Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real,americast.usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Tue, Sep 29 1992 Date: Tue, 29 Sep 92 04:35:07 EDT Message-ID: 09-29 0000 DECISIONLINE: Real Estate USA TODAY Update Sept. 29, 1992 Source: USA TODAY:Gannett National Information Network PARENTS HELP KIDS BUY HOMES: Without help from their parents, many young home buyers would not have enough money to feather their first nests. Although housing prices have declined in many parts of the country, and mortgage rates are at record lows, the amount of cash necessary to cover down-payment and closing costs remains an obstacle to taking advantage of those opportunities. (For more, see special Parents package below.) ENGINEER WILL TESTIFY: Because of current design provisions, it is not surprising that manufactured housing fared poorly in Hurricane Andrew, says Clemson University civil engineer Peter Sparks. Sparks will testify Tuesday before the U.S. House Subcommittee on Housing and Community Development. Recommended changes made in 1977 would have tightened design standards for manufactured housing but weren't adopted. FANNIE MAE WON'T SUPPORT BILL: Fannie Mae surprised Congress and the Treasury Department Friday by withdrawing its support for a bill that would impose tighter regulation on government-sponsored enterprises. Both the Senate and House have passed a bill that would modernize capital standards and establish a new regulator for Fannie Mae and Freddie Mac. Both enterprises are chartered by Congress and owned by shareholders. FEDERAL OFFICIALS ANGERED: After expressing its support for new regulatory legislation just 18 days ago, Fannie Mae withdrew its support Friday, angering members of the House and Senate Banking Committees and Treasury officials. Fannie Mae said it objected to provisions in a compromise draft, which it feels would be harmful to Fannie Mae, affordable housing and would raise mortgage interest rates. LANDSING CLOSES FINANCING: Landsing Pacific Fund closed the financing for its Twin Oaks Business Center in Beaverton, Ore, Bloomberg Business News reported Monday. The real estate investment trust said it secured a four-year, $4 million mortgage on the business park from Greyhound Financial Corp. Landsing Pacific says the financing will allow it to concentrate on the management of its assets. HARD ROCK WILL DEVELOP CASINO: Hard Rock Cafe America said Monday it will develop a 325-room hotel:casino in Las Vegas. The development will be contiguous to the Hard Rock Cafe in Las Vegas, one of the most successful restaurants in the USA, with sales of $20 million per year. Hard Rock also announced that Hard Rock and Harrah's had terminated plan discussions regarding joint development of the property. FIXED-RATE MORTGAGES INCREASE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.02% Monday, up from Thursday and up from 7.89% the week before. They were at 8.92% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.02% Monday, down from Thursday and down from 5.03% the week before. A year ago they were at 6.83%. ARM INDEXES INCREASE: The one-year Treasury ARM index rates were listed at 3.16% Monday, up from Thursday and up from 3.15% the week before. A year ago they were at 5.50%. For the 11th District ARM index, rates were at 5.069% Monday, unchanged from Thursday but down from the week before. A year ago they were at 6.998% T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decrease Monday, listing at 7.34%. That's down 0.07 from rates of 7.41% Thursday but the same as the week before. A year ago T-bonds were at 7.94%. SPECIAL PACKAGE ON PARENTS: GIFTS ARE POPULAR HOUSING HELP: Many parents are helping their children buy homes. Outright gifts are the most popular way. Under lender guidelines, each parent can generally give each child as much as $10,000 per year without being subject to gift taxes. Theoretically, two parents could give a daughter and son-in-law as much as $40,000 in tax-free dollars. Or even $40,000 in December and $40,000 in January. GIFTS ARE TAX-FREE: Gifts are also tax-free to the recipient. Lenders require a letter stating that the money is a gift and not a loan that will affect their ability to meet mortgage payments. And there are strict rules governing how much gift money can go to closing costs, how much to the down-payment and how much must come directly from the children. Gifts are the simplest form of parent contribution. LOANS ARE ALSO AN OPTION: Loans are sometimes a better option for some parents and children. Parents can loan up to $100,000 interest-free. Terms of repayment are up to the parents and children and parents can forgive the loan. If parents charge interest, children can deduct interest payments on their taxes. Equity sharing is another option, and one from which parents can actually profit. (End of package.) Real Estate Editor: Martin Baucom. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM