Danell Merren

Yes, there are two truly zero down programs left- Rural Development (RD) and Veterans Administration (VA), but let's face it- if you don't buy in a rural area and you're not a Veteran, you won't qualify.

With FHA, you can get into a home for 3.5% down, and with some HUD homes you can buy for only $100 down, BUT that does NOT mean you won't need any money into the transaction!

There are at least two times you will need money into the transaction:

• For earnest deposit (in the industry we call this "I'm serious money"). This is typically $500 to $1,000. On a HUD home it's usually going to be $1,000 unless you buy a home for 50K or less. And it's typically nonrefundable. So please be sure you want this home before you put down an earnest deposit.
• For an appraisal deposit- Conventional appraisals are usually around $300 in our area and FHA appraisals are usually around $350.This may be going up soon with additional addendums appraisers will be required to complete. This may also be more if you buy in a rural area and the appraiser has to drive a ways.

And there are likely two more times you will need money:

• For a credit report. Credit reports are quite costly, and it is common to ask for credit report money upfront.
• Inspections- inspections are optional, but most buyers want them. Expect to pay $300 or more. Because they are optional, they are not always on the Good Faith Estimate.

Grand total- $1,700 approximately for most buyers in our area.

What if you are getting a gift? Then be prepared to prove where the money came from! If you want credit for the above monies into the transaction, it is imperative that the gifter be willing to prove they had the money to give, that the money was deposited into your checking account via a check (not cash, money order, etc.), and that the gifter was an allowable source, etc.

The moral of the story- PLEASE be ready to buy with a couple thousand of your own funds no matter if you are looking for the lowest down program available. It will help your transaction go smoother!

Mark's children have worked on a pair of 6-by-9-foot murals since last fall that will be on display in front of the church, 134 N. Division Ave., for the next two months. They will be blessed on Palm Sunday.

The murals are tied to the Heifer Project International, an organization that donates livestock to needy communities across the world. St. Mark's plans to collect donations for the Heifer Project throughout the summer, said Renee Peggs-Monnier, the church's director of Christian formation.

Mural scenes depict warm family moments promoting agricultural awareness and goodwill: a cuddled lamb, a father and daughter hoeing the soil.

"We're doing it to help the people in need," said 9-year-old Megan Anderson.

The artworks will be mounted at the church at Pearl Street NW and N. Division Avenue today and will be visible for the Festival of Arts in June.

"They're just really excited that it's going to be outside for two months and people are going to say, 'St. Mark's kids did that!'" Peggs-Monnier said.

"It's been pretty cool working with the kids," said Ellens, 22, who planned to coat the canvasses with a latex film to protect them from the elements.

The children's work is the culmination of a broader educational unit raising awareness about those who are less of those not as fortunate, Peggs-Monnier said. Students read "Beatrice's Goat," she said, a tale based on a true story of an African girl who wanted to attend school but whose family was too poor to send her. In the story, her family receives a donated goat, and they are able to sell its milk and, thus, fulfill Beatrice's dream.

"Not everyone owns a Wii or can play in a league or go to a really exceptional school," Peggs-Monnier said.

"I want them to know we're called as members of Christ's body to be servants and help people."

I am so proud to see my five year old painting above as well as my husband, Mike, assisting the kids! St. Mark's is truly an amazing place that we love to call home!

One service I offer clients is to help them appeal their taxes post close. I make no guarantees, but I helped so many families this year that next year I think I may contact past customers and offer a seminar!

Why is appealing your taxes worth it?! The process takes seriously less than about 30 minutes. When you get your annual assessment papers in the mail, typically between late January and late February, you will usually see a website for downloading appeal forms. The forms will ask for some basic info. including price, improvements you've made to the home, why you think your taxes are too high, etc. If you win an appeal, you could save hundreds if not thousands of dollars.

Here's a concrete example. I have some friends who bought in July of 2007 for $130,000. Their Taxable Value was about $74,000. Their Assessed Value was $84,000. The City of GR states that the Assessed Value must be approximately 50% of current market value. Based on the City's assumptions, their house would be worth $168,000! Well, it simply isn't. They paid $130K, and any appraiser and underwriter will tell you a home is worth what someone paid. So, their AV should have been around 65K. The next year their taxes, big surprise, jumped up- their TV uncapped and jumped to the 84K. Now their TV and AV were the same at 84K. The following year the City bumped up their AV to 92K. So, in this declining market their home was supposed to be worth a whopping $184,000? They bought at the top of the Michigan market or just when it started to dive.

So, they came in, we filled out the simple forms, my girlfriend drove the forms over to the City, and within two weeks they got a favorable response! Both their Assessed Value and Taxable Value are going down to $67,000, a much more reasonable and fair number. Now their taxes are going down, they're saving about $35 per month, and that makes us all very happy!

As we all know, the past year has been a whirlwind of changes in Conventional and FHA lending. We've seen zero down go away, 3% down go away, and the PMI rules change month after month.

Recent PMI changes have included the following:

RMIC- Minimum of 740 Score, 90% LTV, no second homes

MGIC- Max DTI of 41%, 680 score, 700 for declining markets, and 720 for all of Florida, no second homes

PMI- Minimum score of 680, Max DTI of 41%

With all of these continued dramatic PMI changes, FHA is an excellent option! FHA has lower down payment requirements, and down payment can still be a gift:

• 3.5% down
• Down payment can come from buyer, immediate relative, employer, gift from friend, or grant
• Seller can pay up to 6% in closing costs and pre-paids

FHA is a tried and true product that has changed less than other products in this volatile time. Keep in mind that the best rates come to those with scores of 620 or better!

My church will be hosting Visiting Scholar, Dr. Jack Nelson-Pallmeyer, who will be speaking at St. Mark's on Saturday, March 14^thfrom 9:30 to 11:30 a.m. The title of his speech will be, "It's the end of the world as we know it... but a soft landing is still possible.". Dr. Nelson-Pallmeyer is Associate Professor of Justice and Peace studies at the University of St. Thomas in St. Paul, MN. His books include, Is Religion Killing Us: Violence in the Bible and the Quran; The Politics of Compassion; and Saving Christianity From Empire.

In his words: "The U.S. faces an unprecedented crisis rooted in three interrelated problems. First, the U.S. is an overtly militarized nation and there are no military solutions to most of the country's and world's problems. Second, the U.S. is a declining "empire" and every effort to use military means to shore up power accelerates the pace of U.S. economic decline. Third, climate change threatens. He will explore these related challenges in light of a theological critique of empire, a hopeful future that is possible, the limits and potential of Barak Obama's presidency, and the need for a citizen based social change movement to encourage much needed changes.

This presentation will be free of charge at St. Mark's located at Pearl and Division downtown. Please come if you are interested!