USDA loan programs

the USDA 100% home loan program is available to buyer looking to purchase a primary home. the program does shave geographical area limitation; no problem, i have access to online site that will determine availability. the rates are same or better than FHA (3.5% required down payment) however, once you remove the monthly PMI premium (USDA does not have month PMI) the USDA loan is usually a better payment combined with no money down. in these times, i feel it is better for a family to have liquid money on hand for life situation that an investment into home that will have limit access to those funds if emergency were to effect them.

thanks for reading.

your local loan pro, 530-903-4334

lower rates!

Great news!
interest rates have been pushed down. a little volatility remains but, we have come full circle from 1 month ago.

keep in mind great 1st time buyer programs exist -

USDA Rural housing - no money down
FHA - small 3.5% down payment
VA - if qualified Veteran - no money down
95% conventional in CA - MI restrictions - great program.


your local mortgage pro.

Justin Kennedy
530-903-4334

interest rate improvement -

we have broken some major barriers.
with allot of negative economic news last week and this week, i felt it was only a matter of time. lets see if we can hold rates steady for the buyers and homeowners waiting for that perfect rate to place a lock.

Justin

USDA Rural Housing

if you are considering purchasing a home and have little down payment; if you are like me, you want to keep you savings liquid, the USDA Rural Housing program is a great option. this program allows 100% financing on a stable 30 year fixed rate. the program does have geographical area limits and income limits based per county.

the benefit explained:

1. No down payments.
2. Repairs maybe financed, if contract price is below appraised value.
3. No monthly mortgage insurance.
4. low guarantee fee of 2% compared to VA's funding fee of 2.15% or 3.3%.
5. low, low fixed rates.

if you have interest in the USDA Rural Housing loan program,

contact me directly 530-903-4334

your local mortgage pro,

Justin Kennedy

less weak than expected.

Home sales were report "less weak than expected" this morning. Contrary to expectations, the rapid decline of home prices showed signs of stabilization in April, according to the Case-Shiller Home Price Index, the most influential recorder of prices. Could this be a sign of the bottom of real estate , maybe or maybe not. One factor to take into consideration is amount of NOD's(notice of default) or NTS's( notice of trusties sale) www.forclosure.com is great source to view the amount properties in default. granted, a portion of these homes will not be returned to investor due to loan modifications and successful workout options.
in the past months home shopping for buyer looking in the $100,000 - 350,000 purchase price range has been very difficult and stressful. multiple offers, sellers not responding to offers, please keep in mind that you are taking advantage of a combination of two great factors low, low interest rates and bottom end home value. keep your spirits up, have patience, lean on your professional real estate agent or loan broker for confidence. we are here to help!

your local mortgage pro,

Justin.

FHA 203k streamline loans "mini-rehab".

Foreclosure and bank owned properties are dominating today's home sales.
it is fair to say FHA loans have been the go to loan program for financing for 1st time and non first time buyers. problem we are facing is many of the Foreclosed and Bank owned homes are left in a distressed state by the former owners or tenants. FHA requires that properties meet a MPR (minimum property requirement); these requirements can vary from health and safety to cosmetic items that are not allowed by the FHA underwriter. with that in mind, FHA offers 203k Streamline "mini -rehab" loan. this loan program offers that same flexibility as a traditional FHA loan including the low 3.5% down payment; where the 203k streamline differ is the key to the whole program. the 203k streamline loan program allows the buyer/homeowners to finance up to 35,000 of uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. keep in mind, the 203k Streamline is for primary homes only.

how does the process work, example?

1. agent locates a distressed home of your liking that is listed for sale at 100,000

2. comparable homes in move in ready, turn key condition are selling for 140,000.

3. you will need to have a contractor bid the purposed work to be completed.

4. your and your licensed real estate agent purpose offer of 100,000 to seller.

5. once offer is accept, FHA appraiser appraised properties in "subject to" condition.

6. loan is approved with lender and closes as normal transaction.

7. an escrow account is formed for the disbursement of draws.

8. repairs. improvements are completed, property is inspected.

9. final draw is dispersed.

what is allowed to be included in the improvement or repairs?

Repair/Replacement of roofs, gutters and downspouts
Repair/Replacement/upgrade of existing HVAC systems
Repair/Replacement/upgrade of plumbing and electrical systems
Repair/Replacement of flooring
Minor remodeling, such as kitchens, which does not involve structural repairs
Painting, both exterior and interior
Weatherization, including storm windows and doors, insulation, weather stripping, etc.
Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
Accessibility improvements for persons with disabilities
Lead-based paint stabilization or abatement of lead-based paint hazards
Repair/replace/add exterior decks, patios, porches
Basement finishing and remodeling, which does not involve structural repairs
Basement waterproofing
Window and door replacements and exterior wall re-siding
Septic system and/or well repair or replacement

the 203k streamline is great program; in addition FHA offers a full 203k that allows improvements to a home for which plans, consultants, engineers and/or architects are required.


your local mortgage pro.

Justin Kennedy
530-903-4334