Life in Snohomish County & King County | Powered by Lisa Bender at SPIRE ONE Realty
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👋 Snohomish gets $12M boost, new WA energy rules, & Fannie Mae slashes down payments

👋 Snohomish gets $12M boost, new WA energy rules, & Fannie Mae slashes down payments

Stay up to date on what's happening in the Snohomish County economy.

Lisa Bender
December 08, 2023

Happy Friday!

This week on The Bender Buzz we have a lot of updates that will impact our quality of life in Snohomish County.

We are getting $12M in infrastructure upgrades that will help us keep up with the area’s growth, and we’re also looking at how energy codes are changing for new construction homes in WA.

I’ve also got some good news for you if you want to start investing in real estate! Fannie Mae is making it easier for you to get in the game with a lower down payment on multifamily properties.

Read to the end and I’ll tell you all about it!

— Lisa

🛣 More than $12 Million For Infrastructure Upgrades Coming Soon to Snohomish County

Driving the news: Snohomish County is set to receive over $12 million in state and federal grants, earmarked for significant upgrades to roads, bridges, and pedestrian pathways.

This infusion of funds marks a major step in enhancing the county's infrastructure.

Details: The Federal Highway Administration has awarded three federal grants for two road improvement projects and a bridge enhancement.

Additionally, state funding has been allocated for planning improvements in South Everett, near 128th St SW.

By the numbers:

The first federal grant, nearly $3 million, targets safety enhancements on county roads through the Highways Safety Improvement Program.
A second grant of over $4.3 million will fund a new roundabout, aiming to ease traffic and increase safety for pedestrians.
A third grant, exceeding $4 million, is allocated for seismic improvements to a key bridge.

Why it matters: These investments are crucial for improving safety and efficiency for drivers and pedestrians.

With an emphasis on seismic upgrades, road and trail improvements, and intersection enhancements, the projects aim to modernize and secure the county's infrastructure.

What’s next: The projects have set timelines, with some not starting until 2027-2028.

This planning phase allows for meticulous design and preparation, ensuring that the upgrades meet future needs and standards.

The bottom line: Snohomish County's infrastructure is poised for a transformative upgrade, enhancing safety, efficiency, and connectivity for all its residents.

This substantial investment reflects a commitment to future-proofing the county's roads and bridges, while also considering the immediate needs of its community.

🎥 Is Mill Creek WA a Good Place to Live?

Moving to Seattles Suburbs? Thinking of living in Mill Creek Washington? But want to know the good, bad & ugly? Here's what I love and even hate about living here after 50 years.

💡 WA State Council updates energy efficient standards for new buildings

Driving the news: The Washington State Building Code Council (SBCC) recently voted to adopt new energy codes for residential and commercial buildings.

These amendments, set to take effect on March 15, aim to make Washington's new buildings among the most climate and health-friendly in the nation.

Details: The amendments primarily focus on enhancing energy efficiency.

Shift Zero, an alliance advocating for the changes, highlights the benefits in terms of climate and health.

However, the Building Industry Association of Washington (BIAW) criticizes these changes as an "assault on energy security," interpreting them as a move against natural gas usage in homes.

The BIAW claims that the use of electric heat pumps, as encouraged by the new codes, could add at least $9,200 to the cost of new homes. In contrast,

Shift Zero argues that all-electric homes could save Washingtonians $1,000 annually over the lifespan of HVAC equipment.

Why it matters: The debate centers on the environmental impact versus economic implications.

While proponents view this as a crucial step towards reducing carbon emissions, opponents argue it could increase construction costs and limit energy choices.

The big picture: This decision is part of a broader movement towards sustainable building practices. Many regions are reassessing their building codes to minimize environmental impact.

Between the lines: There's a legal battle brewing. The BIAW has challenged the amendments in court, arguing they violate federal energy policies and unfairly burden families and builders.

This lawsuit highlights the tension between state initiatives and federal regulations.

What’s next: As the lawsuit progresses, the future of these amendments remains uncertain. The outcome could set a precedent for how states balance environmental goals with economic considerations in building practices.

The bottom line: This decision by the SBCC reflects a growing trend towards environmental sustainability in building practices.

However, it also underscores the complex challenges of aligning these goals with economic realities and existing legal frameworks.

😮 Game changer for real estate investing: Fannie Mae slashes down payment requirement for multi-family homes to 5%

Driving the news: In a significant move, Fannie Mae has announced a reduction in the required down payment for owner-occupied, multi-family properties (2-4 units) to just 5%.

This change opens up new opportunities for aspiring homeowners, especially those interested in purchasing multi-unit properties to live in one unit while renting out the others.

Details: Previously, a 15% down payment was needed for a 2-unit home and 25% for 3 to 4 unit homes. Now, with the threshold lowered to 5%, potential buyers can save 10%-20% less than before, accelerating their path to homeownership.

This policy change applies to various mortgage types, including renovation loans, broadening its impact.

However, it's important to note that the 5% down payment doesn't apply to multi-family home purchases in high-cost areas.

Why it matters: The lowered down payment requirement significantly reduces the financial barrier for first-time homebuyers and those struggling to accumulate a large down payment.

It makes homeownership more accessible and allows for immediate investment through rental income.

The big picture: Fannie Mae, also known as the Federal National Mortgage Association, is a government-sponsored enterprise that plays a crucial role in the U.S. housing market.

Established in 1938, Fannie Mae doesn't directly provide loans but buys mortgages from lenders, repackages them into mortgage-backed securities, and sells them, thus replenishing lenders' funds to originate more loans.

What’s next: Prospective buyers should start by consulting with a loan officer to understand their financial capabilities and the specific requirements for qualifying under Fannie Mae's revised policy.

This step is crucial in determining affordability and the viability of a multi-family property purchase.

The bottom line: Fannie Mae's decision to lower the down payment requirement for multi-family homes is a game-changer, particularly for those who see homeownership as a distant dream.

It not only makes purchasing a home more attainable but also offers a strategic path to generate rental income, potentially transforming the landscape of home investment for many Americans.

📊 Our Current Local Market Data

The real estate market in Snohomish County, WA is currently cooling off with the fall weather. However, interest rates and lack of inventory have us locked into a seller’s market for the foreseeable future.

If you want to buy a home in this market, you’ll need a solid strategy for searching and making strong offers. Your home search could take a while, but you’ll have to move quickly when you find a home you like.

I’m staying on top of the market daily and there are even financing options that can help you purchase at a lower rate.

If you ever have questions, don’t hesitate to ask.