Business and Finance

Archive for January 12th, 2012

Federal Housing Administration Home Loan is a facility offered mostly to first time home buyers as most first timers do not have enough cash to buy their own homes. This act like a boon to them; a major source of comfort for them to acquire their dream homes.

So many of these first time buyers can only manage a mortgage payment as most of them have poor credit score and so the FHA comes in here knowing how very important it is for people of their category to own their dream homes, also knowing on their own part that this is a very powerful investment.

Insurance

The organization also works as the insurance provider to the borrower so that if the borrower is not able to pay back, the policy pays back the lender.

It is important to note here that this FHA programs do not make these loans. They only insure the loans making you pay as little as 3% interest rate so it is a more convenient way to own a home.

Some of the Requirements for getting the loan:

You must have good credit history, you must have home owners insurance and property taxes, you will pay attorney fees, insurance, mortgage and little search fees. The total deductions at every month end should not be more than 29% of your monthly income including installments, interest rates, insurance and property taxes. These should be representing not more than 2 to 3 percent of the total home loan.

If you are able to make these payments then you are rest assured that you are ready to apply for FHA home loans. So how do you get started?

What are Retrofitting Measures?

Retrofitting are measures taken for older buildings to meet current codes by increasing its structural integrity to withstand moderate earthquakes with minor structural damage and major earthquakes with moderate structural damage. Retrofitting is your own decision at your own risk according to your financial situation as it may be costly. However, it may be addressed one step at a time starting by retrofitting the foundations; then bracing the cripple walls; followed by strengthening or bracing the first story if found to be a “soft story”; then anchoring or strengthening the connections of walls to the floors and roof; and finally bracing the masonry chimney

Why Retrofitting your Home?

Observations from past major earthquakes proved that the loss of property, level of structural damage, time and efforts required for repair and recovery, and cost of repairs as well as damage to contents and injuries are significantly reduced in buildings where retrofitting have been made. In addition, if you do not have an earthquake insurance, with your building not being retrofitted, most of the property damage caused by an earthquake will ends up being handled and paid for by you. Although some retrofitting measures may require assistance from a professional engineer, architect, or building contractor; however, other retrofitting measures can be done by you or someone who have skills in carpentering and home maintenance.

How to Retrofit your Home?

Retrofitting the Foundations

Upgrading Foundations’ Anchor Bolts or Steel Plates

Go down into the crawl space (the area between the first floor and the foundation) to find out if your house is bolted or plated to its foundation. Look for the heads of anchor bolts that fasten the sill plate (the wooden board that sits directly on top of the foundation, which is called the mud sill) securely to the concrete foundation, or for steel plates that are sometimes used instead of anchor bolts. Houses built before the mid 1990′s most likely have ½” diameter sill bolts with small, thin, round washers. If this is the case, you need to upgrade the bolt diameter to 5/8″ or ¾” depending on the size of your house. The bolts shall be placed at closer intervals no more than 6 feet apart in a single story and 4 feet apart in a multistory building. The edge bolt shall be placed ¾ to 1 foot to the end of the board. Although epoxy anchors cost more than expansion anchors, however, they are recommended in case of older houses with weaker concrete foundation. Larger, thicker, square washers should also be used as they are required by current building codes to anchor the sill from the top by clamping it down more securely to the concrete foundation. Studies estimate that the use of square washers increases the holding strength of the bolts to the mudsill by up to 60%. Foundation bolts may deteriorate over time, especially in houses having wet or damp crawl spaces. The observation of surface rust at the top of the bolts can be an indication of hidden problems if moisture gets trapped between the wood mudsill and the concrete foundation. In such case, the connection strength of rusted bolts to the foundation is severely reduced and you should consider bolt upgrading. Replacing or adding bolts to unsecured houses is one of the most important steps toward earthquake safety. This costs $250 to $5,000 and can be done by a contractor or by someone skilled at home maintenance. On the other hand, it may cost up to $25,000 to repair the foundation from earthquake damage (if your home is not destroyed) as the repair may require lifting the house, then placing it back on its concrete foundation.

Retrofitting Post-and-Pier Foundation

The outside of the house is supported by wood posts resting on unconnected concrete piers. Sidings are often nailed to the outside of the posts, but are not strong enough to brace the post-and-pier foundation. During an earthquake these posts may fail and the house would shift or collapse. Consult a registered professional engineer, a structural engineer, or a licensed foundation contractor for a suitable retrofit which include bracing the posts, or adding new reinforced concrete foundation and plywood walls in the crawl space. This costs $1,000 to $25,000 according to the retrofit measure.

Retrofitting Unreinforced Masonry Foundation

These are brick, concrete block, or stone foundations that cannot resist earthquake shaking and need to be replaced with a reinforced concrete foundation. Consult a registered professional engineer or a structural engineer to design the new foundation. This costs $15,000 to $50,000 and can only be done by a licensed foundation contractor.

Retrofitting the Cripple Walls

In wood frame structures, wooden floors and stud walls are built on top of an exterior foundation (short wood frame walls called cripple walls) to support the house and create a crawl space. These walls may collapse if they are not braced to resist the horizontal movement of an earthquake resulting in shift or collapse of the house. Go under the house through the crawl space to see if there are any cripple walls. If the cripple walls are covered on the exterior with only stucco (cement plaster) or wood siding, they are not strong enough to resist earthquakes. Older homes may have diagonal wood sheathing on the inside surface of the crawl space extending from the sill plate to the base of the floor joist. Inspect the conditions of the wood. If not good, retrofit according to the next paragraph. If the wood conditions are good, make sure that the diagonal sheathing is adequately nailed to each stud. Inspect the conditions and spacing of the nails. Add nails if necessary. Homes with cripple walls should have a minimum of 3/8 inch structural grade plywood panels on the inside surface of the crawl space extending from the sill plate to the base of the floor joist and adequately nailed to the studs. Metal brackets should also be connecting the rim joists to the top plates. You (if experienced in home maintenance) or a home contractor can strengthen the cripple walls relatively inexpensively, as it costs $500 to $2,500. On the other hand, it may cost up to $25,000 to repair after an earthquake, if your home is not a total loss.

Retrofitting the Soft Story

One important trait of typical home configurations in North America, Japan and elsewhere is to have more and larger windows and doors on the first floor than on the other floors. This results in what is called a soft story, where damage to the house is concentrated on the first floor. Numerous buildings, regardless material type, were severely damaged, leaned, or collapsed as a result of the “soft story” of the first floor in 1994 Northridge earthquake and 1995 Kobe earthquake. “Soft story” buildings lacking interior supporting walls are particularly vulnerable to earthquake damage, especially if there is living space above them. Examples are buildings with large openings in the external walls such as garage doors and windows, or with garage and parking spots on the ground floor. The narrow walls on either side of the large opening must be able to support the seismic load that is transferred from the roof and the additional living space above, if any, into the concrete foundation below. In order for these narrow walls to support the load, they must be properly braced. The garage door opening in sketch A is in line with the rest of the house where additional bracing may not be required. On the other hand in sketch B, bracing is most likely required. Bracing the walls of a soft story can be done by using steel bracing or specially-detailed plywood panels as recommended by a registered professional engineer, a structural engineer, a licensed architect, or a qualified building contractor specialized in seismic retrofit. The cost is $5,000 to $25,000 according to the retrofitting measure.

Retrofitting Masonry Chimneys

Masonry chimneys are a common problem as building codes before the mid 1990′s did not require homes with masonry chimneys to be reinforced or braced to the structure. In Northridge earthquake, 60,000 chimneys collapsed and caused serious damage and injury. Inspect your chimney for signs of significant cracking (greater than the width of a dime) along the mortar joints as well as ensure that mortar is in good condition and does not easily crumble when scraped with a screwdriver. A few adequately placed metal straps secured to the structural members (floor, ceiling, and roof joists) will help brace the chimney. Check with a home contractor to brace your chimney, which costs $2,000 to $12,000.

Retrofitting Inadequate Major Renovations

If you did major renovations to your home in the past, or if you decide to do at any time in the near future; contact a registered professional engineer, a structural engineer, or a licensed architect to ensure that all building code requirements are being met, and to determine that your new structure will have the ability to withstand earthquake forces. Such renovations include:

Replacing large portions of walls with windows or doors. Adding large skylights or additional stories. Opening large portions of existing floors, such as creating a two-story foyer. Additions that create an L-shape configuration.

Retrofitting Measures – One Step at a Time

The components of your home shall be secured to each other, so that they function as a single unit during an earthquake, transferring the forces from the upper stories through a continuous load path to the walls or braces then to the foundation. As discussed in the previous retrofitting sections, the earthquake damage will most likely be concentrated on the first floor because of the foundations, cripple wall, or soft story issues. Therefore, the best return on the investment of retrofit efforts is to initially address issues of the lower portions of the house then upper portions as follows:

Step 1 – Foundation: a) Add epoxy anchors or steel plates; b) Brace or replace the post-and-pier foundation; or c) Strengthen or replace the unreinforced masonry foundation. Step 2 – Brace the cripple walls. Step 3 – Strengthen or brace the first story if found to be a “soft story”. Step 4 – Anchor or strengthen connections of walls to the floor(s) and roof. Step 5 – Brace the chimney.

If you live in a Mobile Home

Mobile homes are prefabricated housing units that are trucked to the site and placed on isolated foundations, sometimes without any positive anchorage. Floors and roofs are constructed with plywood and outside surfaces are covered with sheet metal. Look under your mobile home. If you only see a metal or wood “skirt” on the outside with concrete blocks, masonry blocks, steel tripods, or jack stands supporting your home, you need to have an “engineered tie-down system” or an “earthquake-resistant bracing system” installed otherwise, your mobile home can be knocked off its foundations and damaged as well as breaking the utility lines.

If your Home is Rental

Although you have less control over the structural integrity of your building, but you do control which apartment or house you rent. Ask your landlord what measures have been taken to ensure the seismic safety of the building, and if you can secure furniture and water heater to the wall studs.

Concluding Remark

The 2010 Haiti earthquake is a wake up call for anyone who lives in an active seismic region to know how to reduce the risk to lives and investments by establishing an earthquake preparedness plan that include -among other items- retrofitting the structural components of the home including foundations, cripple walls, soft stories and chimneys. Seismic retrofitting measures will make your home safer and help in returning your family much more quickly back to their normal life style. In the United States, these seismic regions include -but not limited to- Alaska and the West Coast especially California; the Midwestern States especially Illinois, Kentucky, Missouri, and Tennessee around the New Madrid and the Wabash Valley Seismic Zones; and the Charleston area in South Carolina.

Additional information on how to secure the contents of your home including illustrative figures and photos can be found at http://hubpages.com/hub/earthquake-preparedness-and-retrofitting-measures