Thinking of moving to Harrisonburg? Or, are you interested in finding out more about what Harrisonburg and the Shenandoah Valley have to offer? Click here for an Interactive Map of Harrisonburg. Here is an excerpt from Harrisonburg's Community Connection page on Arts and Culture. Civil War Orientation Center and Civil War Trail "At the crossroads of two major turnpikes in the central Shenandoah Valley, Harrisonburg and Rockingham County played a pivotal role in the Civil War. With two major campaigns in the area, there are plenty of sites to visit (23!), all with easy-to-find markers along the Civil War Trail. Confederate Gen. Thomas J. “Stonewall” Jackson waged his famous Valley Campaign here in 1862, and Union Gen. Philip H. Sheridan ordered “the burning” of the Valley in 1864. A stop at the Civil War Orientation Center at the Hardesty-Higgins House Visitors Center steers visitors on their way to exploring this period of the Valley’s history. For more information, call 540-432-8940. Court & Market Days Court & Market Days, held in June, gives city and county residents a chance to experience life in Harrisonburg as it was in 1850. The event is held on the grassy lot next to the Turner Pavilion, where the Farmers Market is going on, too. The day features skits by re-enactors, wagon rides, live music, lectures by historians, and demonstrations by artisans. Court Square Theater In the heart of downtown Harrisonburg is Court Square Theater, a 250-seat auditorium that features live theater and music as well as foreign and independent films. The Playhouse, a local theater group, puts on productions at the theater, too. The theater’s art deco décor incorporates the gargoyles and crests that were part of the Rockingham Motors showroom, which occupied the space in years past. It’s part of a mixed-use complex that also includes a restaurant and brewery, wine shop, and office space, all with shared entrances. Edith J. Carrier Arboretum and Botanical Gardens Visitors to the Edith J. Carrier Arboretum and Botanical Gardens can walk along winding trails in shaded woods, view the Virginia native plants and botanical gardens, or just relax on a bench by the pond. The arboretum offers educational and cultural events on site every season of the year. It’s a quiet retreat from the busyness of the surrounding city of Harrisonburg and the campus of James Madison University. The arboretum is a place to learn about environmental preservation and study the important natural resources, plants, and trees. For information about events, call 540-568-3194. Harrisonburg Farmers Market Started in 1979 by a local farmer, the downtown Harrisonburg Farmers Market quickly became a popular spot to be on Saturday mornings. Then, in 2006, a local family donated $100,000 for the construction of a pavilion for the market. “The new Turner Pavilion makes the market much more visible to the public and provides a uniquely pleasant setting for the community to buy local foods and crafts,” says Radell Schrock, president of the Harrisonburg Farmers Market Association. “There is an ever-increasing appreciation for the quality, freshness, flavor, and health benefits of buying local food from farmers you know.”
Forbes Center for the Performing Arts at JMU
When it opened its doors in August 2010, the Forbes Center for the Performing Arts at James Madison University had already become a cultural center in the Harrisonburg community and the region. The 174,524-square-foot building houses venues for theater, music, and dance, as well as rehearsal and support rooms, classrooms, and faculty offices. The center features the Dorothy Thomasson Estes Center for Theatre and Dance, with a proscenium theater, a black box theater for student productions, a dance performance studio theater, and customized academic and rehearsal space. The Shirley Hanson Roberts Center for Music Performance offers a concert hall and a recital hall. Situated directly across South Main Street from JMU’s Quad, the center is available to students, faculty, and the community. The National Register of Historic Places lists the quadrangle at James Madison University as a national treasure. The Forbes Center’s architecture meshes perfectly with the quad, being a thoroughly modern structure, yet with a façade of the famous bluestone that characterizes the quad’s older buildings. International Festival In the fall, Harrisonburg celebrates the many cultures of its community at the International Festival. Ethnic foods, music, dance, activities for all ages, a multi-language area, Teen Space@fest, and a World Bazaar featuring traditional folk art are all a part of this festive day. The annual event is held in the city’s Hillandale Park. Valley 4th Valley 4th in downtown Harrisburg is a full day of fun events. During the day, residents and visitors enjoy the Merchant Window Decorating Contest, walking tours with a local historian, a beer garden, live music, children’s activities, and more. A parade is held in the evening, followed by a concert. It all ends with — of course — a great fireworks display. ValleyFest ValleyFest, the Shenandoah Valley Beer and Wine Festival, is held in May and celebrated its 10th anniversary in 2010, making it one of the area’s favorite annual events. Virginia wines and microbreweries headline the event, along with other domestic and imported beers. Set the tasting to the tunes of live music, add some quality crafts and specialty vendors, and you have a fun and memorable day, all sponsored by the Harrisonburg-Rockingham Chamber of Commerce (540-434-3862)." Source: Community Link.com Harrisonburg VA
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Do you not have enough money saved to put down a full down payment but still want a house? An FHA loan might be the solution for you. Federal Housing Administration (FHA) started in 1934 and is a part of the U.S. Department and Housing and Urban Development (HUD). The FHA insures loans so that lenders can offer a better deals to borrowers.
First Time Home Owners? FHA can help you obtain loans with as low as a 3.5% down payment. In addition, a large amount of the closing costs can be included in the loan. FHA covers 1-4 unit properties. Got Equity? Need Cash? If you are 62 or older? If you live in the home, own it out right or have a low loan balance. You could qualify for an FHA reverse mortgage. This allows you to turn part of your equity into liquid assets: AKA cash. Wish Your House was More Energy Efficient? FHA Energy-Efficient Mortgage can cover the costs of making your house more efficient. Interested in Manufactured or Mobile Homes? There is a loan for people interested in putting the aforementioned on their own land and a separate loan for those wanting to be in a mobile home park. Find an FHA Lender Source: Hud.gov
Source: Hud.gov
Community is an important factor when buying a new home. What community facilitates your life style? Most people choose their community because of school zoning. Do you want your children to go to city schools? County schools? Is there an elementary school that you prefer? Maybe schools aren't important to you. Or, maybe you want to consider more factors. Consider proximity of communities. What do you like to do? Do you want to be in walking distance of restaurants, grocery stores, bars, library, and/or public transportation? Consider your commute to work, school, or other areas you frequent. Finally, explore the neighborhoods. Do you like the way it feels? Do you feel comfortable? Do you prefer the peace of the country or being in the city? If you find a neighborhood that you like, talk to people that live there. This will help you get a sense of the culture of the community you are prospecting. Source: Hud.gov
Source: Hud.gov
Once you have a list, call up the Realtors for a phone or face to face interview. Explain your current living situation, your goals, and the types of houses you are looking for. What you are looking for is an Agent who listens to your needs and will provide a service that helps you fulfill your goals. What you don't want is an Agent who is only concerned with fulfilling their own needs. The agent you want will have good judgement, local knowledge, and tools to help you find what you are looking for. Most importantly, you want to feel comfortable with your agent. If you like them and they are competent, they are most likely good match. Sellers First and foremost, keep in mind that the number one complaint from home sellers is that their agent didn't practice good communication. We hear frequently about how agents "put up a sign and were never heard from again." So, pay attention to an agent's responsiveness while you go through the interview process. Again, ask around for recommendations and include the people you know in your list. Interview agents with the following questions. 1. How much is the house worth? 2. How long will it take to sell the house? 3. How should I prepare my house to sell? 4. What is your fee? 5. What will you be doing for your fee? Sources: hud.gov, harrisonburghousingtoday.com
These are not the only determining factors. The lenders will also consider the cash you have available to put down on the house. Finally, your lender will take into consideration your credit history to determine the maximum loan amount. If you have any interest in purchasing a home, it doesn't hurt to contact a mortgage company to see what the maximum loan amount you can qualify for. The consultation is generally less than an hour and doesn't cost you anything. Feel free to contact me for suggestions. Source: hud.gov
A First-time Homebuyer Savings Plan allows any Virginian to set aside up to $50,000 toward the costs of closing on a new home. The earnings on those funds — interest and capital gains — are free from Virginia state taxes forever. FHSPs are a great way for future homeowners to start saving early for the costs of buying a home. These accounts are simple and easy to set up. Not only can you open a new one, you can also designate almost any existing account as an FHSP. To create an FHSP, you simply include a form when you file your state taxes. (It will indicate that you should not be taxed on any earnings — e.g., interest or capital gains — because of the account’s FHSP status.) After you use the money toward the closing costs on a first home (yours or someone else’s — see below), you send in a different form to the Department of Taxation showing that the funds were put toward an “eligible cost.” Q: What kinds of accounts can be FHSPs?
A: Almost any account you have with a financial institution: mutual funds, CDs, brokerage (stocks, bonds, etc.), money markets, insurance, even a savings account. FHSPs can also include individual stocks. Q: How much can I put in a FHSP account? A: You can contribute up to a total of $50,000 in principal, and the account can grow in value up to $150,000. You can put that $50,000 in all at once, or you can contribute over the years. There is no limit on how long the account can exist. Q: What can I use the money for? A: A FHSP account can be used to pay for just about anything related to closing on a home — anything included on the settlement statement: closing costs, inspections, lender fees, etc. These are all considered “eligible costs.” Q: What is considered a first-time home buyer? A: A first-time buyer is: Someone who has never purchased a home before. That includes single-family homes, condos, coops, townhouses, or mobile homes. (It does not include land or commercial property.) If you owned a home at some point but did not purchase one — e.g., if you inherited — you can still qualify. Q: Can I use the money to pay for someone else’s closing costs? A: Yes. As long as the person you’re giving the money to (e.g., child, grandchild, niece, and even a close friend) is a first-time homebuyer. Q: Can I use my FHSP funds if I’m buying a home with someone who is not a first-time buyer (e.g., a spouse who once bought a home)? A: Yes, as long as you qualify as a first-time buyer. Q: What if I move out of Virginia? A: Eligible costs only apply to a first time home purchase in Virginia. Q: What if I die? A: The account would be handled like any other part of your estate, but the beneficiary of the ac count would not have to pay taxes on the assets in the account. This is sometimes referred to as a “stepped-up basis,” which generally happens when a person dies and real estate transfers to his heirs. Scenarios There are lots of scenarios or “use cases” where a FHSP makes sense. Here are several simple scenarios: Funding for a child Phillip and Leigh put $10,000 into a mutual fund that they will use to help their son buy his first home. The money grows over the years. When their son is 26, he decides to buy a home. They sell the shares in the fund — now worth $18,500 — and give it to their son to help with his down payment. Normally they would pay state tax on the $8,500 in earnings, but they file a FHSP form with their Virginia taxes and don’t have to pay a cent in state taxes. Taxes on the interest Alfonzo and Patricia take $1,000 they received as a wedding gift and open a money market account at their bank. They plan to use it towards the closing costs of their first home. Over the next several years they add money when they can, eventually using it towards their closing costs when they buy their first home. Each year, Alfonzo and Patricia filed their Virginia taxes, they claimed FHSP status as part of their state tax returns, so they are exempt from state tax for all the earnings on that account so long as they use the funds for an “eligible cost”. Changing your mind Emma decides to start putting money away for a first home when she graduates college. She opens a high-yield savings account with a few hundred dollars and adds to it when she can over the next 12 years. The account grows. Each year, Emma files an FHSP form with the Department of Taxation so she doesn’t have to pay Virginia tax on the interest she’s earned. Then Emma marries Sam, and Sam already owns a house. She won’t need the money after all. They decide to use it for a vacation instead. Because Emma used the money for a “non-eligible” purpose — the vacation — Emma must now pay the back taxes on the 12 years of earnings on the account, as well as a five percent penalty on the amount of the earnings over that 12-year period.
-What is PMI? Mortgage lenders make many borrowers purchase PMI or private mortgage insurance to protect the lender if the borrower is unable to pay the mortgage. In other words, mortgage insurance guarantees your lender will get paid if you default. -What types of Mortgages require PMI?
In general, there are two types of mortgage insurance: mortgage insurance bought from the government, designed for those with FHA, USDA or VA (Veteran) loans or mortgage insurance for conventional loans which is bought from the private sector (this is called private mortgage insurance or PMI), Basically, the type of mortgage insurance required will depend on the type of mortgage loan you get. -What are the Advantages of PMI? For the borrower, it has a benefit, too: Getting mortgage insurance allows you to purchase a home before you have the full 20 percent down payment saved up. PMI allows the borrower to get loans with minimal down payment into the transaction. -Does PMI stay with the buyers for the life of the mortgage? Depending on the loan program, yes: FHA loans have recently changed their PMI guidelines to require it for the life of the mortgage. Other types of loan programs like Conventional and USDA loan require PMI either for 7-10 years or until there is 22% equity whichever comes first. -What are some ways to avoid PMI? The traditional way is to put a down payment of 20 percent or more when you buy a home, you can typically avoid paying mortgage insurance on a conventional loan. However, there is a Lender paid option for Mortgage Insurance and a buyout option. This is only for conventional loans. Government issued loans require PMI. -How can you get rid of PMI? If you put down 20 percent or more when you buy a home, you can typically avoid paying mortgage insurance on a conventional loan. And once you've built up a certain amount of equity in your home, you can request to cancel it. If you've done some research on Mortgages, you probably have stumbled upon the term points. You may be wondering about the purpose of points. Do you want them? Do you want to avoid them? Mortgage points exist to give borrowers more options. I'll explain how in a moment. To start, let's break down one point. If you see one point, it means 1% of the mortgage. So, on a $100,000 mortgage, one point would equal $1,000. So how do buyers and lenders implement points? Positive Points (Discount Points) The purpose of positive points is to lower your interest rate. This means you have to pay more upfront to reduce your interest rate. If you are planning on getting a 30 year mortgage, a reduced interest rate can go a long way. For example, if you're applying for a $100,000 mortgage and they give you a 5% interest rate, you may be given the option of paying 2 discount points to reduce the the interest rate to 4.75%. This means you would have to pay $2,000 to get this rate. Negative Points Negative points are essentially the opposite of positive points. In this transaction, banks offer to pay you points in exchange for higher interest rates. To explain this better, lets look at a scenario: Joe and Jane want to buy a house. All of their money is going towards the down payment and they don't have quite enough for closing costs. The bank then offers 2 points in exchange for .25% higher interest. Which is better? Some of you math nerds out there would argue that lower interest rates would be a better, long term decision. While this is a valid argument, it's not quite that simple. Negative points can be a great option for buyers that don't quite have enough cash to pay for closing costs. Also, you could almost include a higher interest rate as a tax planning strategy. The higher interest means you will be able to write off more money on your taxes and get a higher return. Finally, I would suggest considering both options for the long term. How long do you plan on having the mortgage, does it pay off to receive money on the front end in exchange for a higher interest rate? It could pay off if you aren't planning on keeping the mortgage for a long time. Or, if you are in it for the long haul, consider how many years of interest savings would it take to pay off the points spent to attain the lower interest rate. If you have any other questions feel free to comment or contact me directly. Sources: Mortgage101.com, Fool.com, and Realtor.com
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