Builders Outlook2016 Issue12 by Ted Escobedo

EL PASO BUILDERS A S S O C I AT I O N O F

www.elpasobuilders.com Zillow speculates that the construction labor workforce may constrict given the President-elect's immigration stances

National, State & Local Building Industry News 2016: Issue 12

2017 housing market under President Trump according to Zillow “For those considering new construction in 2017, it’s worth considering the added cost that may come amidst ongoing construction labor shortages that could get worse if President-elect Trump follows through on his hard-line stances on immigration and immigrant labor.

by Caroline Feeney, Inman Staff Writer

Key Takeaways • Zillow predicts 2017 will mark a new stage of the post-recession housing recovery and the company expects recent trends to reverse course next year. • New-home buyers could face increased building costs if Presidentelect Trump follows through on his tougher immigration policies, which may worsen the construction industry labor shortage, according to the company. • Zillow also anticipates continued but slowed home price growth (3.6 percent over the year), decelerated rent prices, homeowners seeking affordable housing further from urban centers, and an increased homeownership rate driven by millennial buyers.

Though we haven’t yet flipped the page to December, the calendar keeps inching closer to the new year — and inauguration day. This makes for a spirited November, aka the start of 2017 forecast season. We’ve heard about President-elect Donald Trump’s plans for loosened lender regulations, potential impact on mortgage rates (which economists say were on their way up, anyway) and sprawling infrastructure plan, along with what Chinese investors are thinking about the upcoming shift in American leadership. Today, Zillow jumped in with six predictions for next year’s housing market, touching on some of the more nuanced factors that influence who will be buying and selling homes next year, where they’ll be focused and what challenges they stand to face. Speculation from the real estate giant also brought up the potential effect of Trump’s hard-line immigration plans on construction industry labor — and its expectations for America’s historically low homeownership rate. Zillow’s 2017 predictions

1. “Cities will focus on denser development of smaller homes close to public transit and urban centers.”

Economist John Burns also pointed to development happening in certain parts of California reflecting the “surban” movement (when urban and suburb collide), in which revitalized suburban downtowns are starting to authorize new housing.

2. “More millennials will become homeowners, driving up the homeownership rate. Millennials are also more racially diverse, so more homeowners will be people of color, reflecting the changing demographics of the United States.” According to the National Association of Realtors, in 2015 first-time buyer purchases hit a 30-year low of 32 percent. Zillow says nearly half of all buyers were first-time buyers in 2016. (NAR’s most recent Profile of Home Buyers and Sellers reported an uptick to 35 percent in 2016, the highest since 2013, while NAR also said that those under 35 made up 61 percent of firsttime buyer transactions this year.) NAR Chief Economist Lawrence Yun explained the potential rebound in a statement: “Young adults are settling down and deciding to buy a home after what was likely a turbulent beginning to their adult life and career following the Great Recession,” he said. Added Yun, “Even with the affordability challenges many buyers face, the allure of homeownership is not lost among the younger generation.”

3. “Rental affordability will improve as incomes rise and growth in rents slows.” This is supported by the Urban Land Institute’s October 2016 Real Estate Consensus Forecast, which noted that apartment rental rate growth is expected to moderate in the next three years to 3.5 percent in 2016, 3.0 percent in 2017, and 2.9 percent in 2018, but remain above the 20-year

average growth rate of 2.8 percent. “Renters should have an easier time in 2017. Income growth and slowing rent appreciation will combine to make renting more affordable than it has been for the past two years,” said Zillow’s chief economist, Dr. Svenja Gudell, in the release.

4. “Buyers of new homes will have to spend more as builders cover the cost of rising construction wages, driven even higher in 2017 by continued labor shortages, which could be worsened by tougher immigration policies under President-elect Trump.” “There are pros and cons to both existing homes and new construction, and the choice for homebuyers can often be difficult,” Gudell said. “For those considering new construction in 2017, it’s worth considering the added cost that may come amidst ongoing construction labor shortages that could get worse if President-elect Trump follows through on his hard-line stances on immigration and immigrant labor. “A shortage of construction workers as a result may force builders to pay higher wages, costs which are likely to get passed on to buyers in the form of higher new home prices.” 5. “The percentage of people who drive to work will rise for the first time in a decade as homeowners move further into the suburbs seeking affordable housing — putting them further from adequate public transit options.” Affordability has been one of the top challenges facing homebuyers in 2016, fueled by rising home prices. “Those looking for more affordable housing options will be pushed to areas farther away from good transit options, in turn leading more Americans to drive to work,” said Gudell. At the California Association of

Realtors’ Real Estate Summit, “Housing Affordability and California’s Future,” Carol Galante, faculty director of the Terner Center for Housing Innovation, suggested that accessory dwelling units (ADUs), which are studios or small housing units next to main homes, could be one creative solution to California’s lack of inventory. This idea may have broader applications for the rest of the country. These types of units allow for what some call “invisible density,” or additional housing stock that doesn’t change the way single-detached housing blocks look from the street.

6. “Home values will grow 3.6 percent in 2017, according to more than 100 economic and housing experts surveyed in the latest Zillow Home Price Expectations Survey. National home values have risen 4.8 percent so far in 2016.” The possible slowdown in home price growth will be welcome relief for buyers, and could indicate phase two of the post-Recession market. “In 2017, recent trends will reverse course as the housing market’s economic recovery enters a new stage,” Zillow noted in the release. Zillow Home Price Expectations Survey asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years, according to the company. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI), which measures consumer confidence in local housing markets, both currently and over time. Dr. Gudell and her team of economists and data analysts produce the housing data and research covering more than 450 markets at Zillow Real Estate Research, Zillow says.

Builders Outlook

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2016 issue 12

Builders Outlook

President’s Message Carlos Villalobos

President, El Paso Association of Builders

An interesting article in the Wall Street Journal pointed out that percentage of young Americans (aged 18 to 34, i.e., Millennials) living with Parents has risen to a 75-year high. This should be alarming to home builders being that Millennials are now the largest living generation in the United States’ history (!) at around 76 million, surpassing baby boomers last year which number around 75 million. By the same token, Millenials are also the largest home buying group in the Nation. The Harvard Joint Center for Housing studies cites that while the number of adults under 30 has increased by 5 million in the last 10 years, the number of households for this group has only increased by 200,000.

Housing affordability still vital to the future of nation There are a series of factors that are contributing to this phenomenon including tough mortgage lending standards, rising rents in many cities, psychological trauma from the great 2008 housing crisis, and the main culprit: affordability. Nationwide wage growth has not been able to keep up with home price increases. There might be a silver lining to all of this though, as some experts point to the inevitable human instinct to procreate. While some millennials are comfortable at mom & dad’s for up to a certain age, biological alarm clocks will eventually start ringing for many of these home crashers and hopefully light a fire under their butt to go out, buy a home and start a family.

At some point this might cause a “sling shot” effect and send an accumulated amount of buyers into the market, but we are not seeing it yet unfortunately, as favorable economic conditions are no doubt part of this sling shot equation. Our efforts to keep housing affordable are now

therefore, are as important as ever. This will be my last article as President of the EPAB, I want to thank all of the people that helped out and supported us this year, I wish all of you a Merry Christmas and a Happy and Prosperous 2017. Let’s keep building El Paso!

Builders Outlook 2016

Executive’s Message Ray Adauto, Executive Vice President EPAB I wanted to start off this column with some really frustrating stuff like the drivers on the freeway, the absolute nuttiness at the malls, the rushing and not paying attention folks….yeah, but then I thought I might be insulting some of you and myself. So instead let me just mention some of the neat things about December. First is the wonderful turnout for our Installation and Awards dinner. Our guest installation officer from the Texas Builders Association was Robert Wood out of Lubbock. He drove in just to be with us and it looks like he had a great

Issue 12

Keep your eyes on the road ahead

time. Robert if we haven’t said it enough please accept our thanks for a job well done. Of course we say goodbye to Carlos Villalobos tenure as President and to John Dorney as Associates Chair. Both of these guys have contributed so much to the Association that it’s hard to say enough, but know that both of them deserve kudos above kudos. John couldn’t make it because his business took him out of town. We missed him for sure. Carlos was awarded the 2016 Builder Member of the Year for his work with the Association over the last three years, and the one coming. Being President isn’t easy as he will tell you but he did a fine job. Congratulations. Our Associate Member of the Year went to Scott Whisenant and StrucSure Home Warranty, once again a shining example of being and doing for the Association. I can attest that our year would have been a lot more difficult without the support we got from Scott and StrucSure. Thank you for being with us.

We introduced a new award, the Chaney-Shallenberger Life Award, given to Kathy Carrillo from Pioneer Bank. It is fitting that Kathy get this award for a lifetime of work with the Association. She’s a busy mom, volunteer in the community, and oh yeah runs Pioneer Bank’s El Paso Division. Busy as every Kathy was surprised but seemed genuinely grateful. Nice job Kathy. Our toy donations were outstanding and as you’ll read in this edition the transition from our hands to those of needy kids couldn’t happen without the work of a bunch of professional women from the Junior Women’s Club of El Paso. We touched through them some 90 or so kids in our community. It’s also a time when all the enthusiasm of a new term sets in for the new President. No, not just Donald Trump but our own Don, Rassette that is. Don has gotten off to a quick start and already has plans in place for the coming year which he outlined. More than anything he wants to increase membership, recharge

the PAC, create a new member ambassador program and move some bylaws changes. Whew, that’s a big list but Don is optimistic he can lead the way with some help from you. Already Ted Escobedo and Patrick Tuttle are working on several projects for Don, so your help is needed and welcome. So here I am not sure about getting in the car to struggle with the crowds or nincompoops behind some wheels. Stay focused and drive carefully. It might be that I’m that nincompoop for you and I apologize if I am. So Santa, I haven’t been all that good this year, so maybe you can still drop off a little something. Not for me but for my members and their families, for my family as well. They deserve it, they earned it. Most of all let’s remember why we celebrate Christmas and bend a knee. In spite of ourselves and our faults we really are blessed.

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2016 issue 12

Builders Outlook

National Builder News Builder Confidence Closes Year on a High Note

n Builder confidence in the market for newly-built single-family homes jumped seven points to a level of 70 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest reading since July 2005. “This notable rise in builder sentiment is largely attributable to a post-election bounce, as builders are hopeful that President-elect Trump will follow through on his pledge to cut burdensome regulations that are harming small businesses and housing affordability,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “This is particularly important, given that a recent NAHB study shows that regulatory costs for home building have increased 29 percent in the past five years.” “Though this significant increase in builder confidence could be considered an outlier, the fact remains that the economic fundamentals continue to look good for housing,” said NAHB Chief Economist Robert Dietz. “The rise in the HMI is consistent with recent gains for the stock market and consumer confidence. At the same time, builders remain sensitive to rising mortgage rates and continue to deal with shortages of lots and labor.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three HMI components posted healthy gains in December. The component gauging current sales conditions increased seven points to 76 while the index charting sales expectations in the next six months jumped nine points to 78. Meanwhile, the component measuring buyer traffic rose six points to 53, marking the first time this gauge has topped 50 since October 2005. Looking at the three-month moving averages for regional HMI scores, the Northeast rose six points to 51, the Midwest posted a three-point gain to 61, the South rose one point to 67 and the West registered a two-point gain to 79. Editor's Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.

BUILDING

Multifamily Weakness Pushes Overall Housing Starts Down 18.7 Percent

n A sharp decline in multifamily starts pushed overall housing production down 18.7 percent in November to a seasonally adjusted annual rate of 1.09 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Overall permit issuance was also down 4.7 percent. “Year-to-date, single-family starts are up 9.6 percent and the overall trend in this sector remains positive,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Bloomington, Ill. “Builder sentiment is strong and we can look forward to growth in the single-family market in the year ahead as the industry adds workers and lots and Washington policymakers provide regulatory relief for small businesses.” “Single-family starts declined from a robust level in October but still remain very solid,” said NAHB Chief Economist Robert Dietz. “Though rising mortgage rates could be a headwind for housing, we expect single-family production to continue on a long-run, gradual growth trend. Meanwhile,

El Pa aso

the multifamily sector, which has been volatile in recent months, is expected to level off at a solid rate as that market finds balance between supply and demand.” Single-family starts fell 4.1 percent in November to a seasonally adjusted annual rate of 828,000 units while multifamily production dropped 45.1 percent to 262,000 units. Combined single- and multifamily starts fell in all four regions in November. The Northeast, Midwest, South and West posted respective losses of 52.1 percent, 14.2 percent, 9.3 percent and 22.1 percent. Single-family permits rose 0.5 percent to a rate of 778,000 units in November while multifamily permits dropped 13 percent to 423,000. Permit issuance fell 8.3 percent in the Midwest, 4 percent in the South and 6.1 percent in the West. The Northeast posted a gain of 2.8 percent.

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Builders Outlook

2016 Issue 12

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2016 ISSUE 12

Guest Outlook By Sean Barry Construction Dive

• A $1,000 jump in the median price of a newly built home – which could be spurred by factors such as increased regulations – stands to make buying a home unaffordable for 152,903 households, according to the National Association of Home Builders' latest study of the impact of government regulations on house prices and interest rates. • California had the largest number of potential homeowners – 15,328 -- likely priced out of the market by a $1,000 increase. Texas followed at 13,674 and Pennsylvania at 9,374.

Builders Outlook

The impact of a $1,000 home price increase on housing affordability • The NAHB also forecast that a 25-basis-point increase in mortgage interest rates from 4% to 4.25% would eliminate 965,000 households from homeownership, based on affordability for a medianpriced new home.

The rise of new home prices due to a supply shortage amid a slow recovery in construction activity has largely dominated the industry in 2016 as many potential buyers, particularly first timers, continue to be frozen out of the market.

The rise of new home prices due to a supply shortage amid a reluctant to sell their homes for slow recovery in construction fear of not being able to find or activity has largely dominated afford a new property in time. the industry in 2016 as many The Federal Reserve reported potential buyers, particularly first last week that real estate timers, continue to be frozen continued to surge in the third out of the market. quarter, with values rising $554 The NAHB's forecast highlights billion. That followed a 1.1% how vulnerable the market is to increase in home prices from continued rate rises, albeit September to October, up 6.7% coming off historical lows. on the year-ago period, Rising prices have been according to CoreLogic’s latest compounding shortages as Home Price Index. existing homeowners are

Home prices are expected to continue their upward movement next year, flagging slightly from 2017, as more new construction inventory is added. The National Association of Realtors is forecasting a tapering in home price increases nationally to 3.9% in 2017 compared to 4.9% in 2016. Meanwhile, concerns linger over a possible hike in interest rates by the Fed before the end of 2016.

Buildeers Outlook On the Scene

2016 Installation & Awards Banquet

El Paso Association of Builders announces Builder Member of the Year, installs 2017 President and Board

Dinner on Friday December 2 at the El Paso Marriott. The installation and awards were attended by nearly 200 guests and featured the announcing the prestigious Builder Member of the Year, Associate Member of the Year and Life Time award winner. This year Carlos Villalobos was honored as the Builder Member of the Year for his work with the EPAB over the last three years. In accepting his award Mr. Villalobos thanked his Board of Directors for allowing him to serve as President in 2016 and to announce that he will be active with the Association for many years to come. “I am humbled to have been chosen for this award and I want to thank my wife and family, my staff at Pointe Homes, and of course all the members of the Association,” he said. Villalobos served on the

Executive team for the last three years as Treasurer, Vice President and President. He assumes the role of Immediate Past President. The installation of Don Rassette of Rassette Homes was sworn in as the 2017 President by Texas Association of Builders Vice President Robert Wood of Lubbock, Texas. Mr. Rassette and his Executive team includes Edmundo Dena, Everest Homes, Vice President; Sergio Cuartas, BIC Homes, Secretary Treasurer; Ray Adauto, EPAB Executive Vice President and Sam Shallenberger Associates Vice President. Rassette is President of Rassette Homes, a semi-custom and custom home builder in El Paso and eight other states. “I am honored to have been voted in to serve our Association and look forward to growing membership

and ensuring that new home construction is alive and well in El Paso,” Mr. Rassette said. The award for Associate Member of the Year went to Scott Whisenant and StrucSure Home Warranty. Whisenant is also Associates Chairman at the Greater San Antonio Builders Association (GSABA) where he was attending their award and installation. The award was presented to Whisenant via video. “It came as a total surprise that the El Paso Association would even consider honoring me and my company, but frankly I’m humbled by the award,” Whisenant said. The first ever ChaneyShallenberger Life Award was presented to Kathy Carrillo of Pioneer Bank El Paso. The award is named for long time active

members John Chaney of Passage Supply and Sam Shallenberger of Morrison Supply. Carrillo who is the area Vice President for Pioneer Bank was surprised by the award. “You know it’s one of the oddest feelings to have your name called for such a great award, and I’m really grateful and humbled by my selection.” Twenty five Board of Directors were also installed at the event. In addition to the installation program guests donated toys that will be distributed to less fortunate children by the Junior Women’s Club. “The Junior Women’s Club is thankful for the generosity of the attendees as we have approximately forty children to take care this season,” said Margaret Adauto, JWC member.

Builders Outlook

2016 issue 12

Lending 10 tips to have an awesome mortgage in 2017

Home sales will accelerate, and Donald Trump will occupy the Oval Office. Those are two predictions we can make with confidence about 2017. As for mortgage rates, who knows? They were low throughout 2016, spiked higher after the election, but are still low by historical standards. They could remain low in 2017, or rise. There's still not a lot of room for them to fall. Whether you are buying a home or refinancing your loan, here are 10 mortgage tips for 2017.

1. You can make a small down payment -- or none at all Lenders say they often dispel the mistaken idea that homebuyers have to make down payments of at least 20 percent. In fact, some loan programs allow qualified people to buy homes with no down payment at all. Other loan programs allow down payments as small as 3 percent or 3.5 percent. The Department of Veterans Affairs guarantees zero-down VA mortgages for qualified borrowers: veterans, active-duty service members and certain members of

the National Guard and Reserves. The U.S. Department of Agriculture guarantees zero-down mortgages as part of its Rural Development program. The loan guarantees are available in eligible areas -- mostly rural areas, though some are suburban. Navy Federal Credit Union offers zerodown mortgages for qualified members to buy primary residences. Finally, Federal Housing Administrationinsured mortgages allow down payments as small as 3.5 percent. And a few lenders offer conventional mortgages with down payments of as little as 3 percent with private mortgage insurance. 2. With FHA, you can get a loan with imperfect credi Federal Housing Administration-insured loans are appealing because they're widely available to borrowers with imperfect credit. In 2016, the average credit score for an FHA homebuyer was around 686, while the average conventional homebuyer had a credit score around 753. You need a credit score of 580 or higher to get an FHA-insured mortgage with a down payment as low as 3.5 percent. If your credit score is between 500 and 579, you need to make a down payment of at least 10 percent to get an FHA mortgage. But first you would have to find a lender that would approve the loan. 3. Keep some savings in reserve Mortgage lenders don't want you to deplete your savings on the down payment

and closing costs. They want you to have "reserves" -- cash, or assets that can be sold quickly, so you can take care of unexpected expenses without missing house payments. Your lender will calculate the minimum reserves you'll need to qualify for a mortgage. There's a possibility that the reserve requirements will oblige you to unexpectedly make a down payment of less than 20 percent, triggering the need for mortgage insurance. To avoid mortgage insurance in this case, you'd have to cancel the deal, scrape up more money for a down payment and wait while you put aside more money. Lenders would rather you have an emergency fund than not, even if it means you'll have to make higher house payments because of mortgage insurance. Depleting your reserves is just one of five first-time homebuyer mistakes. 4. You can save by refinancing into a 15-year loan Even though mortgage rates are likely to rise in 2017, some homeowners will have reason to refinance. There are various refi triggers, even after interest rates have risen above record lows: • Divorce. • Finally recovering from a low credit score. • To get rid of mortgage insurance. • Finally having positive equity. • To cash out some equity. • To save money in the long term by

refinancing into a 15-year loan.

The last item -- refinancing into a 15-year mortgage -- saves money in two ways: 15year mortgages tend to have lower interest rates than 30-year loans, and you pay interest over a shorter period. In most cases, the monthly payments on a new 15year mortgage are higher than for a 30year loan, but the total interest paid over the life of the loan is less. There are also drawbacks to refinancing into a 15-year mortgage. 5. Borrow what you can afford to repay When people buy homes, they often "stretch" to make their initial monthly payments, on the theory that their incomes will go up over time, making house payments easier to cover. But it's smarter to live within your means. You can move up to a more expensive house after (and not before) your income rises. A conservative rule of thumb is that all of your monthly debt obligations, including the house payment, shouldn't exceed 36 percent of your income before taxes. Let's say your household income is $5,000 a month: The monthly house payment, car payments, student loans, credit cards, child support and other obligations shouldn't be more than $1,800, or 36 percent of that $5,000.

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2016 issue 12

Builders Outlook

When you apply for the mortgage, the lender looks at your credit report and your credit score. Then, shortly before closing, the lender surveys your credit again. If there's a substantial change -- say you maxed out your credit cards to buy furniture and appliances, or you got a loan to buy a car -- the lender might have to delay your mortgage closing. In drastic cases, you could torpedo your mortgage and have to apply all over again. Now, if you have a high credit score and will have plenty of money in the bank after you close on the loan, the lender will be willing to let you accept a higher house payment. But if your debt obligations are well above 36 percent of gross income, you won't have much money left over to have fun and save. 6. Ask about a no-closing-cost mortgage A typical mortgage has thousands of dollars in mortgage fees and other closing costs. If you pay those fees out of pocket, you tend to get the lowest interest rate you're eligible for. But you might want to

accept a higher interest rate in exchange for the lender paying some or all of the closing costs. For example, you might be offered an interest rate of 3.75 percent if you pay all the closing costs, or a rate of 4.125 percent if the lender pays the closing costs. Generally speaking, no-closing-cost mortgages are attractive to people who plan to sell their homes within five years or so. If you plan to stay longer than five or six years, your total costs will be lower if you go ahead and pay the closing costs out of pocket. It's a balancing act, because paying the closing costs could push you into making a smaller down payment,

potentially forcing you to pay for mortgage insurance. 7. Get a zero-down VA loan We already mentioned Veterans Affairsguaranteed mortgages before, but these home loans may be underused, even though they're popular. In 2016, approximately one-eighth of mortgages were guaranteed by the VA, according to the Mortgage Bankers Association. But a 2010 survey found that many homebuying veterans weren't aware of the VA loan benefit or didn't know much about it. About a quarter of active-duty military personnel weren't aware that they were eligible for VA loans. Maybe those active-duty personnel believed that the VA loan benefit was available only to retirees or veterans who have been discharged. In fact, VA loans are available to honorably discharged veterans, those who are on active duty or who have completed at least six years of service in the National Guard or selected Reserve units. Certain surviving spouses of veterans are eligible, too. See a detailed eligibility table. The primary feature of VA loans is that they can be used to buy a primary home without a down payment. 8. A cash-out refi might work for you A cash-out refinance happens when the homeowner refinances the mortgage for more than the amount owed. The borrower pockets the difference. Cash-out refinances were popular during the real estate boom of the early 2000s. Then they almost disappeared after the housing bust wiped out billions of dollars in home equity. Now that home values have climbed near their pre-recession peaks in many markets, cash-out refinances have returned. The other way to extract cash from equity is through a home equity loan or line of credit. When you want to spend the

11 money on something short-term -- like a vacation or a wedding -- it's probably better to get the money through a home equity loan or line of credit. But if the purpose of the money is long-term -- like building an addition to the house -- then a cash-out refi might make more sense. 9.You might be able to refinance into a VA loan If you're eligible for a VA-guaranteed mortgage, you might be able to refinance from a conventional mortgage (or an FHAinsured mortgage) into a VA loan.

In many cases, you can refinance for up to 100 percent of the home's current value. This means you can do a cash-out refinance using a VA loan. Funding fees for cash-out VA refinances vary from 2.15 percent to 3.3 percent, and the fee can be added to the loan balance. 10. Be patient during underwriting Keep your finances as boring and steady as possible between the time you apply for a mortgage and the time you close on the loan. That sounds simple in theory, but it's sometimes difficult in practice, especially for first-time homebuyers. What it means is this: Don't charge up your credit cards and don't apply for new credit while the mortgage is going through the underwriting process. When you apply for the mortgage, the lender looks at your credit report and your credit score. Then, shortly before closing, the lender surveys your credit again. If there's a substantial change -- say you maxed out your credit cards to buy furniture and appliances, or you got a loan to buy a car -- the lender might have to delay your mortgage closing. In drastic cases, you could torpedo your mortgage and have to apply all over again.

The spirit of giving

Builders Outlook

2016 issue 12

Toy drive brings smiles to children this season

The El Paso Association of Builders (EPAB) members are generous to a tee, and sometimes beyond. Such is the case every time we have an installation and we ask attendees to bring a toy as a donation to needy children. This year the toy donations were once again super generous. The toys ran the gamut of dolls, stuffed animals, cars, trucks, blocks, and even a painting set. The thing that we are asked every year is “who is this for?” Unfortunately the need in our community, as in most others is bigger than what can reasonably be taken care of. That need is demonstrated every year as many organizations run toy drives all for the very good cause of making a child happy. In our case we have teamed up with the Junior Women’s Club of El Paso, a group of professional women who volunteer for the good of the community. The Club is now 82 years old and continues to do outstanding community work. Many of you know this group best as the “Halloween Spooktacular” ladies, the family friendly Halloween carnival held at around Halloween. The money they get from the Spooktacular goes to other non-profits and to fund their annual Christmas giving. Each year the women not only try to provide toys for the most needy in the community but they also give the family a food basket and clothes for the kids. One year they also gave books

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in addition to the toys. This year the Junior Women’s Club hosted nine families from an area around Socorro at the Peter Piper Pizza. They fed the families and all 40 of the children from those nine families, gave them each a clothes set that was purchased specifically for them, and presented the family with a food basket. Our own Margaret Adauto and Angelique Adauto Roman of Sierra Tittle have been members for years and help with this project. “We start working on the next Christmas right after the end of the year. We have a small but dedicated group of women who give time and money to support our efforts,” Margaret told the Outlook. Pema Garcia, a member who works for Texas A&M echoed Margaret’s thoughts. “The generosity of your members gives us that boost we need each year, frankly there is no way we could afford to provide so many kids without the support.” Ms. Garcia said. This year the kids were also given a winter themed coloring page to color while they ate the pizza and waited for the toys and goodies. “We want to let you know how much the toys mean to these kids,” Garcia said. “The toughest part of the process is choosing who will get the support because clearly we could expand the number because of the need,” she continued. “We at Texas A&M Colonia’s

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program will touch nearly 800 kids this year, so we can use every bit of help,” she told us. Ms. Garcia presented the EPAB with a few coloring works the kids did, but one had an inscription from a mother. It says “Thank you so much. Our children are

very happy”, signed the Buruato and Calderon families, 79928. The originals are at the office for you to see. Thank you to all who contributed. Remember to save Friday December 8, 2017 for the next installation.

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Chrristmas Downtown 415 N. Mesa a Street

No matter how you personally ersonally celebrate this holiday season we celebrate you! Warm a wishes for a happy holiday and nd prosperous new year.

Northeast 4712 Woodrow o Bean, Suite D

Open Saturdays 9:00 am to 1:00 pm.

915 -225 - 8200 00 stewart.com/el-paso m/el-paso

Eastside 2244 Trawood od Drive, Suite 101 Westside 5500 N. Desert, ert, Suite A-2

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2016 Issue 12

Association News & Events

Builders Outlook

If you have an event or meeting that you would like to share with EPAB members, please submit your information to: margaret1@elpasobuilders.com CONDOLENCES

Our heart felt condolences to the Ray Lozano family and the BMC family on their loss.

UPCOMING EVENTS JANUARY 10-12 IBS ORLANDO, FLORIDA JANUARY 18 BOARD MEETING EPAB OFFICE

NEW MEMBERS WestStar Home Loans Contact: Sandy Matyi 6700 N. Mesa, Suite 102 El Paso, TX 79912 915-771-1743

WestStar Title Contact: Janette Coon 641 N. Stanton, 2nd Floor El Paso, TX 79901 915-849-5527

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