Gerry Suarez Jr- Your FHA Loan Pro!

One of the best government backed 100% financing programs is available throughout the 34748 and 34788 zip codes of Leesburg in Lake County, FL. The guaranteed rural development loan also allows you to finance up to 2% of your closing costs and frequently results in zero cash at closing to buy a home. Call for more information, and get in on some of the best priced real homes we have seen in years!

Gerry Suarez, Jr.

Your FHA Loan Pro!

One of the best government backed 100% financing programs is available throughout the 32757 zip code of Mount Dora. The guaranteed rural development loan also allows you to finance up to 2% of your closing costs and frequently results in zero cash at closing to buy a home. Call for more information, and get in on some of the best priced real homes we have seen in years!

Gerry Suarez, Jr.

Your FHA Loan Pro!

RD loans can be a challenge considering they have both income and geographic limitations. Once these hurdles are crossed though, what advantages does RD give you?

In Florida did you know RD:

-allows unlimited gifts.

-has no stated limitation on seller concessions (FHA and VA say 6%).

-allows closing costs up to 2% of the purchase price to be financed into the loan if the appraisal supports it.

-has no monthly private mortgage insurance, and only 2% up front (up front for FHA is 1.75% and starts at 2.15% for VA).

-requires no reserves after closing.

-states you can qualify even if you own other property as long as it's not "suitable".

-allows you to use the program even if you can qualify for other types of financing that are not as "reasonable".

-still allows you to use the rent of a property being vacated (up to 75%- and considering FHA's recent change, I don't think this will last long!).

-allows escrows at closing for repairs/replacement.

-does not require ANY explanation of negative credit if your score is over 620.

...and the list can go on, but I hope you get the message. There are certainly some downsides to RD loans but if your lender doesn't try to qualify you for RD, they are not serving your best interest! Check the Rural Development Loan Group for links to state specific information and local lenders who know the program. Some criteria can vary from state to state so it pays to have a local lender that is familiar with the guidelines!

Gerry Suarez, Jr.

Your FHA Loan Pro!

What a ride! The press has all they can handle trying to keep up with a global financial meltdown and an unprecedented presidential election; but for those in the real estate business not much is really changing.

The loans to go to are still FHA, VA and Rural Development because the market that is moving is the first time buyers market. I'm seeing that in Central Florida but hearing it from all over the country. If your buyer has 15% or more down and great credit, conventional loans are still the best deal. Money for all these products is readily available and closings are prompt. GREAT deals are to be had for the buyers wading into the "turmoil" and they are taking advantage of some of the best buys in years!

For example I'm closing a loan this month that was on a home originally purchased in 4/07 for almost $500k. My buyer's approved offer on this home with over 3300 sq/ft living and a 3 car garage in a great community is $290k! Unheard of values here in Central Florida and Mt. Dora!

So shake off the funk and tell people what is really going on. We are the industry and we know these deals are great long term investments that will provide years of enjoyment for many families. There is no lack of funds for any good loans!

UPDATE- and even mo' better news as reported by our friends at CNN Money here!

Gerry Suarez, Jr.

Your FHA Loan Pro!

FHA has changed the rules on recognizing rental income if a buyer chooses to rent their home to purchase another one. The changes are an effort to reduce the practice they call "buy and bail- where the homebuyer purchases, for example, a more affordable dwelling with the intention to cease making payments on the previous mortgage".

HUD clearly states "the underwriting analysis may not consider any rental income from the property being vacated except" in case of work relocations or if the buyer has at least 75% equity in home being rented. The notice declares the policy to be in effect for any FHA case numbers pulled after September 19, 2009, so it can impact loans currently being worked. Don't let this change catch you unaware! If you have recently submitted an offer for a buyer who will be renting their current residence, have the loan reviewed to make sure that buyer still qualifies!

There is a plus side for select few so far. HUD is allowing local Homeownership Centers (HOC's) to determine "rental vacancy factors" for use in their markets. Thankfully in Florida (and in the jurisdiction of the Atlanta HOC) that will allow us to use 85% of rent for the time being. Do note, however, this policy "is being instituted on a temporary basis while FHA further analyzes this situation to determine whether permanent measures may need to be taken". The one thing you can count on is more change.

View the mortgagee letter here for all the details, including the site to check what exceptions your area HOC has if any.

Gerry Suarez, Jr.

Your HUD Loan Pro!