Over the years Florida Housing's Mortgage Revenue Bond (MRB) program has provided billions of dollars and helped thousands of Floridians achieve homeownership!  Virtually every aspect of our housing finance or mortgage market is now feeling the ongoing and deepening impact of our "credit crunch" with no immunity spared to any agency or program.

With the recent elimination of Seller Funded Down Payment Assistance (SFDPA) programs, State and Local   bond programs are the only source of down payment assistance in many areas.  While Florida Housing has had an ongoing commitment to provide continuous funding this commitment is facing serious challenges as none of the new bond programs have been able to begin as there are no buyers/investors for these bonds.

For most of the 2000's, Fannie Mae and Freddie Mac were the major or only buyers of mortgage revenue bonds. That is no longer true.  They aren't buying and there are no other investors.

I received an email today from a Florida Housing agency representative requesting all concerned parties to communicate to our congressional representatives the need for their support to keep the State MRB/DPA functioning in its' mission.  Whether you may be a consumer, a first-time homebuyer, a loan officer, Realtor or Builder your voice is important.  Below is sample language that you can copy and paste into your email to facilitate your voice being heard.

Please contact your voices in Washington -- your senators and representatives.  
 
Here's how to email them:
U S Senate
http://www.senate.gov/general/contact_information/senators_cfm.cfm
U S Congress
https://forms.house.gov/wyr/welcome.shtml
On this site, find your rep then go to their website for their email address

Thanks for your help!

Sample Language
July's Economic Stimulus Bill contains roles for the country's Housing Finance Agencies (HFA's).  These agencies rely on the sale of tax exempt mortgage revenue bonds to create dollars to purchase mortgages from lenders.   For the past several years, Fannie Mae and Freddie Mac purchased these bonds.  These are not subprime mortgages as borrowers actually qualify under standard credit underwriting requirements.  

Currently, there are no investors.   Please contact the conservator and advocate for Fannie Mae's and Freddie Mac's ability to purchase mortgage revenue bonds.  Governments receiving Neighborhood Stabilization funds are anxious to work with HFA's leveraging resources to save neighborhoods.  It is particularly important that this happen as quickly as possible to move inventory before another very large cycle of foreclosures occurs in the spring.   Spring foreclosures will send home values on another downward spiral.

Mortgage revenue bonds programs are particularly important as so many down payment assistance programs are no longer available.  Lending institutions are utilizing funds that were made available prior to the AIG crisis.   When those funds are gone, new programs will be on hold until there are investors.  

Your help is the hope for borrowers, sellers, lenders, Realtors and builders.

Thank you for your kind assistance.

_____ your name and
______ your profession

I have made posts in the past about how USDA Rural Housing loans were the most under-utilized mortgage program in America.  Well today  I now have to eat my words as UDSA GRH has just announced that for FY 2008 fundings reached an all-time/record high of $6.7 billion.  In fact, there is some possibility that with current trend that 2008 funds may not last thru September 30th (FYE 2008).

Congress has not yet approved funding/allocation for FY 2009, however no significant delay is expected. Obviously it would appear that consumers, loan officers and realtors did pick up on the advantages of the Rural Housing program over the past year.  I wonder if 100% financing and the disappearance of most of the creative mortgage products had anything to do with it?? :)

MOREOVER, this makes me wonder if we are all going to have to scramble for a piece of this pie/fair market share before funds availability becomes an issue in FY 2009?

Ron Withers and Town & Country Mortgage Services are partnered with Florida Housing to provide affordable housing financing using their mortgage revenue/down payment assistance program. Provided below is an update/overview of loan programs and funding availability status. Florida Housing establishes the terms, guidelines and interest rates for these programs which are subject to change without notice.

Here's a quick view of the first and second mortgage possibilities for qualified applicants ALL FLORIDA HOUSING FIRST MORTGAGES HAVE ZERO ORIGINATION AND ZERO DISCOUNT FIRST MORTGAGES. Borrowers also enjoy substantial a savings in their closing/settlement costs as Florida Documentary Stamp fees and Intangibles Tax are waived for these programs.

 FLORIDA FIRST - All buyers who qualify for a bond loan qualify for this 30 year, fixed rate product that may be used with one Florida Housing down payment and closing cost assistance second (HAMI or Florida Assist).  Current Rate is 6.65% and $18,904,000+ is available.

 FLORIDA PLUS FOR GOVERNMENT LOANS - All buyers who qualify for a bond loan qualify for this 30 year, fixed rate product that provides automatic assistance that is 3.00% of the Note amount. HAMI and Florida Assist MAY NOT BE USED WITH THIS PRODUCT. Current rate is 7.15% and $18,753,000+ is available.

 COMMUNITY HEROES for buyers that are education professionals, sworn officers of the state of Florida, healthcare professionals and all active duty military and veterans. (HAMI or Florida Assist may be used with this product) There is Zero Origination and Zero DiscountOn this loan. Income and sales price limits are the bond limits.  Current rate is 6.40% and $12,901,000+ is available.

FLORIDA ADVANTAGE for buyers purchasing in special geographic areas, rural self-help buyers or for households with at least one disabled member. The program is for buyers at or below 80% of AMI or below adjusted for household size. Buyers using this product qualify for Florida Assist. There is Zero Origination and Zero Discount on this loan. Current rate is 6.15% and $1,791,000+ is available.

HAMI DPA is available to all who qualify for the bond program's income limits. It's available at a rate of 5.00% for up to $5,000. This is a 10-year amortizing second mortgage loan.

FLORIDA ASSIST is available to buyers at 100% of AMI or below (adjusted for Household size). It offers up to $10,000. It is a 30 year, deferred, 0.00% second mortgage loan. It is NOT forgiven at any time.

 Buyers may use only one of the two second mortgage DPA products.

 **Veterans Exception:  Does not have to be a first-time homebuyer.

The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009. The following questions and answers provide basic information about the tax credit.

1. Who is eligible to claim the $7,500 tax credit?
2. What is the definition of a first-time home buyer?
3. What types of homes will qualify for the tax credit?
4. Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
5. What is "modified adjusted gross income"?
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
7. Can you give me an example of how the partial tax credit is determined?
8. Does the credit amount differ based on tax filing status?
9. Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
10. I heard that the tax credit is refundable. What does that mean?
11. What is the difference between a tax credit and a tax deduction?
12. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
13. I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
14. I am not a U.S. citizen. Can I claim the tax credit?
15. Does the credit have to be paid back to the government? If so, what are the payback provisions?
16. Why must the money be repaid?
17. Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
18. If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
19. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

1. Who is eligible to claim the $7,500 tax credit?
   First time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.
2. What is the definition of a first-time home buyer?
   The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.
3. What types of homes will qualify for the tax credit?
   Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses, and condominiums.
4. Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
   Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.
   
   In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
5. What is "modified adjusted gross income"?
   Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.
   
   To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
   Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phase-out limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.
7. Can you give me an example of how the partial tax credit is determined?
   Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.
   
   Here's another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.
   
   Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
8. Does the credit amount differ based on tax filing status?
   No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.
9. Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
   In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.
10. I heard that the tax credit is refundable. What does that mean?
    The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even the entire amount of the refundable tax credit.
    
    For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).
11. What is the difference between a tax credit and a tax deduction?
    A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.
    
    A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer's tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.
12. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
    No. The tax credit cannot be combined with the MRB home buyer program.
13. I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
    No. You can claim only one.
14. I am not a U.S. citizen. Can I claim the tax credit?
    Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.
15. Does the credit have to be paid back to the government? If so, what are the payback provisions?
    Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
16. Why must the money be repaid?
    Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.
17. Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
    Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.
18. If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
    Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
19.  For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
    Yes. If the applicable income phase-out would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

A significant misconception exists in the marketplace among consumers, realtors and mortgage loan officers/brokers as to USDA "Rural Housing" and what this mortgage program applies to.  Do not be fooled by the term "rural housing" in assuming that this program is for consumers to purchase a home, farm and/or small acreage in a very rural setting.....quite contraire!

This is part of the reason that this mortgage program had been "under-utilized" in past years!  This post is a follow on to two previous posts USDA Rural Housing-The Most Under-Utilized Program in America and It's Still Under-Utilized! The USDA Rural Housing loan is one of two true 100% financing programs remaining in the mortgage marketplace.  The other program being VA financing.

During the 2007-2008 fiscal years Rural Housing loans experienced a tremendous "re-birth" with many areas of the United States seeing a 200-300% increase in year over year fundings.  As such, my term "under-utilized" is now somewhat diminished!

While I do believe that property eligibility is largely based on demographic considerations, I am unsure of the data/parameters used for this determination.

Any consumer that is considering using the USDA Rural Housing program for their home purchase as well as their loan officer/broker and Realtor needs to use/bookmark the USDA property eligibility website as their primary tool/resource in conducting their search for a property that is situated in an eligible area.  Failure to do so is paramount to trying to traverse remote terrain from point A to point B without a map and/or compass!

Again....don't be fooled by the term "rural housing" as you may find that entire counties may be eligible or that small to medium size cities/towns or maybe at least, their fringes. Connect to and bookmark the USDA Property Eligibility Website here. You will need a complete property address and zip code. Very importantly, you should be aware that you may occasionally find seams in eligibility boundaries in that, properties on one side of a road may be eligible while those on the opposite side of the road are not.

You will find that the Rural Housing program has many features and flexibility not found in other mortgage programs and, if desired, most Down Payment Assistance programs are allowable.

For more information about me or to inquire further or pre-qualify for a rural housing loan visit me at RonWithers.com or Town & Country Mortgage.

Copyright 2008, Ron Withers, All Rights Reserved.

The Florida Housing Finance Corporation (Florida Housing) provides a first mortgage program also known as the mortgage revenue bond(MRB) program to first-time homebuyers (not owned a home in the past 3 years) subject to a few exceptions. If a person uses a Florida Housing first mortgage, they may also qualify for down payment and closing cost assistance. The program does not provide down payment and closing cost assistance with lenders' first mortgage products.

Florida Housing has two first mortgage options in this program. There's something for everyone qualified in all Florida counties. Florida Housing also sets the rate, term and points of its first and second mortgages. Two second mortgage options provide down payment and closing cost assistance. Automatic down payment assistance is provided with two of the Florida Housing first mortgage options. Florida Housing also markets the program.

PARTICIPATING LENDERS take applications, reserve in their own systems to provide funds for closing, process, underwrite, approve, fund first and second mortgage loans and the automatic assistance, close and sell qualified loans to the program. It's the responsibility of lenders to review program documents and to originate loans that meet the requirements, direct borrowers to complete a homebuyer education course and give proper closing instructions. Lenders are responsible for servicing all program loans in accordance with Fannie Mae, Freddie Mac and Ginnie Mae requirements until they're purchased by the Master Servicer.

Maximum Sales Price/Acquisition Limits and Income Limitations:

The maximum sales price/acquisition limit may vary from county to county. Likewise, there are income limitations which may vary by program selection which are adjusted based on household size.

First Mortgage Loan Reservation:

Buyers MUSTHAVE A FULLY-EXECUTED SALES CONTRACT FOR A SPECIFIC PROPERTY in order to have funds reserved or be on the waiting list. The contract may be dated prior to the date of the loan application. (Buyers may be pre-qualified. However, if the buyer does not have a contract on a property, BOND FUNDS MAY NOT BE HELD for the buyer until such time as the buyer presents a valid contract.) New construction and REO's must be reserved on Wait List no sooner than 45 days before closing.

CONTINUOUS FUNDING:

Because Florida Housing has made a commitment to continuous funding, when funds are fully utilized, Florida Housing may establish an interim waiting list or provide its own funds for the time between bond issues. In such instances, the program may be referred to as a Bridge Program.

The first mortgage options:

FLORIDA FIRST - All buyers who qualify for a bond loan qualify for this product that may be used with one of two second mortgages (HAMI or Florida Assist) that provide down payment and closing cost assistance. This is a 30 year, fixed rate loan.

The down payment assistance options are (to the extent funds are available) -

HAMI DPA is available to all who qualify for a first mortgage bond loan. It's available at a rate of 5.00% for up to $5,000. This is a 10-year amortizing second mortgage loan. Amount should be determined by need.

FLORIDA ASSIST is available to buyers at 100% of AMI or below (adjusted for Household size). It offers up to $10,000. It is a 30 year, deferred, 0.00% second mortgage loan. It is NOT forgiven. Amount should be determined by need.

Buyers are limited to using only one of the DPA options.

An advantage for Veterans:...they need not be first-time homebuyers. Congress has reinstated the Veterans Exception provision. For this feature, "veteran" is defined as "a person who served in the active military, naval, or air service, and who was discharged or released there from under conditions other than dishonorable." The Mortgagor Affidavit has a checkbox that states: "Mortgagor (Co mortgagor) meets the requirements to qualify as a "veteran" as defined in 38 U.S.C. Section 101 and has not previously obtained a loan financed by single family mortgage revenue bonds utilizing the veteran exception to the first-time homebuyer requirement set forth in Section 416 of the Tax Relief and Health Care Act of 2006. Attached hereto are true and correct copies of my discharge or release papers, which demonstrate that such discharge or release was other than dishonorable.

Florida Plus-3% DPA Grant:

Subject to income eligibility borrowers not using the Florida Assist or HAMI options may be eligible for a 3% grant (no repayment) based on the mortgage loan amount. The Florida Plus option may only be used when the first mortgage is a government loan, i.e., FHA, VA or USDA Rural Housing loan.

PROGRAM FEES

The first mortgage program includes a Bond Application Fee of $215. The fee is payable at closing and netted at loan purchase. The fee must be disclosed on the HUD-1 as being paid to the Servicer.

Tax Service Fee of $75 (paid by buyer or seller as per insurer/guarantor requirements) on the first mortgage. The fee is payable at closing and netted at loan purchase and must be disclosed on the HUD-1 as being paid to the Servicer.

FOR SECOND MORTGAGE LOANS

• No origination or discount on HAMI or FLORIDA ASSIST loans.

• On HAMI loans lenders may collect $225 Second Mortgage Loan Application Fee and retain $75.00 The Servicer nets $150 at loan purchase. $150 should be shown on the HUD-1 as being paid to the Servicer.

• On Florida Assist loans Lenders collect and retain $75 Second Mortgage Loan Application Fee.

LENDERS are permitted to charge reasonable and customary charges for out of pocket expenses and costs. Other financing costs such as legal fees and underwriting fees may be charged and courier fees may be charged if such fees are normally charged. Lenders may charge the usual and reasonable settlement costs. Settlement costs include titling and transfer costs, title insurance, survey fees or other similar costs. Other allowable fees include doc prep fees, notary fees, hazard, mortgage and life insurance premiums, recording or registration charges, prepaid escrow deposits and other similar charges allowable by the insurer/guarantor. "Junk" fees are not a defined term and may not be charged. Excessive fees are not permitted in the program.

Fees/Closing Costs Advantage:

Currently borrowers cannot be charged origination or discount points.  Borrowers are also exempt from paying documentary stamp fees and intangible tax fees. This significantly reduces the overall closing costs paid by the borrowers.

** All program information and terms are subject to change without notice.  Funds are always subject to eligibility and availability of funds, generally on a first-come, first-served basis. Assistance amount/eligibility is based on household income adjusted for family size. The MRB program has a funds reservation process (requires accepted purchase contract) while SHIP programs may or may not.  Generally, completion of a Homebuyer Education Course is required.

 Visit Me at www.RonWithers.com to see information on all of the State, County and Local Down Payment Assistance Programs where Town & Country Mortgage/Ron Withers are approved/participating lenders.

Updates:

9-12-2008 Florida Housing makes full release of their 2008 Series 3 bond issue.  For additonal information visit me at Down Payment Assistance.

Many years ago while sitting at dinner table, my now oldest son, posed the following question of me.  So Daddy...What is it that you do for a living?  I believe that he was 7 or 8 years old at the time. He was a very bright child with a higher than average IQ (not sure whose genes brought this about).  In fact, when he started the first grade he was already reading and comprehending at the fifth + grade level.  I attribute most of this to my wife (no, wait...all of it) as she starting reading to him prior to his birth.  This reading continued almost nightly with a bedtime story with him following along with the script. After 3-4 years, my wife on occasion, would breakout the book and attempt to condense the bedtime story by leaving bits and pieces of the storyline out. He would absolutely refuse to allow her to get by with this. Stating, "stop it mommy you are leaving out part of the story!" 

The nature and duties of my profession made it difficult to sit together as a family for our evening meals or at least as often as I would have preferred. I was somewhat taken by the question so I paused somewhat briefly to form my thoughts before responding to him.

"Well Son, I open doors for a living", I replied!  With a somewhat puzzled facial expression he responded, "Do you mean like car doors or maybe store or office doors?"  I thought for a moment or two and realized that maybe we could have a little fun with this!  "No Son", I said, "Not those types of doors!"

"C'mon Daddy, you are teasing me", he commented.  I replied, "Well I suppose I am...just a bit!"  "Well then what kind?" he blurted!  After a brief pause to continue to arouse his curiosity, I said, "I open doors to dreams and they come in all kinds of shapes and sizes."  With an even more puzzled expression, he remarked, "Dreams daddy?.................I don't understand!"

Well then I said, "Let me try to explain it like this."  "The kind of dream I am speaking of is often referred to as The American Dream. We are sitting in this dream....at this very moment.....as we speak!  It's homeownership!  You see, homeownership is a very special thing to people. Most people aspire to it at some point in their life. They often look forward to the opportunity of homeownership with great anticipation and that's the reason it is referred to as The American Dream!"

"Most people do realize these dreams come true at some point, regretfully there are some people that never do.  This is really kind of sad. Homeownship can contribute to quality of life, pride of ownership, a sense of belonging and contributing to ones community, or building wealth over a period of time. It can mean so many things to different people....bottom line is that its meaning can be whatever is important to them and makes them happy!"

After we had paused a few moments to continue with our supper my son queried further, "So...daddy all of this means that we are living the American Dream?"  Smiling, I remarked, "Yes son, absolutely! We are sitting here enjoying supper in our home, we are all together as a family, this home belongs to us and no one else and we can pretty much do anything here that we please. Our home is our castle and we can take great pride in it, and hopefully it will serve us very well as we grow as a family and maybe even allow your mom and I to better provide a better quality of  life and very possibly greater educational opportunities to all of you children."

"Gee Daddy, that sounds kind of neat", he commented.  "But just how is it that you open these doors to dreams for other people?"  By now I knew this was coming at some point in our discussion so I had been pondering my response as I had been enjoying my supper.

"Well son...great question", I remarked! "When people are aspiring to this dream and want to realize it come true they must get themselves on a path to homeownership."  This path to homeownership requires a lot of things!  Most often it requires that they seek the services or assistance of certain professionals such as Real Estate Agents and Mortgage Loan Officers.  This is where I come in as I am a mortgage professional and my duties and responsibilities is to guide them through the financial process that will get them the money or financing to achieve or realize their American Dream. So.....this is what I mean when I stated that I opened doors for a living.

Again we paused to continue with our supper but I could still see the wheels turning in his mind. After a minute or so, he said, "So this makes you happy...do you make a lot of money by opening these doors?" I quipped," Boy aren't you the curious one tonight!"

"Yes.... I enjoy it very much and it does make me happy", I said!  "It's not so much whether or not I make a lot of money or not. I would say that it helps us to live somewhat comfortably and helps us to keep our American Dream! J  However Son, it's really more important than that.....it's about being a part of something that's much larger than yourself.  It's about being of service to your fellow man or humanity.  It's about sharing and being a part of something that is so important to most people. It's about contributing or providing opportunity to other people who have dreams just like us. It's about being a part of other people's dreams and seeing the happiness it brings them.  It's about building and strengthening families and communities. When we do this we make things better and stronger for all of us!"

"A couple more things Son and let's get finished with supper. To further illustrate my comments from just a moment ago I want to finish up with this.  When I go to the closing table with my clients to complete their purchase and realize their American Dream come true it's is so gratifying when they stand up after signing a huge mound of paperwork and being handed the keys to their dream, that they are smiling from ear to ear, extending a very personal thank you and a grateful hand shake, and occasionally, maybe a hug or tears of joy. That's what makes my day!"

"Thanks dad...I understand", he said. "Gee dad, we need to talk like this more often!"  With a grin, I said..."point taken Son....point well taken!"

Over the course of our now 42 year marriage we have had the pleasure of owning 5 homes with each of them providing us with the ability to expand and move up as our family grew (3 children) and a host of animals and/or pets including, horses, ponies, dogs, cats and occasional smaller critters that the children acquired from time to time. Or in other words, the continuation of "our American Dream".

The above photo is our last home located in rural East Central Indiana where we resided and raised our family for the previous 15 years before relocating to the "Sunshine State".  This dream was integral part of who we are or what we become as a family. The photo was taken a few years ago while on vacation "Back Home Again in Indiana". Partially due to curiosity, more so for remembrance.

This home of 2500+ s.f. with 11 rooms (5 BR, 2 baths) and a full basement was situated on a 2 1/2 acre wooded tract.  For the better part of 30 years my wife and I owned horses. The gentleman that we purchased this home from became a very good friend. He was a very generous man, big in heart with a gentle nature. Part of what made this home attractive to us was that he owned an adjacent tract of about 5 acres with a barn and some out buildings.  When we purchased this home he allowed us to use this adjoining tract for our horses...essentially free of charge. We improved/added some fencing and helped maintain the ground as part of its use as well as watch it for him as he travelled extensively for his employer and did  have the time to get by very often to check on it.

I shared the above information because it has been an important part of my American Dream.  This dream must be an opportunity for all....bar none!  Lately, I have seen or heard remarks that homeownership is a privilege....rather than a right!  While I could concur with this statement from a very strict perspective, that's as about as far as I could go in accepting it! Nothing more than a statement.  We cannot allow ourselves to function with this mentality. The American Dream and homeownership is an integral thread in the fabric of our society. It speaks to who we are as a people and a nation. It is a part of our ability to thrive and survive. Every opportunity must be taken to see that it doesn't die.  Furthermore, financial resources that are made available to maximize the opportunity for homeownership must not be viewed as a hand out, but rather as a hand up!

........soon to be continued (further expanded on).

How do you open doors or how would you share your experiences in living or sharing the American Dream?

Copyright 2008, Ron Withers, All Rights Reserved.

Orange County Housing  and Community Development  (SHIP Funds)   The purpose of Orange County's Down Payment Assistance program is to provide funds to qualified first time homebuyers for down payment and closing costs associated with purchasing a home.

The program will provide assistance to qualified very low, low and moderate income persons in Orange County on a first come, first ready basis. The program also requires that potential homebuyers complete a pre-purchase and post-purchase education program. The buyer must:  

• Meet the income requirements. Annual household income cannot exceed 120% of the area median income. See Footnote below
• Provide the greater of $1,000 or 1% of the sales price.
• Complete a home buyer's education seminar.
• Secure first mortgage financing.
• Fulfill a 1 year residency requirement in the Orlando MSA (Orange, Seminole, Lake, or Osceola Counties) 

The property must

• Be new or existing with substantial rehabilitation and located in Orange County, outside the city limits of Orlando.
• Not exceed a sales price of $219,000.
• Receive competitive fixed rate financing.
• Be fee simple ownership.

The assistance

• Ranges from $20,000 to $35,000 depending on household income.
• The County's assistance is provided to the buyer's closing agent at closing in the form of a soft second mortgage at 0% interest which is forgiven after fifteen (15) years if the home remains owner-occupied.
• In addition, the total first mortgage and Orange County's second mortgage may not exceed 105% of appraised value.

Footnote:  The FHA 203k Streamline loan is a prime loan product providing up to $35,000 in rehab funds in the purchase transaction.  See: FHA Now Allows You to Have Your Cake....and Eat It TOO!

Click here to view/join: Down Payment Assistance Resources Group

* All program information and terms are subject to change without notice.  Funds are always subject to eligibility and availability of funds, generally on a first-come,  first-served basis. Assistance amount/eligibility is based on household income adjusted for family size. The MRB program has a funds reservation process (requires accepted purchase contract) while SHIP programs may or may not.  Generally, completion of a Homebuyer Education Course is required.

Visit Me at www.RonWithers.com to see information on all of the State, County and Local Down Payment Assistance Programs where Town & Country Mortgage/Ron Withers are approved/participating lenders.

Central Florida Resources for Homebuyer Education Classes

State and local (County or City) housing agencies require that first-time homebuyers (not owned a home in the past 3 years) complete an acceptable Homebuyer Education Course and receive a completion certificate to be eligible to receive down payment assistance from their respective agency.

Some agencies by exception requires that homebuyers complete homebuyer education classes that are directly sponsored or conducted by their agency. 

Prospective first-time buyers seeking down payment assistance should determine which agency/funds program they will use and check on the specific homebuyer education requirements for that agency.

Generally, homebuyer education certificates of completion are good or acceptable for 1 year in respect to meeting the homebuyer education requirements of these agencies.

Below is contact information for two (2) sources to register for homebuyer education classes.  There may be other acceptable sources.

Click here to view/join: Down Payment Assistance Resources Group

Visit Me at www.RonWithers.com to see information on all of the State, County and Local Down Payment Assistance Programs where Town & Country Mortgage/Ron Withers are approved/participating lenders.

Mortgage Revenue Bond (MRB) programs which are provided through individual States Housing Finance Authority's (HFA's) to assist first-time homebuyers (generally defined as not having owned a home in the past 3 years) with down payment and/or closing costs assistance.

The terms or criteria, conditions, eligibility and amount or availability of funds will vary from one housing agency to the next. As such, I will not elaborate on the indivual agencies but provide the following link for the benefit of real estate and mortgage professionals as well as consumers who may want to research this subject matter.

http://www.ehousing.cc/index.htm

While much of the information contained with the above website is intended for use by participating lenders, real estate and mortgage professional, builders, etc., it also provides information to first-time homebuyers which can be a resource for valuable information regarding down payment assistance that may be available to them in their area. 

It also provides information regarding Mortgage Credit Certifcates (MCC's) which may be a financial benefit to some borrowers. The information regarding the States and HFA's should not be construed as all-inclusive. At this time, information for the following States is available.

• Arizona
• California
• Florida
• Minnesota
• New Mexico
• Pennsylvania
• Texas

Click here to view/join: Down Payment Assistance Resources Group

Visit me at: www.RonWithers.com