Denver Real Estate Blog - Part 4

Littleton CO is known for many things. Quaint homes, community activism, great neighbors and a palpable sense of nostalgia top the list of the town’s attributes. However, there is a hidden gem within city limits named Hudson Gardens. A premier display garden, event center, and concert venue, the Gardens call the eastern bank of the South Platte River home.

This irreplaceable Littleton real estate was once owned by Colonel King Hudson and his wife Evelyn. In 1941 they purchased 5 acres along Santa Fe, then a two-lane dirt road, and opened The Country Kitchen restaurant. A risky move, the Country Kitchen grew to be a staple in Littleton life for twenty years. The restaurant is now the Inn at Hudson Gardens, which is available for special events.

Throughout the stewardship of their land, the couple worked tirelessly on the beautification of their 5 acres, which would eventually grow to 40 acres. Upon the their retirement, the Colonel continued to add more trees, hedges, and flower beds.

Evelyn became an active community member whose sole mission was to make Littleton, CO as gorgeous as possible. In fact, before her death she set-up a foundation to ensure that her life’s goal to “to preserve, maintain and enhance the natural beauty of [the] property…for the aesthetic enjoyment and education of the publ.....”, in Littleton was realized. King died at the age of 90 in 1984 and Evelyn followed him in 1988.

Thankfully, their legacy did live on and Hudson Gardens is now an oasis in our concrete world. With views of the Rocky Mountains, their vision has been realized with flower beds, duck ponds, towering trees, wildflower meadows, wetlands, a fragrance garden and a miniature railroad. The Gardens offer self-guided audio tours, and family “explorer packs”. The grounds are also a popular venue for weddings, receptions, company picnics. The ever patient staff also hosts hundreds of school children every year.

There is also a wide variety of classes for adults being offered this year, including bee keeping, wood carving, landscape photography and xeriscaping.

A local secret, Hudson Gardens is also implemented as a unique concert venue. Many homegrown musicians, as well as big name bands, are welcomed to Littleton by an enthusiastic crowd. The concert-goers come with picnics in hand, folding chairs and blankets to watch such groups as the Nitty Gritty Dirt Band and The Guess Who. The children run and dance, while the adults appreciate the cash bar with wine and beer, all under a star-filled Colorado evening. The Gardens have just released their 2011 concert schedule and tickets are going fast!

Pan Jumbies performs at Hudson Gardens

Hudson Gardens is just south of Littleton Boulevard at 6115 South Santa Fe Drive It can also be reached by accessing the South Platte Trail, where you can enter from the back of the Gardens.

For many Denver home buyers, the difference between a “pre-qualification” and a “pre-approval” can seem vague. Unfortunately, while these are two essential items in the process of purchasing Denver real estate, they each play a significantly separate role while pursuing a home loan.

Jesse Sehlmeyer owner/broker of Vintage Homes of Denver, and Scott Mulvany of Cherry Creek Mortgage recently reviewed the individual aspects of each of these critical items.

If you are a hopeful first-time Denver home buyer, Vintage Homes of Denver would like to advise you to consider initiating the purchase of your Denver real estate before April 17th, 2011. Why? On April 18th, the Federal Housing Administration (FHA) will be increasing the annual mortgage premium on their home loans by 25 basis points. Huh?

In order to better educate their prospective clients, Jesse Sehlmeyer of Vintage Homes of Denver and Scott Mulvany of Cherry Creek Mortgage have put the legalese (see below) into understandable English.

February 16, 2011

In a mortgagee letter (ML 2011-10) released February 14, FHA announced it will increase by 25 basis points (bps) the annual mortgage insurance premium (MIP) for FHA single-family loans assigned case numbers on or after April 18, 2011; the upfront MIP will remain unchanged at 1.0 percent.

In the mortgagee letter, FHA says the increase in the annual mortgage insurance premium is necessary to maintain the solvency of the Mutual Mortgage Insurance Fund (MMIF). The guidance cites the legislative mandate in section 202 of the National Housing Act requiring that FHA’s MMIF remain financially sound. The chart below illustrates the 25 basis points increase in the annual mortgage insurance premiums.

FHA predicts the increase will have minimal impact on borrowers but will significantly strengthen the capital position of the MMIF. FHA Commissioner David Stevens says the annual payment adjustment will increase borrowers’ costs about $30 per month. The new pay structure is estimated to contribute nearly $3 billion annually to the MMIF. Stevens has also said it will encourage some borrowers to obtain mortgages in the private sector.

Legislation signed into law last year (H.R. 5981) authorizes FHA to raise the maximum allowable annual MIP for mortgages below 95 percent of value to 1.50 percent and for mortgages at or above 95 percent of value to 1.55 percent. The law also authorizes the HUD Secretary to adjust the amount of any initial or annual MIP through a notice published in either the Federal Register or in a mortgagee letter.

Although the law raised the statutory ceiling for the annual MIP to as much as 1.55 percent in some instances, FHA has decided not to increase the premiums to those levels currently. This is the second such increase to the annual mortgage insurance premium in less than six months, with the prior increase taking place last October. Existing and reverse mortgage loans insured by FHA are not impacted by the pricing change.

The proposal was referenced in the Administration’s recently released housing finance proposal as well as the President’s FY 2012 budget request (analyzed here by NCSHA).

Remember that scene in “It’s A Wonderful Life” when they pan along the quaint Main Street with the shops and neon signs? It always makes me long for those quintessential bits of Americana. Unfortunately, in many cities, these collections of “Mom and Pop” shops are only found in memories.

Luckily, in Denver, many of these bits of years gone by are still thriving. One of my favorites is the stretch of University Boulevard that bisects the Bonnie Brae neighborhood. It may only be one block, but the business owners have made it a destination.

The Bonnie Brae Tavern holds the title for the longest running, yet seemingly unchanged, venue. Bill Dire, a visionary with a piece of land covered in sagebrush, opened the tavern in 1934. The country was reeling from the end of Prohibition, and Bill wanted to be in the forefront of the after party. With Denver real estate development heading to the south of the city center, folks in areas such as Wash Park and University Park were building new Denver homes in earnest. Being a convenient place to stop for a bite and beer, the Bonnie Brae Tavern saw success from the start. As the Bonnie Brae neighborhood grew around the restaurant and dirt roads were paved over, the local watering hole remained true to its roots.

Denver's Bonnie Brae Tavern

The interior is unchanged from the 1940's, complete with turquoise upholstery and chromed bar stools that are as comfortable as the day they were installed. The fare is as eclectic as their clientele and includes their famous pizza, meatball sandwiches, patty melts and classic Mexican dishes.

The neighborhood hot spot is still run by the descendants of Bill Dire. They recently celebrated the restaurant’s 75th year and will be hosting a Customer Appreciation Day on March 19th to thank their community for those years of loyal support.

Scott Mulvany of Cherry Creek Mortgage recently sat down with Jesse Sehlmeyer of Vintage Homes of Denver to discuss the do’s and don’ts when pursuing a home loan.   When hoping to purchase a new Denver home, it is essential that your credit works for you and not against you.  Scott’s mortgage tips and Jesse’s Denver real estate knowledge will help to ensure a successful Denver home purchase.