Gerry Suarez Jr- Your FHA Loan Pro!

It's been confirmed! The income limits in Lake County (and the entire Orlando area) for USDA Guaranteed Rural Development loans will go up to $70,750 for households from 1-4 persons and $92,400 for households from 5-8 persons. No false start anymore folks. We can start taking and processing applications immediately but cannot submit them to the USDA until 04/20.

Folks don't take this lightly. I did my preliminary research on this change when it was first announced and discovered EVERY FHA deal I had done would have qualified for RD. Why is this a big deal? RD has no monthly private mortgage insurance and can save our customers an average of $50-$80 per month.

Please communicate this to any buyers you had going FHA. In some cases it can mean the difference between qualifying or not, and of course feel free to call with any questions!

Gerry Suarez, Jr.

Your FHA Loan Pro!

After a rough January the real estate market in Lake County found some footing in February. A number of very positive stats stick out:

•· The average sales price jumped over $10k from the previous month. Thirteen single family homes over $300k sold compared to just 6 in January.

•· Although a total of 55.2% of the homes sold were under $140k, the bulk of them were priced between $100-$140k.

•· With the exception of last December, we now have less inventory than any time since April of 2007.

Yes we still have over 5000 homes which represents an over 2 year supply at the current rate of sales, and we also have the specter of more foreclosures looming in the future; but we also have a new first time buyers tax credit and continued low interest rates. Most in the industry will agree that foreclosures and short sales have become the bulk of what's selling but multiple offers are becoming a regular occurrence on properly priced properties (say that as fast as you can 3 times!).

The uncertainty that gripped the real estate market in February has been greatly alleviated with the passing of the economic recovery act. With the new $8000 true tax credit (no folks, you don't have to pay it back any more!) and adequate appropriations for the USDA Rural Development loan program we have all seen a marked increase in inquiries for March so far. Buyers are enjoying this buyer's market, but fast realizing any seller with a good deal can't be toyed with- many of the best deals are selling within the first week.

Employment, or the lack of, will play a huge role in determining if this is the beginning of the bottom or not. If the ranks of the unemployed cease to swell, I'd say we may be looking back and realizing this was the beginning of the bottom. Do I predict prices will start to climb from here? Heck no- but are we starting to see more balance in supply and demand? I think we are.

First time buyers especially should ask themselves- how much more do you feel prices may drop? Remember the tax credit represents 7.5% of a $120k purchase so if you answered less than 10%, you are taking a chance that mortgage rates won't increase by not buying now. Also many mortgage programs are still tightening their guidelines. Don't assume if you can qualify for a loan today that you will be able to tomorrow! Mortgage financing in Lake County, FL is still available with zero down by using the USDA and VA loans, and with 3.5% down with FHA. A reasonable tax refund can easily put you into a home today and by filing an amended return you could collect your tax credit money shortly after you buy (speak to your tax advisor for confirmation and details).

Gerry Suarez, Jr.

Your FHA Loan Pro!

Pursuant to my sources at the USDA it will be taking about another two weeks for the funding allocated by the recent economic stimulus bill to trickle down to retail levels. For those who are seeking a Guaranteed Rural Development loan from a lender such as myself, this should not affect you since we are still funding loans in anticipation of the money we know is coming. If you are working with another lender who is not funding loans, it's probably worth it to wait with them as opposed to starting over with another lender. Do know, however, they have no reason to be holding back on funding your loan.

For those awaiting a Direct Rural Development loan it's a different story. Since you are working directly (hence the name) with the USDA with no lender involved, you will need to wait until they can actually write the check to close. Again that should be about two weeks from now, but you should be able to confirm that with your local USDA office.

For more local information please feel free to contact your local USDA offices. You can find them at this link.

Gerry Suarez, Jr.

Your FHA Loan Pro!

Pursuant to economic stimulus package signed into law last week HUD has posted their higher loan limits with a mortgagee letter (#09-07) out this morning. We have been looking for confirmation of this and now we have it!

In Central Florida the single family loan limit rises from $274,850 to $353,750. For loan limits in your area check this link.

Gerry Suarez, Jr.

Your FHA Loan Pro!

The Lake and Sumter Counties Home Builder's Association Parade of Homes kicks off this weekend, Saturday February 21 with great deals on new, never lived in homes for sale. The great incentives being offered by builders, coupled with the new $8000 tax credit for first time buyers makes it an excellent time to buy.

Also remember if you want to have a home built to order, and want to be able to collect on your $8000 credit, you need to start construction within a few months so you can be closed by the November 30, 2009 deadline.

Yu can get more information at the Lake/Sumter HBA website here.

Look forward to seeing you there, and Happy Parading!

Gerry Suarez, Jr.

Your FHA Loan Pro!