Homes MSP Real Estate Blog

Federal Housing Administration (FHA) – A mortgage program that is commonly utilized by First Time Home Buyers and requires a minimal amount of upfront money to purchase a home.

The Federal Housing Administration (FHA) is a program that is insured by the federal government and requires a minimal amount of upfront money for home buyers to attain home ownership. This program has been and will continue to be a viable solution for many First Time Home Buyers.  It requires minimum contribution by the buyer or their family member(s) of 3% of the purchase price.  This 3% can come from a family member who is willing to assist in this manor.  Essentially meaning, that you, the borrower, will have little to nothing to contribute into the purchase of your new home!  And with current FHA interest rates in the low 6’s, it makes it a perfect time to consider purchasing your first home!

FHA does not have any buyer income limitations and allows for loan amounts up to $365,000 within the Twin Cities region on one unit properties.

Nick Sivertsen, Summit Mortgage - Email - Website

Wednesdays Unplugged - Bakesale Betty's Fried Chicken Sandwich

This is Wednesday, my day to be unplugged and enjoying another summer day.

QUOTE OF THE WEEK

"The truth is...everything counts. Everything. Everything we do and everything we say. Everything helps or hurts; everything adds to or takes away from someone else." ~ Countee Cullen

Last week was our grandson's birthday week so he got to give input on the menu. He requested sandwiches and I remembered a recipe I had saved from an article in the San Francisco Chronicle when we were there last July. The article said people line up out the door for this famous chicken sandwich created by 'Bakesale Betty' in her blue wig. I decided it was time to give it a try.

My family was not very excited about it...especially not about the coleslaw that tops the sandwich...until they tasted it!! The chicken and coleslaw were also delicious without a bun. I consider it the ultimate endorsement that our son-in-law asked for the recipe so he could make it over the weekend.

In the newspaper article Betty said that until she experienced the queasiness of pregnancy, "I ate this once a day for five years and never got sick of it." I understand why...I found myself waiting in anticipation to eat the leftovers!

RECIPE OF THE WEEK

The recipe below was copied directly from the recipe by Alison Barakat (aka Bakesale Betty) in the SFO Chronicle. It calls for 4 chicken breasts to make 4 large sandwiches. I used a family size package of chicken breasts and cut each one in two to make sandwiches to fit on hamburger buns...make sure the buns are soft to complement the crunchy chicken and coleslaw. The coleslaw was just the right amount, I used one package of pre-shredded cabbage and canned jalapenos because of the salmonella warning...adjust how many jalapenos you use to your desired hotness. The breading was much more than I needed. I used an electric deep fryer and needed a little more oil. ENJOY!

BAKESALE BETTY'S FRIED CHICKEN SANDWICH

Serves 4

     4 boneless skinless chicken breasts, about 6 oz each

     Kosher salt to taste

     1 quart buttermilk

The vinaigrette

     1 tablespoon Dijon mustard

     3 tablespoons red wine vinegar

     1 teaspoon kosher salt

     1/2 cup extra virgin olive oil

The coleslaw

     1 small red onion, very thinly sliced

     1 cup red wine vinegar

     2 jalapenos, seeded, cut in half and sliced crosswise

     1/4 cup chopped parsley

     1/2 green cabbage, core and outer leaves removed, and very thinly sliced

     Kosher salt

The breading

     1 pound all-purpose flour

     1 tablespoon cayenne pepper

     1 tablespoon kosher salt + more to taste

     1 1/2 teaspoon freshly ground pepper

     2 quarts vegetable oil, for frying

     4 torpedo rolls sliced lengthwise

Instructions: Season chicken breasts with kosher salt.  Let sit at least 5 minutes.  Fill a wide, shallow nonreactive bowl or casserole dish with buttermilk.  Add the chicken and soak in the refrigerator for 1 hour up to overnight.

For the vinaigrette: Combine mustard, vinegar and salt in a bowl. Slowly whisk in olive oil until well blended.

For the coleslaw: Macerate onions in red wine vinegar, and let sit at least 20 minutes.  Remove onions and discard vinegar.  Toss onions with jalapeno, parsley, cabbage and salt.  Toss with vinaigrette until evenly coated.

To fry chicken: Pour vegetable oil into a large stockpot.  Do not fill up more than halfway, or the oil could spatter.  Bring oil up to 365 degrees, using a digital thermometer/candy thermometer to monitor the heat.  Prepare the breading while waiting for oil to heat up.

In a wide shallow bowl, mix flour, cayenne, salt and pepper.  Pull a chicken breast out of the buttermilk one by one, letting excess drip off, and dredge completely in flour.  To create a thick crust, place in buttermilk and dredge in flour a second time.  Do not drain or shake off excess buttermilk or flour during the breading process.

When the oil is at 365 degrees, carefully place chicken pieces into oil one by one.  Let it cook for a minute before disturbing chicken, then help it "swim" in the oil with tongs, until it is evenly cooked, about 5-7 minutes.  Remove chicken from oil and drain on paper towels.  Season immediately with salt.

For the sandwich: Place fried chicken breast on bottom of torpedo roll and top generously with coleslaw.

New Minnesota requirements for carbon monoxide alarms

Carbon monoxide alarms have been required in new homes in Minnesota since January 2007, and will be required in existing single family homes beginning August 1^st, 2008.  The alarms will need to be installed within ten feet of every room lawfully used for sleeping purposes.  "Installed” means hardwired, plugged in to an outlet, or attached to the wall if battery operated.

This will be enforced much the same way that smoke detector requirements are enforced today in Minnesota.  If work is being done at a home with a permit, the building official will make sure that carbon monoxide alarms have been installed where required.  As of the date of this posting, the city of South Saint Paul is the only city that enforces carbon monoxide alarms as part of their Truth-in-Housing program, but I expect other cities to start enforcing this soon.  This city of Minneapolis will only require evaluators to comment on the presence or absence of carbon monoxide alarms – this will not be a repair item if missing.

To keep current with today’s requirements and to keep your home safe, I recommend upgrading to today’s standards.  I just installed two carbon monoxide alarms in my home this weekend, and it was quite easy.  I have hardwired, interconnected smoke detectors throughout my home, so I replaced two of the hardwired smoke detectors with combination smoke and carbon monoxide alarms.  Of all the ways to install a carbon monoxide alarm, this is the most difficult, but it only takes about 15 minutes.

The full requirements for carbon monoxide alarms can be found at Minnesota Statute 299F.50

Up at the Lake

Minnesota is known as the Land of 10,000 Lakes...and we live the motto! It seems that it's hard to find a Minnesotan who doesn't either...

• have a lake cabin
• know someone who has a lake cabin
• or spend some time on or around a lake...in or out of the metro area

This was one of those idyllic summer weekends where the weather was absolutely beautiful...perfect lake weather...the kind of weekend that reminds us why we love living in Minnesota!

Sunday's Site - Mill City Museum

Minneapolis grew up around flour mills along the Mississippi near St. Anthony Falls and was known as the "Flour Milling Capital of the World" from approximately 1880 to 1930. At its peak, the Washburn A Mill, site of the Mill City Museum, was the most technologically advanced and largest in the world and could grind enough flour in a day to make 12 million loaves of bread.

Mill City Museum, the latest addition to the Minnesota Historical Society's network of museums and historic sites, is a wonderful multi-sensory attraction for all ages located in a national historic site. Don't miss the 8-story flour tower, a very creative way to safely view the inner workings of the mill...and their latest attraction, the movie 'Minneapolis in 19 Minutes Flat' by the Twin Cities' own Kevin Kling. Both are included with the price of admission.

Many condo developments, both renovations and new construction, line the banks of the Mississippi and dot the surrouding area. Click here to see properties currently for sale in this area of Minneapolis, MN. (Please be patient while the link searches for the most current listings...pass your cursor over the dots on the map for property information.)

Down payment assistance

One of the biggest hurdles many people face when buying a new home is the down payment.  If you are buying your first home, saving money can be a challenge.  One of the many programs that have been used for years is a down payment assistance program from a nonprofit agency.   Some of the common ones are Nehemiah Corporation, Futures and Sovereign Grant. 

These programs have helped nearly 79,000 people buy homes using government-insured loans last year and they would be eliminated as part of a broader housing package that Congress expects to pass this week.  Under these programs, nonprofit groups provide buyers with money for down payments.  Home sellers then reimburse the organizations and pay an administrative fee.  More than half a million people have bought homes this way in the past decade using loans insured by the Federal Housing Administration.

FHA has said that seller-funded down payments present the biggest challenge to it's solvency.  The fate of these seller-funded programs have been in limbo for weeks.  The Senate version would eliminate them, the House version would not.  The negotiators crafting a compromise bill have agreed with the Senate's position and that is also now supported by the Bush adminstration.

Supporters of this kind of assistance said it meshes with the FHA's mission to serve low- to moderate-income people.  While the system may have it's problems, it should be fixed not abandoned.  Without this program many potential homebuyers will be shut out of the market.  FHA estimates that nearly 40% of their loans include down payment assistance.  That means more than 300,000 working class families will be locked out of homeownership in the next year alone.  Communities across America will take the brunt of the $50 billion in lost real estate sales, not to mention the indirect impact on the real estate, mortgage and building sectors that will be forced to shed thousands of jobs due to this legislation.

We believe the state funded programs through Minnesota Housing Finance Agency and some county programs will still be allowed to use their down payment assistance programs.  However, those programs require you to be a first time homebuyer and also have income limits.

We will know soon the fate of these seller-funded programs and hopefully this section of the bill will be eliminated.  If not, then Nehemiah and the other programs will work with the next administration to change this part of the legislation.  In the past few months, these programs have been more important than ever with all the current mortgage programs changes. 

Leslie Vanderwerf, Advisors Mortgage - Email - Website

Wednesdays Unplugged - Tomato Mozzarella Salad

Today is Wednesday, time for me to be unplugged and resting from the business of real estate again as I do each week. I hope you are enjoying what is to be a beautifully refreshing day.

QUOTE OF THE WEEK

"Take rest; a field that has rested gives a bountiful crop." ~ Ovid            

I first tasted fresh Mozzarella years ago in Italy. At that time it wasn't readily available here, and when I got home I sought out a small Italian market where I was able to find some. It was a delectable treat, seemingly even more enjoyable because of the pains I had to take to find it. Now it is readily available in our nearby grocery...and I still find it to be a special treat...especially paired with locally grown, richly flavorful tomatoes.

RECIPE OF THE WEEK

TOMATO MOZZARELLA SALAD

recipe from Country Woman at TasteOfHome.com

1/4 cup red wine vinegar

1 garlic clove, minced

1/2 teaspoon salt

Pepper to taste

2/3 cup olive oil

1 pint cherry tomatoes, halved

1 1/2 cups cubed fresh mozzarella (8 oz)

1/4 cup chopped onion

3 tablespoons minced fresh basil

In a small bowl, combine the vinegar, garlic, salt and pepper. Whisk in oil until blended. Add remaining ingredients; toss to coat. Cover and refrigerate at least 1 hour, sitrring occasionally. Remove with a slotted spoon to a serving dish.

Break the seal at the attic access panel? Yes.

One of the biggest sources of contention I’ve had to deal with doing home inspections is whether or not a sealed attic access panel should be ‘broken’ to access the attic; even more specifically, whether or not I should be allowed to break the seal.  If you’re not sure what I’m talking about, here’s a photo of an attic access panel. To understand this issue, you need to understand why this panel is here and why it has been sealed. 

 

First, the access panel is here because it is required by the Minnesota State Building Code.  The panel is here for me (or anyone else) to use to get in to the attic to inspect it, or to do work.  That’s it, plain and simple.  The Minnesota State Building Code, section R807.1 says

“…an attic access opening shall be provided to attic areas that exceed 30 square feet and have a vertical height of 30 inches or greater.” 

This covers just about every attic space.  Outside of Minnesota, the building code will typically read the exact same way, as this is taken from the International Residential Code.

So why is the panel sealed?  In a new home, the panel only gets incidentally ‘sealed’.  The panel does not get attached to anything; it just gets set down on the opening. When the ceiling finish is applied, which is often spray texture, the seam between the panel and the rest of the ceiling gets covered over.  This is what people are referring to when they say the access has been ‘sealed.’  There is very rarely any caulking or adhesive keeping this panel in place.

This can become a subject of contention when I inspect a house where no one has been in the attic since the ceiling finish has been applied… or as most people say, the access has been sealed.  I say ‘sealed’ too, just because it’s easier than saying “incidentally covered over with a finished surface.”  My evaluation of the attic is a major part of a home inspection, and it’s important for buyers to know about any defects in the attic.  This is a place that homeowners may never even go in to as long as they own their home.  For this reason, I break the seal on just about every home I inspect, but I never do this without permission from the buyer. 

The biggest sources of contention come from parties attending the inspection that are under the impression that attic spaces in new homes don’t need to be inspected.  Well, by that logic, new homes wouldn’t need to be inspected at all.  Please check out my blog on New Construction Inspections, and you’ll understand how important inspections are on newly built properties.  A large portion of the problems I find in new construction homes occur in the attic. 

The other common argument I hear about not going in the attic is that the panel will look bad after I open it.  This just isn’t true.  If a knife is used to cut the panel open, it will usually leave a noticeable scar in the ceiling, but if the panel is lightly bumped open, it will usually set back down and look almost identical to the way it did before I opened it.  Much of the time, you can’t even tell the difference between a sealed and unsealed panel unless you loose closely. 

The bottom line is that attic access panels are there for the attic to be accessed, and this is something that should be done at every home inspection. 

Short Sale Progress...Closed!

I promised a final progress update on the short sale offer made by clients back in February.  Except for the wait the process until closing last week was L-O-N-G but pretty uneventful.

Perhaps the most stressful part of the whole process...for both buyer and seller...was moving out of the property. When we got to the final walkthrough right before closing, the seller still had a L-O-N-G way to go to get everything out of the house. I guess that was consistent with the timing of the whole process!

My clients legally had possession immediately after closing but that obviously wasn't happening so we had to creatively work something out. After several more visits to the house to check on progress my clients finally had possession of the property...exactly 5 months after writing their offer.

I asked if it was worth the wait. They have lots of work ahead of them. They said to check back later..."we'll let you know in a couple of years!"

Sharlene Hensrud, RE/MAX Results - Email - Website

Sunday's Site - Excelsior & Grand, Wolfe Park

St. Louis Park's Excelsior & Grand ambitious redevelopment has a great urban village feel, with restaurants, coffee shops and shopping at street level and condos and apartments above. It even features the first Trader Joe's neighborhood grocery in the Twin Cities.

Located not far from the Minneapolis city lakes district, it has easy access to both the city and major highways. Other St. Louis Park shopping and entertainment areas are nearby along Excelsior and the west end of Wolfe Park.

The plazas, sidewalks and center parkway make 'Excelsior and Grand' very pedestrian friendly, inviting you to relax and enjoy a cup of coffee or a meal at a sidewalk cafe.

Summer events include a Farmer's Market on the plaza on Wednesdays and concerts Wednesday and Sunday evenings in the adjoining Wolfe Park outdoor amphitheatre.

The sloping city parkland on the north side of the complex adds an open, natural setting with wonderful open sky views not usually experienced in an urban environment. The park features trails, playground, and an outdoor aquatic park at the city rec center.

Click here to see properties currently for sale in the area around Excelsior & Grand in St. Louis Park,  MN. Note that as this area features multiple condos at the same address, only one dot may appear for several available properties...move your cursor over the dot to see a list of properties available at that address. (Please be patient while the link searches for the most current listings.)

Sharlene Hensrud, RE/MAX Results - Email - Website