Nathan's Mortgage Blog

Get up to $20,000 in funds for your buyer

Nathan Duce (Homestar Financial Corporation) — Tue, 27 Apr 2010 03:16:24 -0700

Hello Atlanta Agents, Get $10K, $15K or $20 for your customer to buy a foreclosure home in Paulding County. The NSP grant acts as a silent second that is forgiven in full after the buyer has been in the home for 5-10 years, depending on how much they receive in Grant money. Max purchase price is $145K for Paulding county. No short sales. Must already be foreclosed. Call or email me today for more information. This is a great way to replace the 1st time homebuyer from Uncle if you don't get your client under contract by April 30th

RD Funding Passes the House Financial Services Comitee!!! GReat News - Contact your senator

Nathan Duce (Homestar Financial Corporation) — Thu, 22 Apr 2010 07:31:22 -0700

Washington, DC - Today, the House Financial Services Committee unanimously passed H.R. 5017, the Rural Housing Preservation and Stabilization Act of 2010, introduced by Congressman Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. This action clears the bill for consideration by the U.S. House of Representatives, which is expected to take up the bill as early as next week. The bill ensures the continued access of rural homebuyers to affordable mortgages through the U.S. Department of Agriculture's (USDA) loan guarantee program. The financial crisis has spiked consumer interest in the program, tripling the number of loans annually made since 2006. Because demand continues to grow, the program will exhaust its federal funding within days. H.R. 5017 would, at no cost to the taxpayers, solve this problem by making the program self funded, enabling families living in rural communities to continue to access these much needed loan guarantees. "Since its creation in 1987, USDA's affordable rural home loan guarantee program has helped hundreds of thousands of families to realize the American dream of homeownership, including many in Northeastern Pennsylvania," said Chairman Kanjorski. "As a result of the unprecedented demand, the program is now unfortunately running out of money. At no cost to taxpayers, my bill will preserve the access of millions of families living in America's heartland to needed USDA loan guarantees, so that they can continue to buy homes with affordable mortgages. Without action, too many families in rural America will have no options for getting home loans. We cannot allow that to happen." "As a result of this program, I was able to purchase my first home which I have wanted all my life," said Virgie Spruiell from Bushkill, Pennsylvania. "I enjoy it every day and it is a blessing. I greatly appreciate Chairman Kanjorski's efforts to enable the program to continue so that other people can access these guaranteed home loans just as I did. It has had helped me tremendously." Chairman Kanjorski's legislation will correct the Section 502 Single Family Housing Guaranteed Loan Program funding shortfall by enabling the program to pay for itself, rather than relying on federal funding. In order to pay for the program, lenders will pay up to a 4 percent fee on new home mortgages. As a result of these changes, financing of the program will move from a combination of government funding and industry fees to a self-sustaining initiative. The USDA's Rural Housing Service manages the Section 502 program, which provides a vital source of mortgage credit for people living in rural communities. Low- and moderate-income individuals and families in rural communities often have fewer mortgage credit options than those households in urban areas. The program aims to fill that void and lower the costs of homeownership by giving rural areas access to a home loan guarantee program. These guarantees decrease the exposure of home lenders to defaults so that they will underwrite more mortgages. In 2009, loans made under the program averaged $112,000. To qualify for the program, borrowers must have good credit and reliable incomes to sustain homeownership.

RD Funds are running low

Nathan Duce (Homestar Financial Corporation) — Mon, 12 Apr 2010 04:45:41 -0700

Chase is reporting that there is just over 2.2 Billion left for RD funding Nationwide. If you have buyers looking for homes in the RD areas, the time to get the homes under contract is now. We as an industry have been taking in about $300 Million per week, so there is only about 7 weeks left to get your deal funded. If you are looking for RD Funding in Georgia, Alabama, or Florida, send me an email, let's get your deal closed before the clock runs out. New funds for this program will not be re-allocated until October 2010.

RD Lending Update

Nathan Duce (Homestar Financial Corporation) — Thu, 08 Apr 2010 05:37:26 -0700

There are many lenders who have stopped taking loan applications for the Rural Development loan due to the limited funds left for the 2010 Fiscal Year. There are currently $2.645 Billion in available funds for the program. However time is running out! Funds should be exhausted in the next 4-5 weeks Homestar is STILL taking applications and closing using this great loan program and we will continue to until funds are exhausted. If you know someone who is looking for a 100% loan in Georgia, Alabama , or Florida have them contact me to secure funds for this great program today.

RD Lending Update

Nathan Duce (Homestar Financial Corporation) — Thu, 08 Apr 2010 05:37:17 -0700

There are many lenders who have stopped taking loan application for the Rural Development loan due to the limited funds left for the 2010 Fiscal Year. There are currently $2.645,602,294 in avaiable funds for the program. However time is running out! Funds should be exhausted in the next 4-5 weeks Homestar is STILL taking applications and closing using this great loan program and we will continue to until funds are exhausted. If you know someone who is looking for a 100% loan in Georgia, Alabama , or Florida have them contact me to secure funds for this great program today.

NSP Grant Money available now - NW Georgia Counties

Nathan Duce (Homestar Financial Corporation) — Thu, 18 Mar 2010 06:53:10 -0700

Funds have recently become avaiable to provide grants to homebuyers through NSP funds for these Georgia Counties: Bartow Catoosa Chattoga Dade Floyd Gordon Haralson Paulding Polk Walker This is a great program that can be used with any 30 yr fixed rate loan program. Eligibility is based on total household income and is available within specific areas of these counties where it has been determined there is the greatest need. Money available is either $10,000 $15,000 or $20,000 The amount you qualify for is based on median income limits for the county. The funds are FREE - i.e. there will be a soft second held against the home and evey year a portion is forgiven, so no repayment required unless you sell or move out early. Grant funds can be used towards closing costs or downpayment on the home, and in some cases, repairs up to $4500 Email or call me for details on this exciting new program.

HUD HOMES with FHA financing take a STEP BACKWARDS!!!

Nathan Duce (Homestar Financial Corporation) — Tue, 09 Mar 2010 08:23:43 -0800

Hello Fellow Realtors, This is a HUGE set back and I am interested to see how PEMCO is going to reward bids on HUD houses with this news. Mortgage E letter March 8, 2010 You can no longer order a 2nd Appraisal on a FHA HUD REO if the appraisal is still valid (180 days) UNTIL APRIL 1ST 2010 AND THEN DROPS TO 120 DAYS THIS IS EFFECTIVE IMMEDIATELY BY HUD If You have a FHA loan on a HUD home currently in the pipeline the PEMCO Appraisal will be the appraisal used for Value. If it is still valid as per above rule changes. What does this mean to you ? Well in a nutshell: If your buyer bids more than the appraised value posted on the HUD listing, then they will have to pay the difference between the appraised value and the sales price unless the appraisal is 4 months or older. Example - Sales Price $100,000 Appraised PEMCO value $95,000 Max loan amount on a $100 HUD with FHA financing $94,900 Your buyer would have to bring $5100 to get their deal closed. The problem here is that as PEMCO does not release the full appraisal until AFTER the bid has been awarded, there is no way to know if there is an option to get a second appraisal ( in the case you get lucky and it is out of date) or not. I hope this helps you and your buyers. Remember call or email me for loan scenarios and pre-approvals.

Legislators Urge buyers to take advantage of Tax Credit

Nathan Duce (Homestar Financial Corporation) — Thu, 14 Jan 2010 00:52:28 -0800

This is a great article from the Douglas County Sentinel. Senator Johnny Isakson addressed the West Georgia Board of Realtors yesterday and had this to say about the tax credit extension: U.S. Sen. Johnny Isakson Wednesday urged Georgians to take advantage of the $8,000 first-time home buyers tax credit before the April 30 deadline."There will not be another extension of the homebuyers credit," Isakson told a noon meeting of the West Georgia Board of Realtors (WGBR). "Now is the time, the iron is hot and you've heard it from the horse's mouth," he quipped.Isakson said home owners moving up to a higher price home can get a $6,500 tax credit.Both these credits end in April and closing on the home must be by June 30, he added.Isakson, who worked as a Realtor for 33 years, drew a round of heavy applause from the crowd when he said, "The best way to bring back a better economy is to bring back the housing market."He called the current housing crisis "the most difficult I've seen."The senator praised Ed Carlton, who is retiring at the WGBR executive director, as "one of the foremost leaders in real estate." He said Carlton helped start 90-95 percent financing to assist people in buying homes, offering "good loans to good people."Isakson said he feels the banking system has taken undue criticism for the current problems. He said the problem came from Wall Street bankers who granted too many sub-prime loans."Down payment assistance was a good thing that got out of hand," he said. "We have to raise the scale of accountability. We have to make sure the investment banking industry has transparency."After commenting on the housing situation, Isakson turned his attention to the recently passed healthcare legislation. He said it was passed after the second longest debate ever held in the senate and only the second time in history that legislation was voted on Christmas Eve, the last time being in 1895.He called the healthcare legislation a "very dangerous" trend since it puts control with the federal government rather than private industry."We have problems but we shouldn't destroy the system we have," he said. He said the current healthcare system covers about 86 percent of Americans and we need to "find a creative way to cover the 14 percent not insured."Isakson said real estate agents are independent contractors, thus it is illegal for their companies to provide insurance or any collective benefits for them. He said when they try to buy individual policies, they face a cost of from $14,000 to $18,000 per year, which is unaffordable. He said all small businesses face such a problem. He called on the elimination of bans for insurance companies crossing state lines to compete.Isakson said about one-third of the uninsured are people who are eligible for Medicare, Medicaid or children's programs, but they're not enrolled. He called for a system where people eligible for these benefits to be automatically enrolled.He said he believes the healthcare legislation will be ruled unconstitutional by the courts because of the exception given to the state of Nebraska on Medicaid costs. (Home buyers urged to use tax credit before it expires by Winston Jones/Douglas County Sentine)l

100% combo loans are back !!

Nathan Duce (Homestar Financial Corporation) — Tue, 14 Oct 2008 04:44:16 -0700

Finally we have some relief for those potential home buyers out there with good credit. Just got this program today - I have a lender with whom we can now do 95/5 combo loans for 100% financing. Buyer needs to have a 620 credit score. It is for a select type of home buyer, and could be very useful for someone needing help who does not want to put money down on their home purchase. Here are the basic requirements... Must have "approve eligible" through Fannie's AU system, and have no prior bankruptcy, tax liens, judgments, short sales, repossession, garnishments, etc. While this may eliminate a lot of folks, remember - the lender is looking for those who can demonstrate a strong probability of on time payment performance. They basically need a clean credit history. Max DTI is 45% Reserve Requirement: only one month PITI from borrower's funds 3% Max seller concessions/contributions It is for the Purchase only of a primary 1-2 unit residence, townhouses are allowed, but no condos. ( Borrower can not own any other properties at time of closing). This is another great tool we have at our disposal to help everyone close more deals. We can lend in Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. Feel free to contact me for more details.

UPDATED NEWS FOR DOWN PAYMENT ASSISTANCE!!

Nathan Duce (Homestar Financial Corporation) — Tue, 16 Sep 2008 08:49:51 -0700

For Immediate Release: September 16, 2008

CONTACT: Henry Fawell(410) 545-5830

H.R. 6694 is approved by key Congressional Committee Bipartisan legislation would reauthorize downpayment assistance GAITHERSBURG, MD - Ann Ashburn, President of AmeriDream, issued the following statement today after the House Financial Services Committee adopted H.R. 6694, legislation designed to reauthorize and reform downpayment assistance programs that the Bush Administration banned in July. "Today's committee vote was a positive step toward preserving downpayment assistance, but our work is far from over," said Ashburn. "Now more than ever, members of Congress need to know that Americans are watching their vote on H.R. 6694. I encourage members of the public to tell their representatives in the House and the U.S. Senate that a vote for H.R. 6694 is a vote for the next generation of homeowners." H.R. 6694 would reinstate FHA seller downpayment assistance for persons with certain credit scores. Learn more about H.R. 6694 by visiting www.supporthomeownership.com.

Downpayment Assistance is on the comeback!

Nathan Duce (Homestar Financial Corporation) — Wed, 10 Sep 2008 03:46:12 -0700

Great news from Nehemiah this morning! Chairman Frank and HUD Secretary Preston Negotiate DPA Agreement Chairman of the House Financial Services Committee, Barney Frank, has discussed publicly the fact that he has negotiated an agreement with HUD Secretary Steve Preston that will provide for the continuation of privately funded downpayment assistance. The agreement allows HUD to impose risk-based pricing on downpayment assistance transactions which provides Secretary Preston the fiscal protection he seeks for the FHA insurance fund. According to an Inman News article published today, Chairman Frank is quoted as saying "The FHA loved the ban on down-payment assistance (but) hated the ban on risk-based pricing," Frank said at Saturday's hearing. "That seemed to me to offer an opportunity. So (HR 6694) will replace both bans with middle ground -- and it will pass the House, I can guarantee you. What you want to do now obviously is talk to your senators. We think it will go through there -- it has the approval now of the Secretary of HUD." Thanks to the advocates of downpayment assistance, there is significant momentum in this direction. Nehemiah urges all supporters to continue their campaign to save DPA by contacting their Senators and request a swift passage of pro-DPA legislation.

Newbie Blogger wins client - Success already!

Nathan Duce (Homestar Financial Corporation) — Wed, 27 Aug 2008 02:31:06 -0700

So as probably very few of you know, I am new to the world of blogging and am still learning the ins and outs of what makes a succesful marketable blog. I have to say that I feel very fortunate today. I had posted a blog about a new grant program to help first time home buyers recently ...(Get a grant for your first time homebuyer !!! Up to $10K towards the purchase of your first home.) I had an email from a potential client a few days later in a marketing area I would have never accessed with out the internet's help. Active Rain Works!!! My new client turned out to be a perfect fit for the grant and they just put a house under contract and we'll be closing in a few weeks. Thanks to all of you who post such helpful information to help the new guys be more succesful.

Get a grant for your first time homebuyer !!! Up to $10K towards the purchase of your first home.

Nathan Duce (Homestar Financial Corporation) — Tue, 05 Aug 2008 07:27:38 -0700

So I've been looking for financing options to help out home buyers get that 1st home.(First time buyer being anyone who has not owned a home in the last three years) Sure there are a few remaining places you can get a 100% loan these days, Rural Development, VA...some niche products within the community bank markets...but for the majority of folks these days, FHA was one of the last places to get that house without having to put alot of money down. However , if you are in the industry you probably already know that the bill has been signed to eliminate DPA on these FHA loans for good come October 1st. And you may also know that a few smart senators already submitted a bill to change that...but the point is until things progress...no one really knows if DPA will survive or not. Which brings me back to my point for this blog. GRANTS!!! Free money, available to help someone buy a house and meet that 3% downpayment requirement. You can currently get a grant that does not have any stipulations on profession or location of the house you want to buy. This is HUGE...because that has always been the issue with grant money...the stipulations that come with it. This grant does have a few conditions. The bank providing this grant requires the home to be located in Florida, Georgia, North/South Carolina or Alabama. They provide a grant at a 5:1 ratio...i.e for every dollar the homeowner can fork out for a downpayment, they will match 5 in return...up to $2000 from the buyer...which would get $10,000 in grant money. Your household income needs to meet area requirments...so that means you cannot make more than as listed below per household: 1 person = $39,840 2 person = $45,550 3 person = $51,250 4 person = $56,950 5 person = $61,500 6 person = $66,050 7 person = $70,650 8 person = $75,200 The Bank providing this grant will hold a second lien on the home, will require no payments on that lien, and will release it after the homeower has been in their home for 5 years. The first loan needs to meet normal FHA guidelines. There are a few other details of this program, but those are the basics. Read up on it, learn about it, and use this option to help buy your first home, sell one to a buyer, or finance a client.

So how does this first time home buyer tax credit work ? Read this for more info...

Nathan Duce (Homestar Financial Corporation) — Mon, 04 Aug 2008 03:01:45 -0700

This is a bit lengthy, but worthwhile reading... Frequently Asked QuestionsAbout the First-Time Home Buyer Tax Credit 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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). 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. 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. 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. 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. 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. 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. 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. 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. 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.

Where in the world can I get 100% financing?

Nathan Duce (Homestar Financial Corporation) — Wed, 30 Jul 2008 08:39:23 -0700

This question seems to be on everyone's minds these days. Fortunately down payment assistance is still in our playbook for mortgage financing for now, which is usually the way most deals are done these days with the FHA program.VA also is a good way to go...but only if you have military service in your history. HOWEVER, that is not what I wanted to blog about today. While Fannie and Freddie and all the big banks are getting the press these days, an underused program is still going strong and is a great solution for many people looking to buy affordable housing on the outskirts of metro areas. I am talking about the USDA Rural Development loan. They have a very helpful website that can quickly let you know if your home is in an approved area. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1 Qualifying for this loan is a breeze. There are income limits , which are based off of family household income, but take for example, a family of four earning $81,840 annually in Metro Atlanta could buy a home in the mid $200's - so two key components...area and income. Find a match and you'll get a loan that no other loan program can touch. The RD loan is a 100% deal...repairs and closing costs can even be 'rolled in' to the loan, so long as the appraised value will support it. Also, no monthly mortgage insurance, just a one time fee rolled into the loan at closing. It is way under utlilized and a great program to help sell a home.

New to the Active Rain Network

Nathan Duce (Homestar Financial Corporation) — Mon, 21 Jul 2008 08:18:47 -0700

Hello Everyone, So I am new to the active rain network and am looking forward to meeting you all and sharing some of the things I have found to become succesful with the rest of you as well as pick up on some tips to help me become more successful as well. Happy blogging!!!