Dan Magstadt

There have been quite a few rumblings about the USDA program over the last few weeks, and I just got some concrete news – USDA is on track to run out of funds by the end of April. Following is a portion of the letter from them:

This message is to notify you that program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010. Once funding is exhausted, the Agency will not issue Conditional Commitments “subject to receipt of appropriated funds." This is because it is not certain when additional funding will be available.

USDA’s fiscal year ends on September 30^th, and there’s no indication that there will be any interim funds allocated for the program. Previously when USDA had funding shortfalls wholesale lenders would continue to fund loans, being assured that funding was coming – That’s not the case right now because of a 5-6mo gap.

I got an email earlier today stating that Wells Fargo (Probably the largest USDA lender) has ceased accepting USDA loan application effective immediately. We have other lenders that are continuing to fund USDA loans until funds run out, but I’m sure they’re going to be slammed with last minute volume.

I would say that to be guaranteed funds the loan needs to be clear to close with USDA’s sign-off by April 23^rd.

Obviously this is the only program that you can get 100% financing, other than VA – If you have anyone that needs 100% there’s not much time left & they better move quickly!!

Please call me if you are in the market for a home loan. I can get it done!!

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Add as an Associate Subscribe to my Blog LinkedIn Profile

I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housing loans inside & out and would love to answer any questions you might have.

I can be reached at the following:
*Phone: 386-754-8500
*Email: dan@meridianFL.net

I had to post this after the two marathon loans I just got to closing - Enjoy!!

'Twas an hour before closing and the agents were tense,
to close Christmas Eve just didn't make sense.
But the seller was booked on the 6 o'clock flight
and had warned "THERE WILL BE A CLOSING TONIGHT!"
The agents agreed because business was dead,
and visions of commission checks danced in their heads.

The loan was approved by the lender's good grace,
Everyone knew 'twas a borderline case.
The buyers divorced, remarried again,
Divorced once more, and now were just friends.
The loan package complete to the closer was carried,
With instructions to close before they remarried.

The title policy arrived via UPS,
From page One through Sixteen, a terrible MESS!
An improper legal, 3 judgments, a lien,
But a few lines on page seven, looked pretty clean.
The title was cleared and the closing was set,
But to finish today was not a sure bet.

The closer dashed in waving her HUD,
It was covered with whiteout, coffee and crud.
But down in the corner you barely could see,
that the buyer still owed a buck thirty-three.
So the closer extracted a bill from her compact,
And the agents agreed to the rest on the contract.

To add some interest, the seller revealed,
to everyone's horror - the well wasn't sealed.
And, oh yes, he wanted to change the disclosure,
His mother just died of RADON EXPOSURE!
Everything else in his house was O.K.
(his cracked floors and walls were always that way)

About that time the buyer chimed in,
"we'd like to continue, but before we begin,
I noticed these papers - I'm likely to blame,
But I gave my agents the wrong legal name,
And one more thing I had hoped to avoid,
Does it really matter if I'm self-employed?"

About this time the closer exploded.
She pulled out a gun and said it was loaded.
Everyone froze and sat there amazed,
She frothed at the mouth and her eyes were both glazed.

More rapid than eagles, her curses they came;
she bristled and spouted and called them BAD names.
"THE CLOSING IS OFF, DO I MAKE MYSELF CLEAR??
MERRY CHRISTMAS TO ALL - NOW GET OUT OF HERE!"

Probably the biggest question I get these days is "Has the $8,000 tax credit been extended??"

The short answer is NO. There are bills in the Senate right now that are anticipated to be approved in the coming days, but nothing is concrete at this point.

A few points about the proposed extension:

• The tax credit would still be $8,000 for first-time home buyers, but would allow $6,500 for move-up buyers.
• The new tax credits will be available from December 1, 2009 to April 30, 2010.
• The tax credit will end on April 30, 2010, but as long as you have a binding contract by that date, you will still qualify as long as you complete the transaction within 60 days.
• Move-up buyers are eligible, as long as the home they’re leaving has been used as their principal residence for 5 years or more.
• Income limits for both first-time home buyers and move-up buyers would be $125,000 for individuals and $225,000 for married couples.
• The maximum price of the home being purchased is $800,000.
• For purchases made in 2010, taxpayers can claim the tax credit on their 2009 income tax return.
• Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.
• The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty.
• In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011 to claim the home buyer tax credit.
• The amendment also includes anti-fraud language that gives authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 years of age or older (no more 4-year olds filing for the tax credit), as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.

This would be a good bill & would continue to stimulate the housing sector - I hope they pass this soon.

Please call me if you are in the market for a home loan. I can get it done!!

=============================

Add as an Associate Subscribe to my Blog LinkedIn Profile

I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housing loans inside & out and would love to answer any questions you might have.

I can be reached at the following:
*Phone: 386-754-8500
*Email: dan@meridianFL.net

Many people are talking about repealing HVCC...the law stating that mortgage brokers cannot be involved in choosing the appraiser or ordering an appraisal on a conventional loan.

I truly hope they do repeal this, however the real news of the day is that FHA is now following in Fannie & Freddie's footsteps - As of Jan 1 2010 all FHA appraisals are required to be ordered through an independent third party with no loan officer involvement.

A couple notable points:

• FHA is saying that AMC's must pay appraisers normal market rates for their appraisals, which is good for appraisers, however the buyer will end up paying a higher price when the AMC adds in their fee.
• Appraisal reports will only be good for 4 months rather than 6 months.
• The only way another appraisal can be done if there is a value issue is the original report will have to be proven to be flawed in some way.

Many brokers were sending their loans FHA vs conventional because they could still choose the appraiser, so it was inevitable that FHA would also change over - They don't want any additional layers of risk than they already have.

There's never a dull day in this industry!!

Please call me if you are in the market for a home loan. I can get it done!!

=============================

Add as an Associate Subscribe to my Blog LinkedIn Profile

I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housing loans inside & out and would love to answer any questions you might have.

I can be reached at the following:
*Phone: 386-754-8500
*Email: dan@meridianFL.net

Lake City, Florida's top plumber is Plumbing Now!!

I recently needed a plumber to handle a plumbing emergency in the Lake City, FL area, and called Plumbing Now - I was thouroughly impressed with the experience.

The name Plumbing Now describes their service perfectly. Their friendly office manager was a delight to work with & answered all my inital questions while scheduling the service call. They lived up to their name, Plumbing NOW, & sent a plumber out within minutes, not days.

The plumber that came out, Jake was extremely knowledgable, and fixed numerous other issues while he was there. Their prices were extremely reasonable & their professionalism far surpassed any other plumbing company I've dealt with in the past.

I've used other plumbers from Lake City Florida before, and was sorely disapointed - From plumbers not showing up on time, leaving a huge mess, or charging outrageous prices, the plumbing industry has not been at the top of my list of favorite service professionals. I'm very happy I came upon Ken Roche & the team at Plumbing Now.

Ken Roche has been in the plumbing business for 30 years, and the level of experience along with their commitment to their customers shows. They consistently get voted Best of the Best by the local community. Click here for an map of their coverage area.

I was very impressed to find out that all service repairs are warranted for one year - I don't know of another plumber that offers that kind of commitment to quality work. They also offer an unconditional 100% money back satisfaction guarantee. You know a company is commited to customer service when they are willing to say that they will give you your money back if you're not completely satisfied.

They also have a new construction division that handles much of the plumbing for new custom & spec homes built in the Lake City and Gainesville area.

Plumbing Now can also handle the following plumbing issues in the Lake City, FL & surrounding areas:

• Drain Cleaning
• Bio-Clean
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www.callplumbingnow.com

144 SW Waterford Ct.
Lake City, FL 32025

Ken Roche Plumbing Now currently services the following areas:

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• McAlpin
• Providence
• Lake Butler

Please call me if you are in the market for a home loan. I can get it done!!

=============================

Add as an Associate Subscribe to my Blog LinkedIn Profile

I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housing loans inside & out and would love to answer any questions you might have.

I can be reached at the following:
*Phone: 386-754-8500
*Email: dan@meridianFL.net