Farmers Home Administration, In It's Hay Day Hard To Beat.

By
Real Estate Agent with MOOERS REALTY ME Broker License 106759

When you live, work and play in a small rural area of Maine, the Farmer's Home Administration became a pretty handy device.

For financing homes to buy with just a dollar down. Back in the late 1970's, 1980's the pet peeve of FmHA was insulation. Thermal standards when other lenders were not so up in arms, cranked about the number of insulation inches in your attic. Or the R-value of your cellar walls that FmHA wanted "banked" from the inside.small maine town living parade photo

The thinking being, a warm family in a Maine home is a happy one.

The less money siphoned off from the household budget the better.

When talking about the cost to heat the sticks and bricks of a Maine home.

Money to make the house payment, to go to the movies, pay for kid's braces.

And other luxuries like oh, I don't know. Groceries, property upkeep, insurances bills and maybe a little left over for the vacation / retirement fund.

We've blogged before about FmHA on Active Rain.

I remember the thrill. Of the days where three foreclosed properties from the FmHA inventory of repossessions would hit the market all at once. And it was a real estate race to secure the signed paperwork from buyers before Sundown. Quite a rush to sell all the bunch.houlton maine photo

To sell all three properties in one day.

Houses were cheap because of over 1400 square feet of living space and the attitude of dump them.

Kick these dinosaur too big smashers out of the program.

Replacing them with one floor ranch style homes that were more economical to heat, maintain.

And worked for the buyers in the crowd that were not fans, could no negotiate Maine home stairways so well.

But also offer financing on the already low prices of the foreclosures was the cherry on top.

Just 10% down and in the early 1980's an attractive fixed rate of 12 percent interest.

In a time of 16% plus adjustable rate interest rates to eenie meeney miney moe from local mortgage lenders in Maine.

The regular FmHA loans were made with that all important step right up, lay your dollar down.

And depending on your family size, the county in Maine where the property was being financed, up to a certain income bracket applied during application approval. Each of the sixteen counties had different threshold limits for price and family income.maine broker andrew mooers, realtor photo

Funding was like the tides coming in and going out off the Maine coast too.

FmHA would have lots of low income funds but sorry Charlie. Nothing in the cupboard for the moderate or upper income.

Delays, Congress holding up the home buyer or freezing the lending with moratoriums happened all the time. To vise grip clamp down, kink the funding hose to move the process on to the home buying closing finale. So plans for the house warming party could kick into gear to celebrate climbing out of the rent rut. Moving into the ranks of a home owner from the house sale, to becoming a property taxpayer.

The setbacks, road blocks just part of the navigating a property sale in Maine.

And the real estate agent or broker in Maine just worked harder, smarter. Dug in, became the little red hen.  Around the glitches to get the house keys into the hands of a new home buyer within the guidelines available at the time of a property sale.

I'm Maine REALTOR Andrew Mooers, ME Broker

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Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Andrew.  The problem back then was the oncoming of Oct. 1st and no money to fund mortgages from August on.

Jan 16, 2015 07:39 PM #1
Rainmaker
2,919,337
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

My how times have changed.  I wonder what the next 10 years will bring.  

Jan 16, 2015 07:52 PM #2
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

And, I hear people saying they are going to wait for rates to go down further.  They just don't realize what an incredible rate they can get today.

Jan 16, 2015 08:00 PM #3
Rainmaker
3,817,671
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Andy,

You are the Maine Realtor of choice. Times really have changed..like Gabe Sanders I hear consumers say they are waiting for rates to go down..they have no idea what an n incredible rate they can receive right now!

Jan 16, 2015 08:25 PM #4
Rainmaker
5,000,526
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Andrew Mooers Farmers Home Loan is a great program for those who qualify and for the homes that qualify.... it must have been a happy day for the three who bought those properties....

Jan 16, 2015 10:19 PM #5
Rainmaker
1,946,047
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

My first home interest rate was a 12.25% fixed and felt like King Midas. Because the rest of the rates offered were 16.5% adjustable. So when someone whines about how high rates are, ah, not really. It is all relative and your perspective. Higher cost of money, lower price tags hanging off property listings to make it all float and level.

Jan 17, 2015 12:34 AM #6
Ambassador
1,769,790
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Really nice words on the Farmers Home Administration, I learned quite a bit here. I hope this program can help some people get their Maine dream.

Jan 17, 2015 11:14 PM #7
Ambassador
1,854,076
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Rates are phenomenal and it's a perfect time to become a home owner. I too hope the program opens more doors for families in Maine. 

Jan 18, 2015 02:32 AM #8
Rainmaker
5,388,809
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

It is the time for home buying decisions while the interest rates are very low.

Jan 18, 2015 04:49 AM #9
Rainmaker
1,946,047
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Sure is Roy!

Jan 18, 2015 06:39 AM #10
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Rainmaker
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Andrew Mooers | 207.532.6573

Northern Maine Real Estate-Aroostook County Broker
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