SOM wins the Beijing CDB Competition & the New FHA Temporary Rules for Buyers & Investors

Architecture: Congratulations SOM (Skidmore, Owings and Merrill) for winning the Beijing CBD Competition
Real Estate: New Changes to FHA Loans for Buyers and Investors
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Architecture: Congratulations SOM (Skidmore, Owings and Merrill) for winning the Beijing CBD Competition

The Chaoyang District Government held a international competition for the expansion of the Beijing Central Business District (CBD) and the offices of Skimore, Owings and Merrill won with ease. The stunning design, forward thinking, and innovative ideas of their expansion were just what the CBD called for.

The SOM expansion plan calls for all types of new buildings and parks. There will be the skyscrapers, new rail service, new streetcar system, and there will even be selected areas with walkable blocks to foster residential living. Oh, and lets not forget that all the roads will be bicycle friendly.

But for me the best aspect of this entire proposal is the energy saving aspect. According to SOM the new district would, "reduce energy consumption within the district by 50%, reduce water consumption by 48%, reduce landfill waste by 80%, and result in a 50% reduction in carbon emissions. Reduction in emissions from office buildings alone would equate to a reduction of 215,000 tons of CO2 per year, which is the equivalent of planting 14 million adult trees."

Here are some visuals from their proposal to help you out (these are computerized images of their plan)!

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Real Estate: New Changes to FHA Loans for Buyers and Investors

In case you haven't heard, there are new changes to FHA loans for investors and buyers. Since the housing market is having a hard time bouncing back the Federal Housing Administration is tightening up on lending rules and backing off investor 'flipping' rules in hopes of spurring the market.

 The new rules are temporary (1 year) but will have an impact on buyers and investors.

• Better  Credit Scores — New borrowers will have to have a minimum credit score of  580 to qualify for a 3.5 percent down payment. Previously, there was no minimum score. Those with lower scores will have to make at least a 10 percent down payment.

• Higher  Insurance Premiums — Buyers who get an FHA-insured loan will soon have to pay a higher initial insurance premium. The new premium will be 2.25 percent of  the value of total loan amount, up from 1.75 percent now. A $100,000 mortgage  would require a payment of $2,250, or $500 more. But buyers can roll the added cost into the loan amount.

• Reduction  in Seller Concessions — Starting this summer, sellers will not be able to offer as much help to buyers to pay their closing costs. The maximum amount of assistance will drop to 3 percent of the value of the property, from the current 6 percent.

And the investors have not been forgotten either. Starting Feb. 1, the government will waive the FHA anti-flipping rule that prohibits insuring a mortgage on a home owned by the seller for less than 90 days aka investors can buy today and re-sell as quickly as possible (as long as they don't resell it for more than 20% of the value - unless the appraised value can support it).

So, if you are wanting to purchase a home - now is the time. If you are just interested in learning more email me at jallen@realtracs.com