New FHA Loan Limits for 2022
In 2022, FHA loan limits will increase quite a bit. The new baseline limit will apply to most single-family homes and will be $420,680. This is a $65,000 increase from last year!
An FHA mortgage loan is designed to help lower-income or lower-credit buyers become homeowners. The eligibility standards for an FHA loan are looser than traditional mortgage loans. These types of loans are credited for allowing imperfect buyers to secure family homes. They are an excellent option for homebuyers who may still be in the process of building their financial and credit profile. However, there are still certain requirements to qualify for FHA loans. These include factors like a credit score of at least 580 and a stable income/employment.
Also, it is worth noting that while FHA loans are considered a “Federal” program, one cannot be obtained without the help of a private lending/mortgage company.
Keeping Pace With Inflation
The Federal Housing Administration needs to keep pace with home pricing inflation, so raising FHA loan limits was a logical step. With these new higher limits, qualifying borrowers will have more choices when it comes to using their FHA financing. However, not every borrower qualifies for the maximum FHA loan amount. The amount a buyer receives approval for will depend on factors like credit score, debt to income ratio, and the amount of the down payment.
Low FHA Loan Rates
Just like traditional mortgages, FHA loans are still benefiting from the current low-interest rate. Mortgage rates are at historic lows, and loan limits are rising, so it’s the perfect time for homebuyers to seek FHA loans.
Need a reliable title company to partner with to meet the evolving needs of your clients? Give Innovation Title a call today! Their team of professionals can help you and your client through the title stage of the transaction.
Demand for Industrial Space is Soaring
New Jersey’s industrial real estate market has hit a golden age. Rents are now rising at an unprecedented rate, which makes investors eager for properties. Read on to learn more about this new demand for industrial space.
Top Industrial Market
Like many other top industrial markets, New Jersey’s vacancy rates have reached record lows. This trend is because demand outweighs supply due to the massive popularity of e-commerce. As a result, the market appears to be entering an age of prosperity for landlords and industrial space developers. It’s also a fantastic time to sell! Capitalization rates, better known as cap rates, have fallen below 3%. This development is an indication of rising values for sellers. Cap rates are the calculation of an owner’s first year of rental income divided by the total purchase price. These rates will most likely continue to compress, since there’s so little available industrial space yet still so many investors.
Investors are willing to pay more for industrial buildings of all types – even older, less functional warehouses. In fact, the average sale price for industrial deals in northern New Jersey rose to $202 per square foot. That’s a 35% increase from 2020. The research also shows that the average cap rate is 5.3%. Buyers can certainly still find value in a seller’s market. Because where you have the strongest upwards rent trends, investors can buy in at a low cap rate. Location is also more important than any other aspect of industrial space. Since investors see the potential, buyers are coming in from all over the country.
If you’re looking to make some industrial real estate deals in the near future, you’ll need a title company that knows this type of transaction very well. Keep Innovation Title in mind for all your real estate transaction needs.
Sustainable Energy in NJ for 2022
Due to a new act recently signed into New Jersey law, some exciting things are coming up for the state in 2022. Let’s explore this new law and what it means for New Jersey residents.
Environmental Justice Act
The Environmental Justice Act was signed into law in September of 2020. It addresses “the disproportionate environmental and public health impacts of pollution on overburdened communities.” New Jersey currently identifies 3,168 of its communities as “overburdened”. This new law will protect residents in these identified areas from certain types of new businesses and buildings that could cause unnecessary pollution. On top of that, no current permits will be “grandfathered in”. This stipulation means that even existing permits will have to meet the new law’s criteria for renewal.
Going Electric and Eliminating Carbon
Considering that New Jersey would like to reach 100% clean energy by 2050, it’s important to take steps now for commercial and residential real estate properties. However, this doesn’t mean that any new build that will last until 2050 needs to be immediately powered by 100% clean energy. The property should just be ready for them in the future. For instance, solar panels should be considered when choosing the type of roof the property will have.
What can you do now?
As the new laws are implemented, property owners can take steps right away. Regarding the Environmental Justice Act, property owners can use NJDEP’s online Environmental Justice Mapping Tool. This tool will help business owners and residents determine if their active or planned project lies within an “overburdened community”. As for the clean energy developments, keep an eye on the state’s clean energy program website. The critical thing to remember is to stay ahead of the law to make sure all of the new laws/rules are followed.
Crypto, Remote Work Set to Fuel Luxury House Boom
The last few years have been a whirlwind! With remote work becoming normal and the sudden surge of wealth created by cryptocurrency, the demand for luxury homes is growing. According to a new report, this increase in demand combined with low-interest rates, record-setting inflation levels, and hefty bonuses from big corporations is causing a real estate boom.
New Wealth, New Homes
This report by Sotheby’s International Realty theorizes that the combination of the new work-from-home landscape and crypto millionaires has made investing in luxury homes more common. Since the real estate market is being driven by hybrid and remote work, it’s changing quickly. For example, multiple billionaires were competing to buy a co-op in New York that was listed for over $40 million. Talk about competition!
Luxury Bounce Back
Last year, Manhattan’s luxury real estate market came back with a boom. Of the over 1800 properties that sold for more than $4 million, 400 of them closed at over $10 million. That is a figure that blows the pre-pandemic boom out of the water. The pandemic triggered a massive demand for homes, which is a trend that is expected to continue. Not only do people want new houses, but they’re also willing to throw millions of dollars down for them.
The Demand for Low Tax Areas
Buyers may want to spend more money on homes, but they want to pay less taxes living in them. That’s why low-tax areas like Texas and Florida are seeing a surge in luxury home construction. Any area that serves as a tax haven will continue to see a luxury real estate boom. On the other side of that spectrum, high-taxed areas continue to see an exodus.
Are you interested in buying a new home? Keep Innovative Title in mind for all your settlement services and title insurance needs.
How Remote Working Has Impacted the Real Estate Market
Over the last two years, working from home has become a regular occurrence for most office workers. As a result of companies and offices deciding to expand their remote work positions, it has impacted many different industries. Let’s look at how remote working has impacted the real estate market.
Online Access Expanding Location Choice
Just 12 years ago, only 1.8 billion people had regular access to high-speed internet. By the end of this year, most experts predict that almost all of the world’s 8 billion people will have some high-speed internet access. This massive connectivity makes remote work not only possible but easier to implement. Because of this ability to essentially work from anywhere, a short work commute is no longer at the top of homebuyers’ lists. This new development means more buyers are willing to live farther from big cities. Rural small towns or country settings are becoming more in demand – as long as there’s dependable wi-fi.
Housing Feature Demands
Even if a buyer is working remotely, they’ll still need a dedicated space to do so. In fact, for tax purposes, it’s required. Because of this, home buyers are less interested in oversized master bedrooms or an extra bathroom and are more interested in dedicated home offices. In fact, a home office has quickly climbed to be one of the most-requested home features.
Remote Real Estate
Not only are people working from home, but they’re also shopping for homes from home, too! Although online house shopping has been a thing for a decade now, it’s now the number one way people browse potential new homes. This change in the industry has enticed more real estate companies to offer online home tours and online chats to make things even easier for potential homebuyers.
Are you purchasing a new home? Remember to keep Innovation Title in mind for all your settlement and title insurance needs!
Signs of a Great Title Company
Are you a real estate agent or attorney looking to build a relationship with a great title company? If so, here are some things you should look for to identify a great company.
Individualized Personal Support
Today’s business world is entirely digitized. We do everything online, from paying bills to networking. But when it comes to real estate transactions, personal phone calls or face-to-face meetings can make all the difference. You should find a title company that you can call to ask questions or have the option to meet in person if necessary. However, if you prefer online services or meetings, those should be available as well. Real estate transactions can be complicated, so getting answers to your questions in a timely manner is critical.
There’s a lot of moving parts that happen during real estate transactions. As a result, it’s important to receive timely communication from your title company regarding the property’s title. If problems arise, you’ll want to be able to keep up with the progress of title searches and related matters. When a title company answers your calls and emails right away and keeps you continually updated, you can be confident that the title is being adequately taken care of.
The closing doesn’t need to be stressful when it comes to the title portion of the real estate transaction. Great title companies know how to remove the stress by professionally handling the title process and keeping a constant line of communication open with you. This means a transparent, estimated timeline and explaining each step of the process. You can rely on the fact that the title process is being professionally taken care of so you can focus on other areas of the closing.
Looking for a great title company you can trust? Look no further than Innovation Title! Our staff has decades of experience providing title services. Give us a call today.
Most Common Questions Regarding A Property Title
During a real estate transaction, your client may have some questions about the title process. To help you be prepared, here are the most common questions regarding a property title.
Why do you need to do a title search?
After a buyer makes an offer on a property, everyone hopes the closing will happen quickly and smoothly. However, in order to have a title legally transferred to the buyer’s name, the seller’s full rights to the property must be verified. A title search makes sure the deed can be appropriately transferred and that the buyer will be able to enjoy full ownership rights.
Is it easy to get a lien removed from a property title?
Discovering a lien on a property title is a complicated situation. It doesn’t necessarily mean your client should give up on the property, but it could make things tricky. When a seller has unpaid debts or taxes, the lender or government owed can place a lien on the property. A lien means that the person or business owed the money has established a legal claim of ownership on the property. In most cases, the lien will not be removed until the debt is paid. However, there are cases where liens are placed by mistake. In this case, the title company would need to do further research.
What happens in an ownership dispute?
If a property owner passes away or family members are estranged, ownership disputes could arise. An ownership dispute must be resolved legally before a property can be sold to someone else. If your client is interested in a property with an ownership dispute, it may be best to start looking at other properties. These types of situations can take a long time to be settled in court.
Do you have questions about a property title? Innovation Title has got you covered! Give us a call today to speak to our property title professionals.
You Inherited a Title. What’s Next?
Inheriting a property is a big deal, and along with that property comes a title. However, it’s not often a cut-and-dry process. There may be many legal steps involved before you own that property free and clear. The process itself can be a bit overwhelming, especially if you don’t have professional guidance.
Make it Legal
The first thing you need to do after inheriting a title is transfer it to your name. However, a title can only be transferred if you have substantial proof to claim it. The most legally binding document of verification would be a will and testament. If there isn’t one, it could get a little tricky. In this case, the property, and therefore the title, would go to the legal heirs. Then, the distribution would be decided mutually or through the court. Legal heirs can pass on their rights to a single heir or another person if they choose. Once all this is decided and made legal, documents can be transferred to make it official.
Transfer of Property Title
Once the property is legally transferred to your name, you’ll need to apply for transfer of the property title. This process records the transfer of the title from one person to another in the land revenue records. Legally this is necessary for the purpose of property tax payments or utility connection transfers. Innovation Title is happy to assist in this process.
If you’ve inherited a title and don’t know where to begin, don’t worry – just call Innovation Title.
Benefits of Partnering with a Reliable Title Company
A real estate transaction of any kind is a big deal, and you want to ensure all parties involved are qualified. A reliable title company can be an incredible asset for many different reasons.
Local is Best
When dealing with real estate, all parties involved in the transaction must be working with the knowledge of local laws and regulations. A reliable title company will know the area and how to contact and work with all local municipalities. The title search process is reliant on local resources. You don’t want to work with a title company that is unfamiliar with the area. A reliable title company will most likely have experience working with local attorneys and have a reliable network of resources.
Protecting the Escrow
Your client is going to be handing over a lot of money during the transaction. The title company’s internal controls, procedures, and delegation of duties are essential to safeguard both the buyer’s and seller’s funds. A reliable title company must have the proper controls in place to protect the escrow in the real estate transaction. If you would trust the title company with your own money, it’s probably safe to say you can trust them with your client’s money.
Call Innovative Title today for a reliable, neutral title company you can trust for your real estate transactions. We’ll be happy to answer any of your questions!
New Federal Privacy Laws
Recently, associations have been pushing for new federal privacy laws to protect all Americans. These laws are especially important to pay attention to if you deal with real estate transactions and legal documents.
The Pressure is On
Over 20 associations are collectively urging Congress to pass privacy legislation that will encompass the entire nation. In a letter, multiple senators asked the committee to develop legislation for more comprehensive protection for consumers. They also would like to provide more information and resources to businesses and accessible resources for the Federal Trade Commission. “Data has helped keep the digital lights on for small businesses struggling during the COVID-19 pandemic, bolsters public health, and expands financial inclusion for underserved communities,” they said. “With data playing such a critical role in our economy, consumers deserve robust privacy protections that are clear and understandable.”
Catching Up with the Rest of the World
Like the letter says, over 120 countries have already implemented comprehensive data protection laws. The U.S. is severely lacking and needs to catch up. However, it’s difficult for small businesses to compete due to ever-increasing compliance costs. “This patchwork also fosters consumer confusion, as state residency is now the sole determinant of a U.S. consumer’s privacy rights,” the letter said. The lawmakers want the new legislation to focus on consumer protections, the reinforcement of civil rights, and safeguards on cybersecurity.
Why Data Privacy and Security Matters
In a world where most transactions are entirely online or through digital communications, privacy and security are essential. This includes all parties involved in real estate transactions. Legislation like this could potentially provide the proper guidance and tools to protect both the professionals and consumers in a real estate transaction
When it comes to security and privacy, you can count on us. Give Innovation Title a call for all your title needs.