Holley by the Sea - Whitworth Builders, Inc

What is a Subprime Loan?

While there is no definition of what makes a loan subprime or not, one key factor in determining what kind of loan a borrower gets is his or her credit score. Credit scores range from 300-850. Most lenders will need a credit score of 620 to qualify for most Conventional loans, however there are many programs such as FHA that do not lend based on credit score alone.

The Wall Street Journal says that loans with unusual features tend to be Subprime loans. Some features include No down payment, Interest-only loans, teaser rate loans, and loans where the borrower is allowed to simply state what his or her income is with little or no documentation. While the government is starting to tighten up on these types of loans, some are still available.

A study done in 2004 and 2005 by the Federal Trade Commission found that many borrowers were confused by current mortgage cost disclosures and "did not understand important costs and terms of their own recently obtained mortgages. Many had loans that were significantly more costly than they believed, or contained significant restrictions, such as prepayment penalties, of which they were unaware." A lot of borrowers were put into loans that they did not truly qualify for or were not the best fit for them. Make sure you are working with a Lender who not only understands the market, but is also able to explain the programs so you understand the type of loan you are qualifying for. If you don’t know… simply ASK!

Article submitted by:

Erica Knapp

Mortgage Loan Officer

Beach Community Mortgage

850-315-4100 (office)

www.beachcommunitymortgage.com

I recently e-mailed Senator Gaetz with some concerns I have regarding Amendment 1 and received this response.  I feel that voting "Yes" for Amendment 1 is a step foward for property tax reform.  It is not perfect, however if we don't pass this resolution the legislature might think that the taxpayers are not interested in tax reform and shelve further legislation.

____________________________________________________

From: Bethany Little [mailto:bethany-little@hotmail.com]
Sent: Thu 1/17/2008 8:06 AM
To: GAETZ.DON.WEB
Subject: Ammendment 1 referendum

Hello Mr. Gaetz,
 
I am a Realtor at Century 21 Wilson Minger Agency, Inc and a homeowner in the Niceville, FL area.  While I've been told by my local Realtor association to vote yes on Amendment 1, I have been doing research on the Amendment and I have a very serious concern should this Amendment be passed.  In a nutshell, it appears from the wording of the amendment that homeowners will lose their 3% cap on their property assessment and that all properties will be reassessed as of January 1st to their just market value.  Though they will still be able to use their portability. That would be disasterous for me as it would more than double my taxes.  I posted a blog about it on active rain (a real estate networking site) http://activerain.com/blogsview/340173/How-Will-Amendment-1 and the response has been somewhat negative toward the amendment.  I have even e-mailed Governor Crist, but have received no response.  Could you please address this issue for me?  I could vote yes for this amendment if I would be able to take my portability, plus still receive a 3% cap on my newly purchased homesteaded property.
 
Regards,
 
Bethany Little, Realtor
Century 21 Wilson Minger Agency, Inc.
(850) 543-8617

RE: Ammendment 1 referendum?
From:	GAETZ.DON.WEB (GAETZ.DON.WEB@flsenate.gov)
Sent:	Sun 1/20/08 2:36 PM
To:	Bethany Little (bethany-little@hotmail.com)

Dear Ms. Little,   If a YES vote prevails, the only change in Save Our Homes (which is the 3 percent cap) is that up to $500,000 of your Save Our Homes benefits become portable to your next home purchase.  Under current law, you lose your accumulated Save Our Homes benefits when you upsize or downsize or just move to another home.  If the amendment passes, the only change is that you can now take the benefits with you up to $500,000.  That's why the Florida Association of Realtors and every Realtor organization in Florida is supporting the amendment.   So your fear is not well-founded.  Based on your explanation, you will lose nothing and gain a lot.   For more details go to http://www.gulf1.com/ and click my explanation under Elected Officials or go to http://www.yeson1florida.com/    You might also want to read the NWFDailyNews today, the front page article and the editorial page.   Again, thanks for being in touch.   Respectfully,   Don Gaetz

  Monday's Martin Luther King, Jr. Celebration parade/march/rally in Fort Walton Beach, FL has changed it's route.  The new route will follow U. S. Highway 98 east to Beal Parkway, north on Beal to Hollywood Boulevard and then west to Fort Walton Beach High School.

Participants for the march will gather at Fort Walton Beach Municipal Auditorium. Registration begins at 8:30 a.m. on Jan. 21 and the march starts at 10 a.m. There will be a rally after the march at Ft Walton Beach High School with many activities, including step competition and 3 on 3 basketball.

Additional Information
(850) 862-8721 Parade Information. (850) 301-2095 for Rally information

Click on View Larger Map link below to see parade route 

View Larger Map

Okaloosa County residents have long been aware of the quality education that our public school system offers our children.  Not only did Fitch Ratings give the Okaloosa County School system an A+  for having ample reserves and low debt burden, but our schools boast some impressive rankings and awards of their own. 

In addition to the schools mentioned above, in the Niceville, Florida area all of the schools from K-12 are A+ recipients from the Florida Department of Education.  Niceville high school is also a national Blue Ribbon School of Excellence, and is ranked #22 amongst Florida high schools.  The OWC Collegiate School in Niceville, Florida is ranked # 3 in the State of Florida, and is also a Blue Ribbon School of Excellence.  Fort Walton Beach High School, in Fort Walton Beach, Florida is ranked # 33 and Choctawhatchee High School in Fort Walton Beach is ranked # 53. Crestview High School is ranked at # 69.  That means that in the Tri-city area of Niceville Florida, Fort Walton Beach, Florida, and Crestview, Florida our high school programs are in the Top 100 schools in the State of Florida!  

A big "Thank You" is in order to everyone associated with the Okaloosa County School District, but most especially to the educators who have dedicated their lives to ensuring our children are educated in such a fine public school system. 

There are many other elementary and middle schools in Okaloosa County that received an A+ rating.  To rank your Florida school, visit School Digger .

        Not only is Amendment 1 trying to address our rising property taxes, it is also an attempt to rectify problems that have arisen from the last property tax reform passed in 1995.  The 1995 reform known as "Save Our Homes", placed a 3% cap on the property tax assessments of homesteaded (or primary residence) property.  No cap was placed on non-homesteaded property such as second homes, rental property, or businesses. It sounded good on paper, but it left new homeowners and non-homesteaded properties paying a disproportionate amount of taxes.  Then when property taxes more than doubled in the last six years, local governments found themselves with a windfall and they used it to expand their budgets and reserves, and didn't give any back to Florida families or businesses.    

      Long term homeowners quickly realized that they were trapped in their homes.  As property values rose, and millage rates continued to increase, they couldn't sell their property AND retain the tax break they had realized with the 3% cap.  New homeowners were bitter because they were paying taxes on just market assessments, while some neighbors were enjoying a capped property tax assessment.  For example, we purchased our home in 2000 for $132,000.  The just market value of our home is now $227,000. But with the 3% cap per year on our property, plus the $25,000 homestead exemption, we only pay taxes on an appraised value of $98,000.  Our taxes are approximately $1005/year.  If someone purchases the home next door to me for $225,000, they won't have the 3% tax cap protection that I have and their taxes would be approximately $2,500. 

     Needless to say, it is not in the best interest of a long term homeowner to sell their house.  And I didn't even cover the rising taxes paid by out of state owners, investors, and businesses.  There is no cap on their assessments, so you can imagine the financial strain they are undergoing as their taxes sometimes rise 50% per year.

Amendment 1 addresses some of these issues, but not all.  Not only does it offer a 10% cap on the assessment of property for non-primary residences and businesses, it offers "Save Our Homes" portability.  If this referendum passes, then homeowners currently enjoying the tax break from the 3% cap on their assessed value will be able to carry it over to a new purchase.  In essence, I would be able to take the difference between my $98,000 assessed value and my $227,000 just market value (called cap differential) and apply it toward the assessment of my new home.  Plus, they are doubling the $25,000 homestead exemption.  So I could upgrade to a $300,000 home, deduct my $50,000 homestead exemption, plus the $129,000 cap differential and pay taxes on $121,000!   If a homeowner wants to downsize, then they can carry up to 50% of their cap to the new property.   Unfortunately, the only tax break that new homeowners with no previous cap differential will have- is the doubled homestead exemption. 

     As a Realtor I can see how it could stimulate our market by increasing sales.  And as a long term homeowner, I certainly appreciate the opportunity to pay lower taxes on a larger home.   I also think it is high time that a cap was placed on non-homesteaded properties and businesses.   And it seems that Amendment 1 addresses all of these issues.  However, Amendment 1 doesn't address the high property taxes paid by homeowners who do not have the "Save Our Homes" portability.  Even though they will be able to use the $50,000 homestead exemption, that is too little.  I think they should be given some type of first time home buyer tax break. 

     Amendment 1 is not perfect, but at least it is something.  We need tax reform in Florida, so I am leaning toward a yes vote.  But, I have one very important concern for which I haven't been able to find an answer.  What happens to the 3% cap when you take your portability over to your new home?  Do we lose it?  THAT would be disastrous.   

Sources: 

 http://www.okaloosapa.com/index-sohp.html

http://www.orlandosentinel.com/news/politics/orl-proptax1308jan13,0,502601.story?page=1&coll=orl_tab01_layout

http://yeson1florida.com/

1.  Children's Park

The Children's Park is located in the Civic Center Complex at 204 N. Partin Drive, across from Ruckel Middle School. This is a clean, safe place to take your children, and I highly recommend it.   There are always park attendants available, but children MUST be accompanied by an adult at all times.  I especially enjoy the many walkways throughout the park, and the shaded seating areas.  There is also a picnic area with drink machines available.  The bathrooms include changing tables and are located inside the park. 

My children have especially enjoyed the sandboxes, bubble machine, slides, monkey bars, and diggers.  But their favorite area is the seasonal Children's Spray Park that offers many water play features.  It opens in May and closes around October.  Park hours are:

JUNE 1 THRU
SEPT 30
Tuesday thru Saturday: 8:30am to 1pm and
4pm to 8pm,
Sunday:
4pm to 8pm

OCTOBER 1 - 31
Tuesday thru Saturday:
8:30am to 7pm
Sunday:
2pm to 7pm

NOV 1 - APR 30
Tuesday thru Saturday:
8:30am to 5:30pm
Sunday:
1pm to 5:30pm

MAY 1 - 31
Tuesday thru Saturday:
8:30am to 7pm
Sunday:
2pm to 7pm

The Spray Park is open Tuesday thru Saturday: 10-1pm & 4-6pm and Sundays: 4-6pm

2.  NICEVILLE DOG PARK

The Niceville Dog Park was constructed by the community of Niceville, FL in 2002. It has approximately 4 acres with plenty of shade trees and running space. It is located off Hwy 85 just north of the soccer/football fields. Just next to the area where they hold the annual Mullet Festival. Hours are from Dawn until 10pm. Bright lights automatically turn on at dusk.  The park provides a water station with a continuous fresh supply for the dogs. People have donated disposal bags, chairs, frisbees, balls, and other toys for the dogs to play with. The only rule for the area is that everyone is expected to clean up their pets waste. The park is within driving distance of Crestview FL, Ft. Walton Beach FL, and Destin FL.

3.  TURKEY CREEK

Turkey Creek is located at 340 John Sims Parkway in Niceville FL.  My family has spent many hours floating down this lazy creek. There is a boardwalk that has many places to stop along the way and enjoy the beautiful scenery and wildlife.   There are markers along the way to identify vegetation. There are swimming holes and rest areas with benches. The boardwalk is 3/4 of a mile one way, with markers at the 1/4 mile points.  Canoes, kayaks, and tubes are allowed. However, no gasoline engines.

The Turkey Creek Walkway is open from 6:30am till dark, seven days a week. The City of Niceville provides free rides for senior citizens and physically handicapped persons. Please contact Curt Barto at 850-642-7454 to schedule a visit or for more information about Turkey Creek Nature Trail and Pavilion. Security staff are on site to ensure a safe, fun environment for all to enjoy.

4.  Crab Island

Technically Crab Island isn't located in Niceville, but in Destin Florida.  However, I'm claiming it as a fun free thing to do in Niceville because so many people from this area spend their weekends there.  There are many public boat launches in Niceville Florida and a trip across the Choctawhatchee Bay is only 10 to 20 minutes (depending on how fast your boat is!).  Crab Island is a spot mostly frequented by Locals from Destin Florida, Fort Walton Beach Florida, Niceville Florida, Crestview Florida, and Eglin AFB.  It is an underwater island, located on the North side of the Destin Bridge.  The water is anywhere from 3 feet to 10 feet deep and it is a great place to hang out with your friends while you swim, snorkle, or toss the football.  At different times during the summer there is even live music, played from a floating stage.  Check out the images from one of my favorite websites Destin-ation.com.