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Home buyers purchasing in the Charlotte area will be pleased to know USDA mortgages are back.
The revived Rural Development program has a few changes but first, a recap: USDA’s funding was running on fumes in April and would not be replenished until October. Last week Congress and President Obama provided $31.5 million in additional funding for the USDA program via HR 4899.
HR 4899 has modified USDA loans a bit - what’s the same and what’s different?
USDA loans still provide 100% financing for buyers purchasing homes in rural areas. The eligible areas remain the same for NC and SC as do the income caps.
What’s new is the guarantee fee. USDA’s guarantee fee is their version of mortgage insurance. The guarantee fee on purchases has increased from 2 to 3.5% and may be rolled into the loan.
If you are purchasing a home in an eligible area like Fort Mill or Waxhaw, USDA may be good an option. Also worth considering are various FHA options – such as loans with a $100 down payment, NC Housing’s down payment assistance, a gift from family, etc.
Charlotte area home buyers are fortunate to have many mortgage options. Call or email me for an expert opinion on the best mortgage program for you.
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Yesterday, the U.S. House of Representatives passed the Rural Housing Preservation and Stabilization Act of 2010 (H.R. 5017). Through this legislation, the guarantee fee in the USDA Guaranteed Rural Housing (GRH) Program may be raised to offset any need for Congressional appropriations.
Additionally, H.R. 5017 would authorize USDA Rural Development to guarantee up to $30 billion in loans in Fiscal Year 2010. This would represent an additional $18 billion in loan making authority for the remainder of this fiscal year.
Before these changes can be implemented, similar legislative action will need to occur in the U.S. Senate.
Following this action in the House, the USDA Rural Development National Office sent an announcement that stated: “Depending upon Congressional activity with the proposed legislation it is possible that the Agency may consider issuing Conditional Commitments.”
Hopefully by the end of this week everything will be in place, but as soon as I hear more I will pass it along! -
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Wondering what the latest news is on the USDA and FHA fronts? Details are still being worked out but here’s a summary of the latest developments:
Regarding USDA: “Congress is considering alternatives to cover the cost of the program going forward. They are discussing raising the guarantee fee in two ways. They are: 1) raise the upfront fee from 2% to 3.5% or 2) retain the upfront fee at 2% and establish an annual fee of .5%. It will probably be a week or two before the USDA funding issue is resolved.”Either way, having access to 100% financing can be a smart strategy for some buyers. If they find a home in an eligible area and are conscious of the loan’s associated fees, it’s a great deal.Regarding FHA’s seller concessions: “FHA has sent the Notice soliciting public comments on lower allowable seller sales concessions (from 6% to 3%) to OMB for review. This means the Notice will probably be published for comment in 30-60 days.” Accordingly, implementation will likely be delayed until late Summer (August-September) vs the original target date of June.Until this is sorted out, the additional 3% that is allowed can make a huge difference in a buyer’s down payment plan. This is a great marketing tool for potential sellers.Have questions about either program? Give me a shout and have a great week!Featured Loan Program
$100 Down FHA Repo Program
It’s now possible for buyers to purchase a HUD repo for $100!- Owner Occupied only
- FHA financing is used in conjunction with this program
- Available for 1 to 4 unit properties, as well as condominiums and manufactured homes
- Max loan limit for Charlotte MSA is $303,750 for a single family home
Have You Heard?Charlotte Magazine’s Best of the Best is available to the public now. From the Queen City’s best cooking classes to the best sketch comedy group, you will have a lot of fun browsing the broad spectrum of categories and even more fun planning your outings to test for yourself. -
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What a beautiful weekend we had! While running this weekend, my path was brightened by blooming trees and daffodils. Spring has arrived and not a moment too soon. At some point each Winter I wonder how long the cold grayness will last – yet each year Spring faithfully arrives. I’d like to see an improved economy do the same. I see the green shoots, do you?
Last week was Cunningham & Company’s annual meeting – a day packed with valuable info. One of our speakers was Brian Chappelle who is a partner of Potomac Partners – a consulting firm specializing in mortgage finance. He provided a thoughtful summary of the previous year and a fair forecast of the one to come. One surprise he had for us was that USDA expects appropriated funds to arrive so they can carry on business as usual. Quite a different outlook than the one indicated by the bulletin issued the week prior. I shall keep you posted on how this develops but it appears USDA program availability is certainly not as dire as earlier believed.
Other highlights were:
- Rates may stay close to current levels once the Fed wraps up their MBS purchase program
- Defaults and foreclosures are peaking, this sector should slowly improve
- HUD, Fannie and Freddie are very aware how important the housing market is to our greater economic recovery. They are committed to providing lending that helps the housing market, not stifle it.While in Greensboro we also celebrated Cunningham & Company’s 20th Anniversary. We’ve seen a variety of housing markets with the inevitable program and guideline changes. Through it all we exhibit the strength, integrity and expertise required to provide proven solutions for our home owners. My big take away from this week? Changes will come but in them opportunities appear.
As a final note I’d like to thank you for the opportunities and referrals you’ve given me. At our meeting I was recognized as a repeat President’s Circle winner and the third top producer in the company. It’s a blessing that my work brings me so much joy and satisfaction – I appreciate you for making that possible.
Featured Program
Good Neighbor Next Door
This specialized FHA program allows teachers and first responders to purchase a home with a substantial incentive in the form of a discount of 50% off the list price of the home.
- Eligible borrowers are law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians
- Borrower must commit to live in the home for 36 months
- Eligible Single Family homes are located in designated revitalization areas
Have You Heard?
Big news this week: Twelve Charlotte libraries closing. Sigh. Our branch is among them. My daughter devours the stacks of books I bring home to feed her avid reading habit that equals mine. What will we do? We can (and will) go to other branches but the news is certainly not ideal. On a positive note, it is heartwarming to see the outpouring of support by Mecklenburg residents. It is with much hope that some closings can be staved off and a better long term solution found. Want to help? Donate Here
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Friday night, I had sushi on the brain for dinner. There are two good places near my home – one delivers and one doesn’t. Because I was ready to settle in, I opted for the former. Unfortunately, when I called and said ‘delivery order’ their response was ‘no thank you, we’re too busy’. Pardon?Then it hit me – I’d broken my rule to select businesses based on quality and service not perceived cost or convenience. I immediately placed an order at the other restaurant happily expecting what I really wanted in the first place. Not only was my dinner delicious but the hostess offered a drink while I waited. So I got what I wanted and a little extra. A girl could get used to this.It reminded me of how we do business at Cunningham & Company. Sure, we offer a wide spectrum of lending programs and we’re competitive with the ‘big boys’ but we do more than meet the standard. We’re dedicated to creating Raving Fans. Simply put, we believe in giving clients what they want and then going the extra mile to make their experience with us effortless and remarkable.Sometimes clients will opt for one of the big banks because of perceived cost or convenience. This market has helped many realize it’s more than just price. (And frankly, if we weren’t on par with the banks, we wouldn’t still be here.) And as for convenience, we serve clients in the medium they prefer – whether it’s via email, phone, fax or in person. What could be easier than that? Where we really shine and why clients return to us time after time, is that we raise the customer service bar.If you or your client believes that ‘good enough’ isn’t good enough, call me. It would be my pleasure to demonstrate our exceptional Raving Fan service. We’ll even offer a drink while you wait.Featured Loan Program
USDA
Cunningham & Company offers USDA loans to help low-income individuals or households purchase homes in rural areas.- 100% Financing with no Mortgage Insurance
- No Loan Limit
- Property and borrower’s income must meet program guidelines
- May be used for new or existing properties
- Areas in and around the Charlotte MSA are eligible
Have You Heard?
Ever wonder why people don’t always agree with you? Or why some people are more motivated than others? This simple 30 question test will give you a custom “Motivational DNA” synopsis. Now you’ll know how to tap into your innate strengths as well as bring out the best in others.Enjoy this info? Would you like to receive Monday Money Matters in your inbox? Subscribe here!
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With new home construction on an upswing, buyers are still out in full force. One loan that’s certainly grabbed buyers’ attention this year is USDA. These loans are attractive because similar to VA loans, they provide 100% financing. Also like VA loans, there are specific guidelines germane to USDA loans.
USDA borrowers cannot own any other properties, their income must be within guideline limits and the property must be located in an eligible area. Another positive feature of USDA loans is no monthly mortgage insurance which results in a lower monthly payment. USDA covers their mortgage insurance needs with a 2% guarantee fee that is rolled into the total loan amount.
An exciting development for Cunningham & Company is we now allow home repairs and closing costs to be included in the loan amount up to the property’s appraised value. What a great option for a buyer purchasing a short sale or a foreclosure. So check out the eligibility map – you may be surprised on what areas qualify – and if you have questions, ask me!
Featured Loan Program
USDA
Cunningham & Company offers USDA loans to help individuals or households purchase homes in rural areas.
- 100% Financing with no Mortgage Insurance
- No Loan Limit
- Property and borrower’s income must meet program guidelines
- May be used for new or existing properties
- Areas in and around the Charlotte MSA are eligible
Have you heard?
Have you heard about Charlotte Trolley’s ‘History on Call’? If you’ve ever wanted to know more about Charlotte, you can learn about the city with a simple phone call or click on the computer. This free service provides audio dramas that will teach you some interesting facts and even allows you to call in with your own personal stories that may one day be shared with others. Check it out!
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The housing marketing has certainly taken it on the chin this year; however, the condo market has had it even harder – several black eyes and maybe a sucker punch or two. Part of what made the condo market tough is how tight lending and mortgage insurance guidelines have become. As Benjamin Franklin said “when the well is dry, we learn the worth of water” - folks, it’s about to rain changes for condo lending, so get ready.
Starting February 1st the FHA condo changes may be just what this market needs. ‘Spot approvals’ as we know them will go away and in its place will be a centralized list of approved HUD condo projects. The FHA concentration within a project is increasing – from 10% to 50%, and in some cases up to 100%. Presolds in new projects are being reduced to 30% as well. Many speculate that these changes will breathe new life into the condo market and I certainly agree.
Some of the condo questions I hear are buyers asking ‘what type of financing is available to me?’ and REALTORS asking ‘how can I best market this condo?’ If you’re considering purchasing or listing a condo, please review this handy checklistto get an overview of current condo guidelines and as always, ask any questions you have.
In this holiday shortened week there are seven economic reports that are likely to impact rates. We should see the most movement on Tuesday and Wednesday.
Featured Loan Program
USDA
USDA has changed how it calculates the maximum income limits. What this means is that families who previously made too much to qualify for USDA now may! Cunningham & Company offers USDA loans to help low-income individuals or households purchase homes.
- 100% Financing with no Mortgage Insurance
- No Loan Limit
- Property and borrower’s income must meet program guidelines
- May be used for new or existing properties
- Areas in and around the Charlotte MSA are eligible
Have you heard?
Have you heard that Charlotte’s culinary extravaganza – aka Charlotte Restaurant Week – will be back in January? Rumor has it that Charlotte’s best restaurants will offer the signature 3-course, $30/person prix fixe dinner January 22nd – 31st. Website with details including list of restaurants goes live New Years Day. Bon appetit!
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