Ron Withers ----Retired Mortgage Professional

I have made posts in the past about how USDA Rural Housing loans were the most under-utilized mortgage program in America. Well today I now have to eat my words as UDSA GRH has just announced that for FY 2008 fundings reached an all-time/record high of $6.7 billion. In fact, there is some possibility that with current trend that 2008 funds may not last thru September 30th (FYE 2008).

Congress has not yet approved funding/allocation for FY 2009, however no significant delay is expected. Obviously it would appear that consumers, loan officers and realtors did pick up on the advantages of the Rural Housing program over the past year. I wonder if 100% financing and the disappearance of most of the creative mortgage products had anything to do with it?? :)

MOREOVER, this makes me wonder if we are all going to have to scramble for a piece of this pie/fair market share before funds availability becomes an issue in FY 2009?

Ron Withers and Town & Country Mortgage Services are partnered with Florida Housing to provide affordable housing financing using their mortgage revenue/down payment assistance program. Provided below is an update/overview of loan programs and funding availability status. Florida Housing establishes the terms, guidelines and interest rates for these programs which are subject to change without notice.

Here's a quick view of the first and second mortgage possibilities for qualified applicants ALL FLORIDA HOUSING FIRST MORTGAGES HAVE ZERO ORIGINATION AND ZERO DISCOUNT FIRST MORTGAGES. Borrowers also enjoy substantial a savings in their closing/settlement costs as Florida Documentary Stamp fees and Intangibles Tax are waived for these programs.

FLORIDA FIRST - All buyers who qualify for a bond loan qualify for this 30 year, fixed rate product that may be used with one Florida Housing down payment and closing cost assistance second (HAMI or Florida Assist). Current Rate is 6.65% and $18,904,000+ is available.

FLORIDA PLUS FOR GOVERNMENT LOANS - All buyers who qualify for a bond loan qualify for this 30 year, fixed rate product that provides automatic assistance that is 3.00% of the Note amount. HAMI and Florida Assist MAY NOT BE USED WITH THIS PRODUCT. Current rate is 7.15% and $18,753,000+ is available.

COMMUNITY HEROES for buyers that are education professionals, sworn officers of the state of Florida, healthcare professionals and all active duty military and veterans. (HAMI or Florida Assist may be used with this product) There is Zero Origination and Zero DiscountOn this loan. Income and sales price limits are the bond limits. Current rate is 6.40% and $12,901,000+ is available.

FLORIDA ADVANTAGE for buyers purchasing in special geographic areas, rural self-help buyers or for households with at least one disabled member. The program is for buyers at or below 80% of AMI or below adjusted for household size. Buyers using this product qualify for Florida Assist. There is Zero Origination and Zero Discount on this loan. Current rate is 6.15% and $1,791,000+ is available.

HAMI DPA is available to all who qualify for the bond program's income limits. It's available at a rate of 5.00% for up to $5,000. This is a 10-year amortizing second mortgage loan.

FLORIDA ASSIST is available to buyers at 100% of AMI or below (adjusted for Household size). It offers up to $10,000. It is a 30 year, deferred, 0.00% second mortgage loan. It is NOT forgiven at any time.

Buyers may use only one of the two second mortgage DPA products.

**Veterans Exception: Does not have to be a first-time homebuyer.

A significant misconception exists in the marketplace among consumers, realtors and mortgage loan officers/brokers as to USDA "Rural Housing" and what this mortgage program applies to. Do not be fooled by the term "rural housing" in assuming that this program is for consumers to purchase a home, farm and/or small acreage in a very rural setting.....quite contraire!

This is part of the reason that this mortgage program had been "under-utilized" in past years! This post is a follow on to two previous posts USDA Rural Housing-The Most Under-Utilized Program in America and It's Still Under-Utilized! The USDA Rural Housing loan is one of two true 100% financing programs remaining in the mortgage marketplace. The other program being VA financing.

During the 2007-2008 fiscal years Rural Housing loans experienced a tremendous "re-birth" with many areas of the United States seeing a 200-300% increase in year over year fundings. As such, my term "under-utilized" is now somewhat diminished!

While I do believe that property eligibility is largely based on demographic considerations, I am unsure of the data/parameters used for this determination.

Any consumer that is considering using the USDA Rural Housing program for their home purchase as well as their loan officer/broker and Realtor needs to use/bookmark the USDA property eligibility website as their primary tool/resource in conducting their search for a property that is situated in an eligible area. Failure to do so is paramount to trying to traverse remote terrain from point A to point B without a map and/or compass!

Again....don't be fooled by the term "rural housing" as you may find that entire counties may be eligible or that small to medium size cities/towns or maybe at least, their fringes. Connect to and bookmark the USDA Property Eligibility Website here. You will need a complete property address and zip code. Very importantly, you should be aware that you may occasionally find seams in eligibility boundaries in that, properties on one side of a road may be eligible while those on the opposite side of the road are not.

One frequently asked question by potential USDA Rural Housing loan applicants is how much land or acreage can be acquired with my home purchase. USDA Rural Housing has not established any maximum acreage size. The quideline that is used is that the land or site value cannot exceed 30% of the total fair market value. As such, acreage will vary due to land values being different from one area to the next.

You will find that the Rural Housing program has many features and flexibility not found in other mortgage programs and, if desired, most Down Payment Assistance programs are allowable.

For more information about me or to inquire further or pre-qualify for a rural housing loan visit me at RonWithers.com or Town & Country Mortgage.

Copyright 2008, Ron Withers, All Rights Reserved.

The Florida Housing Finance Corporation (Florida Housing) provides a first mortgage program also known as the mortgage revenue bond(MRB) program to first-time homebuyers (not owned a home in the past 3 years) subject to a few exceptions. If a person uses a Florida Housing first mortgage, they may also qualify for down payment and closing cost assistance. The program does not provide down payment and closing cost assistance with lenders' first mortgage products.

Florida Housing has two first mortgage options in this program. There's something for everyone qualified in all Florida counties. Florida Housing also sets the rate, term and points of its first and second mortgages. Two second mortgage options provide down payment and closing cost assistance. Automatic down payment assistance is provided with two of the Florida Housing first mortgage options. Florida Housing also markets the program.

PARTICIPATING LENDERS take applications, reserve in their own systems to provide funds for closing, process, underwrite, approve, fund first and second mortgage loans and the automatic assistance, close and sell qualified loans to the program. It's the responsibility of lenders to review program documents and to originate loans that meet the requirements, direct borrowers to complete a homebuyer education course and give proper closing instructions. Lenders are responsible for servicing all program loans in accordance with Fannie Mae, Freddie Mac and Ginnie Mae requirements until they're purchased by the Master Servicer.

Maximum Sales Price/Acquisition Limits and Income Limitations:

The maximum sales price/acquisition limit may vary from county to county. Likewise, there are income limitations which may vary by program selection which are adjusted based on household size.

First Mortgage Loan Reservation:

Buyers MUSTHAVE A FULLY-EXECUTED SALES CONTRACT FOR A SPECIFIC PROPERTY in order to have funds reserved or be on the waiting list. The contract may be dated prior to the date of the loan application. (Buyers may be pre-qualified. However, if the buyer does not have a contract on a property, BOND FUNDS MAY NOT BE HELD for the buyer until such time as the buyer presents a valid contract.) New construction and REO's must be reserved on Wait List no sooner than 45 days before closing.

CONTINUOUS FUNDING:

Because Florida Housing has made a commitment to continuous funding, when funds are fully utilized, Florida Housing may establish an interim waiting list or provide its own funds for the time between bond issues. In such instances, the program may be referred to as a Bridge Program.

The first mortgage options:

FLORIDA FIRST - All buyers who qualify for a bond loan qualify for this product that may be used with one of two second mortgages (HAMI or Florida Assist) that provide down payment and closing cost assistance. This is a 30 year, fixed rate loan.

The down payment assistance options are (to the extent funds are available) -

HAMI DPA is available to all who qualify for a first mortgage bond loan. It's available at a rate of 5.00% for up to $5,000. This is a 10-year amortizing second mortgage loan. Amount should be determined by need.

FLORIDA ASSIST is available to buyers at 100% of AMI or below (adjusted for Household size). It offers up to $10,000. It is a 30 year, deferred, 0.00% second mortgage loan. It is NOT forgiven. Amount should be determined by need.

Buyers are limited to using only one of the DPA options.

An advantage for Veterans:...they need not be first-time homebuyers. Congress has reinstated the Veterans Exception provision. For this feature, "veteran" is defined as "a person who served in the active military, naval, or air service, and who was discharged or released there from under conditions other than dishonorable." The Mortgagor Affidavit has a checkbox that states: "Mortgagor (Co mortgagor) meets the requirements to qualify as a "veteran" as defined in 38 U.S.C. Section 101 and has not previously obtained a loan financed by single family mortgage revenue bonds utilizing the veteran exception to the first-time homebuyer requirement set forth in Section 416 of the Tax Relief and Health Care Act of 2006. Attached hereto are true and correct copies of my discharge or release papers, which demonstrate that such discharge or release was other than dishonorable.

Florida Plus-3% DPA Grant:

Subject to income eligibility borrowers not using the Florida Assist or HAMI options may be eligible for a 3% grant (no repayment) based on the mortgage loan amount. The Florida Plus option may only be used when the first mortgage is a government loan, i.e., FHA, VA or USDA Rural Housing loan.

PROGRAM FEES

The first mortgage program includes a Bond Application Fee of $215. The fee is payable at closing and netted at loan purchase. The fee must be disclosed on the HUD-1 as being paid to the Servicer.

Tax Service Fee of $75 (paid by buyer or seller as per insurer/guarantor requirements) on the first mortgage. The fee is payable at closing and netted at loan purchase and must be disclosed on the HUD-1 as being paid to the Servicer.

FOR SECOND MORTGAGE LOANS

• No origination or discount on HAMI or FLORIDA ASSIST loans.

• On HAMI loans lenders may collect $225 Second Mortgage Loan Application Fee and retain $75.00 The Servicer nets $150 at loan purchase. $150 should be shown on the HUD-1 as being paid to the Servicer.

• On Florida Assist loans Lenders collect and retain $75 Second Mortgage Loan Application Fee.

LENDERS are permitted to charge reasonable and customary charges for out of pocket expenses and costs. Other financing costs such as legal fees and underwriting fees may be charged and courier fees may be charged if such fees are normally charged. Lenders may charge the usual and reasonable settlement costs. Settlement costs include titling and transfer costs, title insurance, survey fees or other similar costs. Other allowable fees include doc prep fees, notary fees, hazard, mortgage and life insurance premiums, recording or registration charges, prepaid escrow deposits and other similar charges allowable by the insurer/guarantor. "Junk" fees are not a defined term and may not be charged. Excessive fees are not permitted in the program.

Fees/Closing Costs Advantage:

Currently borrowers cannot be charged origination or discount points. Borrowers are also exempt from paying documentary stamp fees and intangible tax fees. This significantly reduces the overall closing costs paid by the borrowers.

** All program information and terms are subject to change without notice. Funds are always subject to eligibility and availability of funds, generally on a first-come, first-served basis. Assistance amount/eligibility is based on household income adjusted for family size. The MRB program has a funds reservation process (requires accepted purchase contract) while SHIP programs may or may not. Generally, completion of a Homebuyer Education Course is required.

Visit Me at www.RonWithers.com to see information on all of the State, County and Local Down Payment Assistance Programs where Town & Country Mortgage/Ron Withers are approved/participating lenders.

Updates:

9-12-2008 Florida Housing makes full release of their 2008 Series 3 bond issue. For additonal information visit me at Down Payment Assistance.

Many years ago while sitting at dinner table, my now oldest son, posed the following question of me. So Daddy...What is it that you do for a living? I believe that he was 7 or 8 years old at the time. He was a very bright child with a higher than average IQ (not sure whose genes brought this about). In fact, when he started the first grade he was already reading and comprehending at the fifth + grade level. I attribute most of this to my wife (no, wait...all of it) as she starting reading to him prior to his birth. This reading continued almost nightly with a bedtime story with him following along with the script. After 3-4 years, my wife on occasion, would breakout the book and attempt to condense the bedtime story by leaving bits and pieces of the storyline out. He would absolutely refuse to allow her to get by with this. Stating, "stop it mommy you are leaving out part of the story!"

The nature and duties of my profession made it difficult to sit together as a family for our evening meals or at least as often as I would have preferred. I was somewhat taken by the question so I paused somewhat briefly to form my thoughts before responding to him.

"Well Son, I open doors for a living", I replied! With a somewhat puzzled facial expression he responded, "Do you mean like car doors or maybe store or office doors?" I thought for a moment or two and realized that maybe we could have a little fun with this! "No Son", I said, "Not those types of doors!"

"C'mon Daddy, you are teasing me", he commented. I replied, "Well I suppose I am...just a bit!" "Well then what kind?" he blurted! After a brief pause to continue to arouse his curiosity, I said, "I open doors to dreams and they come in all kinds of shapes and sizes." With an even more puzzled expression, he remarked, "Dreams daddy?.................I don't understand!"

Well then I said, "Let me try to explain it like this." "The kind of dream I am speaking of is often referred to as The American Dream. We are sitting in this dream....at this very moment.....as we speak! It's homeownership! You see, homeownership is a very special thing to people. Most people aspire to it at some point in their life. They often look forward to the opportunity of homeownership with great anticipation and that's the reason it is referred to as The American Dream!"

"Most people do realize these dreams come true at some point, regretfully there are some people that never do. This is really kind of sad. Homeownship can contribute to quality of life, pride of ownership, a sense of belonging and contributing to ones community, or building wealth over a period of time. It can mean so many things to different people....bottom line is that its meaning can be whatever is important to them and makes them happy!"

After we had paused a few moments to continue with our supper my son queried further, "So...daddy all of this means that we are living the American Dream?" Smiling, I remarked, "Yes son, absolutely! We are sitting here enjoying supper in our home, we are all together as a family, this home belongs to us and no one else and we can pretty much do anything here that we please. Our home is our castle and we can take great pride in it, and hopefully it will serve us very well as we grow as a family and maybe even allow your mom and I to better provide a better quality of life and very possibly greater educational opportunities to all of you children."

"Gee Daddy, that sounds kind of neat", he commented. "But just how is it that you open these doors to dreams for other people?" By now I knew this was coming at some point in our discussion so I had been pondering my response as I had been enjoying my supper.

"Well son...great question", I remarked! "When people are aspiring to this dream and want to realize it come true they must get themselves on a path to homeownership." This path to homeownership requires a lot of things! Most often it requires that they seek the services or assistance of certain professionals such as Real Estate Agents and Mortgage Loan Officers. This is where I come in as I am a mortgage professional and my duties and responsibilities is to guide them through the financial process that will get them the money or financing to achieve or realize their American Dream. So.....this is what I mean when I stated that I opened doors for a living.

Again we paused to continue with our supper but I could still see the wheels turning in his mind. After a minute or so, he said, "So this makes you happy...do you make a lot of money by opening these doors?" I quipped," Boy aren't you the curious one tonight!"

"Yes.... I enjoy it very much and it does make me happy", I said! "It's not so much whether or not I make a lot of money or not. I would say that it helps us to live somewhat comfortably and helps us to keep our American Dream! J However Son, it's really more important than that.....it's about being a part of something that's much larger than yourself. It's about being of service to your fellow man or humanity. It's about sharing and being a part of something that is so important to most people. It's about contributing or providing opportunity to other people who have dreams just like us. It's about being a part of other people's dreams and seeing the happiness it brings them. It's about building and strengthening families and communities. When we do this we make things better and stronger for all of us!"

"A couple more things Son and let's get finished with supper. To further illustrate my comments from just a moment ago I want to finish up with this. When I go to the closing table with my clients to complete their purchase and realize their American Dream come true it's is so gratifying when they stand up after signing a huge mound of paperwork and being handed the keys to their dream, that they are smiling from ear to ear, extending a very personal thank you and a grateful hand shake, and occasionally, maybe a hug or tears of joy. That's what makes my day!"

"Thanks dad...I understand", he said. "Gee dad, we need to talk like this more often!" With a grin, I said..."point taken Son....point well taken!"

Over the course of our now 42 year marriage we have had the pleasure of owning 5 homes with each of them providing us with the ability to expand and move up as our family grew (3 children) and a host of animals and/or pets including, horses, ponies, dogs, cats and occasional smaller critters that the children acquired from time to time. Or in other words, the continuation of "our American Dream".

The above photo is our last home located in rural East Central Indiana where we resided and raised our family for the previous 15 years before relocating to the "Sunshine State". This dream was integral part of who we are or what we become as a family. The photo was taken a few years ago while on vacation "Back Home Again in Indiana". Partially due to curiosity, more so for remembrance.

This home of 2500+ s.f. with 11 rooms (5 BR, 2 baths) and a full basement was situated on a 2 1/2 acre wooded tract. For the better part of 30 years my wife and I owned horses. The gentleman that we purchased this home from became a very good friend. He was a very generous man, big in heart with a gentle nature. Part of what made this home attractive to us was that he owned an adjacent tract of about 5 acres with a barn and some out buildings. When we purchased this home he allowed us to use this adjoining tract for our horses...essentially free of charge. We improved/added some fencing and helped maintain the ground as part of its use as well as watch it for him as he travelled extensively for his employer and did have the time to get by very often to check on it.

I shared the above information because it has been an important part of my American Dream. This dream must be an opportunity for all....bar none! Lately, I have seen or heard remarks that homeownership is a privilege....rather than a right! While I could concur with this statement from a very strict perspective, that's as about as far as I could go in accepting it! Nothing more than a statement. We cannot allow ourselves to function with this mentality. The American Dream and homeownership is an integral thread in the fabric of our society. It speaks to who we are as a people and a nation. It is a part of our ability to thrive and survive. Every opportunity must be taken to see that it doesn't die. Furthermore, financial resources that are made available to maximize the opportunity for homeownership must not be viewed as a hand out, but rather as a hand up!

........soon to be continued (further expanded on).

How do you open doors or how would you share your experiences in living or sharing the American Dream?

Copyright 2008, Ron Withers, All Rights Reserved.