Lake Murray was built in the 1920′s by flooding a Saluda River valley with the purpose of generating electricity for the area. It is named for a New York engineer who was in charge of the dam construction. The lake has 650 miles of shoreline and covers 47,500 acres or 78 square miles. There are 64 islands in the lake. During WWII, military aviators used the islands as bombing targets. In 2006 a crashed WWII bomber was recovered from the lake. The lake is managed by South Carolina Electric and Gas.

Lexington borders the lake to the south and Irmo/Chapin border to the north. Residential prices on the Lexington side and the Irmo/Chapin side are very similar. A buyer may pay several million to be on the lake and $250,000 or more to be in a lake access community. Neither side has any real industry mainly because of high land prices. Both sides attract buyers because they are known for having some of the best schools in the state.

The Irmo/Chapin side is ahead of Lexington in retail growth primarily because of the Harbison Blvd area. Twenty years ago, Harbison Blvd began to develop and it has never slowed down. Even though we are in a down economy, as a store closes its doors, it is replaced by another one. There is a shopping center with three dozen stores anchored by Walmart scheduled to open in the fall at Broad River Rd. and Dutch Fork Rd.. Other new retail stores are coming to the Broad River/Kennerley Rd. area and along Columbia Ave. in Chapin. Chapin has already begun expanding sewage treatment plants to handle the projected growth.

The town of Lexington is also expanding, but is way behind the Harbison area. Hwy 378 coming into Lexington from I-20 will soon be all business. This is a big change from twenty years ago when it was a two lane road. Hwy 1 coming into Lexington from I-20 is slowly starting to add businesses, as land begins to come on the market.  The lake and good schools attract buyers for both sides of the lake.

Since 1974, very little has changed with the process of the home buyer getting a loan or refinancing an existing mortgage. Far too many times, the buyer learns at closing that his expenses will be greater than he had been led to believe, or a few years later, he learns that the terms are not what he expected and his payment has become exorbitant. Beginning January 1, 2010, the Department of Housing and Urban Development will require lenders to provide potential borrowers a standard Good Faith Estimate. This must disclose all key loan terms and closing costs. Due to the changing real estate market and the increase in home foreclosures, this will be a change to the regulatory requirements of the Real Estate Procedures Act (RESPA).

Most people do not understand all of the mortgage terms, so there will be a new page on the HUD-1 settlement statement that will allow borrowers to compare closing costs with the original GFE. Each designated line on the HUD-1 will have a reference to the corresponding GFE line, so comparisons can be made easily.

To protect consumers the GFE will answer some key questions, like:

1. What is the term of the loan?
2. Is the interest fixed or variable?
3. Is there a prepayment penalty?
4. Is there a balloon payment?
5. What are total closing costs?

The Good Faith Estimate must be given to the borrower by the lender within three days of receiving all necessary information. The closing attorney must use this GFE at the closing for comparisons. There can be no change in origination fees, points, or deed stamps. There will be a designated allowable variance for filing fees, daily interest, and escrow deposits. If the lender designates the closing attorney, the settlement charges must be within a variance. If the borrower chooses a different attorney, these fees do not have to match the GFE. If variances exist outside the allowed tolerances, the lender has 30 days to repay the borrower the difference. If the final costs are less than the GFE, it is to the borrower’s advantage.

To view these new forms go to:
GFE
HUD – 1

I think this is a great new program for the first time home buyer. In 2008 there was a $7500 tax credit, but it had to be paid back. Now, first time home buyers can get an $8000 tax credit, dollar for dollar, which does not have to be repaid – IT IS YOURS!!! This is a real incentive to stop paying rent and be a homeowner.

A FEW QUESTIONS AND ANSWERS:

1. What is a first time home buyer? If you have not had any ownership interest in a home for the last 3 years, you are eligible as a first time home buyer. This new home must be your principal residence.

2. How expensive must the home be? Any home with a sales price greater than $80,000 qualifies for the whole $8000. If the price is less than $80,000, the credit would be 10% of the cost.

3. Is there a limit on income? A person filing FORM 1040 as single or head of household, must have income less than $75,000. If married filing a joint return, the limit is $150,000. In most cases this would be the same as ADJUSTED GROSS INCOME.

4. Can I get some tax credit if I make past the income limit? You can get some credit. For singles the credit phases out between $75,000 and $95,000. For couples, it phases out between $150,000 and $170,000.

5. Do I have to use any special type of financing to be eligible? Most forms of financing are acceptable. In the 2008 tax credit, there was a restriction on the type of financing. This has been eliminated.

6. How do I apply for the tax credit? Just file your income tax and attach a FORM 5405 to your FORM 1040.

I know there are many, many questions on the first time home buyer. Many of these can be answered by the National Home Builders Association.