Justin Messer USDA Rural Housing Loan

Many of Obama's housing refinance plans are still being worked on and might possibly fail to happen. However, one program just became available to current home owners who have had trouble refinancing their current primary residence or second home due to market depreciation. Many refinance transactions are turned down due to high LTV's (Loan to Value). Any 95% or higher is unacceptable. Anything greater than 80% to 95% requires mortgage insurance. NOT ANY MORE WITH THIS PROGRAM!

WHO IS ELIGIBLE?

Borrowers who are CURRENT on their mortgage payments and are having trouble refinancing because market depreciation has increased their loan-to-value which has made them ineligible to refinance.

This new program will allow borrowers who currently have a FANNIE MAE or FREDDIE MAC owned loan. The borrower can only refinance their high balance loans if they currently DO NOT have mortgage insurance. So, when the borrower originally obtained financing, they would have had to put 20% down or have an 80/20 structured loan. If the borrowers current mortgage statement reflects MI payments, then the borrower is ineligible :( .

This new program allows a loan-to-value of up to 105%.

WHO IS INELIGIBLE?

• Loans that currently have MI
• LPMI Loans
• Reverse Mortgage Loans
• Second Mortgage
• FHA/VA and USDA loans

PURPOSE

• May finance all pre-paids(escrows), closing costs, and points
• MAY NOT PAYOFF EXISTING SECOND LOAN, they must re-subordinate
• May receive cash back. Lesser of 2% or $2,000
• May not add new second loans

LOAN PROGRAMS

• 15-40 year Fixed rates, full amortizing
• 5 year and 7 year fixed rate ARMS, fully amortizing

Basically, if you have tried to refinance your mortgage but have been unsuccessful due to a low appraisal, then now is your chance. This program will allow you to refinance and continue WITHOUT PAYING MORTGAGE INSURANCE. Please keep in mind that your new FIRST loan cannot exceed 105% of your current value. There is no MAX after the second is added. This program is only temporary so if you think that you fall into this category and meet the requirements from above, then please feel free to contact me.

Justin Messer

www.JustinMesser.com

770-631-5750

Tax Credit for Homebuyers

First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Additional Housing-Related Provisions

Tax Incentives to Spur Energy Savings and Green Jobs - This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings - This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing-This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance-This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future

Another thing to keep an eye on in the coming weeks is President Obama's plan to help struggling borrowers before they are faced with a default on their mortgage.

According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That's because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

(MMG)

Obviously, the real estate market has many great deals. For those that have the money, there are so many opportunities. So, are the wealthy the only ones that can afford to take advantage of all the fantastic deals out there. NO! Typically, for an investor to purchase a property at a foreclosure sale, or at the court house steps, they must have cash on hand to purchase the foreclosed property. Or, if an investor plans to purchase a home to flip or to create cash-flow as a rental, then they typically need 20-25% down to get a loan. For the general public that is interested in real estate investing but does not have the cash on hand to pursue it, then what can you do?

For those that are looking to get their feet wet in real estate, then now is the time. There are tons and tons of reasons to buy today. Add up all of those reasons and add one more thing to it. USDA rural housing loans in Georgia, Alabama, Florida, or the rest of the southeastern states.

With a USDA loan, a buyer of a primary residence can buy a new home or foreclosure with zero investment. So, buyers and Realtors need to search for properties that have lots of equity in them. Believe me, they are everywhere. Once you find this particular property, I, Justin Messer, can help the buyer obtain mortgage financing for a 100% loan. With this type of loan, the buyer can finance 102% of the "appraised" value. They are not limited to the sales price. They can also finance all of the closing costs, all of the pre-paid items, and any necessary repairs.

EXAMPLE:

You and your real estate agent find a home that is for sale at $100,000. Well, this property has been for sale for over a year and has been marked down 4 times. The appraised value is currently $150,000. I can give you a loan for the full $100,000 to buy the house. USDA charges a 2% funding fee. This is 99% of the time financed. So, now you are up to $102,000. Say closing costs are $3500 and pre-paids are $1000. Lets also say that you would like to add a few touch-ups. The touch-up costs are $5,000. So, you are going to finance the full sales price, the 2% funding fee($2000), the closing costs ($3500), the pre-paid items ($1000), and the repairs ($5000). You, the buyer, are financing $111,500. Once you close on the home, you have instantly picked up $38,500 in equity for absolutely NOTHING. You have merely found a house you would like to live in, signed your name, and receive tons of equity.

This is only the beginning. For this loan, the current USDA mortgage rates are at 4.5%. The monthly payment via the mortgage calculators from www.JustinMesser.com are $565. If taxes are $150 and home owner's insurance is $35, then the total monthly payment is $750. It is extremely hard to rent a home for as cheap as $750. Also, there is ZERO MORTGAGE INSURANCE! In this market, sellers are usually willing to contribute something. The seller can buy your rate down for the first two years. So, the first year, your rate could be 2.5% with a payment of $625. The second year, your rate would be 3.5% with a payment of $685. The 3rd year through 30 would come back to the original $750.

Last, the real estate market is on the verge of bouncing back. History will prove that immediately after any downturn in housing, it always explodes higher. So, to make your ZERO investment even better, I would suggest keeping the home for a couple years. Now, you will be able to take advantage of yearly real estate appreciation and TAX FREE profits.

This is a fantastic way for a person that is looking to buy their first home or their primary residence to enter the real estate investment market and contribute nothing. My advice would be to follow this scenario, build wealth, and save your money and invest it somewhere. Live in the home for at least two years. Sell the home and collect your TAX FREE profits. Do it again. If you did this every 2 years, with the same numbers in the example, then you would earn around $115,500 in 6 years. This is approximately $19,250 a year. These profits would actually be much greater because I am not including any appreciation, any principle reduction from making your mortgage payments, or any tax write-offs.

I almost forgot, if you purchase a home as a first time home buyer before July 2009, then you will get a $7500 tax credit next tax season.

For more information, please contact me at www.JustinMesser.com/contactus. You may also contact me to see about refinance mortgage rates. Email me at JustinMesser@Northstarmg.com. This post may be viewed on www.Wordpress.com, or www.JustinMesser.com/myblog.

Follow this link to see the Georgia areas of eligibility. The majority of the state is eligible except for the largers cities and most of metro Atlanta. The lighter areas are eligible for 100% financing.

http://eligibility.sc.egov.usda.gov/eligibility/eligibilityAction.do?pageAction=countyMap&state=GA&st=13&cnty=023&mapname=GA_S&propertytype=#form.PropertyType

You can also visit http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do to select your state. If you or your client would like or needs affordable financing, then consider USDA loans and contact the southeast's USDA loan expert.

Justin Messer

Here is a great USDA "apples to apples" comparison. A Guaranteed USDA 100% loan offers the home buyer the most affordable payment, less out of pocket cost, and usually the most competitive 30 year fixed rate in the market.

This 100% Guaranteed loan payment includes the 2% funding fee that is rolled into the loan. The following is based on a $175,000 loan at a 6% interest rate.

• No PMI loans at 8% with a 30 Year term = $1284
• Freddie 100 = $1189
• My Community = $1135
• 5% down conventional ($8750 + MI) = $1105
• FHA 3% down ($5250 + UFMIP + MI) = $1105
• 40 year loan + MI = $1103
• Flex 97 ($5250 + MI) = $1091
• 80/20, 80: 6% 30 yr loan 20: 7.5% 30 yr loan = $1084 (hard to get anymore)
• 100% USDA plus 2% Fee with NO MI = $1070

Many of the products from above will not have a comparable fixed rate. They will be higher.

Have a nice day.

Justin Messer

We provide USDA home loans in Georgia, Florida, Alabama, Tennessee, and North and South Carolina.