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At this time last year we were seeing ominous headlines like FHA Bailout Inevitable, The FHA’s Bailout Warning, and FHA Bailout Program May Require a Bailout. Despite the dismal forecast, a year has made all the difference for the future of the Federal Housing Administration.

Fortunately for millions of first time homebuyers and taxpayers in general, the FHA defied the odds and roared back with a record year. The Agency published its Annual Independent Financial Report and Economic Outlook for Fiscal Year 2010 in November.  Its fiscal year ended on September 30^th. During the preceding 12 months the FHA insured a record 1.1 million loans. This is the highest mark in its 76 year history!

There are three significant ways that this will impact the real estate industry and potential homebuyers:

1. Continued availability of loans for which borrowers (especially first timers) more easily qualify.
2. Assumable loans. FHA Loans are “assumable”. When interest rates increase, sellers who have low interest rate FHA mortgages could have a huge selling advantage.
3. Down payments as low as 3.5% increase affordability.
4. Rehab loans maximize updates and makeovers.

How do buyers rate FHA buyer perks? Who uses them most, first timers or experienced purchasers?

In keeping with the tradition of investing in communities, First Preston employees have participated for the last 8 years in the Salvation Army Angel Tree outreach. This year the employees adopted 8 angels that ranged from ages 2 to 82.

The staff rallied around this cause quickly by contributing funds, shopping, and wrapping gifts. Brent Priddy, a 9- year First Preston IT team member led the charge by packaging the gifts to be sent to The Salvation Army for distribution.

When asked why they participate in Angel Tree giving, employees shared a variety of reasons. For Laywanna Taylor, “it’s for the love of children”.   Janet Kelly stated that “So many people are hurting. It feels better to give than to receive.” Brent Priddy, remembers that as a child he “never went without” on Christmas.  He wants to make sure that every child gets to experience that same joy!

Because many employees contribute, it makes it possible to accumulate extra gifts for additional angels –just in case there is an un-fulfilled need which may have been overlooked.  Our employees make sure that no Angel is left behind!

For the 8^th straight year, we’re proud to announce that our corporate employees are working to make a difference … one Christmas wish at a time.

According to the National Association of Realtors Affordability Index, qualified home buyers have more purchasing power today than at any time since 1970.

Here are several reasons that buyers who are on the fence should take notice before the train leaves the station:

1. The current 40 year buying advantage is a function of low interest rates and an oversupply of under-valued houses.  However, during the last several weeks interest rates have begun to trend upward.  So far, low prices have counter balanced higher interest rates, and it’s still homebuyer heaven out there.

2. There are serious potential tax savings for qualified buyers who make a purchasing decision soon. Make sure that your buyers are aware!

3. Mortgage rates and housing affordability factors are cyclical.  By 1979, mortgage rates ballooned to 11-13%. Housing prices and mortgage rates were high, and purchasing power withered.

Members of Generations X and Y missed this major interest rate explosion.   By the time Echo Boomers were a year old, mortgage rates were 17%. By the time they were 5 years old, rates averaged 9% and during their adult years, interest rates were between 4-7%. Therefore, during their adult years, Gen Y buyers have never experienced interest rates above 7%.  It may be hard for them to comprehend how much purchasing power is lost when interest rates move north of 8-10%.

Real Estate professionals – It’s up to you to educate buyers on the reasons to make a buying decision now and not later. All Aboard!

You may be surprised to learn that …“There are over 160,000 hungry kids in Dallas on any given day”. Think that’s high? Sources indicate that on a national basis, “Nearly 17 million children faced hunger at some point during the last year”. Regardless of your geographic region, hunger is a reality for many families of the unemployed and the ‘working poor’.

This Year HomeTelos and First Preston decided to forego the traditional can food drive and use an innovative ‘virtual tool’ to fight hunger.  This marks the 12^th year that these companies have supported the North Texas Food Bank (NTFB) in their efforts to help feed North Texas families.  Their first ever “virtual food drive” launched December 1^st and runs thru December 24th.

HOW IT WORKS

You simply visit a company-branded page on the NTFB website where you are able to purchase specific food items or make a flat monetary donation.  In the words of one employee, “This changes everything.”

WHY NOT A “CAN DRIVE”?

• The purchasing power of NTFB allows them to ‘SUPER-SIZE’ your donation.  For every dollar donated, the NTBF is able to provide 4 meals to a family in need.  $1= 4 meals.
• Traditional “can drives” cost far more in marketing supplies, trucks and drivers.
• “Virtual drives” support the green movement and guide donations where the needs are greatest.  Every dollar donated virtually goes farther to feed the hungry.

Check with your Regional Food Bank for maximum impact giving.

MATCHING GIFT CHALLENGE–THE MULTIPLIER EFFECT

During the month of December, an anonymous donor has issued a matching gift challenge. Under normal circumstances “$1.00 = 4 Meals”, but this month “$1.00 = 8 Meals”.  A “$10 donation (the cost of 2 Happy Meals) can feed one person for 27 days!

THE EMOTIONAL IMPACT

HomeTelos and First Preston employees are stepping up to stop hunger.  Providing food to those in need enriches both recipient and giver with the true spirit of the holiday season.  For new employees, participation in this project has been an “eye opening” experience.  Several have decided to volunteer at the NTFB on a regular basis.

One First Preston employee stated, “…I want to know that every family has a big meal on the table, especially at Thanksgiving and during the Christmas holiday season.”  Another stated “It’s great to know that every dollar given to a food bank has a multiplied impact.  It’s a cost effective way to make a difference”.

A key organizer for the HomeTelos group, Hope Squyres is excited about the power of the “matching gift challenge”.  She stated that “It’s exciting to watch the donations come in, knowing that every dollar will be doubled.  It’s a wonderful opportunity for all of us to make an impact this holiday season.”  A donation of any size will make a huge difference.

Check with your Regional Food Bank for maximum impact giving.  Or join our effort by clicking on the link below.

http://vad.aidmatrix.org/vadxml.cfm?driveid=4820

Have you ever been to Salt Lake, Utah? We loved visiting our brokers there and taking in the sites! We met Dimension Realty and Team Utah offices on our visit.