A Glimpse of the Severe Central Texas Drought

It wasn't until a few weeks ago when I hosted several out of state guests that I realized that unless you live in or have visited the Austin area (or Texas for that matter) you may not be fully aware of the severity of the Texas drought, especially if you haven't visited the area since October 2010.

Here is a Aerial Video of Lake Travis taken just a few days ago.  The island in the middle of Lake Travis normally does not exist.  The homes along Point Venture at Lake Travis towards the end of the video were once able to lay claim to waterfront property, but that's a hard claim to swallow today.  

As of September 6, all City of Austin residents and businesses are required to adhere to a Stage 2 Watering Schedule.  On September 19, all public boat ramps on Lake Travis were closed.  The City of Austin will pay residents to let their St Augustine grass die.  Soon, the Lower Colorado River Authority (LCRA), who oversees the Central Texas chain of lakes, will eventually cut off or reduce water to downstream farmers.  This could potentially wreck more havoc in the state.  It is predicted that both Lake Buchanan and Lake Travis will lose one foot of water each week during the month of October.   Water flowing into the Highland Lakes (that includes Lake Travis), has reduced by more than 90% below average.

There is rain in the fall forecast, but not enough to deal with the magnitude of a drought we have on our hands.  I think someone should invent a water hose that could reach to multiple states so those states with a surplus of water could share.  However, I know that is a stretch.  So for now, I'll just pray for rain.  

Decreasing FHA Loan Limits, a Game Changer

Will the decision to decrease FHA loan limits be a game changer?  I believe so as there are 372 active listings within the Austin Multiple Listing Service (MLS) that will be impacted based on their current list price, but you decide after reading further.

If you are on the prowl for a home to purchase in the Central Texas area, are planning to proceed with a Federal Housing Administration (FHA) insured mortgage and your possible purchase price range is above $280,880 - keep on reading!  An upcoming change to the FHA maximum loan limits may or may not affect your ability to purchase the home you have your eyes set on or affect the likelihood of selling if you are attempting to sell your home.

On October 1, 2011, FHA maximum loan limits are set to decrease from $288,750 (or a $299,000 purchase price) to $271,050 (or a $280,880 purchase price).  This change both can affect both buyers and sellers looking to buy or sell real estate in Travis County, Williamson County, Hays County and Bastrop County.

How does it affect you as a buyer?

Currently, a buyer is able to proceed with a FHA loan with financing up to $288,750 (or up to a $299,000 purchase price).  When the change takes place, the loan limit will decrease to $271,050 and will decrease the maximum purchase price to $280,880 to still accommodate a 3.5% down payment FHA loan.  If you had your eyes set on a home priced above $280,880 you now have three options in order to proceed with the purchase.

• Contribute more funds towards the down payment to satisfy the new lower maximum loan limits
• Forgo FHA financing and opt for a Conventional loan (minimum down payment of 5% and loan limits ceiling is $417,000)
• Ask the seller to consider a reduction in the sales price that would still allow you to purchase and still would allow them to sell the property

Don't panic if you are currently under contract to purchase a home, read below and be sure to speak with your mortgage professional to ensure you or your potential buyer is grandfathered.

How does this affect you as a seller?

If your home was valued within the $300,000 price point, your realtor probably advised you to set pricing on or around $300,000 in order to lure both FHA and Conventional mortgage buyers.  Since many buyers opt for FHA financing due to various reasons (lower mortgage insurance monthly amounts, the ability to obtain lower interest rates with lower credit scores, etc), if your property is still being marketed with a price that exceeds the new maximum loan limit, then you may alienate half or more of the potential buyers.  For example, if a buyer was interested in your property priced at $299,000 prior to the loan limit change, they'd be responsible for bringing at least 3.5% of the purchase (or $10,250) to the table for their down payment.  After the change takes effect, the buyer would have to dole out an additional $17,700 just to meet FHA loan guidelines.  Yikes, that's a little over a 9% down payment.  

So, if this buyer doesn't have the additional 5.5% to keep on track to purchase your property now the only option is to proceed with a Conventional loan, providing they have 5% of the purchase price set aside for a down payment.  That's 1.5% more than they had previously accounted for.  Then, there is a possibility the buyer may not qualify for the same interest rate as they had on the FHA loan option based on their current credit score further changing their financing picture.  Plus, the monthly mortgage insurance payment increases, further increasing their monthly obligation.  These changes can quickly create havoc and derail a buyers decision to buy your home or reassess their priorities.

As a seller, put yourself in the buyers shoes and ask yourself these two questions, especially if your home is priced is higher than the allowable maximum limits.  

• As a buyer, are you willing to pay the possible additional up-front and monthly unforseen costs to purchase this particular home?  
• Is it in your best interest to reanalyze the search criteria and locate a home that is priced accordingly to the new loan limits?

If you are a buyer and already have a contract on a home or are a seller and already are under contract with a buyer, don't panic just yet.  There are a few questions you or your agent should ask the mortgage professional.

• Is there a case number assigned?  
• Does the buyer have a Scorecard approval?  If not, when do they expect to have approval?

After speaking with my preferred mortgage professional, buyers whose loan package has been submitted, have a FHA case number assigned and have been issued a Scorecard approval will be grandfathered providing the approval and both case number is issued on or before September 30, 2011.   Those parties who do not have an approval on or before September 30, 2011 will be forced to conform to the new guidelines.  Game changer?  I think so!

Austin Area Farmer's Markets

Enjoying any outdoor activity for the past few months has been quite the challenge regardless of where you live in Texas.  Thankfully, the month of September delivers the very early states of fall which temps us with cooler temperatures making it much more likely to enjoy many more outdoor activities.

One of my favorites outdoor fall activities to enjoy is visiting the various Farmer's Markets around the area.  I can recall a few years ago when there were only a few weekend or weekday markets in town, but now there are dozens of options that have sprouted up all over the Austin area.  Today, you can find markets strung from Georgetown to Buda and everywhere in between.  One market to enjoy that is not listed on the list of Austin area Farmer's Markets is the Farmer's Market at the Triangle from 4 p.m. to 8 p.m. every Wednesday.


Here are my favorites:

Sunset Valley Market
Barton Creek Market
Downtown Market at Republic Square
The Triangle Market

I look forward to hearing your list of favorite farmer's markets around town after you've had a chance to venture out to a few.  I hope you enjoy the list!

The Guide to Austin Texas

Have been just snatched up from a city you know inside and out and just have been plopped into Austin?

If so, it's time to become familiar with the local culture, our quirky isms, our crazy rules of the road, how to pronounce road and nearby city names.  You'll be schooled on the Moonlight Towers, our lovely exotic pets that live underneath the Congress Bridge, the red headed strangers favorite watering hole, why we call our natural spring swimming hole a pool and other various hot spots around town that locals enjoy.  

After reading through The Austin Old Timer's Guide to Bein' from Here, taking and passing the 31 question quiz at the end of the guide, then you can consider yourself an Austinite.

Austin Transportation Guide

A few weeks ago I had the pleasure of taking a leisurely trip on the Austin Capital Metro Light Rail with a few wonderful friends.  My journey began at the Downtown Station located E 4th directly behind the Austin Convention Center.  I traveled from Downtown, meandered through East and North Austin ending at the Lakeline Station.  The light rail continues onto Leander (one more stop) completing approximately a 32 mile journey that takes about an hour due to various station stops.

Austin's light rail has been functioning for over a year now, but I've never had the need to travel from to and from Downtown to East or North Austin or even Leander since I live in Southwest Austin.  After hearing several friends who live north of Austin comment about their daily journey, I thought I was about time I experienced the trip so I could tell out of town clients about the experience.

One way tickets vary from $.50 to $2.75 depending on your preferred distance of travel, membership level and if you are able to take advantage of the reduced fare criteria.  Tickets are purchased either online, at a retail outlet or at a kiosk (shown above) at one of the light rail stations.

Taking the trip during the middle of the day allowed me to take in the scenery (that you often don't get to enjoy traveling 70 mph on the highway) on a quiet train ride.  The cars were clean and wifi is free for those looking to work while commuting to and from work.  The conductor was polite enough to wait for us to snatch our tickets out of the kiosk so wouldn't have to wait 20 minutes for the next train.  Overall, it was great experience.  Now I'm just waiting for the day I can catch the train in Southwest Austin and mosey into downtown.

Thanks to two great friends for joining me on this journey and Independence Title for creating this handy Austin Transportation Guide, which also discusses Austin's other form of transportation, the Car2Go program.

City of Austin - Stage 2 Watering Restrictions

Beginning Tuesday September 6th, Stage 2 Watering Restrictions take effect for City of Austin customers. 

If you are a residential customer, the revised watering days fall on Saturday (odd ending addresses) and Sunday (even ending addresses).  If you have a multi-family residence or a commercial space, your new watering days are fall on Tuesday (odd ending addresses) and Friday (even ending addresses).  

The new watering restriction prohibits the following:

• automatic irrigation systems operating anytime after 10 a.m. on your specified watering day.  
• vehicle washing at your residence between the hours of 10 a.m. and 7 p.m.  
• charity car washes unless a waterless system is utilized, automatic fill valves for pools or ponds, running of outdoor fountains except to provide aeration for aquatic life, washing of sidewalks, driveways, parking areas or any other paved areas and EVEN water to be served at restaurants unless it is requested.  

Now that I'm done with the laundry list of do not dos, the only non-restricted items is hand watering which can be done anytime of the day and on any day of the week.  To learn more the heightened restriction visit the Stage 2 Watering Restrictions FAQ.  

Be sure educate yourself about the new watering restrictions.  The City of Austin will begin handing out official warnings beginning Tuesday, September 6th.  If the violation is not corrected, a citation will be issued in Municipal Court with fines set to start at $475.  Ouch!  

The Austin Food Truck Guide

Several years ago, food trucks in Austin were few and far between.  Today, you cannot drive an inch without spotting a new food truck or food trailer tucked away into a vacant spot with a crowd of folks camped out in front, either patiently waiting to order or seated enjoying their exotic fare.

My two local favorites are

Torchy's Tacos (food truck located 1st and Elizabeth) but you can dine at a traditional restaurant as well if you'd prefer.  You can never go wrong with a fried avocado taco or a crossroads taco with a side of green chili queso and a side of chips.  Everything on their menu is just delicious, but be sure to try the monthly special!

Odd Duck Farm to Trailer located 1200 South Lamar directly across from the Alamo Drafthouse.  Bryce Gilmore (son of Jack Allen Gilmore) is the genius behind this hot spot.  All ingredients are purchased locally and the menu is centered around those fresh ingredients. The last time I dined there it was 32 degrees and my husband and I snuggled next to open fire while enjoying several tasty treats on the rolling menu.  The menu changes often so you will always be in for a surprise.

For a more expansive list of food trucks or food trailers check out one of these two guides - the Austin Food Truck Guide or the Austin Food Trailers.  

Westlake Development: Tarlton 360

I've often driven by the old abandoned Cinemark Theatre on Walsh Tarleton near Barton Creek Mall wondered if someone will eventually convert the space into something useful rather than just letting it linger into further disarray.  It was music to my ears when I stumbled upon an The Austin Chronicle article featuring Tarlton 360, a new town home community. 

The project is the first under the 2007 redevelopment ordinance, which establishes rules for old or abandoned building sites in the Barton Creek Watershed 

Did You Reject a Tenant due to his Credit?

Have you rejected a tenant due to his/her credit since July 21, 2011?  Even if you haven't but will be running a prospective tenants credit in the future you should become quite familiar with the most recent change within the Fair Credit Reporting Act.  The change details exactly what property managers and landlords have to disclose regarding credit to their applicants.  Previously the Fair Credit Reporting Act (FCRA) required landlords to provide applicants with a notice of any adverse action (or an Adverse Action Notice) based on the information obtained from the applicants consumer report.  The amendment now goes a step further requiring all property managers and landlords to disclose the applicants credit score when the adverse action is in who or in part of the applicants credit score.

How to comply?

• Disclose the numerical credit score used in making the credit decision.
• Disclose the range of possible credit scores under the model used.
• Disclose the top four key factors that adversely affected the applicants credit score.
• Disclose the date on which the credit score was created.
• Disclose the name of the person or entity that provided the credit score.

The definition of Adverse Action in the eyes of the Fair Credit Reporting Act applies when any action taken that is unfavorable to the application.  Examples include denying an applicant based on credit or requiring a higher security deposit.  If you do not utilize the applicants credit score as a determining factor to base your approval decision, you will not be subject to the credit score disclosure requirement.  However, you do still need to provide an Adverse Action Notice.

Austin Hot Sauce Festival at Waterloo Park

Have you ever been told you REALLY make yummy hot sauce? 

or

Are you just a LOVER of hot sauce?

Either way you'll have an opportunity to tickle your fancy in just a few weeks.  Pick up a copy of the Austin Chronicle at your favorite hot spot around town and locate their Austin Hot Sauce Festival information page (usually located within the food section) or visit Austin Chronicle's Hot Sauce Festival webpage for more details, including a Hot Sauce Contest Entry Form.  In both places you'll find the specific contest details if you're interested in whipping up a batch of your spicy goodness.  Be sure to read the rules, including the sauce needing to be prepared in a commercial kitchen (which one is being provided FREE of charge to contestants).





Don't forget to mark your calendar with the following information.

Austin Chronicle's 21st Annual Hot Sauce Festival

Sunday, August 28th

11 a.m. until 5:30 p.m.

at Waterloo Park (12th @ Trinity)

FREE Admission*

*Admission is FREE with a donation of three non-perishable food items for the Capital Area Food Bank of Texas.  

Austin Ice Cream Festival in Waterloo Park

Are you searching for an event to enjoy with friends or family, are you an out of town guest and not sure how to spend the day or are you just on the prowl for an activity that would keep you cool this weekend?

Check out the Austin Ice Cream Festival being held Saturday, August 13 at Waterloo Park.  Swing by anytime between 10 a.m. and 7 p.m.  Admission is $10 (kids 8 and under are FREE).  Be sure to enter into one of the three ice cream contests as they look quite fun. 

Enjoy live music from the Biscuit Brothers and The Flying Balalaika Brothers or if music isn't up your alley, check out the magicians, juggles and many other performers.  See below for a map to Waterloo Park 

A Game Changer for Cash Buyers

Almost every day I hear of another change in the mortgage industry.  Far too often, these changes are initiated to fine tune the already super strict guidelines to prevent any further turbulence.  When drastic changes are made it often has the reverse effect causing many potential buyers and investors from not obtaining financing either because they still do not quality with the stricter standards or they are still so gun shy they just remain on the fence.  It is not uncommon to hear the strict guidelines are the reason for buyers who still want to remain in the game are foregoing a traditional mortgages altogether and are becoming cash buyers.

Today, cash buyers make up one third of all buyers in the marketplace.  Last month, Fannie Mae woke up, smelled the coffee and had a very BIG reality check.  I'm positive their recent reality check came to fruition because they realized they're missing out on potential business due to the growing cash buyer pool.  Fannie Mae's most recent update is a game changer for buyers who make or have made all cash purchases.  The Fannie Mae's change now waives the six month ownership or waiting period allowing for owners to tap into their investment much sooner than before.  The update now allows a buyer who ditched the traditional mortgage method and opted for cash purchase to now take cash out of their property via an equity loan anytime after the purchase, rather than waiting for six months to pass.

Now a buyer can purchase in cash, immediately turn around take equity out to improve the property, place it back on the market again and sell.  

• Will this create a new breed of investors and/or home flippers?  
• Is this creative thinking on behalf of Fannie Mae? 

Ponder this.... an investor pays for a property in cash, takes out an equity loan to improve the property, a few months later the investor places the updated home back on the market, a buyer who needs a traditional method of financing to purchase makes an offer and buys the house.  

I believe this recent update is great news for both investors who don't want to spend their reserves on updates and the owner occupied buyer who doesn't have the means or desire to purchase a home that isn't move in ready.

  

National Ice Cream Month: Planet Yogurt Review

When temperatures hoover between the high 90's and mid 100's, I instantly have visions of something chilly.  Yesterday after a trip to the office supply store in the Triangle during the hottest part of the day, I was in desperate need of a cool treat.  Directly across from the office supply store in the Triangle sits a yogurt shop, Planet Yogurt.  I had frequented several months ago with my colleagues and recalled I enjoyed the initial experience and wanted swing in for another treat.  When you enter, Planet Yogurt, you are greeted with six dual yogurt self serve machines (photo left) and yes it was had to decide upon flavors.

After the task if dispensing your desired flavors is complete, your next challenge is to choose which toppings, if any, you'd like to add.  The options were endless and ranged from:  granola, nuts, brownies, cheesecake, cookies, candy bars, fresh fruit and various types of syrups.  I opted to proceed with the all-natural route and just enjoy my three flavors:

Irish Mint (nonfat) - I'm not a huge fan, but I'm a big Irish fan so I couldn't pass up this opportunity.  It reminded me of spearmint gum.  Not my favorite, but one I'm sure my husband would LOVE.

Angel Food Cake (nonfat) - It was light and airy leaving a lingering sweet butter taste.  It was so yummy it kept me coming back

Cake Batter (low fat) - The only way to describe this flavor is to close your eyes and imagine the homemade buttermilk my grandmother used to make.  It was DELISHious!  

After you've created your concoction you move on down the bar to the cashier, place your cup a scale to determine how much you owe ($.39 per ounce) then enjoy!  The cost for my creations was $3.39, not too shabby for a sizable treat!  The flavors at Planet Yogurt rotate weekly... so if you want to snatch up a bowl of any of the three flavors I enjoyed be sure to make a trip soon.

You can check out Planet Yogurt at one of their three Austin locations:  Triangle, Hill Country Galleria, Domain 2.   

National Ice Cream Month

National Ice Cream Month

Besides my birth month, December, and March because of St. Patrick's Day, I do believe July is one of the better months of the year.  In Texas, it is way hotter than it should ever be... but July is National Ice Cream Month.  In 1984, Ronald Reagan appointed the third Sunday in July as National Ice Cream Day - National Ice Cream Day for 2011 is July 17.  

Be sure to check out these local ice cream hot spots during the month of July:

Amy's Ice Cream has various locations across town and the fan favorite is Mexican Vanilla.  Take a few minutes to swing in to determine if you agree.

Yogurt Planet has locations in the Hill Country Galleria, Domain and Triangle.  Think yogurt bar with endless possibilities on toppings with pricing depending on the final weight of your concoction.

Pick up a serving of gelato after an Italian feast is a must at Mandola's Italian Market.  Visit one of their three Austin locations - Bee Cave, Arbor Trails or the Triangle.

You wouldn't think of jetting to a grocery store to indulge in gelato, but Central Market (both central and south locations) have some of the best... and at times exotic, delicious flavors.



I hope you'll come back often to check out a few ice cream, gelato, sorbet recipes I'll be delivering throughout the month.  The first recipe is for Olive Oil Gelato.

2011 Austin City Limits Music Festival Line Up

Have you heard about the Austin City Limits Music Festival?  I sure hope so because it is been an iconic fall event held at Zilker Park in Austin, Texas for the past nine years.  Here is a peek of how many music fans show up for such the 2010 ACL event.

Austin City Limits Music Festival 2010

Have you snatched up ACL Music Festival tickets yet?  Have you decided which bands you'll check out?  With the festival just a few months away, there is both good and bad news...the 3 Day Passes have all be accounted for, but 1 Day Passes are still available for Sunday.  Check out the ACL 2011 Website to pick up one or six while they still are available or check out the line up.  Thanks to Independence Title, a local home grown title company, for putting together this piece together.  Be sure to scan the QR code below for your appropriate mobile device to install the ACL App to have the festival calendar at your fingertips.

aclfestival.com