Lisa Spalding, REALTOR, CDPE

The Book of the Month for my office is Mark Leader's "Distinguishing Marks of a Leader: How You Can Think, Act, and Earn Like a Leading Salesperson."

If you've ever taken one of Mark Leader's 3-month courses, you'll already know what is included in the book. If you haven't taken on of Mark's courses, then the book may be worth the read. "Distinguishing Marks" is basically divided into 3 main chapters. The first is on how leading salespeople THINK (the importance of positive thinking, etc.). The second is on what leading salespeople KNOW about various personalities and the importance of having a good home life. The third chapter is about what leading salespeople DO on a daily basis. I like the last chapter the best because it's all about managing your time effectively, being "of service" to others, and being passionate about whatever you choose to do.

The name of the book is a pretty cool play on words using Mark Leader's name. The book is about both real estate AND about leadership skills and can apply to any number of career choices in which sales is a part.

You may pick up a book at any decent bookstore and for more information about Mark Leader and/or his programs, check out www.LeadersChoice.com.

No, I am NOT affiliated with Leaders Choice and will not be getting any money for referring you to the site. :)

Locally, there are many programs to help you get into a home, especially if you are a First-Time Buyer, here in Central Florida. There are different programs from the different counties (Orange County, Seminole County, and other), different cities (City of Orlando!), etc. that help with getting people into homes. There are also loans for people with various careers (teacher, firefighter, cop, etc.) that can help with buying a home. There is even a HUD (Housing and Urban Development) program, that for $500, can get certain people into homes--but there are no homes available at present for that program, only manufactured homes.

For this post, I'd like to focus on a program called Nehemiah. I am NOT a Nehemiah expert by any means. The program just fell into my lap this past week and I've heard of it for the past couple of years but have never had the opportunity to utilize it because other programs were easier to get. Now that I am working with a couple that are interested in it, of course I have to "brush up" on it and figure it out. So here goes:

NEHEMIAH Program:

According to the websites below, Nehemiah began in the late 1990s and is basically a GIFT-fund program that allows the Seller to pay between 1-6% of the total purchase price of the house toward the Buyer's down payment and closing costs. Pretty helpful, I think! If the Buyer is using an FHA (Federal Housing Administration loan), the down payment required is just about 3% down but with the Nehemiah program, that down payment can come from the Seller. There's a lot of legal-ese on the website to say that, b/c it's a GIFT program, the money can't go directly from Seller to Buyer. Rather, it goes from Seller, to Nehemiah program, to title company on behalf of the Buyer--so that it's all perfectly LEGAL. Please read up on it and/or call for more information.

http://www.getdownpayment.com/

http://www.nehemiahcorp.org/

Also, a blogger/Jon on 3-4-08 says that Nehemiah is here to stay indefinitely: http://activerain.com/blogsview/406558/Nehemiah-is-Still-Here

Get Information About No Down Payment Homes or Near-No Down Payment Homes at:

www.OrlandoAreaPropertySource.com

If you are planning on buying a home, PLEASE--get educated about the process.

A TRUE STORY: A lady called the office today for more information regarding a property in Casselberry that is listed with my office. This is EXACTLY what my company LOVES--getting the phone to ring due to our extensive advertising and marketing campaigns. Initially, she reported she just had only the MLS# from a magazine (Yippee!--GO GOOD MARKETING!).

Fine; I just looked up the property on the computer--no problem. After the obligatory information on the house (price, #BRs, baths, etc.), I asked what I typically asked which is, "Is that what you're looking for?" She asked how many closets (yes, CLOSETS!) the property had and I said it had ample storage, which it does (it has 3 closets located in the hallway). People ask the strangest things--but, to them, it's important. I also asked if she is already working with an agent and she said no, she just wants information about the house. I then asked if she'd LIKE to work with an experienced agent that gets results. I don't want to waste my time forcing someone to work with me; some people do just fine on their own. Well, maybe "waste my time" is too harsh; what I mean is I only want to work with people who WANT to work with me.

Then, of course, the lady began to have inconsistencies in what she told me but eventually she said she's already seen the inside of the home (at an Open House--okay--no ethical issues--you don't need an agency agreement to show an Open House), that her sister is a REALTOR, and she wants to make an offer. I asked her if she was going to be working with her sister to buy the house. She again said she likes the house and wants to make an offer. After a long discussion, I encouraged her to speak with her sister about writing the offer. She said she's offering $X ($50K below the list price of an already well-priced home that's in good shape) and wanted me to tell her that the Seller would accept that offer. (HA!-Not going to happen for two reasons: 1. I'm not the listing agent and 2. Even in this market, not too many Sellers will take a very low-ball offer.) Anyway, after another long-ish discussion and after she told me she's already purchased homes here before AND after telling me she's already been in the home, she lastly wanted the address. I again encouraged her to speak with her sister, the alleged REALTOR.

So, the lady just wanting the address at the end of our conversation tells me PLENTY. She has never been in the home. She blatantly lied and changed the story to suit her own selfish needs. (I'm not judging; I'm just saying that we ALL have selfish needs/wants.) She probably doesn't trust real estate people at all. I feel sorry for her that she's either just gun-shy or has had bad experiences. I even explained how she should go about making an offer and that she should use a good REALTOR. I feel like everything I said wasn't listened to. But, because she didn't trust me, she wasn't going to listen to anything I was saying anyway. That's the main thing you MUST have when working with whatever agent you choose-TRUST.

The point of the story: If you are going to buy a house, PLEASE get educated on the process, get an EXPERIENCED/trustworthy agent, an EXPERIENCED lender, etc. and it may save you time, money, and aggravation. I especially encourage you to get more information if it's your very first time to buy or sell. It'll also save other people a lot of time, money, and aggravation. :)

Even with the "declining market" hoop to jump through here in beautiful, sunny Florida, people still need to buy and sell houses. While many are crying "poor me" for the slower market here and the tightening-up on the mortgage restrictions, there actually ARE still some good First-Time Buyer programs specifically for Florida and specifically for Orange County in Florida. MY WAIVER: I am NOT a loan officer, merely a licensed REALTOR(r) in Florida and I have a pretty good knowledge of real estate and only enough knowledge about mortgages to get myself into trouble. I leave mortgage to the mortgage gurus that I work with. :) Keep in mind that if you're BUYING a home in Central Florida and you're getting a Conventional Loan, even if you qualify for 100% financing, you will need 5% DOWN, yep, FIVE PERCENT DOWN of the total purchase price due to the declining market here. OUCH! Some people have 5%, 10%, or even 20% down, which is GREAT--but not everyone does.

However, here's what I've learned re: First Time Buyer Loans in a nutshell, About VA & FHA Loans:

VA LOANS: NOT Everyone Qualifies, Of Course--You Must Be a Veteran and Have Served Our Great Country

A good source for real 100% financing is a VA (Veteran's Administration) loan. The caveat here is--you must be a Veteran. :) Also, VA loans are not just for first-time buyers--you CAN get more than one VA loan, but there are of course restrictions to that and it'll cost you a little bit more with the "funding fee"--think of that as the mortgage insurance, that's rolled into the loan. In Central Florida, you can get a VA loan for up to $417,000 AND, if you use my company's sister company, Watson Mortgage Services, you can go up to $650,000--but you have to have 25% down for the remainder, in that instance. So, you can get a pretty decent house for about $400,000 and 100% financing/no money down OR you can get an even nicer house if you have a little bit of money to put into the transaction and can get a house for up to $650,000. Not a bad deal. Oh, yeah--and you may ask the Seller to pay up to 4% (of the total purchase price of the house) toward the Buyer's closing costs, pre--paid items, and escrowed items. Oh, and the WDO (Wood-Destroying Organism) Report MUST also NOT be paid for by the Buyer; sometimes, though, it's hard to get the Seller to pay for that but the government has rules we must follow.

But Here is What is Quickly Becoming One of My Favorite Loans: FHA--And It's Not Just for First-Time Home Buyers:

So, for the rest of us who are not Veterans or are only Navy brats or ex-Air Force wives and don't have the option of a VA loan, we have the remaining options of: 1) a conventional loan (still a good option, but as of today, you probably need at least 5% down of the total purchase price of the house and not everyone has that money) or 2) an FHA (Federal Housing Administration) loan.

NO, FHA is NOT just for first-time Buyers, either. It's for someone who wishes to purchase a property up to $268,850 in Orange County (or Seminole County, too). Yeah, I know that's such a random, weird number but the government sets the rules and you can buy a fairly decent house (first-time or otherwise) for in the $260,000s, don't you think?

No, FHA is not 100% financing, either; it's actually 97%-ish, with 3% required in the transaction. That 3% can come from either the Buyer, the Seller as a seller "concession," or as "gift" fund from a family member. One of the main things that differentiates a Conventional loan from an FHA loan is what the allowable Seller-paid contributions to the transaction are. Think of that as everything that the government will allow a Seller to help with for the Buyer to get into the house. Conventional typically will only allow the Seller to contribute money/equity up to 3% of the total purchase price of the house to help the Buyer. But with FHA, they will allow up to 6%! Yep, that's TWICE what a Conventional loan will allow. Plus, it gets even better: With some First-Tiime Buyer programs, they will allow a combination of Seller contributions, Seller Gifts, and/or Family Gifts that go over-and-above that 6%ceiling. You just need to have a Seller so committed to selling, that they'll agree to participate in one of those programs.

One of the most misundertood things with both FHA and VA loans, not just the prospective Buyer but the PROPERTY ITSELF must be appropriate for this type of financing. If an agent lists the property as "As-Is" (or, the Seller won't make ANY repairs to the property), then there can probably be NO financing on the property through FHA or VA. So, if your agent is listing your house As-Is or you choose to have it listed in As-Is condition, then you are cutting out a LARGE part of the Buyers for the property. If the property is a single-family house, then it must have all warrantied items in good working condition (appliances, electrical system, plumbing systems, etc.) and the roof must have at least 2-5 years remaining life in it, depending on the loan program. If the property is a townhome-ownership (meaning it has land attached to it), then it's treated as a single family home.

If the property is a condominium ownership (meaning there is no real property/land associated with the transaction), then there are only certain condo communities that will qualify. See this link to check out if your condo complex is in an FHA-approved community or not here: https://entp.hud.gov/idapp/html/condlook.cfm

Well, now that I've got you interested, I'm off to show homes to some customers of mine who are buying a home with an FHA loan and getting $20,000 in Down Payment Assistance through Orange County. With the mortgage rates having dropped again last week, we need them to find THE house this week so we can get it under contract. TTFN! Have a great weekend. If you have any questions, please feel free to call me or visit one of my websites below.

Courtesy of:

Lisa Spalding, Watson Realty Corp.
Cell: 407-267-0304

http://www.winterparkhomefinder.com/

www.fl.living.net/Realtor/1210315

http://www.orlandoareapropertysource.com/

Here is an example (see picture) of what needs to be written for most advertising in Central Florida rather than "100%" Financing Available. With the "declining markets" here in Orange and Seminole counties (and MANY, MANY other counties in Florida--yesterday I heard that Sumter county was the ONLY county in Florida that's not considered a declining market--OUCH!), there are very few 100% financing loans out there. But they ARE available for certain properties and for certain Buyers--but your typical, non-first-time Buyer will NOT be able to get 100% financing for the most part. There!! I said it.

Let me start off by saying the I'm a real estate agent and I do NOT do loans. But I have to know enough about loans to sell real estate. Kind of a catch-22. So, I basically know enough about loans to get myself in trouble and I certainly will always tell people to talk specifically to a lender re: what loans are the best for them and definitely before I show them homes.

Here's my dilemma: I talk with a lot of people (prospective Buyers) who say that they have already spoken with a lender or loan officer and that person has qualified them for 100% financing b/c of the borrowers' good credit, etc. Sounds good, doesn't it? THEN, I have to break the news to these people that 100% financing (no down payment loans) are pretty much gone, except in certain cases. Makes me feel like a meanie (is that a word?!). But it makes me angry at the loan officer/lender that over-promised to a Buyer that they could get the 100% loan. Grrr. Can't they just say to the Buyer that they'll need 5% or more for a down payment?!

For instance, Orange County has First-Time Buyer programs that will provide up to $35,000 for a Buyer that qualifies. It's a true 100% loan and if they use an FHA loan, the 3% down that's required may come from the down payment assistance program. AND the Seller may be able to give 6% of the total purchase price towards the Buyers' closing costs, pre-paid items, and escrowed items--maybe. The caveat is making sure that the Buyer qualifies with income and debt (and ratios and a whole bunch of stuff that I can't/won't go into right now) AND that there's money in the county coffers to actually buy the house. You snooze-you lose when it comes to government money.

Seminole County has a down payment assistance program as well but they gave out so much money last year that the applicants glutted the system (they were giving up to $130,000--YES, that's not a typo!) and that money is gone for awhile... (For those of you that I was working with last year that wanted a Seminole county home and just wanted to wait one more month for prices to come down--sorry, the money is GONE. But that's another story.)

There are a few pretty cool programs like Nehemiah, NOAH, SHIP, etc. to name a very few that are specifically geared toward helping people get a home. The City of Orlando has $10,000 for city employees or for properties that fall within city limits, and again, the Buyer and/or the home must qualify. I'll try to write more about those programs later and will include hyperlinks to them.

So--back to the story---with Orange and Seminole counties being "declining markets," most investors (people who lend money) are requiring 5% down for home purchases--But they are making the percentage rates based on a 100% loan! Yikes! So, I don't just get to tell the (now UN-happy) Buyer that probably will need to cough up 5% down for the house they want--I also get to tell them what the loan officer failed to tell them--that their percentage rate they were quoted will NOT be the one they'll be getting.

So, what do you agents, loan officers, and Buyers think of all this?