Jay Beckingham

That's about as much truth as you're going to hear for awhile. I have been expressing this opinion to Realtors and buyers for quite awhile. And if you are trying to evaluate a lender's behavior by using common sense criteria then I have a piece of advise for you;

STOP!

common sense (from webster); good sense or practical judgement

There you have it, that's not us!

We look like we have taken a step back into the past. We look that way because;

We have.

Here's a little "common sense" application as to why.

We were loosy, goosy for 5-6 years. I believe the approval process involved having a pulse. Yes, that's it. If you had one you could have a loan. I believe that it might have been, that even if you didn't, you might get a loan anyway.

Even if you had never paid anyone back, at anytime in your life, you could still have a loan.

And for some reason we thought we might get paid back. Why we thought that, I'm not sure.

Well that didn't make any sense.

So now we regressed into a more traditional mode of lending behavior. An adjustment needs to be made by all.

If we know that more paperwork will be requested, and we know that all the inspections will be, well inspected, we need to prepare or clients for the experience.

As Realtors, YOU are my client!

Beware, as you already are, that we will require more paperwork.

My promise to you is that I will work hard in your behalf, that I have been a mortgage lender for 25+ years and have been down this road before. I will be truthful with you, no BS. I will attempt to make the process as easy as possible for both you, and my other client, the buyer. Let me add, and this is extremely important.

A good, experienced, knowledgable, hard working L.O. is vital to your success today!

But, one thing I can't change.

I'm a mortgage lender and I don't have any "common sense!"

I just got my fall copy of "The Guaranteed Eagle," the Official News of the SFH Guaranteed Loan Division of USDA/Rural Development. The cover letter says it all.

Check it out! See how much the guaranteed loan production has grown this year making FY 2009 the

Best Year Ever!

It goes on further to say;

Thank You

for assisting 6,652 FL/VI families with $842,402,865.34 of Rural Development guaranteed loans this year.

My first thought is,

You're welcome!

Even at the ripe age of 57 my parents teachings still rule, so to me you're welcome is appropriate/necessary.

My second thought is;

Wow! what great numbers.

Maybe we don't need alot of new programs and giveaways, maybe all we need to do is make the best use possible of programs already in place.

Interesting thought, huh.

Nationwide;

The Single Family Housing Guaranteed Loan Program increased volume over 111% and dollars obligated increased over 132%.

Here's a great quote, coming from a government agency.

"Rural Development wishes to thank all of our lending and real estate partners for supporting the Guaranteed Loan Program. We are proud to partner with you to offer stable, affordable, and reasonable loans to create more successful homeowners."

Well right back at Ya!

I'm just one man, and I don't have any right or authority to speak for our industry, but I ask you all to join me in thanking those who worked so diligently at a time, that we needed it the most.

Hat's off to all those working at USDA/RD for a job well done.

Thank you! Thank you! Thank you!!!!!

Okay I've checked the maps, and I visited the website, and I just can't find any part of Collier County which is not eligible. They do have a specific list of county's with ineligible areas and Collier County is not on the list. This does go to prove something that I have been continuing to stress;

Rural Housing is available wherever the USDA says it is, it has nothing to do with RURAL areas!

Naples, Marco, Immokalee, Golden Gate-go for it!

So what's the benefit to perspective Collier County Buyers;

100% financing-no downpayment required

Closing costs can be paid by the seller or financed when supported by an appraisal

No first time homebuyer requirement

No FHA 90 day seasoning

No monthly Mortgage Insurance-MI

These are not all the benefits, and USDA/RD offers very competitive 30 year fixed rate mortgages.

You're thinking there must be some restrictions. Well you're right. The two most important, in my mind are;

The property must be a single family owner occupied primary residence.

While there is no value restriction, there are income restrictions.

For a family of 1-4 members the guideline states the income should not exceed $81,450.

For a family of 5-8 members the guideline states the income should not exceed $107,500.

These incomes can be adjusted based on particular family expenses.

So, for those potential buyers in Collier County I need to know.

What are you waiting for?

USDA/RD LOVES you guys!

I suggust giving some back, while you can!

Well I know the actual reason, which is that the State of Florida has changed the law in regards to my lending status, and I am now required to become licensed. Really I don't have a problem with being licensed, but so much of this seems fishy to me.

I currently work for a company which is considered a correspondent lender, and as such I am exempt from needing a brokers license, but that will change as of January 1st. At that time essentially anyone who looks at a file will need a license unless

They work at a Bank.

The legal aspect of this is that banks come under a different jurisdiction, that being federal, and are unaffected by the changes in state law. The part that I don't feel comfortable with is that it appears the bankers don't feel that they need to fall under the same requirements or scrutinization. After all we all know

that certainly no bank employee could have done anything questionable, which helped to contribute to the mortgage problems.

That just couldn't be possible now, right?

Day 1 Mortgage Brokers School

I must admit that I got extremely lucky in that my instructors are excellent. I'd like to tell you that this was a result of my own research, but it's not. They're just real good.

And Honest!

They make no bones about the fact that their purpose is to prepare us to pass the state's test. Their job is hampered by the fact that in many cases the test is outdated, and that you must learn the wrong answer, which happens to be the right answer, as far as the test is concerned.

That's right forget the correct answer, or it will be marked wrong, and you may not pass.

The state tries to pass off the test as important, but not important enough for them to do their due diligence so we all may actually learn something, and do things right.

They certainly are not setting a very good example.

Most of the class is made up of experienced loan officers, who also lost their exemption, and must now become licensed, but we do have some newbies. They're a little bit more than just confused and

We're setting a real bad example for them.

I guess that's not important.

I first arrived in Florida in 1992, and have been involved as a mortgage lender for about 15 years, without a single complaint. I do sincerely try to do it right, all day, everyday.

So I will get the license, because I have to, it's the law.

BUT,

I'm not sure why.

If you're looking for property in Lehigh Acres as a primary residence take a look at USDA/RD also known as Rural Development. Also keep in mind that this program is available in parts of San Carlos Park, Estero, Bonita Springs, and all of Collier County.

The BIGGEST fallacy to dispel is that Rural Development is for rural properties. It sounds like this should be the case, but it's not.

RD loans are available, pretty much, anywhere that the United States Department of Agriculture has determined that they are needed.

These decisions have absolutely nothing to do with if the property has any rural influences, but there are geographical restrictions.

Why are they so hot? they offer;

100% financing

No monthly mortgage insurance (MI)

the closing costs may be financed or paid by the seller

No First Time Homebuyer requirement

No FHA seasoning requirement for properties

possible additional funds for repairs

credit exceptions with 620 scores and above.

There are income limits, but they have been increased.

This is a great program for those with limited funds or those who are looking to minimize up front costs.

And this program is;

RED HOT!

Sizzling Actually!