The regulatory prerequisites for energy use have modified building codes to integrate green building practices.  The industry rating system for energy use and building methods have brought the demand to standardize the information quickly. In real estate, green buildings have become more common, but there are issues that have come up in these real estate dealings.

•  New financing mechanisms
•  A need for green building due diligence

In just under 2 years PACE programs have spread through the U.S. Offering up a mechanism for renewable energy to be supported. Upgrades for both commercial and residential property owners are earmarking the energy efficiency necessitated. Both the lending industry and the real estate sector have grown acquainted with the units of the government funding mechanisms.

There are thousands of land-secured funding districts in the United States and PACE provides a new model of land-secured financing to accomplish their goals of renewable energy and energy efficiencies. Since 2008, there have been 19 states that have authorized statute law to acquire this tool of land-secured funding so to encourage more energy efficient advancement.

Traditional land-secured financing in the past has been used for public-interest plans only, such as paving streets, street lighting, sidewalks and parks. PACE has expanded to using land-secured financing to enable energy betterments supported the same way. Any property that voluntarily accepts to take part in the PACE program are subject to a special judgement.

Jurisdictional differences can vary in legal mechanisms of PACE programs as long as it holds like characteristics. Localized units of governments have been empowered to sell bonds that are secured by the assurance of special assessment payments and by certain reserve funds. Any willing residential and commercial landowners within the PACE special assessment district has the capital that is elicited from a bond sale accessible to establish renewable energy systems or make energy efficiency advances.

There are procedural guideposts that local governments are bound to follow in arranging a program within their jurisdiction.  Different types of renewable energy and energy efficient advances are allowed in certain programs. The quittance of loans, the loan amounts in addition to the funding mechanisms will vary by state and local government. Repayment of these improvement cost are repaid over years through a property tax bill marked as special assessment. This assessment stays with the land and is transferred to new owners when a property is sold.

With the growth of green buildings, another development sent in the real estate industry is need to prove due diligence. Spurring this trend such as mandatory transactional energy disclosure and labeling regulations. Several major cities have put laws in place requiring such disclosures. As well the American Recovery and Reinvestment Act (ARRA) has “green strings” attached so that states accepting these funds must agree to upgrade their building codes to meet green requirements.

By midyear, an enhancement to the Phase One Environmental Site Assessment and Property Condition Assessment (PCA) procedures routinely used in real estate transactions today will be in place. Owners of real estate and lending institutes need to stay current and informed in the development of PACE programs and the laws regarding due diligence in the U.S. Procedures for due diligence will reveal the need for energy efficient investments that PACE programs will partially finance along with traditional debt and equity sources.

Closing costs can come as a surprise to the ill-prepared homebuyer.  The idea that there would be additional fees and costs that go beyond that huge buying price can cause some buyers to turn away from the home of their dreams.  When it comes to closing costs, most are fairly set in stone, but there are ways to lower closing costs and make the unimaginable quite acceptable.

Closing costs usually run around 2%-3% of the value of the purchased home.  The trouble with closing costs is that buyers don’t get a realistic number until they receive their HUD-1 Settlement Statement, which usually occurs about 72 hours before closing.  There is the Good Faith Estimate, but these are just estimates and with HUD’s recent changes to the document, Good Faith Estimates may confuse and scare more than prepare.  Closing costs pay for a number of services including: 
•  Loan Origination Fees
•  Title Company Fees
•  Deed Recording Fees
•  Property Surveyor Fees
•  Home Inspection Fees
•  Appraisal Fees
•  Attorney Fees

The conundrum with closing costs is that most buyers save for years to have the money for a down payment.   Down payments are great because they lower the amount you must borrow, lowering your costs over the long term.  Most buyers end up using a portion of their down payment to pay for closing costs and lose that big down payment long term advantage.  One thing that buyers can do to reduce their closing costs is to have their lender roll the closing costs into the mortgage.  Although this allows you to make your big down payment, but it also adds to your monthly mortgage payment.  Consider adding another $10000 to your mortgage that over thirty years will cost you over $30000.  You will have to crunch some numbers to determine if this is the right choice for your situation.

Negotiating the closing costs into the asking price or asking the seller to pay all or a portion of the closing costs are additional options.  This option is most viable in situations where the property has been on the market for a while and the sellers are more than motivated to unload.  Even if you cannot get the seller to pay all of the closing costs, you may be able to get them to cover half or more.
 
A not so great option is to ask your lender to cover your closing costs.  Most will be unwilling to do so, but those that do will likely raise your interest rate by 25 to 100 points costing you more in the long term.  Your best defense against rising closing costs is to request multiple Good Faith Estimates from lenders and comparison shop.  But the best way to steer clear of closing cost fears is to plan ahead and set aside enough cash to cover closing costs and you ideal down payment. 

For many of us owning our own home represents the American way of life. It is our right to live wherever we choose and can afford to love. The month of April is the 42nd anniversary of the 1968 Fair Housing Act. The purpose of this act is to ensure equal housing opportunity for all. The Fair Housing Act is meant to open doors for everyone in this country so that all Americans can own a home and fulfill their dreams.

However, most of us are not aware just how extensive fair housing laws are. The term "Fair housing" means that discrimination through the laws and regulations put in place by the Fair Housing Act is prohibited. These laws established by the 1968 Fair Housing Act include the sale or rental of housing, financing or other related transactions as well as the provision of housing-related services. The Title VIII of the Civil Rights Act of 1968 was established to ensure that housing is always available to all people regardless of their racial, cultural or physical factors.

Information provided by the National Association of Realtors and the U.S. Census data shows that more than 75 percent of white households own their home while only about 50 percent for African American and Hispanic households own. With current efforts, minority groups in the home ownership category has accounted for more than 50 percent of first-time buyers in 2010.  This is a great boost for the economy and for building up communities all over this country.

Realtors are seen as community builders. They understand that giving Americans the opportunity for homeownership is not only a dream, but necessary to build communities. They know that the diversity of neighborhoods and schools is what strengthens communities and growth from the minority population is vital.

Real estate agents know that while going through the stress and excitement that home buying brings, you should not have to worry about being treated fairly. Your realtor can provide you with resources and information and educate you about your rights and responsibilities under the Fair Housing Act. All realtors are trained and educated to provide equal housing opportunities to all Americans. 

While the month of April is the anniversary of the Fair Housing Act, realtors are active year round in support of this act and believe in opening those doors for all Americans to home ownership. 

To help in efforts to stabilize and revive communities hit hardest by foreclosures, Freddie Mac has planned to auction off hundreds of HomeStep REO Properties before the end of April to individual buyers.  HomeSteps is the division of Freddie Mac that markets properties owned by Freddie Mac.  Combined with the federal tax credit, homebuyers have great financial advantages when they purchase a HomeStep property now. Freddie Mac has scheduled auctions for the last week of April in certain areas hoping to make it possible for bidders to purchase a home and still be eligible for the federal tax credit, which requires buyers to ink their names to a contract by April 30.

Freddie along with the Neighborhood Stabilization Program are helping homebuyers that may be eligible for closing cost and down payment assistance when they purchase abandoned or foreclosed homes in communities that have been hit the hardest in the economic downturn.  With the purchase price of a home that is greater than $25, 0000 buyers will also benefit from HomeSteps’ SmartBuy program with the two-year limited home warranty on homes sold as primary residence. These homes have been removed from the market, inspected, repairs made and being sold in “as is” condition.
 
It is hoped that owner-occupants will be the key to revitalizing and strengthening the neighborhoods hit hardest by the economy. Along with Freddie Mac, programs such as the NSP and the federal tax credit, first time buyers and owner occupant buyers will turn hundreds of foreclosed properties into homes for deserving families.  Mortgage giants are working with Freddie and buyers that do not qualify for NSP loans by hosting one day events giving exclusive opportunities to purchase HomeSteps homes.

By riding this wave of federal assistance first time home buyers have an opportunity to purchase a great home and Freddie Mac has the opportunity to put a dent in their inventory of foreclosed properties.   Combined with today’s low mortgage rates and the federal tax credit families can take advantage of this convergence and get an exceptionally attractive value.