THE ENQUIRER Affordable Homes Special Promotional Feature
Special Promotional Feature The Enquirer Thursday, May 1, 2008
Thursday, May 1, 2008
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SprinG 2008
Greater Cincinnati~Northern Kentucky
new and resale
single-family homes and condominiums Tips for homebuyers Buying
green
best mortgage
moves in today’s housing market
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P | Thursday, May 1, 2008
THE ENQUIRER Affordable Homes Special Promotional Feature
First-Time Buyers Driving Market Advertorial by Dave Etienne
It’s no secret the local real estate
“In today’s market, the buyer typically
market is facing a downturn, but
asks the seller to pay the down payment
according to area REALTORS®, the
and closing costs, which can range from
brightest spot is first-time homebuyers
$8,000 to $10,000,” Miller said. Sara Foltz, with Sibcy Cline’s Hyde Park
purchasing homes for $200,000 or less. We talked to representatives
and Florence offices, works to demystify
from leading agencies Sibcy Cline and
the process for first-time homebuyers.
Coldwell Banker West Shell for their
“We tell them what to expect, how the
perspectives on this development.
home-buying process works, how to get a
“It’s a buyer’s market, and with lower
“We also work with them to determine
interest rates the time is right for firsttime buyers,” said Coldwell Banker
the kind of home they want, the areas
West Shell’s Susan Miller. The 16-year
of town they’d like to look in and their
real estate veteran has six sales pending,
‘must-have’ features before we ever look
three of which are under FHA programs.
at a single home,” explained Foltz. In this era of tighter loan
“The average sale price of homes that are selling is between $150,000 and
requirements, she also stresses the
$175,000.” She attributes this to the
importance of getting pre-approved.
fact that these buyers aren’t trying to
“I always advise my clients to get pre-
sell another home, and the variety of
approved. That way they know going
programs available to help these buyers
in what they can afford and it lets the
get into the market.
seller know they are dealing with a
“The Federal Housing Administration
serious buyer.” As an agent in Kentucky, she pointed
(FHA) offers programs targeted to first
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loan, inspection, everything.
time buyers, plus there are a number of
out one difference between the two
other programs, including AmeriDream
states. “There is a lot of desirable
and Nehemiah, that allow the buyers to
and affordable housing in Northern
use gift funds from the sellers to apply
Kentucky that needs improvement, so
to down payment and closing costs on
buyers are more willing to consider a
FHA loans.” According to Miller, these
variety of neighborhoods. Plus, cities
programs typically require a down
like Newport, Covington and Bellevue
payment equal to only three percent
are offering special loan programs to
of the selling price, making home-
encourage buying and improving these
ownership possible for recent college
properties in their urban cores as part
grads or others who haven’t owned a
of their overall neighborhood renewal
home for at least three years.
processes.”
Affordable Homes
G r e at e r C i n c i n n at i ~ N o r t h e r n K e n t u ck y Advertising Real Estate Sales Executives
Bruce Sommers (513) 768-8329 bsommers@enquirer.com Betina Bartels (513) 768-8335 bbartels@enquirer.com
Upcoming Affordable Homes Sections: Thursday, May 29 Thursday, June 26
Donna Metzger (513) 768-8837 dmetzger@enquirer.com Riaka Jackson (513) 768-8313 rjackson@enquirer.com Amy Farwick (513) 853-6266 afarwick@enquirer.com
Real Estate Advertising Manager Advertising Director
The Spring 2008 Affordable Homes special promotional feature is a product of The Enquirer’s Advertising Department.
Cassie Good (513) 768-8324 cgood@enquirer.com Jeff Anderson (513) 768-8196 janderson@enquirer.com
Content Direction
Jo Ann Kovach jkovach@enquirer.com
Graphics Direction
Barbara Taylor btaylor@enquirer.com
Contributing Writers
Dave Etienne T.N.Tumbusch
THE ENQUIRER Affordable Homes Special Promotional Feature
Thursday, May 1, 2008
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Buying A Home
In Today’s Economy Is A Good Idea As a long-term investment,
appreciated, even through periodic adjustments in
homeownership is still one of the best
local markets in response to economic conditions. On
investments for individual households.
a national level, home appreciation has historically
“Why?” you may ask. After all, the
increased 5-6 percent annually, report economists at
headlines say the housing market is down and out, with defaults rising at an
the National Association of Home Builders. Five percent may not seem much at first, but here’s
alarming rate, and mortgage markets so
an example that will put it into perspective: Say
frozen that buyers can’t get a home loan
you put 10 percent down on a $200,000 house, for
at any price.
an investment of $20,000. At a 5 percent annual
What buyers need to realize is that
appreciation rate, that $200,000 home would increase
housing markets, like all markets,
in value $10,000 during the first year. Earning $10,000
inevitably have their ups and downs. And
on an investment of $20,000 is an extraordinary 50
homeownership has a track record that is
percent annual return.
virtually unmatched by any other purchase in terms of its real benefits.
In contrast, putting that $20,000 down payment into the stock market and getting a 5 percent gain would
Despite the turmoil in mortgage lending, only yield a $1,000 profit. if you have good credit, a job and steady income, you will find there is still plenty of mortgage credit to be had at good
photospin.com
Homeownership is still by far the single-largest creator of wealth for many Americans.
Compared to Stocks Looking at it another way, over a longer period of
rates. For well-qualified buyers, rates are
time, if someone put $10,000 into the stock market
running at near historical lows.
in 1996, the average annual S&P return would make that investment worth $21,500 today — an increase
Homeownership’s Real Value Here are a few examples of why, dollar for dollar, homeownership is a solid stepping-stone to a future of financial security and the single-largest creator of wealth for many Americans. Over the long-term, real estate has consistently
of $11,500. The median home price in 1996 was $140,000. Today, that same home would have gained nearly $100,000 in value. Don’t miss out on the benefits of homeownership; visit www. nahb.org/timetobuy. — NAPS for The Enquirer
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THE ENQUIRER Affordable Homes Special Promotional Feature
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THE ENQUIRER Affordable Homes Special Promotional Feature
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THE ENQUIRER Affordable Homes Special Promotional Feature
Builders Make it Easy to
be green Advertorial by Dave Etienne
These days it seems like everything’s green, from cars to consumer products and now the homebuilding industry. And while being environmentally conscious can save our planet, building a green house can actually save you money, too.
Potterhill Homes, based in Cincinnati, is leading
Potterhill Homes has eight different model homes
the way in the green building market. According to
throughout the Tristate, including a LEED-certified
President Carolyn Rolfes, it was a business decision
(Leadership in Energy and Environmental Design) home
long before the current trend picked up steam. “We’ve
at 22 DeWitt Street at DeWitt Landing in the Village of
been branding ourselves as green since 2002,” said
Greenhills. Featuring all the latest innovations in green
Rolfes. “We knew it was a better way to build homes
building, it’s open to the public daily from noon to 6 p.m.
and now the consumer has caught up to us.”
Get more information at www.potterhillhomes.com.
At the heart of green building are five concepts.
On the Kentucky side of the river, Arlinghaus
“They’re the fundamental components to a holistic
Builders is following a similar path. According to Mark
approach to building green,” said Rolfes. “If you call
D’Ambrosio, sales representative for Arbor Springs
yourself a green builder, then you should approach each in Union, “It starts with Energy Star for every home of those five areas, not just one or two.”
Below | Arlinghaus Builders’ Dakota model home at Hunter’s Ridge in Burlington, Ky., incorporates all Energy Star features, including the Rinnai tankless water heater. The Dakota begins at $215,000. Photos courtesy of Arlinghaus Builders
— extra insulation, greater air sealing, tremendously
The five keys are: maximizing energy efficiency;
better HVAC system, windows and appliances, tankless
ensuring indoor air quality; using environmentally-
hot water system, etc.” He adds, “Optional geothermal
friendly products; developing lots with an eye toward
systems are available on several homes. We test every
the environment; and water conservation and efficiency.
home. To be Energy Star-rated, a home must exceed
Every Potterhill home offers such green features as 92 model energy codes by 30 percent. Every one of our percent high-efficiency gas furnaces and water heaters, new wool insulation made from recycled newspaper
homes exceed the standards by 50 percent and more.” Arlinghaus also considers the impact of its developments
that can reduce heating and cooling costs by as
on the surrounding green space. Green space saved in
much as 40 percent, and low VOC (volatile organic
Arlinghaus developments is evident in many of their
compound) paints. And while a green house may cost
communities, such as the 120 acres donated to the Boone
a bit more up front, “we try to keep it to a five-year
County Parks Department in Hanover Park, about 200
maximum payback,” said Rolfes, meaning that within
acres to be saved in North Pointe and others.
five years, buyers will recoup the additional cost of the
Arlinghaus’ commitment to green building is an
green features, and all savings on energy costs will be
ongoing business philosophy and not just a reaction to
free and clear from that point.
current trends. “Much of what we do we’ve been doing
THE ENQUIRER Affordable Homes Special Promotional Feature
Potterhill Homes’ demo ‘green house’ in Greenhills
Thursday, May 1, 2008
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Left | The bamboo flooring in the kitchen and dining room has a three-year harvest cycle versus the 120-year cycle of oak. The kitchen features cabinets that were produced in a greencertified factory. Below | The home was built with more than 35 green products and processes meant to protect the environment, improve indoor air quality and save homeowners thousands of dollars. Starting price for all the builder’s homes is $180,000 and all come with standard green-built features. Potterhill Homes’ demo “green house” is priced at $260,000. Photos provided by Potterhill Homes
for as long as we have been building homes — over 34 years,” explained D’Ambrosio. “The use of natural products like brick and more hardwood flooring instead of carpeting, and renewable materials like lumber and low VOC paint, in addition to Energy Star products, are all standard on our homes.” Arlinghaus Builders has five model homes, including one in Union, two in Hebron and one each in Burlington and Independence. All are open seven days a week from noon to 5 p.m. or by appointment. For more information, visit www.arlinghausbuilders.com. Drees Homes, named “America’s Best Builder for 2008” by Builder Magazine, is also an Energy Starcertified builder. According to Terry Sievers, president of Drees’ Midwest region, “Every Drees, Marquis and
Left | The Valmont by Marquis Homes is Energy Star-certified — that means it’s at least 15 percent more energy efficient than homes built to the 2004 International Residential Code. Every Marquis home exceeds the state and federal Energy Star program requirements for heating, cooling, windows, insulation, lights, appliances and more. Marquis Energy Star homes, with prices starting in the $150s, will save hundreds on utility costs, and help conserve natural resources. Photo provided by The Drees Company
Zaring Premier single-family home in Greater Cincinnati has a confirmed Energy Star rating, and Drees and Zaring Premier get the very best rating of ‘Five Star Plus.’ ” For Sievers, the main benefit for the buyer is savings. Based on normal energy consumption, Drees Energy Star homes will save over $800 per year on utility costs and will help conserve natural resources. While basic Energy Star certification is for homes that are at least 15 percent more efficient than homes that meet the basic building codes, the “Five Star Plus” certification means that Drees goes beyond that. A new Drees or Zaring Premier home beats the basics by over 30 percent. Every new Drees, Zaring Premier or Marquis home exceeds state and federal Energy Star program requirements for heating, cooling, windows, insulation, lights, appliances and more. For more information on any Drees community, visit www.dreeshomes.com, www.zaring.com or www.getmarquishomes.com.
Right | Low air infiltration is achieved by building a tight home. Blower door testing is a process that determines how tight a home is. Low air infiltration improves comfort and indoor air quality, and lowers operating costs. Illustrations courtesy of Arlinghaus Builders
Left | A geothermal heat pump uses the earth’s constant temperatures to heat and cool homes. It transfers heat from the ground into a home during the winter and reverses the process in the summer. According to the U.S. Environmental Protection Agency (EPA), geothermal heat pumps are the most energy-efficient, environmentally clean and costeffective systems for temperature control.
the valmont by marquis homes
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Checklist For Homebuyers If you‘ve ever thought about owning a home or are considering buying a new one, now may be the time to take action. Lower interest rates combined with a large inventory of homes may translate into a good opportunity for buyers in negotiating the terms of a sale with a seller.
Educate Yourself About the Mortgage Process By taking the initiative and learning about the mortgage process, you can be more confident in the financial decisions you are making. It’s important to learn about different types of mortgages, how much you can afford, how your credit impacts your interest rate and the benefits of homeownership. A mortgage tutorial that breaks down the home-buying process into easyto-understand steps is available at smartedgebygmac.com. Save Just a Little Bit More It’s not only important to save money for the down payment and closing costs, but it’s important to factor in some of the other costs of homeownership such as decorating, repairs and maintenance. Many mortgage lenders recommend that firsttime homebuyers have at least three to six months of additional savings in their possession in anticipation of these additional expenses.
Check Your Credit An individual’s credit score will have a significant impact on his or her mortgage loan approval and interest rate. A good first step in financing a home purchase is to check your credit history. You can request a free credit report from any of the three credit-reporting bureaus: Equifax, TransUnion or Experian. Carefully review your report and contact the creditreporting bureaus to correct any inaccuracies.
Shop Around for a Mortgage Lender As you start thinking about and preparing for the home-buying process, start shopping for the mortgage lender from whom you would like to obtain a mortgage for your new home. Because this process may be new to you, it’s easy to go with the first lender or loan officer you meet. Instead, take your time and shop around. Start by asking friends, co-workers and family members for recommendations. When you’ve identified two or three loan officers, ask for references. In addition to pricing (interest rate and closing costs), focus on customer service as well as other services and tools that a mortgage lender may be able to offer you.
THE ENQUIRER Affordable Homes Special Promotional Feature
Renting vs. Owning Building Equity In Your Future For many Americans, owning a home is the cornerstone of their financial wealth. In fact, building equity in a home, combined with tax advantages offered by both federal and state governments, has driven homeownership to record levels in recent years. However, millions of renters continue to have misconceptions about the home-buying process, often delaying a home purchase by saying “it’s too complicated.” Buying a home is not as complicated as it may seem. With a thorough understanding of the process, owning a home can be a very real possibility for many renters. One of the key steps in determining whether you should be a homeowner versus a renter is understanding what happens to the money you pay each month for rent or mortgage. For example, let’s consider a renter with a monthly payment of $600. Over five years, that person will have spent $36,000 on rent. In 10 years, that number rises to $72,000. That would be $72,000 without
building any equity, or ownership, in return. If the same monthly payment were applied to a mortgage, a portion of each month’s payment would go toward paying down the principal (the price at which you purchased the home less a down payment), which would allow you to build ownership in the property. In addition, the interest that you pay each month, as well as any property taxes, may be deductible on your federal income taxes — a tax advantage not available to many renters (consult a tax advisor or the Internal Revenue Service regarding the deductibility of interest). “What renters often don’t realize is that in the long term, they can’t afford to not buy a home, particularly as rental rates increase in many parts of the country,” says Jim Ferriter, executive vice president for GMAC Mortgage. Market conditions are very favorable for first-time homebuyers. If you have been thinking about making the move to owning a home versus renting, now is the time to start seriously looking at homes.
EQUITY
Get Pre-Approved Before you start working with a real estate agent, consider contacting a mortgage lender to obtain a pre-approval credit decision. A loan officer will review your financial status, including your income, cash flow and credit score, to help you determine the maximum monthly housing payment for which you may be able to qualify, and, if qualified, “pre-approve” your mortgage before you’ve found a home. Armed with a credit pre-approval, you can start searching for homes with a much better idea of your price range, and in turn save time, as you will know the right homes to focus on. You will want a pre-approval letter when you bid on a home, as some sellers may not accept offers from buyers who have not demonstrated some ability to finance the purchase.
Inspect Before you commit to purchasing a home, don’t forget to hire a licensed home inspector to conduct a thorough assessment of the property. An inspector can alert you to any major problems with the home, and/or help you understand potential short-term and longterm home maintenance issues.
Mortgage Insurance Tax Deduction Extended Through 2010 The Benefits of Mortgage Insurance The mortgage insurance tax deduction gives buyers an excellent reason to consider purchasing or refinancing their home with In important news for homebuyers, the tax private mortgage insurance, but it is not the deduction for private mortgage insurance main benefit of a policy. is now good through the 2010 tax year. “The median home price in the United The extension of the tax deduction makes States today is over $200,000, which means mortgage insurance a more attractive choice borrowers would need to save more than for buyers interested in entering the housing $40,000 in order to make a traditional market or refinancing an existing mortgage. down payment of 20 percent,” said David Katkov, president and COO of PMI Mortgage New News About the Insurance Co. Mortgage Insurance Tax Deduction “In order to make homeownership safe The original deduction and sustainable, it is vitally approved in 2006 applied important that people have The mortgage only to homes purchased access to safe, affordable, longinsurance tax and premiums paid in term mortgage financing,” said deduction has the 2007. The extension passed Conrad Egan, president and potential to help by Congress extends the CEO of the National Housing thousands of low- and moderate-income Conference. “One of the major deduction to include Americans secure homes purchased before benefits of mortgage insurance affordable mortgages. the end of 2010. is that it allows borrowers to Mortgage insurance build equity in a home by premiums are 100 percent tax deductible for securing a predictable, fixed-rate mortgage families and individuals earning $100,000 with a down payment of as little as 3 to 5 or less when they purchase a home between percent.” Jan. 1, 2007, and Dec. 31, 2010. Families The Mortgage Insurance Companies earning up to $109,000 can take advantage of America, a national trade group, has of a partial deduction. estimated that the deduction can save the “This legislation has the potential to help average family $200-$400* annually. thousands of low- and moderate-income *PMI cannot provide tax advice. You may Americans secure affordable mortgages that want to consult with your own tax adviser keep them in their homes and keep their concerning the applicability of this new communities strong,” said Steve Smith, deduction in your particular circumstances CEO of The PMI Group, Inc. “Insured loans under the Internal Revenue Code and the are much more attractive in today’s market laws of any other taxing jurisdiction. because credit is difficult to access.” — NAPS for The Enquirer
Attend a First-Time Buyer Workshop to learn about the home-buying and financing process.
Improve Your Credit. Be aware that your credit history may affect the interest rate, and the type of mortgage program for which you may qualify. You may want to work on improving your credit before purchasing a home.
Find an Experienced Real Estate Professional. A real estate agent can be invaluable in helping you through the process of buying your first home.
Don’t Be Afraid to Ask Questions Once you’ve found your new home, the mortgage lender will help you through the details of the loan process. From application to closing, your loan officer will work through the financing process with you, just as your real estate professional will do in the home-buying process. Throughout the process, read all loan documents carefully and involve an attorney, if necessary.
—NAPS for The Enquirer
THE ENQUIRER Affordable Homes Special Promotional Feature
Thursday, May 1, 2008
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Help for First-Time Homebuyers
There are a number of programs available to help first-time buyers with down payments. AmeriDream Downpayment Assistance Program
Ohio Housing Finance Agency’s First-Time Homebuyer Program
The AmeriDream Downpayment
The Ohio Housing Finance Agency’s
Assistance Program allows
First-Time Homebuyer Program Provides
qualified low- to moderate-income
borrowers with the flexibility of choosing
individuals and families to purchase
a mortgage product that best meets their
affordable homes by receiving
needs by offering competitive, fixed
money for the down payment.
interest rates on 30-year conventional
Homebuyers never have to repay
loans and FHA, VA and USDA Rural
the gift from AmeriDream. The
Development government mortgages.
program has helped over 400,000
To help with down payment and closing
qualified homebuyers become
costs, eligible homebuyers can choose
homeowners. The AmeriDream
a down payment assistance grant in an
Downpayment Gift Program
amount equal to 3 percent of the home’s
provides down payment assistance
purchase price, or a second mortgage in
of up to 10 percent of the home’s
an amount up to 4 percent of the home’s
price. Learn how you can become
purchase price. They also offer the Ohio
a homeowner through the AmeriDream Downpayment Gift
Heroes Program, which can provide photospin.com
Program at www.ameridream.org.
a 30-year, fixed-rate mortgage to firsttime homebuyers who are active military personnel or military veterans, firefighters or emergency medial technicians-paramedics, healthcare workers, police officers or
Nehemiah Program®
teachers. For more information, visit www.ohiohome.org.
The Nehemiah Program® provides gift funds for up to 6 percent of the final contract sales price toward down payments and/or closing costs. More than
Kentucky Housing Corporation
263,000 individuals and families now own homes through this program. Gift
The Kentucky Housing Corporation offers several first-time homebuyer programs depending
funds apply to new construction and resale homes, have no income or asset limits
upon income. These programs are loans to help with the down payment and closing costs.
and no geographical restrictions, and can be used by both first-time and repeat
Some of these loans are “forgiven” after five years, meaning the amount borrowed becomes
homebuyers. Get more information at www.nehemiahcorp.org.
a gift. Buyers can receive up to $10,000 depending upon which programs they qualify for. To find out about these programs, please visit www.kentuckyhousing.org. — Compiled by Dave Etienne
P10 | Thursday, May 1, 2008
THE ENQUIRER Affordable Homes Special Promotional Feature