Jim Smith, Broker

Arvada’s Net Zero Energy Geos Community Faces a Challenge From New Developer

The Geos Community located southwest of Indiana Street and 72nd Avenue in Arvada is a shining example of what’s possible in net zero energy home construction.

All Geos homes are solar powered and have no natural gas service. Heating and cooling is provided by ground source or air source heat pumps. Water heaters utilize heat pumps, not gas, and all the homes and townhouses are built according to passive solar design standards.

Two Geos homes were on last fall’s Metro Denver Green Homes Tour, and you can view narrated video tours of them by clicking on that link.

Now a developer has bought the remaining land within the Geos Community but is intending to install natural gas service in all the homes they will build. Naturally, the current residents are quite upset about this turn of events and are hoping to convince the City of Arvada not to allow this diminution of the original intent of Geos to be a strictly net zero energy community.

Visit www.DiscoverGeos.com to appreciate this community’s net zero energy mission.

Rainer W Gerbatsch, a Geos resident, in an email to Linda Hoover, Senior Planner for the City of Arvada, expressed concern about the new developer’s plan to deviate from the community’s principles by installing natural gas in future homes. Here is Ms. Hoover’s emailed response:

Thank you for your strong interest in your community. I was forwarded your concerns regarding the new upcoming development in the GEOS Neighborhood and I will do my best to address your comments. The GEOS Development was approved 12 years ago. I took over as the staff planner for this project in 2014 when the previous planner left the City. When GEOS was approved, it was intended to be a sustainable community and Norbert Klebl tried for many many years to obtain the funding to make that happen. To date, the only homes constructed out there are on Block 10 which has a mix of the staggered “checkerboard” single family detached homes and townhome units. This totals approximately 38 units out of the 282 planned. While the existing homes have a number of sustainable features, SunStudios (Architect) and Laudick Engineering are telling us that marketing of this concept has been very difficult in part due to the economics of having a development without gas service and other unique features of this development, such as having custom designed mechanical heating systems, etcetera. Most of the larger home builders want developments that have gas service. As you may know, this development went through a bankruptcy last summer. The new owners are currently in the process of working with a new builder – Dream Finders Homes. As Dream Finders comes on board, they are planning on keeping many of Norbert’s original concepts, but wanting to make some adaptations to make it economically feasible. The lot layout which has the staggered checkerboard placement of single family detached homes in the middle of the block and townhome units on the ends of the block will remain as originally intended. As a result these homes will continue to have the same architecture and passive solar design. In addition, solar panels will be placed on the rooftops and appliances will be energy efficient. These new homes will follow the Building Code to construct energy efficient homes. The building codes adopted by the City already allow various paths/choices to construct very efficient (minimum energy code) all the way to net-zero buildings – the traditional codes were followed to build the first 38 units. It is my understanding that DreamFinders would prefer to have the project served by gas, but are still looking into the economics of this issue.

This development was and still is zoned PUD (Planned Unit Development) which has its own unique design requirements rather than following the standards in the City’s Land Development Code (LDC). The GEOS Design Book states that “architecture should strive for Energy Self-Sufficiency and the avoidance of Fossil Fuels.” It also identifies net zero homes as one of the intended goals (not requirements) and further clarifies that that “goal can be achieved by combining good solar orientation and good insulation with geothermal or solar thermal heat, and photovoltaics.” However, it is silent on the issue of gas service.

As a result, we would allow the development to be built without gas service (just as was done for the first phase of GEOS) provided alternatives were ensured. However, no restrictions were included in the Design Book or on the project approvals that prohibited gas service. Passive systems, energy efficient buildings, heat recovery ventilation are guidelines not requirements.
Sent 5/13/2021

Here is Rainer’s response to Ms. Hoover’s email:

I am familiar with the background of GEOS and the more recent events. Contrary to your statement that net-zero homes are difficult to sell, recent sales activity of homes in GEOS show just the opposite – there is high interest in these homes resulting in higher than expected returns for the seller and very short listing periods. It would appear that cited developer/builder statements are either uninformed or demonstrate an unwillingness to engage in construction practices that are a win-win situation for the builder, the buyer, and perhaps most importantly, the environment we all rely on. Also, I contacted and asked the architect whether he supported the cited developer/builder statements, and he responded that he did not.
Studies of completed net-zero buildings in Colorado (including GEOS) conducted by SWEEP also show that the initial cost of net-zero, all-electric homes at this time is on par with so-called traditional (polluting) construction. Net-zero construction represents a clear choice once future buyers understand that (1) these homes represent (already at this time) substantial yearly savings in energy use/expenditures (fossil fuel based energy costs will only increase as the cost of natural gas escalates based on the need to curtail and ultimately eliminate gas as a potent driver of climate change), and (2) eliminate health risks related to exposure to gas appliances and fossil-fuel burning heating devices that generate a variety of air pollutants which have been linked to cancer, decreased lung function, heart disease and a host more diseases. While these risks have been recognized for some time, they are finally receiving mainstream media attention. However, resolution is not possible without the engagement of all levels of government with developers/builders on more responsible construction practices. In summary, net-zero construction is currently superior to traditional construction because of reduction in emissions, elimination of health issues traced to fossil fuel based energy use in homes, and escalating future costs of fossil fuels, particularly natural gas.
GEOS’ prominence as a leader in de-carbonized and sustainable community living is recognized locally (we have been visited by members of sustainability committees of several Colorado towns), and nationwide (CNN’s chief environmental correspondent Bill Weir visited GEOS; CNN will be airing a nationwide broadcast on GEOS, highlighting its features as the model for home construction to achieve decarbonization and healthier interior air quality for residents). In that vein, responsible governments on all levels are preparing and committing to road maps with the goal to rapidly reduce emissions in home construction through elimination of fossil fuels, increased efficiency in appliance/lighting and heating/cooling, as well as the production of on-site renewable energy. In order to have an effective road map, commitments are required which mean nothing less than elimination of fossil fuel use in all new buildings. Consider that the IEA has just issued a special report; this statement stands out: Fatih Birol, the IEA’s executive director and one of the world’s foremost energy economists, told the Guardian: “If governments are serious about the climate crisis, there can be no new investments in oil, gas and coal, from now – from this year.”
It is 2021, and permitting a developer/builder team the inclusion of natural gas infrastructure for about 250 new homes, based on questionable developer/builder concerns of perceived marketability or economics, thereby locking in emissions for the life of the buildings, subjecting owners to health risks related to gas pollutants and escalating energy costs (not considering future mandated retrofits based on the trajectory of climate induced changes), is not responsible, sets the wrong signal and constitutes a serious setback in rising to the challenges of the climate crisis.
The City of Arvada has the opportunity and responsibility to address the climate crisis, facilitate the transition from fossil fuels to renewable energy, and protect the health of residents from natural gas pollutants. Both can be realized, simply and effectively, through rapid adoption of policies and building codes that support state and nationwide goals in emission reductions. We urge you to demonstrate your commitment to a sustainable future not only through elimination of the fossil fuel infrastructure for the next phase(s) of GEOS, but through a city-wide commitment to net-zero construction, fossil-fuel free construction.
Sent 5/20/2021

I Have Reserved a Ford F-150 Lightning Electric PIckup

By JIM SMITH

There’s a lot to like about Ford’s electric version of their popular F-150 pickup truck, and I joined more than 50,000 others who reserved one of them on the first two days it was available for reservations.

I’m a big fan of Teslas — Rita has a Model S and I have a Model X — but I’m no fan of its long anticipated Cybertruck. I like that Ford’s EV has the same styling and functionality of the standard F-150, plus over-the-air software updates (like Tesla), and its battery can power my home in the event of a power failure. You can reserve your own at www.Ford.com. The starting price is under $40,000, so the cost after federal and state tax credits will be under $30,000.

For a detailed article about the F-150 Lightning Pro by Green Car Reports, click here.

What Are Your Options When Approaching the End of Mortgage Forbearance?

As unemployment surged during the early months of the pandemic, many homeowners found themselves taking advantage of forbearance programs offered by their mortgage servicer. At the end of February, roughly 2.5 million homeowners in the U.S. were still in forbearance plans. I sat down with Jaxzann Riggs, owner of The Mortgage Network in Denver, to learn about what options are available for those who are approaching the deadline for exiting forbearance.

For homeowners who may still be experiencing financial difficulties, extending their forbearance plan may be a possibility. However, an extension will not happen automatically. If you are in a forbearance plan that is close to expiring, you should reach out to the company that services your mortgage to see if you are eligible to extend forbearance.

Whether you qualify for a forbearance extension depends largely on your loan type and when you originally entered forbearance. If your loan is backed by Fannie Mae (FNMA) or Freddie Mac (FHLMC), you must have entered into your forbearance plan by February 28, 2021. If your loan is backed by the FHA, you must have entered forbearance by June 30, 2020. Once forbearance ends, the best course of action depends largely on your personal circumstance and loan type.

Borrowers with a FNMA or FHLMC loan can opt to pay the “past-due” amount in a lump sum and have their loan reinstated if they are in a financial position to do so. For those who have loans through Fannie and Freddie but are not able to pay off their forbearance amount immediately, there are several options. If you can afford a few hundred dollars on top of your typically monthly payment amount, you should speak with your servicer about entering a repayment plan for a specified time frame.

For borrowers who have found themselves in a different financial position than they were prior to the pandemic, putting several hundred additional dollars a month towards a mortgage may not be possible. In that case, you may be able to enter payment deferral, in which you resume your typical monthly payments and the past due amount is added on to the end of the loan. You can also talk to your loan servicer about a loan modification, in which the servicer agrees to lower the interest rate, forgive a portion of the principal, or otherwise adjust the loan. Note, however, that a loan modification will negatively impact your credit history.

Borrowers with an FHA loan have several options, the most straightforward being to simply resume monthly payments. The FHA considers the past due forbearance amount as an interest free second loan, meaning that the payments are essentially deferred until the end of your loan term. If you are not in a position to resume your full monthly payments, you should speak with your servicer about a loan modification in which your interest rate will be lowered and loan term extended.

For those with a VA loan, a repayment plan or loan modification may be the best course of action. Although the VA does allow deferment as an option, it does not require that its loan servicers provide it. For borrowers with a nonconforming loan (jumbo) there are no specific guidelines regarding forbearance. Some loan servicers may have chosen to offer forbearance, but they are not held to the same guidelines as other loan types.

Navigating your options as forbearance comes to an end can be tricky, but you do not have to face it alone. You may find it helpful to speak with a housing counselor before calling your loan servicer. The U.S. Department of Housing and Urban Development, or HUD, offers a list of approved counselors by state on their website.

And for any mortgage scenarios you may have, as always, I recommend calling Jaxzann Riggs of The Mortgage Network at 303-990-2992.

What Should You Fix or Improve Before Putting Your Home on the Market?

One of the most common questions we are asked during our first meetings with prospective sellers is, “What should I fix or improve before I put my home on the market?” I’ve written about this topic before, but the subject is worth revisiting, given the current market.

My advice has always been that you should only fix the “eyesores” and not make many of the repairs or improvements that you might make in a more balanced market.

So, what’s an eyesore? Simply put, an eyesore is something that draws negative attention from a buyer. But some eyesores are more important than others — specifically ones which help form a buyer’s first impression of your home.

In other words, your front yard, the front façade, your porch, front door and the first few rooms a buyer sees are more important than the condition of inner rooms or the basement. By the time buyers are deep inside your house, they either love it or they don’t, and if they love it, they’ll be more forgiving about a stain on the carpet or a loose railing that they see later in their visit. So definitely work on cleaning up your front yard, staining or repairing your front porch and front door (if it needs it), and address any eyesores inside the front door. If the paint on your siding or trim visible from the street is aged, dirty, or peeling, you’ll want to take care of that, too.

Further inside the house, fixing eyesores is still important, just not as important. New wall-to-wall carpeting is more affordable than refinishing hardwood flooring, but a wood floor that is in dire need of refinishing is definitely an eyesore. If a hardwood floor could use refinishing, but isn’t in dire need of it, I don’t recommend it. Re-staining a wood deck is an affordable task that eliminates the eyesore of a deck which sorely needs it.

Should you replace a Formica kitchen counter with slab granite, quartz or Corian? Not if the Formica is in good shape and is not hot pink. If it has peeling edges or burn scars, yes, replace it.

One of the smartest things you should do before putting your home on the market is to wash the windows inside and out. Since that requires removing window screens, I recommend washing and labeling your window screens and putting them in your garage or store room. The window screens can be reinstalled after you’re under contract and prior to inspection, because missing screens will definitely be an inspection issue.

When you invite one of us to see your home, you’ll want to know what fixes or improvements we suggest, and we will usually come down on the side of not making any repairs or improvements which aren’t necessary to get your home under contract.

The reason you don’t want to make unnecessary repairs or improvements — for example, replacing a 20-year-old furnace that works fine, or mitigating radon if a home test reveals it is needed — is that you need to retain those as bargaining chips.

Let’s say, for example, that your buyer’s inspection objection lists a dozen items including replacing the furnace and mitigating radon. You could agree to doing those two repairs but not the other ten items, and that would probably satisfy the buyer. If you’ve already replaced your furnace and mitigated radon, you don’t have those as bargaining chips and would have to address those other items.

Interior painting is another common issue. Let’s say your son painted his bedroom ceiling black, or your daughter has a cute mural with giraffes and trees covering one or two walls in her bedroom. Should your repaint those rooms? Maybe the black ceiling, but leave the mural — assuming it’s well done, of course!

These are merely general guidelines, and every house is different. My broker associates (below) and I are happy, of course, to meet with you in your home to discuss what to fix or not fix.

The best thing you can do before putting your home on the market is neither a fix nor an improvement. It’s decluttering. We all have too much stuff, don’t we? Some of it should be taken to Goodwill or the Salvation Army (using our free truck, of course!). Other items should be put in storage, and we can usually get our clients the first month free at a local mini-storage facility.

Once we’ve agreed on what to do, you may be concerned about how to pay for it. Our clients have access to our handyman at the client-only rate of $25/hour. For bigger repairs, we can help you with obtaining financing that could be paid off from your proceeds at closing. Ask one of our broker associates or me for details.

I Learned Some Things I Didn’t Know About Title Insurance in a Recent CE Class

I thought I understood everything I needed to regarding title insurance, but I took a Continuing Education class about it last week anyway, thinking I might learn something I didn’t already know. I wasn’t disappointed!

We Realtors trust the title company’s closer to explain the process and the forms to our clients, and for the most part they do. The title commitment documents delivered early in the contract process are long and involved, and we probably pay too little attention to them.

I know that many of my fellow real estate agents read this column, and this week I am writing as much to share what I learned with them as I am with the average home buyer or seller who may find him or herself in a real estate transaction.

The first thing we need to know is that title insurance is not a guarantee, it is an indemnity against covered losses. The “owner’s policy” insures against a covered loss; it does not ensure that there will not be a title challenge or a loss. As our class instructor, Doug Barber, pointed out, title insurance companies are like other insurance companies in that they are diligent about paying only for those claims which are for covered risks.

(Having been told that title insurance is not a guarantee, I find it interesting that Colorado’s leading and home-grown title company goes by the name of Land Title Guarantee Company.)

Fortunately, most title companies are pretty thorough in their title searches — which I have learned they typically outsource to highly skilled companies who do the title searches for multiple insurers. Nevertheless, a claim could arise, and it’s important for us agents and Realtors to be aware of that possibility and take reasonable care to warn our buyers and sellers of that possibility.

We agents like to describe title insurance as a policy that guarantees the buyer is obtaining a property “free and clear” of any claims or liens against it. That, however, is an overstatement, our instructor told us.

One mistake that we agents make — although it has yet to bite me — is to take the word of our sellers as to the ownership of their property. We should not, as most of us do, simply assume that the assessor’s database has it stated correctly. Instead, we are advised to obtain an “Ownership and Encumbrance” report from our preferred title company at the time of signing a listing agreement for a property. If the property is owned by an entity — a corporation, a trust, an LLC, a partnership, etc. — it’s essential to obtain written evidence of who is authorized to sign for that entity.

When the owner of a property dies, the deceased’s estate could be the seller, in which case there is a “Personal Representative” who signs for the estate, but don’t take someone’s word about who the PR is. Trust but verify! If the property has been inherited, then the heir is now the seller, not the estate, but that should be documented by a decree from the probate court.

Divorces can be really tricky, and it’s best to obtain a court decree or signed separate agreement requiring or authorizing the sale of the property. One thing I didn’t know is that if a husband or wife inherits money during the marriage and uses it to purchase a home, the portion of the purchase price paid for with the inheritance is separate property, not marital property, in case of a subsequent divorce, although the increase in value of the property during the marriage is marital property subject to equal division upon divorce.

Another thing I learned: A minor cannot buy or sell real estate. Legally, they are considered incompetent until they are 18.

The title insurance policy only insures the buyer of the property up to the price he or she paid for it. Thus, if you purchased a home in the 1970s for $30,000 and it’s now worth close to a million dollars, your title to the property is only insured up to $30,000 in case of some unexpected claim against your ownership.

When a property is owned by more than one person, they can hold it as joint tenants with right of survivorship — the most common form of title — or as tenants in common. As joint tenants, each person owns 100% of the property, and if one of them dies, the surviving person now owns that 100% by him or herself. Tenants in common each own a stated portion of the property. So, for example, if a couple owns the property 50/50, either person can sell their interest in the property without the consent of the other person.

Our instructor pointed out that, from an estate planning perspective, it might be wise for a couple who bought their million dollar property for $30,000 to switch to tenants in common. That way, when the first partner dies, the other partner can inherit that half interest at its stepped up valuation at the time of death, significantly reducing the capital gains liability if that surviving spouse were to sell it — something I hadn’t considered before.

Here’s Some Guidance on Appealing the County Assessor’s Valuation of Your Home

Normally, I’d advise you to make your appeal in person, but this year the Jeffco Assessor is using Covid-19 as a reason to deny in-person appeals, and the online method being offered at his website, http://assessor.jeffco.us, is not as intuitive or helpful as it was two years ago.

This year, instead of sending a full-size letter to each property owner, the Jeffco assessor sent a fold-over postcard which only asks you to provide your own dollar valuation of your home and state a reason. The full-size letter of prior years had a place to enter up to three qualified comparable properties sold during the 24 months prior to June 30 of last year which justify your lower valuation of your property. That letter-size form can be downloaded and printed from the assessor’s website. I’ve posted a link for both the Jeffco and Denver appeal forms at www.JimSmithColumns.com.

Both counties allow for online appeals, but the online forms do not have a place to enter the “Qualified Sales” on which your appeal is based, which is surprising and disappointing. However, you can print out the letter-size Jeffco form with those three comps and attach it as a scanned document to your online filing. The Denver form can be completed online, so you don’t have to print it out and scan it.

You can find those qualified comps (defined as homes similar to yours sold in the 24 months between 7/1/2018 and 6/30/2020) by clicking on the “Sales” tab on the web page for your own home on the assessor’s website. Good luck!

This Week Homeowners Received Updated Valuations From the County Assessor

Taxes in Colorado can’t be raised without a vote of the people, so why do your property taxes go up every other year? The answer is simple — while the rate of taxation (the “mill levy”) can’t be increased without a vote of the people, the valuation of your home does go up based on the market, thereby raising your property taxes.

Unlike many states (for example, California), Colorado’s constitution requires that property taxes be based on the full valuation of the property. It is not based on what you paid for your house, but on what it might have sold for on June 30 of every even numbered year based on the actual sales of comparable homes in your neighborhood, with “neighborhood” defined by type of home, not just locale. One example in Golden is “high end townhomes” and skips around a wide swath of north and south Golden proper.

While the full valuation of your home for next year’s tax bill may be based on what it would have sold for on June 30th of last year, that valuation is based on what your home was like on January 1st of this year. So, if you made a major improvement since last June that was completed by January 1st and that was permitted (the only way the assessor knows about it), your valuation would be based on what your improved home would have sold for last June!

Fortunately, since the valuation of your home is based on what it would have sold for on June 30th of last year, that valuation does not reflect the extreme bidding up of home prices we have seen since last June.

The mill levy for your home is not applied to that full valuation but to 7.15% of it. That’s called the “assessed valuation.” As a quick and easy example, if your home is worth $1,000,000, the assessed valuation is $71,500, and if your mill levy is 100 mills, your tax for 2021 and 2022 for that million dollar home would be $7,150. (“Mill” is from the Latin word for thousand, so the mill levy is applied to each thousand dollars of assessed valuation. Thus, 71.5 thousand dollars multiplied by 100 mills = $7,150.)

TABOR, Douglas Bruce’s 1996 “Taxpayer Bill of Rights,” limits how much money any taxing jurisdiction can retain based on population growth plus inflation. Unless a taxing jurisdiction has “de-Bruced,” that jurisdiction must refund the excess to its taxpayers. The preferred method, however, is to lower the mill levy so that less money is collected in the first place. In some cases, the yearly decline in mill levies due to increased property values has resulted in little or no increase in the property tax bill.

Overall, county assessors have determined that home valuations increased by ½ percent per month over the 24-month assessment cycle from July 2018 to June 2020, so if your home’s 2021 valuation has increased by a lot more than 12% over its 2019 valuation, and there have been no permitted improvements or additions to your property during that two-year period, then you may have a basis for appealing your new valuation.

In my own case, the valuation increase over that period was 34.2%, so I will be appealing my new valuation, since I have made no capital improvements to my home since 2018. I won my appeal two years ago, so my 2018 valuation is acceptable to me. If you didn’t appeal in 2019, or if your appeal wasn’t successful, you may want to appeal even if your 2020 valuation’s increase is close to that 12% average valuation increase.

Any appeal must cite qualified comparable sales which you’ll only find by clicking on the “Sales” tab on the assessor’s web page for your home. Any other comps will be rejected, so don’t ask me or your own agent to find any for you. Remember to “age” the sold prices by 1/2 percent for each month that a given comp’s sale occurred prior to June 2020.

Don’t Let Service People Take Advantage of You

It makes me angry when I hear of service providers telling a homeowner they need a new furnace, water heater or other major repair when they don’t. I got a call recently from a single older woman who has owned her home for a couple decades, the type of homeowner who is often targeted by sales persons to spend money they shouldn’t on repairs and replacements.

In her case, she was told she needed both a new furnace and new water heater, but, knowing I am in real estate, she called me for advice. I listened to her describe the issues she was facing, and recommended she call vendors I trusted. The result? She needed only some minor fixes and no big expenditures.

Women often encounter this problem when it comes to auto repair as well, since they tend not to be mechanically minded or experienced. It burns me up to hear about such stories, so here’s a little advice, in case you can relate to this situation.

If you need (or think you need) a home repair, whether it’s plumbing, electrical, painting, roof replacement, or anything else, call me or your favorite real estate agent (preferably a Realtor), and ask them to recommend a vendor. We deal with such vendors so often, and they count on our referrals for future business. If we refer you to a vendor — and you tell the vendor we did — he or she is less likely to take advantage of you, even if they wanted to, because they know that would jeopardize future referrals. We don’t get a referral fee from such vendors, so you can trust our recommendations.

Use this same strategy when, for example, you need service for your car. Call a Realtor you trust to get a referral to a trusted mechanic to enjoy similar protection against being taken advantage of.

Here Are Some Strategies for Assembling Your Down Payment Funds

Last week I wrote about how first-time home buyers can buy a home with as little as $1,000 out of pocket, but the rest of us may be challenged to come up with down payment money when we buy a home.

Many buyers assume that lenders require a 20% down payment, but that’s not necessarily true. There are loans available from many lenders with as little as 3% down payment. FHA requires 3.5%down, and qualified veterans can get a 0% down VA loan. On conventional loans the interest rate charged will probably be higher, but with rates for conventional loans so low, what’s an additional quarter percentage point or so anyway?

And don’t assume that every loan with less than 20% down payment requires mortgage insurance, which can be expensive. Often mortgage insurance is waived in exchange for a slightly higher interest rate.

So, first determine how much money you will need for your down payment, and shop around with different lenders, since this requirement can vary greatly. Generally, I recommend mortgage brokers instead of banks, because banks only sell their own loan products, but mortgage brokers can sell multiple products from multiple lenders, including special products for first responders, teachers, medical personnel, and others.

Once you know the amount you need to raise, how can you raise it when you don’t have that much cash in the bank?

Start your quest by asking advice from your loan officer. A good loan officer, like Jaxzann Riggs of The Mortgage Network, will be able to make suggestions once she (or he) has a full picture of your financial situation and assets.

Strategies I’ve seen employed include the following.

1) If you own a home currently and have substantial equity in it, you can borrow against that equity with a Home Equity Line of Credit or HELOC. Credit unions are good at issuing these loans to its members, but if you’re planning on selling, you need to apply for a HELOC before you put your home on the market. Since these loans have little or no closing costs and you don’t pay interest until you actually draw on that line of credit, there’s no reason not to have a HELOC in place right now and certainly ahead of needing the money. It’s like having money in the bank — literally.

2) If you have a high-balance IRA or other retirement fund, you may be able to withdraw money from it without penalty if you return that money within a couple months, so this is a good strategy if you need the money from selling your current home but don’t want to make an offer on your replacement home that is contingent on selling your current home. A loan against your 401K carries no penalty, I’m told.

3) If you own stocks and bonds but don’t want to sell them, consider using them as collateral for a loan.

4) Relatives or friends can gift you with money, but speak to your loan officer about documentation requirements. As you may know, anyone can give up to $15,000 per year to anyone else without paying gift tax.

5) Another option is a bridge loan. This option carries a higher interest rate, but it could be your answer. Ask your loan officer.

6) Get creative! If you’re engaged, how about a bridal registry for down payment funds? A GoFundMe campaign might work for you, too. If you have no loan on your car and it’s worth a lot, credit unions will lend you money against it. (I did that once.) You may own jewelry or other valuables to which you are not so terribly attached that you might be willing to sell them. (Rita and I have done that, too.)

Don’t Fall for This Gift Card Scam

This Monday, people on my contact list received an email that looked as if it was from me, asking for “help.” If they responded to the email, it went to a scammer pretending to be me who said I was in a meeting but could they help me purchase some Google gift cards for me and I’d reimburse them.

This kind of scam doesn’t hurt the person who’s being impersonated, but it hurts his/her friends and contacts who fall for it. Tell your family and friends about this scam and don’t let them fall for it.