I was reading the December 2008 issue of Money magazine and came across a great quote by Warren Buffett. In the article he's talking about buying shares of American companies that are high quality, but beaten down and affordable. One could take this same quote and apply it to the housing industry.
"Be fearful when others are greedy and greedy when others are fearful."
Gift funds - May be used for 100% of the borrower's closing costs and down payment - eligible donors include close relatives, a close friend with a clearly defined interest in the borrower, a corporation established for charitable purposes, a borrower's employer or labor union, Federal, State or Local Government agency.
Cash from private savings clubs - Savings clubs established and used by various ethnic groups.
Commission from sale - A licensed Realtor may use commission income from the sale of the property being purchased. If the borrower is a licensed real estate agent entitled to a real estate commission from the sale of the property being purchased, those funds may be used as part of the cash investment, a letter from the Real Estate Agency must state how much will be credited to the Sales Agent (after any commission split or deduction of other fees) at closing on the HUD-1.
Bridal Registry - Monetary gifts from friends and family - not restricted to couples getting married but can be applied to situations where such gifts typically are received. Only "first-time" homebuyers are eligible for this program.
Loans from family members
Loans secured by an asset - Funds may be borrowed for the total required investment as long as satisfactory evidence is provided that the funds are fully secured (collateralized) by investment accounts or real property. Sources of acceptable and unacceptable collateral (asset) for loans used to assist in the required down payment or closing costs include, but are not limited to, those shown below.
FHA has announced the new 2009 FHA Loan Limits for Hillsborough, Pasco, and Pinellas counties. Please not that they are a little lower than this year. January 2009 the minimum dowpayment for a FHA loan increases to 3.5%.
In some instances your total income can be much higher than the adjusted income. If total income exceeds the limits, certain adjustments can be made, such as childcare expenses or children 12 or younger.
Example: Hillsborough County 4-person family (2 adults, 2 children) has a gross income of $80,410. Child care for the two children 12 or less is $10,000 annually. They would qualify because $80,410 less 10,000 child care less $480 for each child = $69,450
I was reading through a stack of bulletins I've received this week on product updates and this one stood out the most. Effective January 20, 2009 USDA is changing how they calculate household income. Currently they use eight different categories, but come January 20th they're going to two. It's not finalized yet, but as long as anyone doesn't object by January 5th it's a done deal.
Below is the new income limits for Hillsborough & Pasco counties in Florida.
Construction loans, fixed rate, ARM and interest-only financing available
Loan amounts of up to $1.5 million with competitive pricing and special relationship discounts
ALL OF November WE ARE OFFERING .25% OFF INTEREST RATE
The program offers adjustable and fixed rate mortgages allowing 100% financing for primary residence, purchase and rate/term transactions and cash-out refinances to 89.99% LTV.
Programs include 15 and 30 year fixed, one (1) month LIBOR, six (6) month LIBOR, one (1) year, 3/1, 5/1, 7/1 and 10/1 LIBOR ARMs. Fully Amortizing and Interest Only options are available.
$1,500,000 for medical doctors who have completed their residency, and
$417,000 for medical doctors who are currently residents/interns.
Our ARM rates are very aggressive. Today, November 5th our 3/1 ARM is 5.875%, 5/1 ARM is 6.375%. If you can stomach some volatility our 1 month libor is 3.75%
In some instances your total income can be much higher than the adjusted income. If total income exceeds the limits, certain adjustments can be made, such as childcare expenses or children 12 or younger.
Example: Pasco County 4-person family (2 adults, 2 children) has a gross income of $80,410. Child care for the two children 12 or less is $10,000 annually. They would qualify because $80,410 less 10,000 child care less $480 for each child = $69,450
Call (813) 507-0296 to find out if the house your purchasing in Pasco County is eligible for Rural (USDA) Financing.
Only those counties with ineligible areas are listed below. All other counties are completely eligible.
Alachua, Bay, Brevard, Broward, Charlotte, Clay, Duval, Escambia, Hillsborough, Indian River, Lee, Leon, Manatee, Marion, Miami-Dade, Monroe, Okaloosa, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, St. Johns, St. Lucie, Santa Rosa, Sarasota, Seminole, Volusia
If a county is listed above it doesn't necessarily mean its ineligible, but certain parts are.
Please call (813) 507-0296 to find out if the house you're interested in buying qualifies for a Rural (USDA) Development loan.
There is a non-refundable insurance guarantee fee for purchase transactions and improvements for existing dwellings.
The guarantee fee is equal to 2.00% of the loan amount.
For rate/term refinance transactions, the guarantee fee is .50%
The guarantee fee may be financed in with the loan amount. In instances when the guarantee fee is financed in with the loan amount, the maximum LTV may exceed the appraised value of the property to include the amount of the guarantee fee up to 102%.
For rate/term refinance transactions, the guarantee fee may be financed in with the loan amount, however an LTV of 100.5% is allowable.
Todd Martin - Tampa's FHA & Doctor Loan Specialist
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