Gerry Suarez Jr- Your FHA Loan Pro!

This real estate market has become a unique opportunity for first time buyers, who aren't saddled with trying to sell a home, to take advantage of the long list of reasons to buy.

As a first time buyer in Lake County, FL now you can:

•· Take advantage of some of the best interest rates in history!

•· Buy homes in our market at prices that haven't been seen since 2002 or longer!

•· Move in with less money than you can rent, often with zero cash!

•· Get $7,500 back on this year's taxes to do with as you please!

•· Continue to get some of the most liberal common sense underwriting from FHA, VA and USDA loans!

Never before has this perfect storm existed for first time buyers, but the truth is we know it won't last forever. Interest rates may stay low but who knows how long. Prices appear to be stabilizing in many of the more desirable markets. Most importantly the $7,500 tax credit is only if take possession of your home by July 1, 2009. That offer may be extended but right now there is no indication it will be!

Do you want to take the chance, or do you want to strike while the iron is hot? I am happy to be improving the lives of so many first time buyers in these tumultuous times. Call us at Thomas Mortgage now and get qualified so you too can own your home!

Gerry Suarez, Jr.

Your FHA Loan Pro!

The USDA sent out a notice regarding availability of funds yesterday and estimating funding for the current period would be exhausted by January 9, 2009 "if not sooner". They site demand at historic highs as the reason for the shortfall, and this comes as no surprise to those of us that have been using the program.

They are clear to state, however, that they will continue to take and process applications and a source of mine expects additional funding to be online shortly after the inauguration of President Elect Obama. That said the delay in funding should be short lived. In the interim USDA approvals will be granted "subject to receipt of Congressionally appropriated funds".

Some lenders are offering to fund USDA loans in the interim to prevent closing delays. Speak to your lender about this or look for memos regarding this situation later today and this week. Most importantly don't get caught with your pants down on a closing that may not happen on time. PLAN ACCORDINGLY!

Gerry Suarez, Jr.

Your FHA Loan Pro!

One of our partners at Thomas Mortgage, Mickey Carlton, has put together this extremely well written summary of refinance FAQ's. It's great advice and great info for us all:

"What's the story on Refinances?

One of my primary goals is to insure that I provide answers and solutions to your real estate financing needs. Today's news is saturated with stories about the great rates being offered on home financing. Consequently, I have been having great conversations with clients and their acquaintances about the possibilities of refinancing their mortgages. For everyone's benefit, here are answers to some "FREQUENTLY ASKED QUESTIONS".

"WHAT IS TODAY'S RATE?" Today, more than ever before, rates will differ for every individual, according to loan size and purpose, as well as the borrower's credentials. The Fed has indicated their intent to lower interest rates. One release spoke of a target rate of 4.5%. This does not necessarily mean that a consumer will receive 4.5%. A consumer's rate, without discount points, would more likely be 5%, or higher, even if the Fannie/Freddie delivery rate to the banks is 4.5%. Each borrower must share personal financial information (including a credit report) with a lender to obtain an accurate estimate of the interest rate for their personal scenario.

"WHY DID I SEEN AN ADVERTISED RATE FOR !.!!%?" Advertised rates are usually the very best rates possible. For example, such a rate might only be available on a purchase money loan for a borrower with a 760 credit score who is putting 20% down and borrowing over $400,000. A similar loan to a borrower with a 620 score putting 5% down and borrowing $150,000 will be originated at a much higher interest rate.

"SHOULD I GET OUT OF MY ADJUSTABLE RATE MORTGAGE AT THIS TIME?" Adjustable rate mortgages are not necessarily a bad thing to have. Some of today's adjustable rate mortgages are adjusting to rates that are lower than comparable fixed rates. A full discussion with a trusted mortgage consultant is in order if you have an ARM. The lender will need to know your "Index" and your "Margin" both of which will be found on your promissory note or on the Adjustable Rate Rider to the note.

"MY CURRENT MORTGAGE IS AT !.!!%. SHOULD I REFINANCE" The economic wisdom of a refinance is simple arithmetic in which we weigh the variables and compute the savings that would result from a refinance. We compare this figure with the estimated cost to determine whether a refinance makes sense from an economic standpoint.

"WILL A REFINANCE ELIMINATE MY MORTGAGE INSURANCE" Sometimes a refinance will accomplish a lower rate as well as eliminate mortgage insurance. The appraisal is usually the determining factor.

"CAN I REFINANCE IN TODAY'S MARKET?" Loan-to-value issues are going to make it difficult, if not impossible, for many people to refinance, regardless of how low rates fall. Many homeowners have become "upside down" with respect to their loan balance versus the current appraised value of their home. Such borrowers might have to "pay down" the mortgage balance or be denied the refinance opportunity. Banks are not going to loan more than the house is worth in today's troubled economic environment. For such borrowers, there may be other remedies such as loan modifications or loss mitigation with their lender.

These answers are being supplied assist clients, as well as friends, neighbors and family members, in efforts to determine whether a refinance is feasible. Clearly, these simple answers will not apply to every situation. We are available to consult with you on your specific circumstances. Feel free to pass this e-mail along to others who may need answers. We are here to help.

Mickey Carlton"

It's obvious refinancing isn't a one size fits all issue and indeed when we take government loans such as FHA into account it becomes even more case sensitive. Please call a lender you trust to get the real facts on refinancing. We stand ready to help!

Gerry Suarez, Jr.

Your FHA Loan Pro!

USDA Rural Development loan expert Sue Botelho was quoted in an excellent article regarding the increased popularity of RD loans in the Wall Street Journal today. Sue has done a great job getting word out regarding the strengths of the program and its zero down features. Congratulations Sue!

The article quotes other sources and demonstrates the program's effectiveness but it also stresses that as the program becomes more popular, funding will be an issue. Unlike FHA and VA this loan program is solely funded by the government. Although losses have been in line with or better than other government programs, increasing demand can cause a shortage of funds soon.

Last year funds where redirected within the USDA to create more availability and they are committed to providing the program for those who qualify. As the last 100% financing program for non-veterans, and no monthly private mortgage insurance, RD loans are the best recourse for first time buyers.

So if you are a first time buyer, or are a Realtor working with one, the best time to buy may very well be now. Rates are low, underwriting is very fair and there are plenty of well priced properties to choose. Find your RD expert here on Active Rain and if you need help in Central and N. Central Florida don't hesitate to call me!

Gerry Suarez, Jr.

Your FHA Loan Pro!

The folks at Ameridream are calling for a rally in support of seller funded down payment assistance programs (SFDPA) at the Orlando offices of Florida Senator Bill Nelson this Wednesday, 12/17 at 12 noon. The purpose of the rally is to show support for HR 6694 which would reinstate SFDPA's. This legislation was overshadowed by much of the bailout fracas yet it enjoys enough support to have a chance with the inauguration of the new administration. A link to an Ameridream site with a copy of the bill and other information is here.

Those interested in attending the event are asked to contact Chuck Hammett at (850) 251-6193 or at chammett@aps-ameridream.com as he is coordinating the event on behalf of Ameridream. Supporters are also urged to bring a new in packaging but unwrapped toy for the Toys-for-Tots program. Senator Nelson's office in Orlando will be the site for the rally and it is located at 225 East Robinson Street, Ste 410 Orlando, Florida 32801.

For those of you outside the area or if you can't make it Wednesday, please contact Senator Nelson's office at 407-872-7161 or toll free at 888-671-4091 .

Gerry Suarez, Jr.

Your FHA Loan Pro!