Fannie Mae to help out first-time homebuyers!

More good news has surfaced for first-time homebuyers, even as interest rates begin to slowly climb. Still on the fence about buying a new home? We think this might help: Fannie Mae is now offering to pay closing costs up to 3% of a home’s value, for first-time homebuyers.

That’s right, there really isn’t a catch! All you must do, is participate in the mortgage entity’s counseling course. For first-time homebuyers and families who do not have adequate savings, but qualify for a mortgage based on credit history and ability to pay, this new option will be extremely helpful.

So let’s do the math. If the home you’re waiting to build is $150,000, and Fannie Mae will pay up to 3% of that home’s value, you will see a closing cost deduction of $4,500. Here’s a little more information regarding the first-time homebuyer program.

Spring is the perfect time to build your brand new, customized, dream home. And now, thanks to Fannie Mae, the upfront costs associated with purchasing a new home are now much, much less.

Are you ready to move into a brand new Faber Home? Visit our website today or give us a call: 585.889.4840.

The time to buy is now

It’s been a buyers market for the last several years, with interest rates at all-time lows, but all of that is about to change, according to many recent reports, including this one from Reuters.

In the article, Atlanta Federal Reserve President Dennis Lockhart states that the U.S. central bank intends to raise interest rates as early as June, barring a significant downturn in the U.S. economy.

Last Wednesday, the Fed moved a step closer to raising rates for the first time since 2006, but downgraded economic growth and inflation projections. The Fed is in no rush to push borrowing costs, however firmer timelines are now being put into place that set increases in motion in our very near future.

So what does this mean for potential buyers? Time is running out. There is much to speculate on when, following the month of June, interest rates will rise, and by how much, but now we know it is coming this summer.

That said, interest rates are currently hovering around 3.93% for a 30-year fixed mortgage, and 3.06% for 15-year fixed. Now is the time to buy, and if you’ve ever considered building a home, the market is in your favor for another two to three months!

Faber Homes maintains several neighborhoods on the West side of Rochester, so if you’re a current resident looking to move, or if you’re moving here from outside the area, contact one of our sales representatives today. We have model homes for every family, including cozy two bedroom ranch floor plans, and four bedroom spacious colonials perfect for growing families. We’ll work with you to ensure your home is built to the highest standards making no compromises to quality, and becomes the home you’ve always dreamed of.

Not sure which type of mortgage is best for you? Our skilled representatives can help set you up with a mortgage consultant from the beginning and walk you through the entire process. Buying a new home can be scary, but with Faber Homes behind you, the process will be seamless and we promise you’ll feel supported through every step of the process.

Home upgrades that really pay off

Building a home is a fun process. You get to pick each and every facet of your home from window placement to cabinet height to hardware colors. You’ll likely opt to upgrade some items in your home, such as vaulted ceilings or stone facings on the exterior of your home. There’s a lot of options, and with Faber Homes, the possibilities are endless, so what will you upgrade while you build, and what will you work on years down the road?

It’s important to understand this distinction when you go to your preconstruction meeting, as there are certain upgrades that are easier done prior to the home being built and other upgrades that will immediately increase the value of your home. If you plan on moving in the next five to ten years, you’ll want to take your home’s resale value into consideration, so we’ve compiled a list of upgrades that will pay off at resale.

Before you build

Modern or updated bathrooms. Glass shower doors that reveal stone tile walls can really help amp up your home value. Also think about the small things like hardware and faucets. The more elaborate and elegant, the nicer your space looks to you and everyone else. Make a single sink a double right away to make your life (and the future homeowner’s) easier.

Modern or updated kitchens. Recessed lights leave room for families to imagine their own taste in the space, as opposed to large light fixtures that are uniquely your style. Stone or trendy glass countertops add value immediately, and are very simple to design around. You cannot put two layers of vinyl over each other, so if you go for vinyl, make sure it’s a neutral color. Otherwise, we recommend laminate, wood, or tile. A complete kitchen remodel later on will run around $30,000 - $40,000 but might only return $25,000 - $35,000 at resale.

Finished basement. Our Superior Walls make it easy to quickly finish a basement, and our overall familiarity with them makes it a very easy process for us. Don’t feel like messing with private contractors who charge an arm and a leg for upgraded spaces? Talk to a Faber representative about the opportunity to have your basement finished while you build.

Natural lighting. It’s hard to estimate how much natural light will come in through our windows before we are in the house. It all depends on where the sun rises and sets. If a room seems to closed-off to you, more windows can open up the room and bring more light in. This upgrade is much less expensive to implement before you move in.

After you build

Landscaping. We’ve all heard of curb appeal. It’s a real thing! Keep it simple with small shrubbery and flowering plants, and opt for a finished paver or poured polished concrete walkway. Don’t be afraid to spend money on perennials, because they come back year after year bigger and healthier (if you take care of them).

Patios, porches, or decks. At Faber Homes, we aim to not only provide you with a beautifully built home, but also a home that’s in an attractive neighborhood on plenty of land. After you move in, think about spaces for entertaining and where you’d like people to gather. That might mean a deck or patio. According to FrontDoor.com, a 16x20 ft. wood deck will run about $10,000 and you should be able to recoup about 90 percent of that cost at resale. Add eye appeal by including spaces for decorative planters.

Not just walls: Superior Walls

There are many things that attract buyers to a Faber Home: our attention to detail, ease of project coordination, and even our stylish models. But even before the appliances go in, walls are painted and windows are hung, we are proud to start the whole building process on a strong, sturdy, dare we say, Superior note.

We’re talking of course, about Superior Walls. 

Photo Cred: Superiorwalls.com

Oftentimes, builders will opt for foundation materials based on how remote a job site is or the expense of local foundation contractors and supplies. Faber Homes is not bogged down by these factors because we install precast concrete panels made by Superior Walls.

Superior Walls are patented precast insulated panels that are delivered to each and every home site on a truck flatbed. Walls are dropped into place and are locked together and permanently sealed. Each wall is custom built to your individual floor plan and can be built to accommodate nearly any architectural style. 

What makes Superior Walls, superior, are that they are dry and use a special low water/cement ratio of concrete. If or when you do decide to finish your basement, you will not need added insulation, as the walls are warm with a full-length insulation built in to increase energy efficiency. The walls are also “smart” in that they have built-in access for wiring and galvanized stud facing for drywall.

Many families are surprised with our estimated build times. From foundation to closing day, we usually estimate around three months (sometimes less, weather dependent, sometimes more, weather dependent and third party factor-dependent). This quick building process begins with Superior Walls, as it takes just five hours to install the foundation of your home. This knocks one to two weeks off our work schedule, letting us get to work fast, and finish faster.

Interested in learning more? Visit the Superior Walls FAQ page, or contact a Faber Homes representative today.

Countertop Materials

Choosing the right countertop material for your kitchen or bathroom is an important decision. After all, it’s where you clean up and prepare food, and also has an effect on your home’s value.

Photo Cred: interiordesignable.com

 

Granite. Granite countertops are among the most elegant materials available. They’re also among the most expensive. But if you are up for it, the natural stone has outstanding strength and other beautiful qualities. Granite is highly resistant to scratches and heat, making it an asset to cooking. One downside to granite is that it must be sealed because it is a porous stone and absorbs fluid. If not sealed, it can harbor bacteria. This only needs to be done every 10 to 15 years, however. Granite can run between $100 and $225 per square foot.

Quartz. Known as “engineered stone,” quartz countertops are made from about 90-93% quartz crystals, but are fabricated instead of cut from solid stone. Quartz countertops maintain all of the advantages of natural stone, such as durability, hardness, and beauty, in addition to overcoming stone’s natural weakness. They are not porous so they will not harbor bacteria, and come in a wider range of colors compared to granite. Less per square foot next to granite, quartz will run about $100 to $190 per square foot.

Laminate. Laminate countertops are among the most popular surfaces because of their affordability ($20 to $50 per square foot) and widest range of colors and patterns. Comprised of hard particleboard core and layers of plastic laminate bonded over top, laminate surfaces are tough and fairly durable.

Butcher Block. Rising in popularity in recent years are butcher block counter tops . They are excellent surfaces for food preparation and are often used in conjunction with other surfaces like granite and quarts. Many choose to surface an island with butcher block, while countertops under cabinets remain another material. Because of the wide variety of woods available, prices range anywhere from $30 to $200 per square foot.

It’s important to consider how much maintenance you’re willing to accommodate when selecting a countertop. Families with young children often opt for less expensive surfaces, while avid foodies require more elaborate options.

Saving for a Down Payment

Saving for a down payment takes major commitment. It can be difficult to find ways in your current budget to make cuts, but with a little bit of discipline and the support of your spouse and family, you can get it done. Here are ten tips we collected from our experts here at Faber Homes:

 

1. If it’s just you, or you and your spouse, consider moving in with family for a couple years.
2. Not a fan of living with your in-laws? Find a less expensive, one bedroom apartment. You’ll give up a bit of space, but smaller apartments are generally less expensive.
1. Are you living in the western-Rochester area? Consider building with Faber Homes and we’ll set you up with an updated apartment in Chili. We incentivize renters for each year they reside in our Blueberry Apartments with cash towards your brand new Faber Home.
3. Have a couple extra hours to spare during the evenings or weekends? Picking up a second job for a short period of time can really you help save cash quickly. Consider picking up a shift at Home Depot or Lowes, so when you’re ready to build, you can also enjoy an employee discount for furnishings!
4. Do you really need that extra outfit? Probably not. You also don’t need to eat out as often as you are now. Cutting back on these expenditures can really go a long way.
5. If you’re contributing to your 401K at work, consider scaling back a percent or two just while you’re saving. Instead, boost contributions to your IRA. The first-home exemption rule allows individuals to use up to $10,000 in IRA funds toward the purchase of a first home without incurring the 10 percent early withdrawal penalty.
6. Open a separate savings account. This will help you track your savings toward this one, specific goal.
7. Paying off debts is definitely a good thing, but if you can spare that extra monthly payment towards your balances, toss that money into your new savings account until you have enough for a down payment. Then go back to paying off those debts.
8. Inherited money and tax returns should go straight into savings accounts to earn interest. Keep those dollars out of sight so you aren’t tempted to use them!
9. Can you go without cable, Internet, or perhaps a smartphone that requires a data plan?
10. Don’t rule out going without a car for a year or two. It might seem drastic, but it will save you thousands. If you have two cars, consider making due with one.

These are our top ten tips for saving money for a down payment. Do you have any others to share that are working for you?