From Hopelessness to Business Owner in India

If you’re reading this, then you are better off than more than half the women in India who have no ability to read or write. Access to a computer is not even a possibility. Life for them is “hopeless.” That’s their word.

The country does have a very successful technology sector. However, for the other half of India, the future is bleak. One in three people live in extreme poverty. Thanks to the caste system, they are taught to believe that their status in life was decided when they were born.

There is no way out and, in an emergency, the only option is local money lenders who charge 120 to 240 percent interest. For the women of India, there is no way to move up. Often, staying afloat is enough of a challenge.

With the help of Hope International, women in India are leaving poverty and becoming empowered. They are learning about the Gospel, the love of Jesus Christ and that He has a plan for them. It starts with a simple idea: 10 to 15 women get together and create a savings group. A dollar or two a month is saved. Soon, an internal pool of money is available for the women to use to pay off money lenders, in case of emergency or to start a business.

Suddenly, these women who saw the future as just more of the same struggle are experiencing Jesus’ love for them and seeing that the road ahead is bright. For instance, Shanty used the money from the group to start a small grocery shop. Women like Andandi can sign their names, an important skill now that she and the rest of the women in her group are dealing with banks on a regular basis.

Where they were alone and scared, they are now united and strong. “One woman alone can’t do much, but when there’s 10 of us together can accomplish anything.”

It’s a message we should all remember. With Jesus Christ, we can change the world for the better. Hope International has served 35,000 people in India. As you look forward in 2014, know that anything is possible with Jesus Christ.

Until next time,

Jeff Rutt

New FHA Loan Changes Impact Buyers and Builders

The Departmentof Housing and Urban Development (HUD) recently announced new FHA single-family loan limits that will go into effect on January 1, 2014. This announcement came just weeks after the department claimed that it would not lower home loan limits in 2014. The new loan limits will vary by county depending on the median cost of housing for that area. However, the new changes are mostly targeting high income earners  who looking to take advantage of favorable FHA loan financing options, and focusing instead on the lower income borrowers.

These changes will have a dramatic impact on both on buyers and builders. Buyers who were planning on purchasing a more expensive home using the favorable FHA loan terms may no longer be able to buy the home they were planning on. In turn, more builders may lose buyers who were planning on buying within the next few months.

If you are a buyer who wants to secure your FHA loan before these lower limits go into effect, you must have a case number on file with HUD before the end of the year to not be affected by these changes.

Here's a look at what the new FHA loan single-family home limits are for the counties Keystone Custom Homes builds in:

Pennsylvania

• Adams-Current: $271,050 vs. New: $271,050
• Berks-Current: $300,000 vs. New: $271,000
• Chester-Current: $420,000 vs. New: $379,500
• Cumberland-Current: $271,050 vs. New: $271,050
• Dauphin-Current: $271,050 vs. New: $271,050
• Lancaster-Current: $383,750 vs. New: $271,050
• Lebanon-Current: $271,050 vs. New: $271,050
• York-Current: $425,000 vs. New: $271,050

Maryland

• Cecil-Current: $420,000 vs. New: $379,500
• Harford-Current: $560,000 vs. New: $494,500

If you have questions about the new FHA loan limits, I would love to answer them. Feel free to leave a comment below.

Until next time,

Jeff Rutt

Americans Express Preference for Walkability in 2013 Community Preferences Survey

The results of the National Association of Realtors' 2013 Community Preference Survey are in, and the findings are definitely worth talking about.

Here are a few highlights:

• 60 percent of respondents prefer a neighborhood with a mix of houses, stores and other businesses that are easy to walk to
• 52 percent want a single-family home with a large yard
• 78 percent believe the neighborhood itself is more important than the house
• 57 percent would trade a larger yard for a shorter commute to work
• 55 percent for forego a large yard for walkability to schools, stores and restaurants

What are the takeaways from these numbers? The key factor to a successful community is walkability. Today's homeowners are putting a much greater emphasis on being able to walk from their new home to their favorite shops, restaurants, parks and schools. Americans are even willing to give up their treasured yard space to ensure they have an easier, faster commute to their workplace and local businesses. They don't want a community with just homes, they want a community that offers them a complete lifestyle; one that they very seldom have to leave, and when they do, they don't want to have to travel far.

While some homeowners will still fall in love with a single-family home in a community filled with just homes or homes and an amenities package, builders need to make sure that even these communities are readily accessible to shops, restaurants, entertainment, recreation and transportation. The other solution is to plan mixed use or traditional neighborhood developments, which incorporate a mix of homes, businesses and amenities all within one community.

What are your thoughts on the findings from this year's survey? I'd love to hear your opinion in the comments section below.

Until next time,

Jeff Rutt

Weathering the Storm

Last year, I had the chance to speak at the 2012 Entrepreneurs Conference. This conference was a great honor and opportunity to share my message with other business owners. We all know the past five to six years have been a trying time for businesses in every industry, so I thought a message with the theme of weathering the storm was quite appropriate.

Here are my top three take home messages from my speech about weathering the storm:

• Survival - Whether you think of survival in terms meeting of basic needs (300 million children will go hungry today and 92 percent of the world is without clean drinking water) or a home building company (half of the home builders in the country have gone out of business during the recession), we have to take challenging situations and turn them into positive ones.                                                                                                                                                       Here's a look at what we have done at Keystone Custom Homes to survive:
  
  
  
  
  1.       Built an incredibly strong and effective leadership team
  2.       Provided more value without raising costs and reduce costs without reducing value
  3.       Developed our own risk/reward continuum
  4.       Reinvented areas of our business
  5.       Made decisions using Jim Collins' triangle of fanatic discipline, empirical creativity and productive paranoia
  6.       Created a strong work culture
  7.       Communicated transparently
  8.       Trusted God and understood he is in control
  9.       Remained humble
  
  
  Many of these same tactics can be applied to businesses in other industries. Consider how you can implement these actions to make your business more effective and successful.
  
  
• Success - Instead of focusing on ourselves, focus on others and the small successes you can create.

• Significance - Focus on the true purpose behind what you are doing. Each one of us has a purpose in our life, and at the end of the day, our businesses are not really ours, they are God's. Always remember that you are serving for and working for a greater purpose.

I hope you will watch my speech in its entirety, so that you too can hear the message of weathering God's storm.

Until next time,

Jeff Rutt