Eleanor Thorne 919-649-5057 Cary Mortgage Loans

We made calls yesterday to Real Estate Offices, and New Construction Subdivisions... and we got "Excuse-itis" everytime we got out of the car! These places were all within 10 square miles of each other - so you would think the "health" of Real Estate in that little area would be relatively the same!

At one stop, the Agents were B-U-S-Y! I mean they were so busy no one has time to learn about using FaceBook to connect with past customers! So busy no one has time to consider joining discussions on the hyper-local forums in thier office! These folks were B-U-S-Y!... and a couple of them admitted they felt they are a little "old" for that type of stuff, "I mean REALLY?"

At another stop, the Realtors didn't have customers who "fooled" with all of that internet stuff. Apparently people in that particular county don't look for information on the Internet (although we get calls from folks daily in THAT area looking for houses, and USDA Home Loans?). These REALTORS don't really need to "Connect" to customer using a computer!... "I mean, isn't that what the phone's for? Just pick up the phone!"

The New Home Builders we went to see were FURIOUS that there wasn't going to be a BOOK for the Parade of Homes! I mean there's going to be over 100,000 MAPS distributed with detailed info, and website info, an ONLINE campaign on STEROIDS - but saddly since there is no plan for a BOOK, they don't think people will be able to find the houses... they don't want to participate!

It all started me thinking about MY attitude! What excuses are holding me back? Too Old, Not enough Education (about whatever subject), Not enough Experience, Bad Hair Day, Car's Dirty, I don't have anything to handout...

Excuse-itis is an EASY Game to Play!

Personally - I think folks are "Sick and Tired of Being Sick and Tired," and I think the best remedy is to STOP making Excuses! Good Habits can be developed! If you envision the life you want to live, you can HAVE IT - if you change your HABITS and stop making excuses!

Barcamp is coming to Raleigh!

Not sure what that is?

go to http://www.rebarcamp.com

Wanna help?

First Planning Meeting

July 28, 2009

2:00pm to 3:00pm

Cary's Barnes and Noble (directions here)

Goals for this first planning meeting include: We expect to determine exactly when the "unconference" will be held,although we are concentrating on the First Friday in November. We also will decide who is going to "tie" down the location, work on sponsors, set up website, manage the PR and Twitter, round up "Thought Leaders," create a contact system for the planners, establish meeting times and distribute information about the event that can be taken to local offices.

WE WANT A LARGE GROUP OF PLANNERS... this is a departure from other Barcamps that had as few as 4 to 5 people doing the planning with a host of volunteers on the day of the event. Our HOPE is that by including many people, we will grow a grassroots interest in the event. Our Goal is 300 people in attendance.

There is a high level conversation as to wheather the name of the event should change. If you would like to get more information about that conversation, please click here.

If you have questions about this event - especially the PLANNING STAGES, please contact Eleanor Thorne at 919-649-5057, or Pamela St. Peter at 919-645-2522.

Are you a First Time Homebuyer, dreaming of the day when you can sit among your boxes, in your new home?

HUNDREDS of first time homebuyers in Cary, Apex, Holly Springs are doing just that, and taking advantage of the now "famous" $8000 Tax Credit made available from President Obama and Company!

These same people are purchasing wonderful $300,000 plus priced homes using FHA Financing!

Lots of people are hoping to use the $8000 Tax Credit as a Down Payment, and in May, FHA announced that they would allow this. The "advances" are being provided (for a fee I'm sure) through State Housing Agencies.

The North Carolina Housing Finance Agency, however, is NOT advancing the $8000 tax credit to buyers for their 3.5% downpayment. (If you think about it, this makes sense... as a State, we don't have enough money to send tax refunds out in a timely manner, much less advance $8000 for a downpayment!)

Here are some other ways you CAN obtain the 3.5% downpayment for FHA loans

• Save it! if you have enough money in your IRA account, you might be able to borrow against the account (check with your employer) for your home purchase!
• Gift: You can get a gift of the entire amount from family and friends, you can even use a BRIDAL REGISTRY to show who gave you the individual amounts!
• Grant from your Employer: there are some pretty specific guidelines about this - but many businesses, and municipalities offer these programs!
• Sale of an Asset: would you rather have a Bass Boat or a house? For some guys, it comes down to this!! (If you are thinking of this, please call us for details of how to document it!)

As you might know, you do NOT have to be a First Time Homebuyer to use FHA financing... but if you want to take advantage of the $8000 tax credit, you need to be either a First Time Home Buyer, or you must not have owned a home in the last 3 years.

FHA does NOT have a maximum income requirement (like USDA), they do NOT have a geographical footprint (meaning you can only purchase some addresses, they only cap the maximum loan in each county)... Unlike VA loans, FHA does not require that the borrowers are married!!

If you have questions about purchasing a home in Cary, Apex or Holly Springs using a FHA mortgage, please call Steve and Eleanor Thorne, First Financial Services, 919-851-3031

USDA is quickly becoming one of the Country's most popular mortgage loan programs, and with that, the USDA Rural Development Offices are getting backlogged!

USDA Home Loans are 100% (plus) mortgages - for more information about the program click here.

Because of this increase in volume, there have been several recent AN (Adminsitrative Announcements) from them regarding documentation types, and clarification of guidelines.

• Gift funds are allowed with USDA Home Loans, however gift funds are not considered as cash reserves, or as a compensating factor.
• Gift Funds may be used for closings costs, voluntary downpayment, and to cover the guarantee fees, however (again) they will not be considered as cash reserves for a compensating factor waiver.
• USDA only allows us to count 60% of the Vested Amount in an IRA, Keogh or 401K account (normally we count 70-75%) for reserves - we do need the MOST recent statement on the account.
• CASH ON HAND can be considered, however the Lender must know how the cash was accumulated, and over what period of time. Our experience is that CASH ON HAND is very difficult to use in a mortgage transaction... but for the right borrower, we do have this option.

HERE'S A BIG CHANGE, effective May 28, 2009 (good through end of May 2010)

IN GROUND SWIMMING POOLS ARE PERMITTED WITH THE USDA Single Family Housing Guaranteed Loan Program... "as long as loan funds are not used to finance the contributory value of the swimming pool. "

The Announcement further clarifies that, "Typically, a swimming pool has value and adjustments are made for comparable salesthat do not have swimming pools. It is possible that a swimming pool does not have a contributory value. The appraiser should address such in their appraisal report. An appraiser must not indicate that a swimming pool has no value simply because "this is a Rural Development guaranteed loan." Under USPAP, the appraiser should address the swimming pool under local market conditions. For example, if the swimming pool has a torn lining, and is not usable, the appraiser may conclude that it has no contributory value."

For More Information on recent Appraisal Changes and USDA Mortgages, click here!

If you have questions about USDA home loans, please call Steve and Eleanor Thorne,Professional Mortgage Originators, 919-649-5058

Risk Based Pricing is a term now used by mortgage lenders to refer to how mortgage loans are Priced.

A mortgage with a higher risk to the bank has a higher price, or interest rate. A loan with a lower risk of default for the back, has a better price / rate.

There are several factors that currently make up the "risk" matrix. Here are a few of the items that might affect the rate:

• Borrower Credit Score and Capacity to make payments (Debt to Income Ratio/ DTI)
• Property Condition and Location
• Documentation Type (did you provide income documentation and asset statements / or did you just "state" your income and assets?)
• Mortgage Insurance
• Amount of DownPayment (or LTV / Loan To Value Ratio)
• Loan Type (Fixed or ARM) and Loan Purpose (is it a purchase or cash out refinance?)

USDA has fairly tight regulations on minimum credit scores, credit history and DTIs. USDA Mortgages are also regulated by location and they impose minimum standards for property condition. All USDA Mortgages must be full document loans, so proof of income and assets are requried. USDA Home Loans also have a "funding fee" that covers part of the expense if the loan defaults (so it works as a form of PMI, or mortgage insurance)

USDA Home loans are 100% mortgages! There's no downpayment requirement. Even though it is a pretty conservatively underwritten loan, the fact that the homeowner does not have to make a downpayment makes this a slightly riskier loan for the bank. Because of this... USDA mortgages have a SLIGHTLY higher cost associated with them... for instance, if today's FHA mortgage "price" / rate was 5.5% - then a USDA Mortgage Loan would likely be 5.75%. STILL a REALLY good rate - just slightly above the FHA rates.

If you are interested in learning more about USDA Mortgage Loans in the Wake, Johnston and Durham County click here.

For more information on how to qualify for a USDA Home Loan in NC, click here.

If you have questions about qualifying for a USDA mortgage, given your credit scores, please click here. Note, USDA does not have minimum score requirements, however, most BANKS require at least a 620 score. We do have sources for USDA loans with lower scores, however, because of the additional RISK, the rates are higher.

Are you a First Time Homebuyer! Get more information about your $8000 Check!