. Compile a list of several agents and talk to each before choosing one. Look for an agent who listens well and understands your needs, and whose judgment you trust. The ideal agent knows the local area well and has resources and contacts to help you in your search. Overall, you want to choose an agent that makes you feel comfortable and can provide all the knowledge and services you need. 6. HOW CAN I DETERMINE MY HOUSING NEEDS BEFORE I BEGIN THE SEARCH? Your home should fit way you live, with spaces and features that appeal to the whole family. Before you begin looking at homes, make a list of your priorities - things like location and size. Should the house be close to certain schools? your job? to public transportation? How large should the house be? What type of lot do you prefer? What kinds of amenities are you looking for? Establish a set of minimum requirements and a 'wish list." Minimum requirements are things that a house must have for you to consider it, while a "wish list" covers things that you'd like to have but aren't essential. FINDING YOUR HOME 7 . WHAT SHOULD I LOOK FOR WHEN DECIDING ON A COMMUNITY? Select a community that will allow you to best live your daily life. Many people choose communities based on schools. Do you want access to shopping and public transportation? Is access to local facilities like libraries and museums important to you? Or do you prefer the peace and quiet of a rural community? When you find places that you like, talk to people that live there. They know the most about the area and will be your future neighbors. More than anything, you want a neighborhood where you feel comfortable in. 8. WHAT SHOULD I DO IF I'M FEELING EXCLUDED FROM CERTAIN NEIGHBORHOODS? Immediately contact the U.S. Department of Housing and Urban Development (HUD) if you ever feel excluded from a neighborhood or particular house. Also, contact HUD if you believe you are being discriminated against on the basis of race, color, religion, sex, nationality, familial status, or disability. HUD's Office of Fair Housing has a hotline for reporting incidents of discrimination: 1-800-669-9777 (and 1-800-927-9275 for the hearing impaired). 9. HOW CAN I FIND OUT ABOUT LOCAL SCHOOLS? You can get information about school systems by contacting the city or county school board or the local schools. Your real estate agent may also be knowledgeable about schools in the area. 10. HOW CAN I FIND OUT ABOUT COMMUNITY RESOURCES? Contact the local chamber of commerce for promotional literature or talk to your real estate agent about welcome kits, maps, and other information. You may also want to visit the local library. It can be an excellent source for information on local events and resources, and the librarians will probably be able to answer many of the questions you have. 11. HOW CAN I FIND OUT HOW MUCH HOMES ARE SELLING FOR IN CERTAIN COMMUNITIES AND NEIGHBORHOODS? Your real estate agent can give you a ballpark figure by showing you comparable listings. If you are working with a REALTOR, they may have access to comparable sales maintained on a database. 12. HOW CAN I FIND INFORMATION ON THE PROPERTY TAX LIABILITY? The total amount of the previous year's property taxes is usually included in the listing information. If it's not, ask the seller for a tax receipt or contact the local assessor's off ice. Tax rates can change from year to year, so these figures may be approximate. 13. WHAT OTHER TAX ISSUES SHOULD I TAKE INTO CONSIDERATION? Keep in mind that your mortgage interest and real estate taxes will be deductible. A qualified real estate professional can give you more details on other tax benefits and liabilities, 14. IS AN OLDER HOME A BETTER VALUE THAN A NEW ONE? There isn't a definitive answer to this question. You should look at each home for its individual characteristics. Generally, older homes may be in more established neighborhoods, offer more ambiance, and have lower property tax rates. People who buy older homes, however, shouldn't mind maintaining their home and making some repairs. Newer homes tend to use more modern architecture and systems, are usually easier to maintain, and may be more energy-efficient. People who buy new homes often don't want to worry initially about upkeep and repairs. 15. WHAT SHOULD I LOOK FOR WHEN WALKING THROUGH A HOME? In addition to comparing the home to your minimum requirement and wish lists, use the HUD Home Scorecard and consider the following: Is there enough room for both the present and the future? Are there enough bedrooms and bathrooms? Is the house structurally sound? Do the mechanical systems and appliances work? Is the yard big enough? Do you like the floor plan? Will your furniture fit in the space? Is there enough storage space? (Bring a tape measure to better answer these questions.) Does anything need to repaired or replaced? Will the seller repair or replace the items? Imagine the house in good weather and bad, and in each season. Will you be happy with it year-round? Take your time and think carefully about each house you see. Ask your real estate agent to point out the pros and cons of each home from a professional standpoint. 16. WHAT QUESTIONS SHOULD I ASK WHEN LOOKING AT HOMES? Many of your questions should focus on potential problems and maintenance issues. Does anything need to be replaced? What things require ongoing maintenance (e.g., paint, roof, HVAC, appliances, carpet)? Also ask about the house and neighborhood, focusing on quality of life issues. Be sure the seller's or real estate agent's answers are clear and complete. Ask questions until you understand all of the information they've given. Making a list of questions ahead of time will help you organize your thoughts and arrange all of the information you receive. The HUD Home Scorecard can help you develop your question list. 17. HOW CAN I KEEP TRACK OF ALL THE HOMES I SEE? If possible, take photographs of each house: the outside, the major rooms, the yard, and extra features that you like or ones you see as potential problems. And don't hesitate to return for a second look. Use the HUD Home Scorecard to organize your photos and notes for each house. 18. HOW MANY HOMES SHOULD I CONSIDER BEFORE CHOOSING ONE? There isn't a set number of houses you should see before you decide. Visit as many as it takes to find the one you want. On average, homebuyers see 15 houses before choosing one. Just be sure to communicate often with your real estate agent about everything you're looking for. It will help avoid wasting your time. YOU'VE FOUND IT 19. WHAT DOES A HOME INSPECTOR DO, AND HOW DOES AN INSPECTION FIGURE IN THE PURCHASE OF A HOME ? An inspector checks the safety of your potential new home. Home Inspectors focus especially on the structure, construction, and mechanical systems of the house and will make you aware of only repairs,that are needed. The Inspector does not evaluate whether or not you're getting good value for your money. Generally, an inspector checks (and gives prices for repairs on): the electrical system, plumbing and waste disposal, the water heater, insulation and Ventilation, the HVAC system, water source and quality, the potential presence of pests, the foundation, doors, windows, ceilings, walls, floors, and roof. Be sure to hire a home inspector that is qualified and experienced. It's a good idea to have an inspection before you sign a written offer since, once the deal is closed, you've bought the house as is." Or, you may want to include an inspection clause in the offer when negotiating for a home. An inspection t clause gives you an 'out" on buying the house if serious problems are found,or gives you the ability to renegotiate the purchase price if repairs are needed. An inspection clause can also specify that the seller must fix the problem(s) before you purchase the house. 20. DO I NEED TO BE THERE FOR THE INSPECTION? It's not required, but it's a good idea. Following the inspection, the home inspector will be able to answer questions about the report and any problem areas. This is also an opportunity to hear an objective opinion on the home you'd I like to purchase and it is a good time to ask general, maintenance questions. 21. ARE OTHER TYPES OF INSPECTIONS REQUIRED? If your home inspector discovers a serious problem a more specific Inspection may be recommended. It's a good idea to consider having your home inspected for the presence of a variety of health-related risks like radon gas asbestos, or possible problems with the water or waste disposal system. 22. HOW CAN I PROTECT MY FAMILY FROM LEAD IN THE HOME? If the house you're considering was built before 1978 and you have children under the age of seven, you will want to have an inspection for lead-based point. It's important to know that lead flakes from paint can be present in both the home and in the soil surrounding the house. The problem can be fixed temporarily by repairing damaged paint surfaces or planting grass over effected soil. Hiring a lead abatement contractor to remove paint chips and seal damaged areas will fix the problem permanently. 23. ARE POWER LINES A HEALTH HAZARD? There are no definitive research findings that indicate exposure to power lines results in greater instances of disease or illness. 24. DO I NEED A LAWYER TO BUY A HOME? Laws vary by state. Some states require a lawyer to assist in several aspects of the home buying process while other states do not, as long as a qualified real estate professional is involved. Even if your state doesn't require one, you may want to hire a lawyer to help with the complex paperwork and legal contracts. A lawyer can review contracts, make you aware of special considerations, and assist you with the closing process. Your real estate agent may be able to recommend a lawyer. If not, shop around. Find out what services are provided for what fee, and whether the attorney is experienced at representing homebuyers. 25. DO I REALLY NEED HOMEOWNER'S INSURANCE? Yes. A paid homeowner's insurance policy (or a paid receipt for one) is required at closing, so arrangements will have to be made prior to that day. Plus, involving the insurance agent early in the home buying process can save you money. Insurance agents are a great resource for information on home safety and they can give tips on how to keep insurance premiums low. 26. WHAT STEPS COULD I TAKE TO LOWER MY HOMEOWNER'S INSURANCE COSTS? Be sure to shop around among several insurance companies. Also, consider the cost of insurance when you look at homes. Newer homes and homes constructed with materials like brick tend to have lower premiums. Think about avoiding areas prone to natural disasters, like flooding. Choose a home with a fire hydrant or a fire department nearby. 27. IS THE HOME LOCATED IN A FLOOD PLAIN? Your real estate agent or lender can help you answer this question. If you live in a flood plain, the lender will require that you have flood insurance before lending any money to you. But if you live near a flood plain, you may choose whether or not to get flood insurance coverage for your home. Work with an insurance agent to construct a policy that fits your needs. 28. WHAT OTHER ISSUES SHOULD I CONSIDER BEFORE I BUY MY HOME? Always check to see if the house is in a low-lying area, in a high-risk area for natural disasters (like earthquakes, hurricanes, tornadoes, etc.), or in a hazardous materials area. Be sure the house meets building codes. Also consider local zoning laws, which could affect remodeling or making an addition in the future. Your real estate agent should be able to help you with these questions. 29. HOW DO I MAKE AN OFFER? Your real estate agent will assist you in making an offer, which will include the following information: Complete legal description of the property Amount of earnest money Down payment and financing details Proposed move-in date Price you are offering Proposed closing date Length of time the offer is valid Details of the deal Remember that a sale commitment depends on negotiating a satisfactory contract with the seller, not just Making an offer. Other ways to lower ins-insurance costs include insuring your home and car(s) with the same company, increasing home security, and seeking group coverage through alumni or business associations. Insurance costs are always lowered by raising your deductibles, but this exposes you to a higher out-of-pocket cost if you have to file a claim. 30. HOW DO I DETERMINE THE INITIAL OFFER? Unless you have a buyer's agent, remember that the agent works for the seller. Make a point of asking him or her to keep your discussions and information confidential. Listen to your real estate agent's advice, but follow your own instincts on deciding a fair price. Calculating your offer should involve several factors: what homes sell for in the area, the home's condition, how long it's been on the market, financing terms, and the seller's situation. By the time you're ready to make an offer, you should have a good idea of what the home is worth and what you can afford. And, be prepared for give-and-take negotiation, which is very common when buying a home. The buyer and seller may often go back and forth until they can agree on a price. 31. WHAT IS EARNEST MONEY? HOW MUCH SHOULD I SET ASIDE? Earnest money is money put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price (though the amount can vary with local customs and conditions). If your offer is accepted, the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you may forfeit the entire amount. 32. WHAT ARE "HOME WARRANTIES", AND SHOULD I CONSIDER THEM? Home warranties offer you protection for a specific period of time (e.g., one year) against potentially costly problems, like unexpected repairs on appliances or home systems, which are not covered by homeowner's insurance. Warranties are becoming more popular because they offer protection during the time immediately following the purchase of a home, a time when many people find themselves cash-strapped. GENERAL FINANCING QUESTIONS:THE BASICS 33. WHAT IS A MORTGAGE? Generally speaking, a mortgage is a loan obtained to purchase real estate. The "mortgage" itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal and interest. 34. WHAT IS A LOAN TO VALUE (LTV) HOW DOES IT DETERMINE THE SIZE OF MY LOAN? The loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. For example: With a 95% LTV loan on a home priced at $50,000, you could borrow up to $47,500 (95% of $50,000), and would have to pay,$2,500 as a down payment. The LTV ratio reflects the amount of equity borrowers have in their homes. The higher the LTV the less cash homebuyers are required to pay out of their own funds. So, to protect lenders against potential loss in case of default, higher LTV loans (80% or more) usually require mortgage insurance policy. 35. WHAT TYPES OF LOANS ARE AVAILABLE AND WHAT ARE THE ADVANTAGES OF EACH? Fixed Rate Mortgages: Payments remain the same for the the life of the loan Types 15-year 30-year Advantages Predictable Housing cost remains unaffected by interest rate changes and inflation. Adjustable Rate Mortgages (ARMS): Payments increase or decrease on a regular schedule with changes in interest rates; increases subject to limits Types Balloon Mortgage- Offers very low rates for an Initial period of time (usually 5, 7, or 10 years); when time has elapsed, the balance is clue or refinanced (though not automatically) Two-Step Mortgage- Interest rate adjusts only once and remains the same for the life of the loan ARMS linked to a specific index or margin Advantages Generally offer lower initial interest rates Monthly payments can be lower May allow borrower to qualify for a larger loan amount 36. WHEN DO ARMS MAKE SENSE? An ARM may make sense If you are confident that your income will increase steadily over the years or if you anticipate a move in the near future and aren't concerned about potential increases in interest rates. 37. WHAT ARE THE ADVANTAGES OF 15- AND 30-YEAR LOAN TERMS? 30-Year: In the first 23 years of the loan, more interest is paid off than principal, meaning larger tax deductions. As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses. 15-year: Loan is usually made at a lower interest rate. Equity is built faster because early payments pay more principal. 38. CAN I PAY OFF MY LOAN AHEAD OF SCHEDULE? Yes. By sending in extra money each month or making an extra payment at the end of the year, you can accelerate the process of paying off the loan. When you send extra money, be sure to indicate that the excess payment is to be applied to the principal. Most lenders allow loan prepayment, though you may have to pay a prepayment penalty to do so. Ask your lender for details. 39. ARE THERE SPECIAL MORTGAGES FOR FIRST-TIME HOMEBUYERS? Yes. Lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who don't have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or have experienced income irregularities. 40. HOW LARGE OF A DOWN PAYMENT DO I NEED? There are mortgage options now available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you'll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you'll also need money for closing costs, moving expenses, and - possibly -repairs and decorating. 41. WHAT IS INCLUDED IN A MONTHLY MORTGAGE PAYMENT? The monthly mortgage payment mainly pays off principal and interest. But most lenders also include local real estate taxes, homeowner's insurance, and mortgage insurance (if applicable). 42. WHAT FACTORS AFFECT MORTGAGE PAYMENTS? The amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment. 43. HOW DOES THE INTEREST RATE FACTOR IN SECURING A MORTGAGE LOAN? A lower interest rate allows you to borrow more money than a high rate with the some monthly payment. Interest rates can fluctuate as you shop for a loan, so ask-lenders if they offer a rate "lock-in"which guarantees a specific interest rate for a certain period of time. Remember that a lender must disclose the Annual Percentage Rate (APR) of a loan to you. The APR shows the cost of a mortgage loan by expressing it in terms of a yearly interest rate. It is generally higher than the interest rate because it also includes the cost of points, mortgage insurance, and other fees included in the loan. 44. WHAT HAPPENS IF INTEREST RATES DECREASE AND I HAVE A FIXED RATE LOAN? If interest rates drop significantly, you may want to investigate refinancing. Most experts agree that if you plan to be in your house for at least 18 months and you can get a rate 2% less than your current one, refinancing is smart. Refinancing may, however, involve paying many of the same fees paid at the original closing, plus origination and application fees. 45. WHAT ARE DISCOUNT POINTS? Discount points allow you to lower your interest rate. They are essentially prepaid interest, With each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage, the interest rate is reduced by 1/8 (or.125) of a percentage point. When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases With each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them. 46. WHAT IS AN ESCROW ACCOUNT? DO I NEED ONE? Established by your lender, an escrow account is a place to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner's insurance, mortgage insurance (if applicable), and property taxes. Escrow accounts are a good idea because they assure money will always be available for these payments. If you use an escrow account to pay property tax or homeowner's insurance, make sure you are not penalized for late payments since it is the lender's responsibility to make those payments. FIRST STEPS 47. WHAT STEPS NEED TO BE TAKEN TO SECURE A LOAN? The first step in securing a loan is to complete a loan application. To do so, you'll need the following information. Pay stubs for the past 2-3 months W-2 forms for the past 2 years Information on long-term debts Recent bank statements tax returns for the past 2 years Proof of any other income Address and description of the property you wish to buy Sales contract During the application process, the lender will order a report on your credit history and a professional appraisal of the property you want to purchase. The application process typically takes between 1-6 weeks. 48. HOW DO I CHOOSE THE RIGHT LENDER FOR ME? Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction. Be sure to choose a company that gives helpful advice and that makes you feel comfortable. A lender that has the authority to approve and process your loan locally is preferable, since it will be easier for you to monitor the status of your application and ask questions. Plus, it's beneficial when the lender knows home values and conditions in the local area. Do research and ask family, friends, and your real estate agent for recommendations. 49. HOW ARE PRE-QUALIFYING AND PRE-APPROVAL DIFFERENT? Pre-qualification is an informal way to see how much you maybe able to borrow. You can be 'pre-qualified' over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house. Pre-approval is a lender's actual commitment to lend to you. It involves assembling the financial records mentioned in Question 47 (Without the property description and sales contract) and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying. 50. HOW CAN I FIND OUT INFORMATION ABOUT MY CREDIT HISTORY? There are three major credit reporting companies: Equifax, Experian, and Trans Union. Obtaining your credit report is as easy as calling and requesting one. Once you receive the report, it's important to verify its accuracy. Double check the "high credit limit,"'total loan," and 'past due" columns. It's a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, are usually charged to issue credit reports but some states permit citizens to acquire a free one. Contact the reporting companies at the numbers listed for more information. CREDIT REPORTING COMPANIES Company Name Phone Number Experian 1-888-524-3666 Equifax 1-800-685-1111 Trans Union 1-800-916-8800 51. WHAT IF I FIND A MISTAKE IN MY CREDIT HISTORY? Simple mistakes are easily corrected by writing to the reporting company, pointing out the error, and providing proof of the mistake. You can also request to have your own comments added to explain problems. For example, if you made a payment late due to illness, explain that for the record. Lenders are usually understanding about legitimate problems. 52. WHAT IS A CREDIT BUREAU SCORE AND HOW DO LENDERS USE THEM? A credit bureau score is a number, based upon your credit history, that represents the possibility that you will be unable to repay a loan. Lenders use it to determine your ability to qualify for a mortgage loan. The better the score, the better your chances are of getting a loan. Ask your lender for details. 53. HOW CAN I IMPROVE MY SCORE? There are no easy ways to improve your credit score, but you can work to keep it acceptable by maintaining a good credit history. This means paying your bills on time and not overextending yourself by buying more than you can afford. FINDING the RIGHT LOAN for YOU 54. HOW DO I CHOOSE THE BEST LOAN - PROGRAM FOR ME? Your personal situation will determine the best kind of loan for you. By asking yourself a few questions, you can help narrow your search among the many options available and discover which loan suits you best. Do you expect your finances to changeover the next few years? Are you planning to live in this home for a long period of time? Are you comfortable with the idea of a changing mortgage payment amount? Do you wish to be free of mortgage debt as your children approach college age or as you prepare for retirement? Your lender can help you use your answers to questions such as these to decide which loan best fits your needs. 55. WHAT IS THE BEST WAY TO COMPARE LOAN TERMS BETWEEN LENDERS? First, devise a checklist for the information from each lending institution. You should include the company's name and basic information, the type of mortgage, minimum down payment required, interest rate and points, closing costs, loan processing time, and whether prepayment is allowed. Speak with companies by phone or in person. Be sure to call every lender on the list the same day, as interest rates can fluctuate daily. In addition to doing your own research, your real estate agent may have access to a database of lender and mortgage options. Though your agent may primarily be affiliated with a particular lending institution, he or she may also be able to suggest a variety of different lender options to you. 56. ARE THERE ANY COSTS OR FEES ASSOCIATED WITH THE LOAN ORIGINATION PROCESS? Yes. When you turn in your application, you'll be required to pay a loan application fee to cover the costs of underwriting the loan. This fee pays for the home appraisal, a copy of your credit report, and any additional charges that may be necessary. The application fee is generally non-refundable. 57. WHAT IS RESPA? RESPA stands for Real Estate Settlement Procedures Act. It requires lenders to disclose information to potential customers throughout the mortgage process, By doing so, it protects borrowers from abuses by lending institutions. RESPA mandates that lenders fully inform borrowers about all closing costs, lender servicing and escrow account practices, and business relationships between closing service providers and other parties to the transaction. For more information on RESPA , or call 1-800-569-4287 for a local counseling referral. 58. WHAT IS A GOOD FAITH ESTIMATE, AND HOW DOES IT HELP ME? It's an estimate that lists all fees paid before closing, all closing costs, and any escrow costs you will encounter when purchasing a home. The lender must supply it within three days of your application so that you can make accurate judgments when shopping for a loan. 59. BESIDES RESPA, DOES THE LENDER HAVE ANY ADDITIONAL RESPONSIBILITIES? Lenders are not allowed to discriminate in any way against potential borrowers. If you believe a lender is refusing to provide his or her services to you on the basis of race, color, nationality, religion, sex, familial status, or disability, contact HUD's Office of Fair Housing at 1-800-669-9777 (or 1-800-927-9275 for the hearing impaired). 60. WHAT RESPONSIBILITIES DO I HAVE DURING THE LENDING PROCESS? To ensure you won't fall victim to loan fraud, be sure to follow all of these steps as you apply for a loan: Be sure to read and understand everything before you sign. Refuse to sign any blank documents. Do not buy property for someone else. Do not overstate your income. Do not overstate how long you have been employed. Do not overstate your assets. Accurately report your debts. Do not change your income tax returns for any reason. Tell the whole truth about gifts. Do not list fake co-borrowers on your loan application. Be truthful about your credit problems, past and present. Be honest about your intention to occupy the house Do not provide false supporting documents. CLOSING 61. WHAT HAPPENS AFTER I'VE APPLIED FOR MY LOAN? It usually takes a lender between 1-6 weeks to complete the evaluation of your application. Its not unusual for the lender to ask for more information once the application has been submitted. The sooner you can provide the information, the faster your application will be processed. Once all the information has been verified the lender will call you to let you know the outcome of your application. If the loan is approved, a closing date is set up and the lender will review the closing with you. And after closing, you'll be able to move into your new home. 62. WHAT SHOULD I LOOK OUT FOR DURING THE FINAL WALK-THROUGH? This will likely be the first opportunity to examine the house without furniture, giving you a clear view of everything. Check the walls and ceilings carefully, as well as any work the seller agreed to do in response to the inspection. Any problems discovered previously that you find uncorrected should be brought up prior to closing. It is the seller's responsibility to fix them. 63. WHAT MAKES UP CLOSING COST? There may be closing cost customary or unique to a certain locality, but closing cost are usually made up of the following: Attorney's or escrow fees (Yours and your lender's if applicable) Property taxes (to cover tax period to date) Interest (paid from date of closing to 30 days before first monthly payment) Loan Origination fee (covers lenders administrative cost) Recording fees Survey fee First premium of mortgage Insurance (if applicable) Title Insurance (yours and lender's) Loan discount points First payment to escrow account for future real estate taxes and insurance Paid receipt for homeowner's insurance policy (and fire and flood insurance if applicable) Any documentation preparation fees 64. WHAT CAN I EXPECT TO HAPPEN ON CLOSING DAY? You'll present your paid homeowner's insurance policy or a binder and receipt showing that the premium has been paid. The closing agent will then list the money you owe the seller (remainder of down payment, prepaid taxes, etc.) and then the money the seller owes you (unpaid taxes and prepaid rent, if applicable). The seller will provide proofs of any inspection, warranties, etc. Once you're sure you understand all the documentation, you'll sign the mortgage, agreeing that if you don't make payments the lender is entitled to sell your property and apply the sale price against the amount you owe plus expenses. You'll also sign a mortgage note, promising to repay the loan. The seller will give you the title to the house in the form of a signed deed. You'll pay the lender's agent all closing costs and, in turn,he or she will provide you with a settlement statement of all the items for which you have paid. The deed and mortgage will then be recorded in the state Registry of Deeds, and you will be a homeowner. 65. WHAT DO I GET AT CLOSING? Settlement Statement, HUD-1 Form (itemizes services provided and the fees charged; it is filled out by the closing agent and must be given to you at or before closing) Truth-in-Lending Statement Mortgage Note Mortgage or Deed of Trust Binding Sales Contract (prepared by the seller; your lawyer should review it) Keys to your new home HOW CAN HUD and the FHA HELP ME BECOME a HOMEOWNER 66 . WHAT IS THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT? Also known as HUD, the U.S. Department of Housing and Urban Development was established in 1965 to develop national policies and programs to address housing needs in the U.S. One of HUD's primary missions is to create a suitable living environment for all Americans by developing and improving the country's communities and enforcing fair housing laws 67. HOW DOES HUD HELP HOMEBUYERS AND HOMEOWNERS? HUD helps people by administering a variety of programs that develop and support affordable housing. Specifically, HUD plays a large role in homeownership by making loans available for lower- and moderate-income families through its FHA mortgage insurance program and its HUD Homes program. HUD owns homes in many communities throughout the U.S. and offers them for sale at attractive prices and economical terms. HUD also seeks to protect consumers through education, Fair Housing Laws, and housing rehabilitation initiatives. 68. WHAT IS THE FHA? Now an agency within HUD, the Federal Housing Administration was established in 1934 to advance opportunities for Americans to own homes. By providing private lenders with mortgage insurance, the FHA gives them the security they need to lend to first-time buyers who might not be able to qualify for conventional loans. The FHA has helped more than 26 million Americans buy a home. 69. HOW CAN THE FHA ASSIST ME IN BUYING A HOME? The FHA works to make homeownership a possibility for more Americans. With the FHA, you don't need perfect credit or a high-paying job to qualify for a loan. The FHA also makes loans more accessible by requiring smaller down payments than conventional loans. In fact, an FHA down payment could be as little as a few months rent. And your monthly payments may not be much more than rent. 70. HOW IS THE FHA FUNDED? Lender claims paid by the FHA mortgage insurance program are drawn from the Mutual Mortgage Insurance fund. This fund is made up of premiums paid by FHA-insured loan borrowers. No tax dollars are used to fund the program. 71. WHO CAN QUALIFY FOR FHA LOANS anyone who meets the credit requirements, can afford the mortgage payments and cash investment, and who plans to use the mortgaged property as a primary residence may apply for an FHA-insured loan. 72. WHAT IS THE FHA LOAN LIMIT? FHA loan limits vary throughout the country, from $115,200 in low-cost areas to $208,800 in high-cost areas. The loan maximums for multi-unit homes are higher than those for single units and also vary by area. Because these maximums are linked to the conforming loan limit and average area home prices, FHA loan limits are periodically subject to change. Ask your lender for details and confirmation of current limits. 73. WHAT ARE THE STEPS INVOLVED IN THE FHA LOAN PROCESS? With the exception of a few additional forms, the FHA loan application process is similar to that of a conventional loan (see Question 47). With new automation measures, FHA loans may be originated more quickly than before. And, if you don't prefer a face-to-face meeting, you can apply for an FHA loan via mail, telephone, the Internet, or video conference. 74. HOW MUCH INCOME DO I NEED TO HAVE TO QUALIFY FOR AN FHA LOAN? There is no minimum income requirement. But you must prove steady income for at least three years, and demonstrate that you've consistently paid your bills on time. 75. WHAT QUALIFIES AS AN INCOME SOURCE FOR THE FHA? Seasonal pay, child support, retirement pension payments, unemployment compensation, VA benefits, military pay, Social Security income, alimony, and rent paid by family all qualify as income sources. Part-time pay, overtime, and bonus pay also count as long as they are steady. Special savings plans-such as those set up by a church or community association - qualify, too. Income type is not as important as income steadiness with the FHA. 76. CAN I CARRY DEBT AND STILL QUALIFY FOR FHA LOANS? Yes. Short-term debt doesn't count as long as it can be paid off within 10 months. And some regular expenses, like child care costs, are not considered debt. Talk to your lender or real estate agent about meeting the FHA debt-to-income ratio. 77. WHAT IS THE DEBT-TO-INCOME RATIO FOR FHA LOANS? The FHA allows you to use 29% of your income towards housing costs and 41% towards housing expenses and other long-term debt. With a conventional loan, this qualifying ratio allows only 28% toward housing and 36% towards housing and other debt 78. CAN I EXCEED THIS RATIO? You may qualify to exceed if you have: a large down payment a demonstrated ability to pay more toward your housing expenses substantial cash reserves net worth enough to repay the mortgage regardless of income evidence of acceptable credit history or limited credit use less-than-maximum mortgage terms funds provided by an organization a decrease in monthly housing expenses 79. HOW LARGE A DOWN PAYMENT DO I NEED WITH AN FHA LOAN? You must have a down payment of at least 3% of the purchase price of the home. Most affordable loan programs offered by private lenders require between a 3%-5% down payment, with a minimum of 3% coming directly from the borrower's own funds. 80. WHAT CAN I USE TO PAY THE DOWN PAYMENT AND CLOSING COSTS OF AN FHA LOAN? Besides your own funds, you may use cash gifts or money from a private savings club. If you can do certain repairs and improvements yourself, your labor may be used as part of a down 8 payment (called -sweat equity"). If you are doing a lease purchase, paying extra rent to the seller may also be considered the same as accumulating cash. 81. HOW DOES MY CREDIT HISTORY IMPACT MY ABILITY TO QUALIFY? The FHA is generally more flexible than conventional lenders in its qualifying guidelines. In fact, the FHA allows you to re-establish credit if: two years have passed since a bankruptcy has been discharged all judgments have been paid any outstanding tax liens have been satisfied or appropriate arrangements have been made to establish a repayment plan with the IRS or state Department of Revenue three years have passed since a foreclosure or a deed-in-lieu has been resolved 82. CAN I QUALIFY FOR AN FHA LOAN WITHOUT A CREDIT HISTORY? Yes. If you prefer to pay debts in cash or are too young to have established credit, there are other ways to prove your eligibility. Talk to your lender for details. 83. WHAT TYPES OF CLOSING COSTS ARE ASSOCIATED WITH FHA-INSURED LOANS? Except for the addition of an FHA mortgage insurance premium, FHA closing costs are similar to those of a conventional loan outlined in Question 63. The FHA requires a single, upfront mortgage insurance premium equal to 2.25% of the mortgage to be paid at closing (or 1.75% if you complete the HELP program- see Question 91). This initial premium may be partially refunded if the loan is paid in full during the first seven years of the loan term. After closing, you will then be responsible for an annual premium - paid monthly - if your mortgage is over 15 years or if you have a 15-year loan with an LTV greater than 90%. 84. CAN I ROLL CLOSING COSTS INTO my FHA LOAN? No. Though you can't roll closing costs into your FHA loan, you may be able to use the amount you pay for them to help satisfy the down payment requirement. Ask your lender for details. 85. ARE FHA LOANS ASSUMABLE? Yes. You can assume an existing FHA-insured loan, or, if you are the one deciding to sell, allow a buyer to assume yours. Assuming a loan can be very beneficial, since the process is streamlined and less expensive compared to that for a new loan. Also, assuming a loan can often result in a lower interest rate. The application process consists basically of a credit check and no property appraisal is required. And you must demonstrate that you have enough income to support the mortgage loan. In this way, qualifying to assume a loan is similar to the qualification requirements for a new one. 86. WHAT SHOULD I DO IF I CAN'T MAKE A PAYMENT ON LOAN? Call or, write to your lender as soon as possible. Clearly explain the situation and be prepared to provide him or her with financial information. 87. ARE THERE ANY OPTIONS IF I FALL BEHIND ON MY LOAN PAYMENTS? Yes. Talk to your lender or a HUD-approved counseling agency for details. Listed below are a few options that may help you get back on track. For FHA loans: Keep living in your home to qualify for assistance. Contact a HUD-approved housing counseling agency (1-800-569-4287 or TDD: 1-800-483-2209) and cooperate with the counselor/lender trying to help you. HUD has a number of special loss mitigation programs available to help you: Special Forbearance: Your lender will arrange for a revised repayment plan which may Include temporary reduction or suspension of payments; you can qualify by having an Involuntary reduction in your Income or Increase In living expenses. Mortgage Modification: Allows refinance debt and/or extend the term of the your mortgage loan which may reduce your monthly payments; you can qualify if you have recovered from financial problems, but net Income Is less than before. Partial Claim: Your lender maybe able to help you obtain an interest-free loan from HUD to bring your mortgage current. Pre-foreclosure Sale: Allows you to sell your property and pay off your mortgage loan ,to avoid foreclosure. Deed-in lieu of Foreclosure: Lets you voluntarily "give back" your property to the lender; it won't save your house but will help you avoid the costs, time, and effort of the foreclosure process. If you are having difficulty with an-uncooperative lender or feel your loan servicer is not providing you with the most effective loss mitigation options, call the FHA Loss Mitigation Center at 1-888-297-8685 for additional help. For Conventional Loans: Talk to your lender about specific loss mitigation options. Work directly with him or her to request a "workout packet." A secondary lender, like Fannie Mae or Freddie Mac, may have purchased your loan. Your lender can follow the appropriate guidelines set by Fannie or Freddie to determine the best option for your situation. Fannie Mae does not deal directly with the borrower. They work with the lender to determine the loss mitigation program that best fits your needs. Freddie Mac, like Fannie Mae, will usually only work with the loan servicer. However, if you encounter problems with your lender during the loss mitigation process, you can coil customer service for help at 1-800-FREDDIE (1-800-373-3343). In any loss mitigation situation, it is important to remember a few helpful hints: Explore every reasonable alternative to avoid losing your home, but beware of scams. For example, watch out for: Equity skimming: a buyer offers to repay the mortgage or sell the property if you sign over the deed and move out. Phony counseling agencies: offer counseling for a fee when it is often given at no charge. Don't sign anything you don't understand. MORTGAGE INSURANCE 88. WHAT IS MORTGAGE INSURANCE? Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. It's required primarily for borrowers making a down payment of less than 20%. 89. HOW DOES MORTGAGE INSURANCE WORK? IS IT LIKE HOME OR AUTO INSURANCE? Like home or auto insurance, mortgage insurance requires payment of a premium, is for protection against loss, and is used in the event of an emergency. If a borrower can't repay an insured mortgage loan as agreed, the lender may foreclose on the property and file a claim with the mortgage insurer for some or most of the total losses. 90. DO I NEED MORTGAGE INSURANCE? HOW DO I GET IT? You need mortgage insurance only if you plan to make a down payment of less than 20% of the purchase price of the home. The FHA offers several loan programs that may meet your needs. Ask your lender for details. 91. HOW CAN I RECEIVE A DISCOUNT ON THE FHA INITIAL MORTGAGE INSURANCE PREMIUM? Ask your real estate agent or lender for information on the HELP program from the FHA. HELP - Homebuyer Education Learning Program - is structured to help people like you begin the homebuying process. It covers such topics as budgeting, finding a home, getting a loan, and home maintenance. In most cases, completion of this program may entitle you to a reduction in the initial FHA mortgage insurance premium from 2.25% to 1.75% of the purchase price of your new home. 92. WHAT IS PMI? PMI stands for Private Mortgage Insurance or Insurer. These are privately-owned companies that provide mortgage insurance. They offer both standard and special affordable programs for borrowers. These companies provide guidelines to lenders that detail the types of loans they will insure. Lenders use these guidelines to determine borrower eligibility. PMI's usually have stricter qualifying ratios and larger down payment requirements than the FHA, but their premiums are often lower and they insure loans that exceed the FHA limit. FHA PRODUCTS 93. WHAT IS A 203(b) LOAN? This is the most commonly used FHA program. It offers a low down payment, flexible qualifying guidelines, limited lender's fees, and a maximum loan amount. 94. WHAT IS A 203(k) LOAN? This is a loan that enables the homebuyer to finance both the purchase and rehabilitation of a home through a single mortgage. A portion of the loan is used to pay off the seller's existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed. Basic guidelines for 203(k) loans are as follows: The home must be at least one year old. The cost of rehabilitation must be at least $5,000, but the total property value - including the cost of repairs - must fall within the FHA maximum mortgage limit. The 203(k) loan must follow many of the 203(b) eligibility requirements. Talk to your lender about specific improvement, energy efficiency, and structural guidelines. 95. WHAT IS AN ENERGY EFFICIENT MORTGAGE (EEM)? The Energy Efficient Mortgage allows a homebuyer to save future money on utility bills. This is done by financing the cost of adding energy-efficiency features to a new or existing home as part of an FHA-insured home purchase. The EEM can be used with both 203(b) and 203(k) loans. Basic guidelines for EEMs are as follows: The cost of improvements must be determined by a Home Energy Rating System or by an energy consultant. This cost must be less than the anticipated savings from the improvements. One- and two-unit new or existing homes are eligible; condos are not. The improvements financed may be 5% of property value or $4,000, whichever is greater. The total must fall within the FHA loan limit. 96. DELETED. 97. WHAT IS A TITLE I LOAN? Given by a Lender and insured by the FHA, a Title I loan is used to make non-luxury renovations and repairs to a home. It offers a manageable interest rate and repayment schedule. Loans are limited to between $5,000 and 20,000. If the loan amount is under 7,500, no lien is required against your home. Ask your lender for details. 98. WHAT OTHER LOAN PRODUCTS OR PROGRAMS DOES THE FHA OFFER? The FHA also insures loans for the purchase or rehabilitation of manufactured housing, condominiums, and cooperatives. It also has special programs for urban areas, disaster victims, and members of the armed forces. Insurance for ARMS is also available from the FHA. 99. HOW CAN I OBTAIN AN FHA-INSURED LOAN? Contact an FHA-approved lender such as a participating mortgage company, bank, savings and loan association, or thrift. For more information on the FHA and how you can obtain an FHA loan, visit the HUD web site at http://www.hud.gov or call a HUD-approved counseling agency at 1-800-569-4287 or TDD: 1-800-877-8339. 100. HOW CAN I CONTACT HUD? Visit the web site at http://www.hud.gov or look in the phone book "blue pages" for a listing of the HUD office near you. Return to Top Content updated April 4, 2003 Back to top FOIA Privacy Web Policies and Important Links Home U.S. Department of Housing and Urban Development 451 7th Street S.W., Washington, DC 20410 Telephone: (202) 708-1112 TTY: (202) 708-1455 Find the address of a HUD office near you

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Florida Real Estate areas include Orlando, Miami, Gainesville, Ponte Vedra, St. Augustine, Florida Keys, Pensacola, Melbourne, West Palm Beach, Panama City, Destin, Tampa, Daytona Beach, Fort Lauderdale, Tallahassee, Sarasota, Fort Myers, Jacksonville, Punta Gorda, Port St. Lucie, Naples, Ocala, Lake City, Palm Coast, Vero Beach, Lakeland, Homosassa, in or about Florida. Search for Georgia Real Estate, home rentals, Real Estate , Georgia homes for rent, houses for rent, rental homes, and apartments in Georgia. Search for apartment rentals in GA, Georgia townhomes, or Real Estate in GA. Georgia Real Estate areas include Columbus, Savannah, Valdosta, Macon, Augusta, Athens, Albany, Atlanta, Brunswick, Dalton, Bainbridge, Waycross, Warner Robins, Thomasville, St. Marys, LaGrange, Statesboro, Hinesville-Fort Stewart, Rome, Americus, Toccoa, Cornelia, Gainesville, Commerce, Lake Oconee, Milledgeville, in or about Georgia. Search for Hawaii Real Estate, home rentals, Real Estate , Hawaii homes for rent, houses for rent, rental homes, and apartments in Hawaii. Search for apartment rentals in HI, Hawaii townhomes, or Real Estate in HI. Hawaii Real Estate areas include Honolulu-Oahu, Kauai, Maui, Hawaii, in or about Hawaii. Search for Idaho Real Estate, home rentals, Real Estate , Idaho homes for rent, houses for rent, rental homes, and apartments in Idaho. Search for apartment rentals in ID, Idaho townhomes, or Real Estate in ID. Idaho Real Estate areas include Boise, Idaho Falls, Pocatello, Blackfoot, Rexburg, Twin Falls, Coeur d'Alene, Lewiston, Moscow, in or about Idaho. Search for Illinois Real Estate, home rentals, Real Estate , Illinois homes for rent, houses for rent, rental homes, and apartments in Illinois. Search for apartment rentals in IL, Illinois townhomes, or Real Estate in IL. Illinois Real Estate areas include Chicago, Rockford, Peoria, Springfield, Kankakee, Carbondale, Bloomington, Champaign-Urbana, Decatur, Charleston-Mattoon, Danville, Effingham, Macomb, Ottawa-Streator, Quincy, in or about Illinois. Search for Indiana Real Estate, home rentals, Real Estate , in or about diana homes for rent, houses for rent, rental homes, and apartments in Indiana. Search for apartment rentals in IN, in or about Indiana townhomes, or Real Estate in IN. Indiana Real Estate areas include Indianapolis, Fort Wayne, Evansville, South Bend, Northwest Indiana, Elkhart-Goshen, Lafayette, Terre Haute, Anderson, Muncie, Bloomington, New Castle, Michigan City, Rensselaer, Vincennes, Columbus, Crawfordsville, Kokomo, Wabash, Madison, Marion, Richmond, in or about Indiana. Search for Iowa Real Estate, home rentals, Real Estate , Iowa homes for rent, houses for rent, rental homes, and apartments in Iowa. Search for apartment rentals in IA, Iowa townhomes, or Real Estate in IA. Iowa Real Estate areas include Des Moines, Cedar Rapids, Ames, Dubuque, Iowa City, Waterloo, Sioux City, Davenport, Burlington, Clinton, Mason City, Muscatine, Grinnell, Fort Dodge, Marshalltown, in or about Iowa. Search for Kansas Real Estate, home rentals, Real Estate , Kansas homes for rent, houses for rent, rental homes, and apartments in Kansas. Search for apartment rentals in KS, Kansas townhomes, or Real Estate in KS. Kansas Real Estate areas include Kansas City, Wichita, Topeka, Lawrence, Manhattan, Atchison, Dodge City, Emporia, Hays, Hutchinson, Pittsburg, Salina, in or about Kansas. Search for Kentucky Real Estate, home rentals, Real Estate , Kentucky homes for rent, houses for rent, rental homes, and apartments in Kentucky. Search for apartment rentals in KY, Kentucky townhomes, or Real Estate in KY. Kentucky Real Estate areas include Lexington, Louisville, Owensboro, Frankfort, Bowling Green, Elizabethtown, Danville, London, Madisonville, Murray, Paducah, Richmond-Berea, in or about Kentucky. Search for Louisiana Real Estate, home rentals, Real Estate , Louisiana homes for rent, houses for rent, rental homes, and apartments in Louisiana. Search for apartment rentals in LA, Louisiana townhomes, or Real Estate in LA. Louisiana Real Estate areas include New Orleans, Baton Rouge, Shreveport, Lafayette, Monroe, Natchitoches, Houma, Lake Charles, Alexandria, Leesville, Hammond, New Iberia, Ruston, in or about Louisiana. Search for Maine Real Estate, home rentals, Real Estate , Maine homes for rent, houses for rent, rental homes, and apartments in Maine. Search for apartment rentals in ME, Maine townhomes, or Real Estate in ME. Maine Real Estate areas include Portland, Augusta, Bangor, Farmington, Brunswick, Lewiston-Auburn, Rockland, Waterville, Bar Harbor, Presque Isle, in or about Maine. Search for Maryland Real Estate, home rentals, Real Estate , Maryland homes for rent, houses for rent, rental homes, and apartments in Maryland. Search for apartment rentals in MD, Maryland townhomes, or Real Estate in MD. Maryland Real Estate areas include Baltimore, Annapolis, Gaithersburg, Frederick, Cambridge, Cumberland, Hagerstown-Martinsburg, Lexington Park, Ocean Pines, Salisbury, in or about Maryland. Search for Massachusetts Real Estate, home rentals, Real Estate , Massachusetts homes for rent, houses for rent, rental homes, and apartments in Massachusetts. Search for apartment rentals in MA, Massachusetts townhomes, or Real Estate in MA. Massachusetts Real Estate areas include Boston, Worcester, Springfield, Lowell, Framingham, Pittsfield, Taunton, Leominster-Fitchburg, Haverhill, Nantucket, Lawrence, Martha's Vineyard, Amherst, North Shore, Salem, Cape Cod, New Bedford, Brockton, in or about Massachusetts. Search for Michigan Real Estate, home rentals, Real Estate , Michigan homes for rent, houses for rent, rental homes, and apartments in Michigan. Search for apartment rentals in MI, Michigan townhomes, or Real Estate in MI. Michigan Real Estate areas include Detroit, Grand Rapids, Flint, Lansing, Ann Arbor, Battle Creek, Midland, Royal Oak, Saginaw, Benton Harbor, Jackson, Cadillac, Bay City, Muskegon, Kalamazoo, Traverse City, Monroe, Big Rapids, Houghton, Holland, Mount Pleasant, Marquette, Sault Ste. Marie, Gaylord, in or about Michigan. Search for Minnesota Real Estate, home rentals, Real Estate , Minnesota homes for rent, houses for rent, rental homes, and apartments in Minnesota. Search for apartment rentals in MN, Minnesota townhomes, or Real Estate in MN. Minnesota Real Estate areas include Minneapolis-St. Paul, New Ulm, Worthington, Winona, St. Cloud, Northfield-Faribault, Mankato, Marshall, Red Wing, Bemidji, Brainerd, Rochester, Duluth, Lake of the Woods, Detroit Lakes, Thief River Falls, in or about Minnesota. Search for Mississippi Real Estate, home rentals, Real Estate , Mississippi homes for rent, houses for rent, rental homes, and apartments in Mississippi. Search for apartment rentals in MS, Mississippi townhomes, or Real Estate in MS. Mississippi Real Estate areas include Jackson, Corinth, Gulfport-Biloxi, Columbus, Greenville, Greenwood, Grenada, Hattiesburg, Laurel, Meridian, Oxford, Pascagoula, Starkville, Tupelo, Vicksburg, in or about Mississippi. Search for Missouri Real Estate, home rentals, Real Estate , Missouri homes for rent, houses for rent, rental homes, and apartments in Missouri. Search for apartment rentals in MO, Missouri townhomes, or Real Estate in MO. Missouri Real Estate areas include St. Louis, Springfield, Jefferson City, Cape Girardeau, Branson, Joplin, St. Joseph, Columbia, Fort Leonard Wood, Hannibal, Kirksville, Lebanon, Maryville, Poplar Bluff, Rolla, Sedalia, Sikeston, Warrensburg, West Plains, in or about Missouri. Search for Montana Real Estate, home rentals, Real Estate , Montana homes for rent, houses for rent, rental homes, and apartments in Montana. Search for apartment rentals in MT, Montana townhomes, or Real Estate in MT. Montana Real Estate areas include Helena, Butte, Great Falls, Missoula, Billings, Bozeman, Kalispell, Bitterroot Valley, in or about Montana. Search for Nebraska Real Estate, home rentals, Real Estate , Nebraska homes for rent, houses for rent, rental homes, and apartments in Nebraska. Search for apartment rentals in NE, Nebraska townhomes, or Real Estate in NE. Nebraska Real Estate areas include Omaha, Lincoln, Fremont, Grand Island, Hastings, Kearney, North Platte, Scottsbluff, Norfolk, Columbus, in or about Nebraska. Search for Nevada Real Estate, home rentals, Real Estate , Nevada homes for rent, houses for rent, rental homes, and apartments in Nevada. Search for apartment rentals in NV, Nevada townhomes, or Real Estate in NV. Nevada Real Estate areas include Las Vegas, Reno, Carson City, Elko, Fallon, in or about Nevada. Search for New Hampshire Real Estate, home rentals, Real Estate , New Hampshire homes for rent, houses for rent, rental homes, and apartments in New Hampshire. Search for apartment rentals in NH, New Hampshire townhomes, or Real Estate in NH. New Hampshire Real Estate areas include Manchester, Concord, Nashua, Rochester-Dover, Portsmouth, Berlin, Keene, Lebanon, Lake Winnipesaukee, in or about New Hampshire. Search for New Jersey Real Estate, home rentals, Real Estate , New Jersey homes for rent, houses for rent, rental homes, and apartments in New Jersey. Search for apartment rentals in NJ, New Jersey townhomes, or Real Estate in NJ. New Jersey Real Estate areas include Atlantic City, Newark, Jersey City, Paterson, New Brunswick, Vineland, Monmouth County, Ocean County, Camden, Trenton, Cape May, in or about New Jersey. Search for New Mexico Real Estate, home rentals, Real Estate , New Mexico homes for rent, houses for rent, rental homes, and apartments in New Mexico. Search for apartment rentals in NM, New Mexico townhomes, or Real Estate in NM. New Mexico Real Estate areas include Albuquerque, Los Alamos, Santa Fe, Las Cruces, Alamogordo, Carlsbad-Artesia, Clovis, Deming, Espanola, Farmington, Gallup, Las Vegas, Portales, Roswell, Silver City, Taos, in or about New Mexico. Search for New York Real Estate, home rentals, Real Estate , New York homes for rent, houses for rent, rental homes, and apartments in New York. Search for apartment rentals in NY, New York townhomes, or Real Estate in NY. New York Real Estate areas include New York City, Long Island, Buffalo, Rochester, Hudson, Syracuse, Watertown, Poughkeepsie, Binghamton, Utica, Newburgh, Rockland County, Putnam County, Albany, Westchester, Elmira, Kingston, Batavia, Glens Falls, Ithaca, Jamestown-Dunkirk, Olean, Oneonta, Plattsburgh, in or about New York. Search for North Carolina Real Estate, home rentals, Real Estate , North Carolina homes for rent, houses for rent, rental homes, and apartments in North Carolina. Search for apartment rentals in NC, North Carolina townhomes, or Real Estate in NC. North Carolina Real Estate areas include Charlotte, Greensboro, Raleigh-Durham, Wilmington, Winston-Salem, Fayetteville, Rocky Mount, Jacksonville, Asheville, Goldsboro, Boone, Outer Banks, Greenville, Hickory, Ashe County, Forest City, Elizabeth City, in or about North Carolina. Search for North Dakota Real Estate, home rentals, Real Estate , North Dakota homes for rent, houses for rent, rental homes, and apartments in North Dakota. Search for apartment rentals in ND, North Dakota townhomes, or Real Estate in ND. North Dakota Real Estate areas include Bismarck, Fargo, Grand Forks, Jamestown, Minot, Wahpeton, in or about North Dakota. Search for Ohio Real Estate, home rentals, Real Estate , Ohio homes for rent, houses for rent, rental homes, and apartments in Ohio. Search for apartment rentals in OH, Ohio townhomes, or Real Estate in OH. Ohio Real Estate areas include Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton, Ashland, Ashtabula, Mansfield, Lima, Springfield, Canton, Youngstown, Athens, Chillicothe, Findlay, Portsmouth, Sandusky, in or about Ohio. Search for Oklahoma Real Estate, home rentals, Real Estate , Oklahoma homes for rent, houses for rent, rental homes, and apartments in Oklahoma. Search for apartment rentals in OK, Oklahoma townhomes, or Real Estate in OK. Oklahoma Real Estate areas include Oklahoma City, Tulsa, Ada, Lawton, Altus, Ardmore, Bartlesville, Duncan, Durant, Enid, McAlester, Muskogee, Shawnee, Stillwater, Tahlequah, Guymon, in or about Oklahoma. Search for Oregon Real Estate, home rentals, Real Estate , Oregon homes for rent, houses for rent, rental homes, and apartments in Oregon. Search for apartment rentals in OR, Oregon townhomes, or Real Estate in OR. Oregon Real Estate areas include Portland, Eugene, Salem, Bend, Brookings, Medford, Astoria, Corvallis, Albany, The Dalles, Coos Bay, Grants Pass, Klamath Falls, La Grande, Roseburg, Pendleton, in or about Oregon. Search for Pennsylvania Real Estate, home rentals, Real Estate , Pennsylvania homes for rent, houses for rent, rental homes, and apartments in Pennsylvania. Search for apartment rentals in PA, Pennsylvania townhomes, or Real Estate in PA. Pennsylvania Real Estate areas include Philadelphia, Pittsburgh, Allentown, Erie, Lancaster, Altoona, Scranton--Wilkes-Barre, Reading, Lewisburg, Harrisburg, Johnstown, Chambersburg, Lebanon, State College, Williamsport, York, Bloomsburg, East Stroudsburg, Gettysburg, Huntingdon, in or about diana, Meadville, New Castle, Warren, in or about Pennsylvania. Search for Rhode Island Real Estate, home rentals, Real Estate , Rhode Island homes for rent, houses for rent, rental homes, and apartments in Rhode Island. Search for apartment rentals in RI, Rhode Island townhomes, or Real Estate in RI. Rhode Island Real Estate areas include Providence, in or about Rhode Island. Search for South Carolina Real Estate, home rentals, Real Estate , South Carolina homes for rent, houses for rent, rental homes, and apartments in South Carolina. Search for apartment rentals in SC, South Carolina townhomes, or Real Estate in SC. South Carolina Real Estate areas include Charleston, Columbia, Greenville, Myrtle Beach, Lancaster, Greenwood, Hilton Head Island, Georgetown, Florence, Sumter, Newberry, Orangeburg, Chester, Seneca, Spartanburg, Union, Anderson, Gaffney, Walterboro, in or about South Carolina. Search for South Dakota Real Estate, home rentals, Real Estate , South Dakota homes for rent, houses for rent, rental homes, and apartments in South Dakota. Search for apartment rentals in SD, South Dakota townhomes, or Real Estate in SD. South Dakota Real Estate areas include Sioux Falls, Rapid City, Aberdeen, Brookings, Huron, Mitchell, Pierre, Spearfish, Watertown, Vermillion-Yankton, in or about South Dakota. Search for Tennessee Real Estate, home rentals, Real Estate , Tennessee homes for rent, houses for rent, rental homes, and apartments in Tennessee. Search for apartment rentals in TN, Tennessee townhomes, or Real Estate in TN. Tennessee Real Estate areas include Nashville, Memphis, Knoxville, Chattanooga, Sevierville, Cookeville-Crossville, Athens, Clarksville, Cleveland, Columbia, Harriman, Jackson, Johnson City, Kingsport, Martin, Morristown, Paris, Tullahoma, in or about Tennessee. Search for Texas Real Estate, home rentals, Real Estate , Texas homes for rent, houses for rent, rental homes, and apartments in Texas. Search for apartment rentals in TX, Texas townhomes, or Real Estate in TX. Texas Real Estate areas include Dallas, Fort Worth, El Paso, San Antonio, Amarillo, Austin, Waco, Lubbock, Midland-Odessa, Corpus Christi, Laredo, Brownsville, Abilene, Beaumont, Wichita Falls, Houston, Killeen, College Station, Texarkana, Brownwood, Del Rio, Huntsville, Kingsville, Longview, Lufkin, Marshall, McAllen-Edinburg, Nacogdoches, Plainview, San Angelo, Sherman, Stephenville, Tyler, Victoria, in or about Texas. Search for Utah Real Estate, home rentals, Real Estate , Utah homes for rent, houses for rent, rental homes, and apartments in Utah. Search for apartment rentals in UT, Utah townhomes, or Real Estate in UT. Utah Real Estate areas include Salt Lake City, St. George, Provo, Logan, Ogden, in or about Utah. Search for Vermont Real Estate, home rentals, Real Estate , Vermont homes for rent, houses for rent, rental homes, and apartments in Vermont. Search for apartment rentals in VT, Vermont townhomes, or Real Estate in VT. Vermont Real Estate areas include Burlington, Montpelier, Rutland, St. Johnsbury-Newport, Brattleboro, Bennington, in or about Vermont. Search for Virginia Real Estate, home rentals, Real Estate , Virginia homes for rent, houses for rent, rental homes, and apartments in Virginia. Search for apartment rentals in VA, Virginia townhomes, or Real Estate in VA. Virginia Real Estate areas include Virginia Beach, Norfolk, Richmond, Newport News, Fredericksburg, Roanoke, Lynchburg, Charlottesville, Williamsburg, Blacksburg, Danville, Harrisonburg, Martinsville, Lexington, Staunton-Waynesboro, Winchester, in or about Virginia. Search for Washington Real Estate, home rentals, Real Estate , Washington homes for rent, houses for rent, rental homes, and apartments in Washington. Search for apartment rentals in WA, Washington townhomes, or Real Estate in WA. Washington Real Estate areas include Seattle, Spokane, Tacoma, Vancouver, Olympia, Yakima, Bellingham, Kennewick-Richland, Longview, Wenatchee, Bremerton-Silverdale, Walla Walla, Ellensburg, Moses Lake, Port Angeles, Pullman, Mount Vernon, Oak Harbor, Centralia, Aberdeen, Shelton, in or about Washington. Search for Washington DC Real Estate, home rentals, Real Estate , Washington DC homes for rent, houses for rent, rental homes, and apartments in Washington DC. Search for apartment rentals in DC, Washington DC townhomes, or Real Estate in DC. Washington DC Real Estate areas include in Washington DC. Search for West Virginia Real Estate, home rentals, Real Estate , West Virginia homes for rent, houses for rent, rental homes, and apartments in West Virginia. Search for apartment rentals in WV, West Virginia townhomes, or Real Estate in WV. West Virginia Real Estate areas include Huntington, Charleston, Morgantown, Parkersburg-Marietta, Weirton-Steubenville, Wheeling, Beckley, Bluefield, Clarksburg, Fairmont, Point Pleasant, in or about West Virginia. Search for Wisconsin Real Estate, home rentals, Real Estate , Wisconsin homes for rent, houses for rent, rental homes, and apartments in Wisconsin. Search for apartment rentals in WI, Wisconsin townhomes, or Real Estate in WI. Wisconsin Real Estate areas include Madison, Green Bay, Milwaukee, La Crosse, Appleton, Eau Claire, Janesville, Oshkosh-Neenah, Racine, Sheboygan, Wausau, Baraboo, Beaver Dam, Fond du Lac, Manitowoc, Marinette, Menomonie, Platteville, Stevens Point, Watertown-Fort Atkinson, Whitewater, Wisconsin Rapids-Marshfield, in or about Wisconsin. Search for Wyoming Real Estate, home rentals, Real Estate , Wyoming homes for rent, houses for rent, rental homes, and apartments in Wyoming. Search for apartment rentals in WY, Wyoming townhomes, or Real Estate in WY. Wyoming Real Estate areas include Cheyenne, Casper, Evanston, Gillette, Jackson, Laramie, Riverton, Rock Springs, Sheridan, in or about Wyoming.

Real Estate Brokers and

Real estate brokers and sales agents Skip Navigation Links Latest Numbers U.S. Department of Labor Bureau of Labor Statistics Occupational Outlook Handbook www.bls.gov Search the Handbook BLS Home | OOH Home | Frequently Asked Questions | A-Z Index | Contact Us Printer-friendly version ( HTML ) -- PDF ) -- Real Estate Brokers and Sales Agents Nature of the Work Working Conditions Training, Other Qualifications, and Advancement Employment Job Outlook Earnings Related Occupations Sources of Additional Information Significant Points Real estate brokers and sales agents often work evenings and weekends and usually are on call to suit the needs of clients. A license is required in every State and the District of Columbia. Although gaining a job may be relatively easy, beginning workers may face competition fromwell-established, more experienced agents and brokers in obtaining listings and in closing an adequate number of sales. Employment is sensitive to swings in the economy, especially interest rates; during periodsof declining economic activity and increasing interest rates, the volume of sales and the resultingdemand for sales workers fall. Nature of the Work [ About this section ] Back to Top One of the most complex and significant financial events in peoples lives is the purchase or sale of a home or investment property. Because of this complexity and significance, people typically seek the help of real estate brokers and sales agents when buying or selling real estate. Real estate brokers and sales agents have a thorough knowledge of the real estate market in their communities. They know which neighborhoods will best fit clients needs and budgets. They are familiar with local zoning and tax laws and know where to obtain financing. Agents and brokers also act as intermediaries in price negotiations between buyers and sellers. Real estate agents usually are independent sales workers who provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agents sale of the property. Brokers are independent businesspeople who sell real estate owned by others; they also may rent or manage properties for a fee. When selling real estate, brokers arrange for title searches and for meetings between buyers and sellers during which the details of the transactions are agreed upon and the new owners take possession of the property. A broker may help to arrange favorable financing from a lender for the prospective buyer; often, this makes the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for closing sales; in others, lawyers or lenders do. Brokers supervise agents who may have many of the same job duties. Brokers also supervise their own offices, advertise properties, and handle other business matters. Some combine other types of work, such as selling insurance or practicing law, with their real estate business. Besides making sales, agents and brokers must have properties to sell. Consequently, they spend a significant amount of time obtaining listings—agreements by owners to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that recently sold, in order to determine a competitive market price for the property. Once the property is sold, both the agent who sold it and the agent who obtained the listing receive a portion of the commission. Thus, agents who sell a property that they themselves have listed can increase their commission. Most real estate brokers and sales agents sell residential property. A small number—usually employed in large or specialized firms—sell commercial, industrial, agricultural, or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Selling or leasing business property requires an understanding of leasing practices, business trends, and the location of the property. Agents who sell or lease industrial properties must know about the regions transportation, utilities, and labor supply. Whatever the type of property, the agent or broker must know how to meet the clients particular requirements. Before showing residential properties to potential buyers, agents meet with them to get a feeling for the type of home the buyers would like. In this prequalifying phase, the agent determines how much the buyers can afford to spend. In addition, the agent and the buyer usually sign a loyalty contract which states that the agent will be the only one to show houses to buyers. An agent or broker then generates lists of properties for sale, their location and description, and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties in which they are interested. With a computer, buyers can view interior and exterior images or floor plans without leaving the real estate office. Agents may meet several times with prospective buyers to discuss and visit available properties. Agents identify and emphasize the most pertinent selling points. To a young family looking for a house, they may emphasize the convenient floor plan, the areas low crime rate, and the proximity to schools and shopping centers. To a potential investor, they may point out the tax advantages of owning a rental property and the ease of finding a renter. If bargaining over price becomes necessary, agents must follow their clients instructions carefully and may have to present counteroffers in order to get the best possible price. Once both parties have signed the contract, the real estate broker or agent must make sure that all special terms of the contract are met before the closing date. For example, the agent must make sure that the mandated and agreed-upon inspections, including that of the home and termite and radon inspections, take place. Also, if the seller agrees to any repairs, the broker or agent must see that they are made. Increasingly, brokers and agents are handling environmental problems as well, by making sure that the properties they sell meet environmental regulations. For example, they may be responsible for dealing with lead paint on the walls. While loan officers, attorneys, or other persons handle many details, the agent must ensure that they are carried out. Working Conditions [ About this section ] Back to Top Advances in telecommunications and the ability to retrieve data about properties over the Internet allow many real estate brokers and sales agents to work out of their homes instead of real estate offices. Even with this convenience, much of the time of these workers is spent away from their desks—showing properties to customers, analyzing properties for sale, meeting with prospective clients, or researching the state of the market. Agents and brokers often work more than a standard 40-hour week. They usually work evenings and weekends and are always on call to suit the needs of clients. Although the hours are long and frequently irregular, most agents and brokers have the freedom to determine their own schedule. Consequently, they can arrange their work so that they can have time off when they want it. Business usually is slower during the winter season. Training, Other Qualifications, and Advancement [ About this section ] Back to Top In every State and the District of Columbia, real estate brokers and sales agents must be licensed. Prospective agents must be high school graduates, be at least 18 years old, and pass a written test. The examination—more comprehensive for brokers than for agents—includes questions on basic real estate transactions and laws affecting the sale of property. Most States require candidates for the general sales license to complete between 30 and 90 hours of classroom instruction. Those seeking a brokers license need between 60 and 90 hours of formal training and a specific amount of experience selling real estate, usually 1 to 3 years. Some States waive the experience requirements for the brokers license for applicants who have a bachelors degree in real estate. State licenses typically must be renewed every 1 or 2 years; usually, no examination needs to be taken. However, many States require continuing education for license renewals. Prospective agents and brokers should contact the real estate licensing commission of the State in which they wish to work in order to verify the exact licensing requirements. As real estate transactions have become more legally complex, many firms have turned to college graduates to fill positions. A large number of agents and brokers have some college training. College courses in real estate, finance, business administration, statistics, economics, law, and English are helpful. For those who intend to start their own company, business courses such as marketing and accounting are as significant as courses in real estate or finance. Personality traits are equally as important as ones academic background. Brokers look for applicants who possess a pleasant personality, are honest, and present a neat appearance. Maturity, good judgment, trustworthiness, and enthusiasm for the job are required in order to encourage prospective customers in this highly competitive field. Agents should be well organized, be detail oriented, and have a good memory for names, faces, and business particulars. Those interested in jobs as real estate agents often begin in their own communities. Their knowledge of local neighborhoods is a clear advantage. Under the direction of an experienced agent, beginners learn the practical aspects of the job, including the use of computers to locate or list available properties and identify sources of financing. Many firms offer formal training programs for both beginners and experienced agents. Larger firms usually offer more extensive programs than smaller firms. More than a thousand universities, colleges, and junior colleges offer courses in real estate. At some, a student can earn an associates or bachelors degree with a major in real estate; several offer advanced degrees. Many local real estate associations that are members of the National Association of Realtors sponsor courses covering the fundamentals and legal aspects of the field. Advanced courses in mortgage financing, property development and management, and other subjects also are available. Advancement opportunities for agents may take the form of higher rates of commission. As agents gain knowledge and expertise, they become more efficient in closing a greater number of transactions and increase their earnings. In many large firms, experienced agents can advance to sales manager or general manager. Persons who have received their brokers license may open their own offices. Others with experience and training in estimating property value may become real estate appraisers, and people familiar with operating and maintaining rental properties may become property managers. (See the Handbook statements on property, real estate, and community association managers ; and appraisers and assessors of real estate . ) Experienced agents and brokers with a thorough knowledge of business conditions and property values in their localities may enter mortgage financing or real estate investment counseling. Employment [ About this section ] Back to Top In 2004, real estate brokers and sales agents held about 460,000 jobs; real estate sales agents held approximately 24 percent of these jobs. Many worked part time, combining their real estate activities with other careers. About 6 out of 10 real estate agents and brokers were self-employed. Real estate is sold in all areas, but employment is concentrated in large urban areas and in rapidly growing communities. Most real estate firms are relatively small; indeed, some are one-person businesses. By contrast, some large real estate firms have several hundred agents operating out of numerous branch offices. Many brokers have franchise agreements with national or regional real estate organizations. Under this type of arrangement, the broker pays a fee in exchange for the privilege of using the more widely known name of the parent organization. Although franchised brokers often receive help in training sales staff and running their offices, they bear the ultimate responsibility for the success or failure of their firms. Real estate brokers and sales agents are older, on average, than most other workers. Historically, many homemakers and retired persons were attracted to real estate sales by the flexible and part-time work schedules characteristic of the field. These individuals could enter, leave, and later return to the occupation, depending on the strength of the real estate market, their family responsibilities, or other personal circumstances. Recently, however, the attractiveness of part-time real estate work has declined, as increasingly complex legal and technological requirements are raising startup costs associated with becoming an agent. Job Outlook [ About this section ] Back to Top Employment of real estate brokers and sales agents is expected to grow about as fast as average for all occupations through the year 2014, because of the increasing housing needs of a growing population, as well as the perception that real estate is a good investment. Relatively low interest rates should continue to stimulate sales of real estate, resulting in the need for more agents and brokers. In addition, a large number of job openings will arise each year from the need to replace workers who transfer to other occupations or leave the labor force. However, job growth will be somewhat limited by the increasing use of technology, which is improving the productivity of agents and brokers. For example, prospective customers often can perform their own searches for properties that meet their criteria by accessing real estate information on the Internet. The increasing use of technology is likely to be more detrimental to part-time or temporary real estate agents than to full-time agents, because part-time agents generally are not able to compete with full-time agents who have invested in new technology. Changing legal requirements, such as disclosure laws, also may dissuade some who are not serious about practicing full time from continuing to work part time. This occupation is relatively easy to enter and is attractive because of its flexible working conditions; the high interest in, and familiarity with, local real estate markets that entrants often have; and the potential for high earnings. Therefore, although gaining a job as a real estate agent or broker may be relatively easy, beginning agents and brokers may face competition from their well-established, more experienced counterparts in obtaining listings and in closing an adequate number of sales. Well-trained, ambitious people who enjoy selling—particularly those with extensive social and business connections in their communities—should have the best chance for success. Employment of real estate brokers and sales agents often is sensitive to swings in the economy, especially interest rates. During periods of declining economic activity and increasing interest rates, the volume of sales and the resulting demand for sales workers falls. As a result, the earnings of agents and brokers decline, and many work fewer hours or leave the occupation altogether. Earnings [ About this section ] Back to Top The median annual earnings of salaried real estate sales agents, including commissions, were $35,670 in May 2004.The middle 50 percent earned between $23,500 and $58,110 a year.The lowest 10 percent earned less than $17,600, and the highest 10 percent earned more than $92,770.Median hourly earnings in the industries employing the largest number of real estate sales agents in May 2004 were as follows: Residential building construction $54,770 Offices of real estate agents and brokers 37,970 Activities related to real estate 32,460 Lessors of real estate 25,840 Median annual earnings of salaried real estate brokers, including commission, were $58,720in May 2004. The middle 50 percent earned between $33,480 and $99,820 a year.Median annual earning of real estate brokers were $61,550 in offices of real estateagents and brokers and $44,920 in activities related to real estate. Commissions on sales are the main source of earnings of real estate agents and brokers.The rate of commission varies according to whatever the agent and broker agree on, the typeof property, and its value. The percentage paid on the sale of farm and commercialproperties or unimproved land is typically higher than the percentage paid for selling a home. Commissions may be divided among several agents and brokers. When the property issold, the broker or agent who obtained the listing usually shares the commission with thebroker or agent who made the sale and with the firm that employs each of them. Although anagents share varies greatly from one firm to another, often it is about half of the totalamount received by the firm. Agents who both list and sell a property maximize their commission. Income usually increases as an agent gains experience, but individual motivation,economic conditions, and the type and location of the property also affect earnings.Sales workers who are active in community organizations and in local real estate associationscan broaden their contacts and increase their earnings. A beginners earnings often areirregular, because a few weeks or even months may go by without a sale. Although some brokersallow an agent to draw against future earnings from a special account, the practice is notcommon with new employees. The beginner, therefore, should have enough money to live forabout 6 months or until commissions increase. Related Occupations [ About this section ] Back to Top Selling expensive items such as homes requires maturity, tact, and a sense of responsibility.Other sales workers who find these character traits important in their workinclude insurance sales agents ; retail salespersons ; sales representatives, wholesale and manufacturing ; and securities, commodities, and financial services sales agents .Although not involving sales, the work of property, real estate, and community association managers ,as well as appraisers and assessors of real estate, requires an understanding of real estate. Sources of Additional Information [ About this section ] Back to Top Disclaimer: Links to non-BLS Internet sites are provided for your convenience and do not constitute an endorsement. Information on licensing requirements for real estate brokers and sales agents is available from most local real estate organizations or from the State real estate commission or board. More information about opportunities in real estate is available on the Internet site of the following organization: National Association of Realtors. Internet: http://www.realtor.org OOH ONET Codes [ About this section ] Back to Top 41-9021.00, 41-9022.00 Suggested citation: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook , 2006-07 Edition , Real Estate Brokers and Sales Agents , on the Internet at http://www.bls.gov/oco/ ocos120.htm (visited December 29, 2005 ). 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