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The 203k Rehab Loan

Monday, November 21, 2011
by Rob Levy, Prudential Northwest Properties

Many people either own a house that needs fixing up, or are thinking about purchasing a home which is affordable largely because it needs extensive repairs. Home repairs can be quite costly, however, and may not be affordable for those with less than ample budgets. There are also instances where the ability to pay back a loan on a house is not an issue, but a lender will still not allow a purchase for a variety of other reasons. This is where a 203k rehab loan can be the key to allowing you to own the home you have always dreamed of owning.

203k loans are government-based loans offered in situations where an investment would be considered high risk by the lender. The FHA's 203k rehab loan was created to provide homeowners with the resources to allow them to turn a damaged property into a livable home. From simple repairs to more drastic overhauls of a home, these loans are arguably the most reliable means of turning a questionable home into a sound investment, not to mention a sound dwelling. Generally, 203k loans are used to service homes in need of slight repairs, but they can be used for more involved improvements, and they cover the use of licensed contractors in the event that the loan borrower cannot complete the project without help.

The 203k rehab loans permit a wide variety of repairs to the home and surrounding area, but there are notable exceptions. Some of the repairs and work not permitted by these loans include landscaping and yard work, major remodeling, or fixing structural damage. It generally allows for more subtle repairs such as painting, addition or removal or doors, minor repairs or enhancements to kitchens or bathrooms, plumbing and electrical work and flooring, among many others. There are special terms and requirements that also come with each loan, including:

  • The property must be the borrower’s own
  • Work needs to be professional, and completed in a six month time frame
  • The property must not be vacated for more than a month
  • Depending on the situation, the borrower must possess a permit for the work done if one is required.

Despite some of the terms and limitations set forth by the loan, it is arguably the most helpful method for getting the necessary work done.

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Mt. Hood Railroad

Monday, November 14, 2011
by Rob Levy, Prudential Northwest Properties

All aboard the Mt. Hood Railroad!  Only this is no ordinary train ride, but in fact an experience unlike any other.  Named for the highest mountain in Oregon, the iconic Mt. Hood which rises above the trees to 11,239 feet, this train commemorates the beauty of the state and is reminiscent of a time when the railroads roamed the United States almost exclusively.  Tour the exquisite forests of Oregon on this historic railroad fashioned to create a memorable experience.  Choose to travel on a Sunday and enjoy a leisurely brunch on board, or take an afternoon excursion for four hours to one of two mountain towns.  Exercise a flair for the dramatic and jump at the chance to dress up for an evening of elegant dining while sleuthing through a murder mystery party. 

Whether hopping on board a holiday lunch train for an afternoon of relaxation or riding to ring in New Year's Eve in a whole new way, choose to celebrate special days in an extraordinary way.  Departing from Hood River in Oregon, each Mt. Hood Railroad ride is a memory that will last, so gather a group for a family event or party, or charter an entire car for an intimate travel experience that everyone can enjoy.  For an unparalleled view of the Hood River valley, book a seat on the premium dome car, or dance the night away in the new Lewis and Clark car, fully equipped with a DJ or live music.  For an experience never to be forgotten, take a trip on the Mt. Hood railroad soon!

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Metro Council Completes Urban Growth Decision

Thursday, November 3, 2011
by Rob Levy, Prudential Northwest Properties

In a major decision for future land use and zoning in the Portland area, the regional Metro council voted on October 20 to expand the urban growth boundary (UGB) by 1,985 acres. All of the expanded growth areas are in Washington County. Except for 330 acres, all the expansion will be dedicated to residential development. This is a smaller expansion than has been done in the past. This decision now goes to the Oregon Land Conservation and Development Commission for final approval, which is expected in February. The decision is not without controversy, as the land use group 1000 Friends of Oregon intoned against expansion of the UGB, while the Westside Economic Alliance believes the decision was “timid, underachieving and uninspired,” and wanted more land to be included within the growth boundary.

Urban sprawl has been a major issue facing cities for decades. In response to this problem many states such as Washington and Oregon have created Urban Growth Boundaries (UGB) to limit urban sprawl by restricting growth beyond its boundaries. It allows for better management of future expansion with a focus on ‘in-fill’ of under-developed land within its borders. Several large U.S cities have adopted a UGB but none have gone as far as Portland, Oregon.

Not only does Portland have a UGB, it is unique in the U.S. for having a directly elected metropolitan planning group, called Metro. This organization is responsible for controlling growth not only in Portland but in the surrounding cites which border it spanning three counties.

Metro’s prime focus is on managing land development inside the UGB and dealing with transportation concerns. Dealing with traffic issues is usually one of the most important aspects in any UGB since the higher population density makes urban traffic problems worse. Metro is famous nationally for its promotion of light rail and trolley service through the regional transit company TriMet.

Expanding the UGB is not done lightly but in response to Metro’s mandate to keep a certain amount of population density projected out in 20-year cycles. The most recent expansion of the UGB by 1,985 acres was in direct response to the projected future need for jobs and housing. In addition to this expansion, Metro has moved to acquire land to allow a new East-West light rail line connecting the eastern edge of the UGB whose topography limits auto access.

To minimize the amount of times the UGB has to be expanded, Metro has land use laws which promote houses on smaller lots where the emphasis is on building up rather than out. For example, a plot which held in the past held two older single family homes would now be replaced with four dwellings.

Metro also works with the city governments under its umbrella to help create viable neighborhoods which have the businesses needed to limit travel for entertainment or shopping. This neighborhood emphasis has created a vibrant culture where different parts within the Metro UGB each have their own unique flavor. Metro works to balance the need for growth with the desire protect many of the natural areas which make the Portland area so desirable.

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