Gerry Suarez Jr- Your FHA Loan Pro!

I was reminded how good it is to be a mortgage lender yesterday when I had the fortune of helping a young couple, married only two and half years, achieve their dream.

They came to me looking to buy and not knowing if they could. "Our credit is good" they said, "but we don't have much of it". "That's a good thing these days" I said, and we proceeded with qualifying them.

Turns out their scores are in the 630's and good enough for the USDA Rural Development no down payment loan I was hoping to place them in. When they expressed their concern over a lack of down payment I was able to tell them it wouldn't be necessary. They asked, "What about closing costs, we don't have much money in the bank?", and I explained we would negotiate to have them paid by the seller. This couple who had been paying almost the same rent as what their payment would be to buy was concerned about being able to provide an earnest money deposit and funds for the appraisal. They were that stretched, living paycheck to paycheck with no savings in the bank. Normally I wouldn't have considered advising them to buy a home right away, but by conducting a thorough loan interview I learned his wife wasn't working now but soon would be again, and that she had a stable employment history. I also knew something every first time homebuyer needs to know in this market- by purchasing before July 1, 2009 they qualify for the $7500 first time homebuyer tax credit that would provide them more emergency cash reserves than they had ever had in their married lives together.

Buying this home now (by the way the home is a brand new builder closeout, inexpensively priced and easy and cheap for them to maintain as a first home) will put this frugal couple firmly on the road to financial security like nothing they have ever done before. He is a mechanic who bought a used car for $50 because it had a blown engine then replaced the engine for $800 and that's the car they have, a late model Ford Focus (and that's also why they have no car payment!). Such a good, responsible young couple that would not have had the opportunity to buy if not for 100% financing.

This young couple is pouring their hearts and souls into this dream, and they will be better off for it. That is the market we are in right now, and those are the kind of deals people are getting. The time to get a deal on a central Florida new home for sale is now!

So next time somebody asks you if it's the right time to buy a home, what will you say?

Gerry Suarez, Jr.

Your FHA Loan Pro!

Thomas Mortgage and Financial Services, Inc.

I was reminded how good it is to be a mortgage lender yesterday when I had the fortune of helping a young couple, married only two and half years, achieve their dream.

They came into one of my Realtor's offices looking to buy and not knowing if they could. "Our credit is good" they said, "but we don't have much of it". "That's a good thing these days" I told them and we proceeded with qualifying them.

Turns out their scores are in the 630's and good enough for the USDA Rural Development loan I was hoping to place them in. When they expressed their concern over a lack of down payment I was able to tell them it wouldn't be necessary. They asked, "what about closing costs, we don't have much money in the bank?", and my Realtor and I explained we would negotiate to have them paid by the seller. This couple who had been paying $100/mo less for rent for the last two years where stressing being able to provide an earnest money deposit and funds for the appraisal. They were that stretched, living paycheck to paycheck with no reserves. Normally I wouldn't have considered advising them to buy a home right away, but by conducting a thorough loan interview I learned his wife wasn't working now but soon would be again, and that she had a stable employment history. I also knew something every first time homebuyer needs to know in this market- by purchasing before July 1, 2009 they qualify for the $7500 tax credit that would provide them more reserves than they had ever had in their married lives together.

Buying this home now (by the way the home is a brand new builder closeout, inexpensively priced and easy and cheap for them to maintain as a first home) will put this frugal couple firmly on the road to financial security like nothing they have ever done before. He is a mechanic who bought a used car for $50 because it had a blown engine then replaced the engine for $800 and that's the car they have, a late model Ford Focus (and that's also why they have no car payment!). Such a good, responsible young couple that would not have had the opportunity to buy if not for 100% financing, remember that next time you think people need "skin" in a deal.

These kids are pouring their hearts and souls into this dream, and they will be better off for it. That is the market we are in right now, and that was why we are all still in Real Estate. Somebody has to help people like these achieve their goals, and I was honored to be a part of that.

So next time somebody asks you if it's the right time to buy a home, what will you say?

Gerry Suarez, Jr.

Your FHA Loan Pro!

FHA loan limits that had been boosted by Congress to encourage refinancing of many subprime loans are set to decrease on January 1, 2009. Currently the area has a limit of $353,750 and that will be reduced to $274,850 for the standard FHA loan. If you are considering a purchase of up to $360,000 and they need minimum down, now is your last chance!

Once the new loan limit is in effect the highest price you can pay for a home without having to put additional money down will be 284,800. Remember also that FHA minimum downpayment increases to 3.5% effective 01/01/09 as well!

Thankfully there is still plenty of money to lend and FHA's credit and income guidelines continue to be very forgiving. For more information you know who to call.

Gerry Suarez, Jr.

Your FHA Loan Pro!

FHA loan limits that had been boosted by Congress to encourage refinancing of many subprime loans are set to decrease on January 1, 2009. Currently Lake County has a limit of $353,750 and that will be reduced to $274,850 for the standard FHA loan. If you are considering a purchase of up to $360,000 and they need minimum down, now is your last chance!

Once the new loan limit is in effect the highest price you can pay for a home without having to put additional money down will be 284,800. Remember also that FHA minimum downpayment increases to 3.5% effective 01/01/09 as well!

Thankfully there is still plenty of money to lend and FHA's credit and income guidelines continue to be very forgiving. For more information you know who to call.

Gerry Suarez, Jr.

Your FHA Loan Pro!

Upcoming changes in the Rural Development loan program should allow more families to qualify with ZERO down and ZERO closing costs! The income restrictions are expected to ease, allowing households from 1 to 4 family members to make over $70,000/yr and still qualify. Households having 5 to 8 family members would actually be able to qualify even if they make over $92,000/yr! These are substantial increases so if you were told you made too much to qualify for an RD loan, please look again!

This coupled with the fact that every home in Lake County is in the eligible area will allow many young families and first time buyers the opportunity to take advantage of some of the best prices we have seen in four years. In September, 2009 over 57% of the single family homes sold in Lake County were priced under $160,000! Many great deals are being made- are you missing the boat? Remember these RD loans have no monthly private mortgage insurance and very low 30 year fixed rates!

And don't forget, by buying your first home before July, 2009 you can qualify for a $7,500 tax credit! Call me for more information and to see if you qualify for these outstanding programs!

Gerry Suarez, Jr.

Your FHA Loan Pro!