Mortgage Discussion for the Panhandle area

Without speaking in the negative we can all admit our nation has an abundance of foreclosures and properties that need some repairs. It is often difficult to get these seemingly good homes financed due to the repairs. Again agents and mortgage professionals alike forget that FHA has an answer to moving these properties on the market. A product called the FHA 203K Streamline is a FHA loan where up to $35,000.00 can be put into escrow for the repairs at closing. This is a huge advantage to the homeowner as they often buy the house below market value and still have the funds for the refurbishment. We use the after completion value on the appraisal and the rest of the loan looks and feels just like a standard FHA loan. This means only 3% required for down payment and the normal loose credit standards FHA allows. The Streamline has eligible repairs such as roofs, HVAC, plumbing, electrical, appliances, decks, windows, doors and septic as well as others. The 203K streamline does also limit repairs not allowing major remodeling, new room additions, landscaping, or work requiring longer than 6 months to complete. If you have any questions about what is allowed please feel free to call my office.

I believe this product added to your sales plan may open more doors to closed sales and happy clients. Any client we close in today's market with standing equity will be very happy to watch that equity grow in the near future.

Now to move on to some not so good news. As many of you are aware the President signed the housing bill in an effort to stabilize the housing market. Much of the bill in my opinion is media spin and false mirrors. Yes there are some good aspects to the bill but there are some worries as well. The first area of concern is the elimination of Down Payment Assistance programs such as Ameridream and Nehemiah from financing. This assistance is scheduled to go away October 1, 2008. This would mean to buy a house a customer would need cold hard cash. That can be a problem in a struggling economy. There is a hope though and I ask you to decide. House Bill 6694 has been introduced and that bill would keep Down Payment Assistance alive but only with the support of the American People. I ask you to think of any client you have helped get into a home and remember if they used any type of this assistance. FHA purchases use this type of assistance for about 40% of first time home owners so the numbers are huge. Please make your own decision and if in support please call or write your elected officials. You may also visit http://capwiz.com/nehemia/issues/?style=D to get more information and learn more than I can write here.

As always please call me with any specific questions and remember we also finance homes. We can close your FHA or Rural Development loans and have no minimum credit score requirements.

Joe