Ken "Yes You Can" Cook

Since December 11, 2006 I have had the pleasure of hosting the North Georgia Real Estate group on Active Rain. I confess, it has been months since I really paid gave it the attention it deserves. So let me highlight a few of the recent contributors who have featured posts in that group and tell you all you need to do to start tagging your posts is (a) be in north Georgia (from Columbus through Macon to Savannah and northward) and (b) join the group. Then when you post a new article, listing or other activity on Active Rain you can post also to this group. Why? More visibility, greater long tail results.

Featured Currently

My personal friend Mr. Thom Abbott has a thought provoker and a challenge "Excuse Me? Why Do You Ask If You Don't Answer?" Thom deals with the frustration we all have of "tire kickers" who fill out a form on our site, ask often for detailed information, and who do not respond. It's not a pity party, it's a challenge to shoppers to have the decency to say, "Thank you. I'm not interested in that right now."

Another personal acquaintance Mr. Charlie Ragonesi lets us know vacation home buyers are starting to look back to the north Georgia mountains for their get-away homes with his quick and pointed article "Mountain Community update". From the lending side all indicators are Charlie will be getting even more business because underwriting guidelines have loosed back to some resemblance of reality and common sense for well qualified second home and real estate investment buyers.

Someone I have not yet had the privilege to get to know Mr. Ron Barnes reports on a change in home building and ownership away from small mansions to more accommodating, and affordable, reasonably sized homes with his well reported "McMansions Not Cool Anymore". Ron is from Jasper, Georgia and my family and I will be headed through this weekend on the way to apple country. Say hi to Ron if you haven't met him.

And finally but most certainly not least Mr. Bill and Mrs. Cyndi Daves have posted a great buyer opportunity with their listing "Blairsville Georgia Foreclosure - Price Reduced - 142 Peanut Lane - $119,900". Many areas of the Daves territory are USDA eligible for a guaranteed home loans with no down payment. This is an amazingly well performing loan program and can be used for the majority of buyers on homes of this type.

Top Ten Reasons to deal with a local loan officer:

10. They will probably be at the closing table where you can look them in their eyes.

9. When they come to the closing table you can expect a nice little gift.

8. The fifth time they ask you for the same documentation you can "suggest" they drive over and pick it up.

7. You can actually go to their office and see their licensing hanging on the wall. Unless they are unlicensed in your state!

6. Chances are they actually understand the neighborhood trends where you live or are buying. Think this isn't important?

5. I'll meet you at [insert restaurant here] and go over the documents just works better.

4. They are in the same time zone so a phone call is always convenient!

3. It's more likely you'll speak the same dialect - no interpreter needed.

2. Statistically speaking you're more likely to know some of the same people.

1. It's harder for them to hide when the possibility you eat at the same places exists.

Look, I'm not saying there aren't people who can't do long distance loans and do them well. I am saying two things: Dealing with a local loan officer who you look in the eyes means a lot when the "hits the fan" factor comes into play. I am also saying if you're happy with being a faceless number from start to finish then having to go through that whole "I can't get anybody to help me" when you need it - fine. Call MEGA-BANK and see if you can save $3 a month. If you want a relationship with someone you can trust, look around home.

There is a false sense of security when people deal with big national lenders or internet based lenders because the operators can do a very good job of pretending to be seasoned loan officers and to really care about you personally. It's not hard when you have a multi-million dollar database system that keeps your name and all your pertinent information right in front of the phone clerk to call you by name and ask about your spouse and dependents. Of course they call you by your name - that's the first trick the snake oil salesmen use, too! First trick of a used car salesman? Get their name and repeat it back to them. (By the way, used car salesman aren't as bad as salesmen of certain other services!)

We've waited for this one to come back ... now it's here. If you have investor clients or you are an investor who has paid cash for a property within the last six months this may be good news for you. Of course, as will all things, there are caveats and qualifications. Just a few of which are:

• The new loan amount can be no more than the actual documented amount of the borrower’s initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV/CLTV/HCLTV ratios for the transaction).
• The purchase transaction was an arms-length transaction.
• The transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property.
• The sources of funds for the purchase transaction are documented (such as, bank statements, personal loan documents, HELOC on another property).
• All other cash-out refinance eligibility requirements are met and cash-out pricing is applied.

There are a few more as well but for the most part this will help recoupe some cash on long-term hold properties as you wait for the market to fully recover. There is a form on this page to request more information or you can just pick up the phone and call me. I am in GEORGIA ONLY at this time though my company is in most states.

Down payment assistance from the State of Georgia

Yes, you read it correctly. We can get you up to $7,500 to be used for down payment and closing costs on homes with sales prices over $150,000 in Georgia. Under that and you can get up to $5,000. Unlike other down payment programs the buyer does not need to be a first time home buyer. If you search the Georgia Dream lenders on Georgia DCA you will see my team members make up 6 of the top loan officers and 3 of the top 4. We understand Georgia Dream!

As a reward for higher credit scores and to encourage savings, eligible borrowers will:

1) Have a total annual household income that does not exceed the Georgia Dream First Mortgage Loan Financing Limits below

2) May retain cash assets up to the greater of $20,000 or 20% of the purchase price

3) Contribute a minimum of $1,000 of borrower funds to the purchase transaction.

$5,000 if sales price is $150,000 or less

$7,500 if sales price is greater than $150,000

If the home is located in one of the following Georgia counties:

Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson, Dekalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding or Walton Counties

Your total household income based on the number of persons living in the home can be no more than:

One to Two persons $71,000

Three or more persons $82,000

Buyers must have middle credit scores of 660 or higher. Buyers must contribute $1000 of their own funds.

As always don't think just because these few numbers are published here these are all the answers. The very best thing to do is click the "Call Me" button below and the computer will call me and connect me with the phone number you enter. Only a short interview will usually determine if this is the best home mortgage loan for you.

Loan rates are not determined by the lender but are set by Georgia DCA.

The home buyer sees an ad on the internet for guaranteed 5 day closings, no minimum score and stated income from a "lender". Oh the hilarity! Unfortunately it can also end with a home buyer, home seller, a couple of real estate agents and their brokers, and a few other people doing a lot of work for nothing. Many outrageous claims are made by lead generation companies who sell the information to dozens or more loan officers who will call, email, fax, or email.

If it sounds too good to be true and every true mortgage professional is telling you there is something wrong with what one particular company or person is offering you can pretty much bank on it: it's smoke and mirrors designed to hook the buyer in and hope they'll get so far in they feel compelled to continue. They will, too, threatened by that ominous closing date on the purchase agreement and they will ride a bad loan all the way to the closing table then be strapped with it for years.

In defference to some wild claims about FHA I have read lately here are five facts every buyer and agent needs to know:

1. FHA does mention credit scores but lenders have overlays and almost every lender requires a minimum middle credit score (not necessarily the FICO score) requirement is 620. Some lenders even require a 660. There are no major lenders actively closing loans with credit scores lower than 620 and only a very few broker type lenders closing down to a 580.

2. FHA does not make loans they insure loans. The loan is actually made by lenders and often sold to Fannie Mae or another major pool investor. The only time FHA actually sees the loan is after it is closed and the files are sent to them for their insurance records. Most bigger lenders are called Direct Endorsement (DE) lenders and they make the actual decision.

3. FHA does not make loans to people with bad credit. FHA was never intended for bad credit borrowers. While it is true they do have less stringent guidelines than some conventional conforming loans it is not true they accept people who have neglected their payments and have been careless with their credit over the years.

4. FHA does finance rehab, upgrades and other construction costs to existing homes. In fact the FHA 203k streamline is a much underused FHA loan product. Many lenders do not offer this loan and the majority of loan officers do not know how to structure the FHA 203k streamline which offers up to $35,000 in costs.

5. FHA does offer a special loan with only $100 down payment required on HUD owned foreclosure homes. This is also something often overlooked and not offered by many lenders. Ask your local FHA home loan specialist about the HUD $100 down FHA home purchase loan - which is only valid for primary home owners, not investors.

There are a hundred other FHA facts and there is a growing list of "Myth's Busted" at Mortgage Myth Busters where you also can ask a question. Or, as you may have noticed, on the original publication page for this posting at Active Rain there are three ways to immediately contact the author.