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rural housing: Update on USDA Income Limit Increases - 03/05/09 12:36 PM
I wanted to share the response I received from someone at USDA today on the increase in the income limits. It still sounds very promising!
Here is my ‘canned' response sent to all inquirers. If it happens (we're very optimistic), it will be incorporated at the same time as our regular annual income adjustment, late March, early April, maybe by March 20, depending on when we get data from HUD (for the regular increase).
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NO guarantee but optimistic. Hopefully around March 20, maybe a little later. It would use the 4-person limit for the 1-4 person households, and … (4 comments)
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rural housing: USDA Does NOT Lend Money - So How Can They Be Out??? - 01/25/09 08:52 AM
It is amazing to me to see how many phone calls we are getting from around the country asking how we can still do USDA Rural Housing loans since they are "out of money"! It is a misconception that the USDA lends money - they don't! Their role in the USDA Rural Housing Loan is to guarantee (insure) the loan against default. That is why the have the 2% funding fee as opposed to monthly mortgage insurance.
Currently, they have used the entire appropriation that was given to them by Congress for FY2009; however, they are still issuing conditional guarantees that … (9 comments)
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rural housing: USDA Rural Housing Income Limit Increase Postponed - 01/14/09 06:39 AM
Even though we had it on good authority (we even had it in writing that unless someone complained it would take place January 20), USDA has postponed the 2-tiered income system, which will allow more buyers to qualify for this program, until March 20. I have heard that the reason for this postponement is that they have already used their FY2009 congressional appropriations in the first quarter, from October 1, 2008 - December 31, 2008 (actually, I believe they were used up as of January 9, 2009).
While they have used all of the current appropriated funds, USDA RURAL HOUSING LOANS … (2 comments)
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rural housing: How Many Homes Can Be Sold With a Start Rate of 3.25% on a Fixed Rate Mortgage that Ends Up at 5.25%?? - 12/27/08 07:44 AM
Imagine this: You, as a Realtor have a house listed for sale and a motivated seller. This seller is willing to pay up to 4% to 6% or higher towards the buyers' closing costs and prepaids. You have a prospective buyer that qualifies for a USDA Rural Housing Loan (the income limits starting January 20, 2009 are much higher than where they currently are). Imagine now that you send your buyer to Northstar Mortgage Group for their financing. They don't have a lot of cash to use towards closing and their credit score is a 580. Imagine that they are told … (2 comments)
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rural housing: With Rates So Low, What Happens If I Lock in a USDA Loan and Don't Get to Closing on Time?? - 12/18/08 08:03 AM
Currently, the investor we use for our USDA Rural Housing loans offers two rate lock extensions up to 60 days each, so that you can actually get 120 days extension. They do charge for this and we have been told that, effective today, December 18, 2008, the price (charge) to extend is going up. This price is charged as a one-time fee and is NOT an increase to your current rate.
Here are the new costs for extending a rate lock in:
1 day extension - No Charge, but can only do 1 free 1-day extension, not 2
7 day extension … (1 comments)
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rural housing: Good Morning, America interviewed me for show on MONDAY, DEC. 15 - 12/13/08 10:18 AM
I was interviewed Thursday for a show that is supposed to air on Monday, December 15 on Good Morning, America. It's about the housing market and how to help people who are behind, as well as what steps could be taken to improve the housing market. I made the following points, but they may edit a lot of it out. I hope you get an opportunity to watch! Thank you to Beth Forbes for part of her ActiveRain post - I made SURE to get that out there, as well!
Until we get housing out of it's "deep depression", the rest … (0 comments)
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rural housing: USDA Rural Housing Program - Buyer Can Get 2/1 Buydown with Start Rate of 3.75%! Less than 4% is HERE!! - 12/10/08 12:13 AM
Based on today's rates, a buyer can get a 30 year fixed rate mortgage on a 2/1 buydown (rate is bought down 2% the first year and 1% the second year) with a rate of 3.75% the first year, 4.75% the second year, and 5.75% years 3 through 30! This gives you a better payment and cash out of pocket at closing than does a VA or an FHA loan!
There is a cost to do this of 2.1% of the loan amount and this can NOT be paid by the buyer - it can be paid by the Seller, the … (0 comments)
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rural housing: Short Sales and their Effect On Getting a USDA Rural Housing Mortgage Loan - 11/12/08 06:40 AM
As a mortgage lender, we are constantly getting updates from Fannie Mae, Freddie Mac, FHA, VA and USDA on guideline changes.
This summer, the "buy and bail" memo was released. This policy dictates the circumstances under which a buyer can convert their current primary home to either a 2nd home or an investment property and how we, as lenders, have to count the payment of the current primary home against them or under what circumstances we can count rental income on the property if they rent it. It makes it tougher to qualify because they fear, and rightfully so in … (1 comments)
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rural housing: If you are a Seller, or a Listing Agent, How about Offering a Rate of 4.75%??? - 10/29/08 10:27 AM
If you are familiar with the 2/1 buydown program, you know that rates are 2% less the first year, 1% less the second year and stabilize at the end rate for years 3 through 30. This is a FIXED RATE mortgage that allows a buyer to have an interest rate of 4.75% the first year, 5.75% the second year, and 6.75% for the remaining life of the loan based on today's rates!
If you have a seller that is anxious to sell their property (and from what we're hearing, there may be a lot of bank auctions on foreclosed properties coming … (1 comments)
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rural housing: 100% USDA Rural Housing Mortgage Program - Funds Are Appropriated! - 10/17/08 01:21 PM
As of today, the funds for Fiscal Year 2009 for the USDA Guaranteed Rural Housing program are available in all 50 states!
USDA Rural Development loans are guaranteed by the buyers paying a 2% funding fee but the appropriation of the funds are done by Congressional appropriation. Each year, the funds "end" on September 30 and it typically takes a couple of weeks to get the final appropriation assigned and approved by Congress, as it did this year.
During the time that the funds are "not available", we can still close USDA Rural Housing loans but we cannot get a … (4 comments)
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rural housing: 100% USDA Rural Housing Loans for Low and Very Low Income Households! - 10/14/08 10:39 PM
Most of my posts are on the USDA Guaranteed Rural Housing Mortgage program. This is a mortgage program that gives 100% financing, including, if necessary, the funding fee, closing costs, and prepaids to enable a buyer to get in a house with absolutely no money down. This program is one in which the client goes to a mortgage lender (such as Northstar Mortgage Group!), a bank or a mortgage broker to get their financing. If a client makes less than a specified amount for a specific purchase area, and the property fits the geographical requirements, we can assist a buyer with … (3 comments)
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rural housing: PROVEN USDA Rural Housing Mortgage Loan Pro!!! - 10/06/08 06:27 PM
My title on ActiveRain says that I am a "USDA Rural Housing Mortgage Loan Pro". I am licensed to do USDA Rural Housing loans in Florida, Alabama, Georgia, North Carolina, South Carolina, and Tennessee.
The media tells you that 100% financing does not exist today for your buyers today. This is not true. Of course 100% financing is available to Veterans but it is also available through the USDA via their Rural Housing program.
If you are going to place your commission check in the hands of a loan officer where your client needs 100% financing, send them to an expert. … (6 comments)
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rural housing: First Time Buyer? Buy a House with NO MONEY DOWN and get the $7,500 Tax Credit for 2008! - 10/01/08 02:01 PM
HR3221, the bill signed into law about a month ago, allows for up to $7,500 in tax credits to be given to first time homebuyers that purchase a home between August 9, 2008 and July 1, 2009. This credit will be deducted from your 2008 tax return. It does have to be paid back but it is paid back over 15 years, which would be $500 a year added to your tax liability for the next 15 years as it is interest-free when repaying it.
If you couple this with a USDA Rural Housing Loan (mortgage), you can get into a property … (1 comments)
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rural housing: First Time Buyer? Buy a House with NO MONEY DOWN and get the $7,500 Tax Credit for 2008! - 10/01/08 01:54 PM
HR3221, the bill signed into law about a month ago, allows for up to $7,500 in tax credits to be given to first time homebuyers that purchase a home between August 9, 2008 and July 1, 2009. This credit will be deducted from your 2008 tax return. It does have to be paid back but it is paid back over 15 years, which would be $500 a year added to your tax liability for the next 15 years as it is interest-free when repaying it.
If you couple this with a USDA Rural Housing Loan (mortgage), you can get into a property … (0 comments)
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rural housing: Maximum Rate Allowed for USDA Rural Housing Loans - 09/16/08 05:28 PM
Maximum Interest Rates for Single Family Housing Guaranteed Loan Program
The Agency and approved participating lenders must adhere to RD Instruction 1980-D, section 1980.320 when calculating the maximum interest rate allowed for Single Family Housing Guaranteed Loan Program (SFHGLP) loans.
Currently, RD Instruction 1980-D, section 1980.320 provides two options for selecting the interest rate. Lenders may select the higher of the two options to establish the maximum allowable rate. Only interest rates at or below this maximum threshold may be locked.
Current Fannie Mae rate as defined in section 1980.302(a) of RD Instruction 1980-D Lender's published VA rate for … (0 comments)
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rural housing: USDA Rural Housing Property and Income Eligibility in Walton County, FL - 09/16/08 10:58 AM
The following map shows those areas in Walton County, FL that are eligible for USDA Rural Housing loans. Basically, the entire county is eligible! Under the map is the income guidelines used to determine if a buyer would qualify for a USDA Rural Housing loan based on the number of people in their family. Please note that there are some deductions from a buyer's income that may help those who are over these guidelines to qualify, ie: medical expenses for disabled family members, a credit for full-time students, a credit for those in the household under 18 years of age, child care … (0 comments)
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rural housing: Okaloosa County, FL USDA Rural Housing Mortgage Eligibility Area and Maximum Income Requirements - 09/16/08 10:45 AM
The following map shows those areas in Okaloosa County, FL that are eligible for USDA Rural Housing loans. Basically, the only areas that aren't eligible are "between the bases" - Ft. Walton Beach, Shalimar, and Mary Esther east of Hurlburt Field. Under the map is the income guidelines used to determine if a buyer would qualify for a USDA Rural Housing loan based on the number of people in their family. Please note that there are some deductions from a buyer's income that may help those who are over these guidelines to qualify, ie: medical expenses for disabled family members, a … (0 comments)
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rural housing: 100% Financing at 5.5% 30 year fixed, no points, no origination fees! - 09/08/08 10:17 AM
With the Federal Government taking conservatorship of FNMA and FHLMC, interest rates were expected to drop. In fact, some financial analysts predict that they will drop to the point where more people purchase and housing prices will RISE! NOW IS THE TIME TO BUY and you need to let all of your clients know!
As an example, today's rate for a Rural Housing loan (100% financing and they can finance closing costs and prepaids into the loan) is at 5.5% (APR 5.643) with no points and no origination fees. Couple this with our September special (We are waiving our administrative fee … (2 comments)
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rural housing: WORKING WITH THE RIGHT MORTGAGE LENDER SAVES YOUR CLIENTS MONEY! - 08/31/08 01:23 PM
In this changing mortgage environment, there are occasions when a Loan Officer will get a call from a Realtor about helping their buyer secure a mortgage on a property they are buying and the Loan Officer is unable to do the deal for any number of reasons: they are not signed up with FHA or USDA Rural Housing, it is a condotel unit and there aren't many condotel investors left, etc.
Recently, I have seen two different scenarios of the above that are NOT IN YOUR CLIENT'S BEST INTEREST: (1) the Loan Officer tries to convince the buyer to get a different loan … (3 comments)
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rural housing: Buying a Home with TRULY NO MONEY DOWN! - 08/31/08 12:29 PM
A Rural Housing loan is actually less costly than an FHA loan or a VA loan, in most cases. It also does NOT require the buyer to be a first time homebuyer. And a Rural Housing loan may allow a buyer to get in with NO MONEY WHATSOEVER - as the seller can pay all of their closing costs, including the escrows and prepaid insurance and taxes or, if the appraisal is sufficient, they can finance those costs the seller is unwilling to pay into their loan amount! For most of our clients, we get their EMD money back for them … (3 comments)
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Sue Botelho-USDA Rural Housing Mortgage Pro
Fort Walton Beach,
FL
More about me…
Waterstone Mortgage Corporation
Address: 2 Park Circle, Suite A, Ft. Walton Beach, FL, 32548
Office Phone: (850) 362-6901 x 2
Cell Phone: (850) 797-7946
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