A few months ago, most lenders in our area stopped offering “80/20″ loans — and last week, VHDA suspended their 100% loan programs!

I have always sent first-time buyers to lenders that offer VHDA financing programs. These programs offer below-market rates for first time home buyers, with flexible financing up to 103%. However — as of April 1, 2008, these 100% loan programs will be suspended (i.e. not available) until further notice.

The explanation, in an e-mail from Michele Watson (Director of Homeownership Programs, VHDA) was that it is “…an effort to best utilize our resources, maintain adequate long term funding for our loan programs and to mitigate the risk to our borrowers and VHDA…”

There are still some 100% options, but as the number of programs dwindle, it will become increasingly harder to finance a home purchase, especially for first-time buyers. Some remaining options include:

* VHDA/FHA 103% loan program (via any VHDA lender)
* Fannie Mae 100% program (via most lenders)

So . . . if a Virginia buyer needs a 100% loan, and isn’t committing to it on or before March 31, 2008 — prepare for fewer options, with less favorable rates.

The Governor was inadvertently introduced as Tim McCain (freudian slip?).

• Highlights mortgage problems
• Mentions the Commonwealth’s Foreclosure Task Force
• Lots of mixed signs in the economy
• The good:
  • Significant new economic development deals brought to Virginia
  • Virginia named the best place to be born (children born in Virginia have the best chances for success in life; education, etc.)
  • Virginia named #1 state in which to do business
  • Virginia ranks high in education
• The bad
  • Recession may be looming
• Virginia has three powerful things going for it:
  • Very diverse economy
    • Despite our strong government services industry the number one industry is agriculture and forestry.
    • Strong education system
    • Global connections
  • The state has a “rainy day fund” of $1.3 billion
    • helps it weather difficult economic times
  • Virginia doesn’t have major budget challenges
    • pensions, etc. are well funded
    • great bond ratings
• Virginia’s economy is most threatened by any future reduction in federal government spending
• Virginia is and will continue to be in a good position relative to the rest of the country
• This is a challenging time, but we have the tools to get through it
• Education and workforce training are not being touched in the state’s recent budget cuts
• Kaine proposing major capital construction project at community colleges
• Kaine rattling off economic development deals in…
  • Petersburg
  • Danville
  • Falls Church
  • Harrisonburg
• Construction at educational facilities has both short-term and long-term economic development
• Expanding workforce activities and bringing them under the Commonwealth’s Chancellor of the Community College system
• Times are tough, but there’s no reason for doom and gloom
• Question from the audience about Prince William foreclosures
  • Kaine unsure how exactly to address the problems
  • Nearly $1 million in the budget for consumer counseling
• Question from the audience about immigration and what’s going to happen
  • 137 immigration bills were introduced in Virginia this year
  • Governor will pursue bad behaviors
  • Will oppose anti-immigrant policies in Virginia in defense of foreign economic development
  • Being unwelcoming to foreigners harms our ability to bring in foreign investments and squanders our international assets (Hampton Roads ports and Dulles Airport)
  • So many of the economic development deals under Kaine have been foreign investments
• Question from the audience about rail to Dulles
  • This project is Kaine’s albatross
  • Washington DC’s international airport should have a rail connection to the city
  • Virginia and the localities are putting forward 75 percent of the cost for a fixed-cost contract to build rail from Falls Church to Dulles
  • FTA denied the grant of the other 25 percent in January
  • The goalposts are being moved
  • The congressmen are pressuring FTA to approve the project
  • Kaine “will not rest until we make this thing work”
  • Dulles has more capacity for international flights that can be tapped if public transportation link to airport is developed
• Question from the audience about transportation especially the I-81 corridor
  • Major transportation investment, especially in Hampton Roads and Northern Virginia
  • State and federal revenues being combined to make safety improvements, but no significant expansion planned.

I have observed that Legislative & Education Conference sessions that offer CE are packed to the gills, and those that do not are, well, quite the opposite. I’ve also heard that the sessions that didn’t offer CE were among the best so far. The speeches by Michael Wurzer about the future of MLS and GMU’s Center for Housing Policy’s economists about today’s Virginia housing economy are among them.

This is also a self-serving post, since I’ll be moderating a non-CE session on the legal and ethical obligations REALTORS face when they jump into online marketing. Blake Hegeman, VAR’s associate counsel and Matthew Rathbun, Director of Education at the Fredericksburg Area Association of REALTORS will join me on stage. Hope to see you there.

Here’s what others are saying about VAR’s Legislative & Education Conference:

• Jeremy Hart on the NRVLiving blog
• Matthew Rathbun on the VLA blog
• Matthew Rathbun on the VLA blog #2
• Candy Lynn on the Musings from the Valley of Virginia blog
• Michael Wurzer on the FBS blog (added February 15)
• Tony Arko and Danilo Bogdanovic on RealDiaBlog (added February 15)
• Jim Duncan on the RealCentralVA.com blog (added February 15)
• Laura Flournoy, CEO of the Eastern Shore Association of REALTORS (added February 15)

Leave a comment or trackback if you have perspectives of your own to share.

VAR members laugh and stretch their necks to catch a glimpse of the RPAC luncheon special guest, a Senator Clinton impersonator, as she makes her entrance.

Members of VAR’s Leadership Team enjoying themselves before lunch.

Senator Houck enjoys a light moment with members from the Fredericksburg Area Association of REALTORS.

Members from the Richmond Association of REALTORS greet Senator Watkins.

REALTORS from the New River Valley Association pose with Delegate Nutter.

Delegate Poindexter with VAR members.

Delegate Iaquinto speaks with members from the Hampton Roads REALTORS Association.

Senator Herring greets members from the Dulles Area Association of REALTORS.

Delegate Terri Suit addresses REALTORS as VAR’s legislative counsel Chip Dicks watches on.

Kathy Nunnally and Pat Jensen pose as the Roanoke Valley Association of REALTORS accept an RPAC award.

“Hello.  My name is Jeremy, and I was a cynic.”

I’m admitting in front of the world that when I first joined VAR five years ago, I was a cynic when it came to Association membership.  Groups I had been involved were riddled with problems; poor membership involvement, unclear directions, take your pick.  Membership in a trade association was, in my eyes, a waste of time and money.

Notice I said WAS.  This week, I’m at VAR’s Legislative & Education conference in Richmond and I’m admitting I’ve been  converted.  Today alone, I’ve  met with state Delegates and spoken at length about issues important to the real estate industry, had very honest and candid discussions with peers from around the state, and sat in on committee meetings that have inspired and educated.  I’ve got to tell you, I’m more and more impressed with this Association every day.  Things like VARBuzz.com and Ten Things To Know About VA’s Real Estate Market are helpful to us as agents, but they’re a small part of what’s happening here in Richmond.  Now that I’ve seen firsthand the vision VAR has for our Association, and the remarkable abilities of those here at the conference, I’m certain of it - VAR is setting the standard for real estate associations across the country.

Don’t believe me?  The National Association of REALTORS is here this week to watch and learn what your Association is doing, and they’ve certainly been taking a lot of notes.

Are you involved?  Beyond paying , are you getting involved at the local and state level associations?  If you’re not, you’re missing out.  I know I was.

Everyone knows Virginia’s famous tourism tagline: Virginia is for Lovers. At VAR, we love our bloggers, so in conjunction with our Legislative & Education Conference this week, we’ve set up an informal happy hour on Valentine’s Day to give them an opportunity to meet each other face to face. We’re also extending the invitation to our members who have opted into VAR’s facebook group, VAR’s Linkedin group, or who happen to be using Twitter. See the January/February edition of Commonwealth to learn more about facebook, Linkedin and Twitter.

Finally, if you just want to learn more about social media or meet the REALTORS® who are using it, feel free to drop in. You don’t have to be registered for the Legislative & Education Conference to attend the happy hour (but it couldn’t hurt). Here are the details:

When: Thursday, February 14 • 5:30 - 6:45 p.m. (or later if you’re not attending the Hall of Fame Reception)
Where: The ground-floor bar at The Tobacco Company • 1201 East Cary Street
How to find us: Look for people wearing “Virginia is for Bloggers” stickers, like the one you see above

Please feel free to spread the word. If you have questions, please e-mail Ben *at* VARealtor *dot* com.

I just finished a delightful/grueling couple of days in Lexington facilitating the Strategic Planning process for one of the smallest local associations of REALTORS® in Virginia (one with quite possibly the longest name….take a deep breath): the Lexington /Buena Vista /Rockbridge Association of REALTORS®. It’s an association of about 120 – an association that’s never had a strategic plan – and it was quite possibly one of the most personally rewarding (to me, I mean) sessions I’ve ever been a part of. In Lexington, and found a committee of 16 energetic, well informed REALTORS® of every demographic stripe who were passionate in their desire to chart a new course for their association. In two days, they managed to challenge my assumptions about what makes an association great (it’s NOT its size; bigger isn’t always better), about the nature of association cultures (insularity is always a risk, but there’s something to be said about the warmth and familiarity of a close-knit community), and about the power of new ideas to energize organization leaders (wait ’til you see their plan!). The proof will be in the implementation, of course, but I suspect Lexington REALTOR® leaders can serve as role models for other local associations of REALTORS® who want to improve the value proposition they offer members…and who are willing to commit themselves to a plan for doing so.

The LBVRAR membership will get a first peek at the proposed plan in a series of upcoming Town Hall meetings and can offer input; the final proposed plan will be voted on in April. For now, here’s a sneak peek at sme parts of the plan…the mission, envisioned future and broad goals their Strat Planning Committee will propose (wish I could take credit for it, but I can’t):

MISSION (Why we exist):
The LBVR promotes its members’ success by providing quality services and support that enable its members to serve our community with professionalism and integrity.

ENVISIONED FUTURE (What the future will look like with the implementation of this plan):
• Members are actively involved in and proud of their local association
• Members trust and support LBVR leadership.
• The public values and respects the services LBVR members provide.

GOALS & OBJECTIVES (Our plan of work):

1. COMMUNITY PRESENCE AND INFLUENCE / LBVR actively participates in the community in ways that benefit its members and their customers and clients.

2. PROFESSIONAL DEVELOPMENT / LBVR will provide educational and professional development opportunities for its members in order for them to demonstrate competence and integrity to their customers and clients.

3. BUSINESS TOOLS / LBVR will provide business tools and resources to optimize its members’ business effectiveness.

4. EFFECTIVE ORGANIZATION / LBVR maintains a viable organizational structure and systems that benefit its members and encourages member engagement.

Stay tuned. This is an association that’s going places….