Barry (Lynn) Miller Jr.

Big news over the last couple of days and the number 1 question I am being asked “Is the USDA Rural Development out of funds?” and “Can I close on my Loan?”

Well “YES” and “NO”

“YES” USDA has issued notice and gossip is that purchase funds may

be exhausted on or about October 27^{th 2009}

However if your lender did their job properly, they should have already reserved your funds so your closings should be ok. Going forward might be a different story but at some point they will release funds again and Start funding. What most people don’t understand is that this happens every year. This year is different because more and more people are doing this type of loan.

“NO” They are not out of funds they are just so we say on hold. The solution to this problem is simple, there are a few lenders out there that will continue to process, issue approvals and close on MOST USDA loans while waiting for more funds to become available from USDA.

Basically what happens is said lender will hold your mortgage portfolio in what lenders refer to as a warehouse line of credit and once the funds are released by USDA they then summit the file and in essence sale your mortgage to the USDA. There is some risk to said leader because these files are not insured by USDA at closing, so for those who have marginal credit don’t be discouraged that you can’t get a loan you just might have to wait until USDA has funding before you can proceed to the closing table.

If you have any USDA questions or if you would like the contact information on a lender that can fund your USDA loan then give me a call at 205-338-5555 or send me an e-mail at miller.remax@gmail.com

P.S. A good alternative to an USDA loan is the Alabama step up Program with is only one half of one percent down payment. So if you buy a property for 100K your down payment is $500. I do have a lender that can close that loan before the Nov. 30^th deadline for the $8000 tax Credit.

Sincerely

Barry (Lynn) Miller Jr.

Realtor

I'd like to invite you to join the Financial Fitness 180 family.

Please either go to this link:

http://ff180.com/cgi-bin/aff.cgi?a=133&offercode=biglynn

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That will save you $10 on the already low price of $189.00

In todays market you need the highest score possiable if you have great credit with a 660 score you will still loose money because there is a pricing hit (your rate will be higher) for any mortgage customer with a credit score below 680.

Please visit the website if you have any questions and you may call me at anytime.

Oxford Alabama is still going strong according to CNN money (see information below) The numbers are a little misleading because they are incorporating both Anniston and Oxford and Anniston in my opinion is not as desirable as Oxford is so that being said if you are located in Oxford and wish to buy or sell you should be OK compared to the other cities around the country. Luckily for all of Alabama is varying pretty well considering the shape that the country is in.

If you are selling look for people to try and low ball because of all the bad press that bleeding over from everywhere else and if your buying don't get discouraged if a seller doesn't seem to be willing to give the property away. The forcast for the area according to CNN is slightly lower for 2009 compared to 2008 but all in all we are holding our own.

In other news Rates are looking great I hear you can get as low as 5.5% on purchase and refi FHA loans

If you have any questions about Oxford or surrounding area or if you like general information please feel free to give me a call or visit my website at www.biglynn.com

I will assist you with ever phase of the real estate transaction and I specialize in First Time Home buyers, Investment property and working with investors, Short sales, and I also have a special program for clients who wish to buy REO or Foreclosures

Your local forecast 381 markets tracked

Anniston-Oxford, AL
Forecasted change in home prices: 2008	+2.9%
Forecasted change in home prices: 2009	+2.4%

Source: FiServ Lending Solutions

It may be your budget, or the thrill of doing it all yourself, but you are in the market for a diamond in the rough. But just how rough can a house be before a lender decides not to take the risk on a mortgage?

When you negotiate the contract, make sure that you

include a provision for a home inspection for structural integrity, defects and potential problems. This isn't part of the appraisal, it is a separate detail. A home inspection ascertains the health of the house you are buying. Whether it is a bad roof, leaky plumbing or termite damage, a professional inspector will find all of the major problems. As part of your report, you will receive a list of what needs to be repaired or replaced, the time frame and the potential costs. If you are buying a fixer-upper, you may find that your lender will require an inspection. Some will and some won't. But you should insist on one to protect your best interests. P.S. You will also like to have a financing contingency clause in case your lender decides the property is unacceptable. Ask me about 203k loans which allow for escrowed repairs.

What if you luck out and there are no major problems, just minor ones? Maybe the carpet is worn and needs replacing. Perhaps the deck needs a little work. New paint and fresh air could be all it needs.

Minor, cosmetic concerns are usually not strong enough to scare away lenders, but could lead to negotiations between the buyers and sellers. This is where my experience and negotiating skills really come in handy. (Barry Lynn Miller Jr. RE/MAX Properties Unlimited)

If you want certain things repaired by the seller, such as the mailbox fixed and the deck painted, we have to make sure it is in the contract. If it is, the seller must perform. We may be able to have the appraisal include the repairs spelled out in the contract. This can help you when getting the mortgage, as lenders will only lend on the lesser of the appraisal or purchase price. We just have to make sure that it is all in the contract.

Occasionally, your seller may ask to perform the repairs after closing. Many buyers simply ask for a seller's concession. Instead of installing a $5,000 carpet before closing, the seller agrees to reduce the purchase amount by the $5,000 it will cost the buyer to put in new carpeting.

But if you don't have that $5,000 in hand to buy the carpet, don't expect your lender to give it to you. Even if your contract states that the seller will give you back $5,000 after closing, don't expect it to happen. Cash allowances written into contracts can't happen. The lender will not allow the seller to hand over cash at closing. As your real estate agent I will steer you away from this and help construct a sales contract that will please both the buyer and the seller. (Again a 203k FHA loan might be the ticket) But don't expect to come home with $5,000. It just won't happen Lenders are doing their due diligent to insure that it doesn't and I'm sorry but no funny business on my watch.

Buying a fixer-upper can and will be rewarding. You get to choose how you want to improve the home. But it is a lot of work and definitely not for every buyer or lender. Your best bet is to be completely upfront with your lender about your intentions. This will help the transaction to go smoothly. This process of buying a diamond in the rough works really well with foreclosures and you may sometimes buy them at 80% of the value.

In conclusion

It may be your budget, or the thrill of doing it all yourself, you are in the market for a diamond in the rough. But just how rough can a house be before a lender decides not to take the risk on a mortgage? I do have special financing options for REO and foreclosures that most lenders will not even consider give me a call today if I may be of any assistance.

Sincerely Yours

Barry (Lynn) Miller Jr.

RE/MAX Properties Unlimited