100% USDA Changing Dramatically

For many years non-veteran home buyers have enjoyed the ability of buying homes with 100% USDA loans.  Desirable neighborhoods such as Wooden Eagle Plantation with city conveniences nearby qualified for this financing.  Based on reliable sources dramatic changes are in the works.  Two different contacts have stated all is changing in Houston County soon.  One said the program will no longer be available in Houston County.  The other stated it will be available but only in the most rural areas.  As with many government decisions no one seems to know exactly what will happen.  It is evident something is going on and the results will not be good.  Either scenario will see 1,000’s of potential home buyers needing large down payments to buy their dream home. 

Wooden Eagle Plantation is the only location where high quality one story homes are being built near Warner Robins.  High end features are throughout the homes.  Each home is professionally decorated.  Everyone who visits is amazed at the quality of construction.  The neighborhood is quiet, safe and family oriented. 

We are grateful the 100% USDA program has been available to Wooden Eagle Plantation.  Many young families as well as single residents have realized home ownership through this program.  They have been welcome additions to the community.  Our typical neighbor has a good job and good credit but circumstances haven’t allowed them to accumulate a significant down payment.  Most are just getting started out in life while some have had changes in their circumstances that put them in a similar position of having little cash on hand. 

We have a few homes now that are available.  Also, there are 5 or 6 lots we will be building on.  This is all we will have to accommodate the impending demand before all areas that aren’t miles from anything will be the only option for 100% USDA financing.

If you or someone you know has thoughts of buying a new home this program could be vital to them achieving the American Dream of home ownership.  Please don't delay. 

The fall elections of 2010 appear to have restored confidence in home buying and the economy in Houston County, GA. During the Christmas season we had strong interest in Dreamworks subdivisions including actually selling a home on Christmas Eve day. It is certainly a good sign to see families accomplishing the “American Dream” of home ownership. Financing is readily available for those who have demonstrated responsibility in their financial affairs. There are excellent low down payment loan programs available. USDA has 100% financing available for Wooden Eagle. As in the past, VA still offers 100% loans for veterans.

The economic impact since 2007 has severely changed the overall supply of new homes. Currently, there is a very small group of local contractors building conventional homes. These are builders that you will see in your neighborhood. That will stop in the street and talk with you. Customers have their personal cell phone numbers. You will very likely run into them at church, in the grocery store or at a restaurant on Friday night. These are the kind of people I would want to do business with.

Dreamworks offers two price ranges of homes. Wooden Eagle is in the mid $140’s. Boulder Walk is priced in the high $120’s to mid $130’s. Look around for new homes in either of these price ranges. My friends in the real estate business tell us there is nothing that competes or compares to what we have in either of these neighborhoods.

We are in the process of completing several homes that are stunning. We have selected our best floor plans and included features that most other builders mark up as upgrades. Invest a few minutes and compare what we have. We are offering a free bonus package on all homes that is sure to please you. Check them out at www.homesbydreamworks.com.

As always, circumstances aren’t right for everyone to buy a home. However, if you believe they may be for you, delaying will probably be to your disadvantage. Interest rates are still excellent but have been inching up. Also, we have been notified by our suppliers of price increases that will likely effect future homes causing prices to go up.

Thanks for checking in with us.

100% USDA RURAL HOUSING FINANCING

Most of the legitimate 100% financing programs for non-veterans are gone with the exception of the rural housing program by USDA. During the heyday of real estate financing there was a variety of 100% financing programs for anyone who could fog a mirror. Corrupt abuse led to basic elimination of virtually all of these programs. At Dreamworks Homes, we had some very deserving customers that realized their American dream of home ownership from some of these programs but most of them are gone. Now, attention has been focused on a little known program from the USDA that still provides 100% loans.

Wooden Eagle Plantation is in the area that qualifies for the USDA 100% program. We have known this program existed for some time but haven’t pursued it since few lenders we talked to knew much about. The real estate community has discovered this as a viable alternative to credit worthy customers that still need 100% loans to buy a home. From what I know, it has some very positive aspects. Several reputable local lenders have become functional in this program and can advise buyers if they qualify. There are credit worthiness criteria as well as income parameters a buyer must fit within for loan approval. The USDA program is not intended to offset bad credit or high risk customers. It is intended to make funds available to rural areas historically dodged by lenders. Wooden Eagle is far from rural with high quality homes, sod, sprinkler, privacy fences, sidewalks, public water and sewer but it does fit within lines drawn on a map years ago therefore qualifying for the program.

We are aware of several good lenders that can advise if you qualify. They have become knowledgeable with the program and we will be glad to provide their contact information.

Time is running out on the $8,000 tax credit from the federal government. Also, it is my understanding Georgia has implemented an additional tax break for homebuyers that qualify. With all the mega waste of government money, this is still the only meaningful thing that has been done to help most of us. Don’t miss this opportunity.

Time flies and things change. Hard to believe it has been so long since the last blog. So let’s get current with things.

Feds have loaded up the $8,000 tax credit for first time buyers defined as those not owning a home in the past 3 years. The beauty of this incentive, assuming you qualify and many will, it isn’t a loan like the first incentive was. As an example, if a qualifying homebuyer is to receive a tax refund of $2,500, they will actually get $10,500. Consult your tax professional on this but it appears to be a “big time” game changer for many potential homebuyers but it is only available for a short time. Funny how things that really help folks stop about as soon as they start but the “fat cats” have an endless supply of great bailouts (hand outs is more like it).

Interest rates are incredible right now. They are bouncing around but with them from high 4’s to mid 5’s what are people waiting for? How many times have we heard people reminisce about missed opportunities? Guess what, that is what we will hear again. When “Peanut” Carter was the President, mortgage rates hit 16%. Now that’s a deal killer. Rates around 8% were once considered fantastic and refinances were rampant. Rates could get better but you can bet your sweet posterior they WILL get worse!

Believe it or not, some building materials prices are going up. We are accustomed to believing lower demand equates to lower prices. Not True! More than one material supplier has defended their price increases to me directly. Paraphrasing their remarks, “Buyers for their products have no choice. If they are buying it is due to necessity and we are going to make a profit.” How else can you justify concrete prices escalating 50% in this market? This logic impacts the home building industry where there is a choice. Concrete cost increase on a 1,500 square foot home built on a slab will be around $2,500. New homes in inventory likely reflect lower overall pricing of materials so the sales prices are lower.

If you have a stable job, your financial “house” is in order and don’t anticipate any major lifestyle changes, it may be the time to get serious about buying a home. Get comfortable with idea of feeling some risk; the only two things in life that are certain are death and taxes.

Home Buying Urgency

The average home buyer is likely unaware of two major home buying opportunities they have and are about to lose one of them. For some time, buyers have been availed with what is known as "Down Payment Assistance" programs. Like many positive programs, DPA's have been abused. Lenders have directed buyers into this program which has allowed the seller to gift the buyer with the down payment. Borrowers were loaned the remainder of the sales price. This process equated to no down payment on the buyers part. The intent was to help deserving buyers obtain home ownership. Regretfully, abuses of this program allowed unqualified buyers through the aid of inflated appraisals to obtain financing which ultimately led to accelerated levels of foreclosure. In turn, significant losses contributed to the house financing industry dismal state. Abuses of a well intended program that was highly beneficial to many deserving buyers has gone under fire. October 1, 2008 is the deadline for the DPA program. Some lenders have stated their particular policy is a loan must be "locked in" by late August in order to receive this very meaningful benefit. For example, if a prospective buyer was considering a home with a sales price of $140,000., the 3% down payment ($4,200) could be a gift. The seller would make a donation of that amount to a third party company who would give it back to the buyer. The buyer would then be approved for a 97% loan allowing the buyer to purchase a home without any money down. In less than 6 weeks, many potential home buyers will be eliminated from the buying pool due to not having a down payment and no means for them to get it. Essentially, many home buyers are about to lose a major amount of cash that they will not have to repay if they don't act soon.
On a brighter note, the President has signed into law a TAX CREDIT bill that is intended to stimulate home sales. This is a very liberal bill that will pump a staggering amount of money into the housing market through this "credit". Interested home buyers should do their own research through their financial adviser, tax consultant, etc. to understand the impact it will have on them. A basic overview of this bill is that it is intended to bring first time home buyers into the market . First time home buyers are defined as anyone who has not owned a home in the past 3 years. Income limits do apply but they are very liberal and many American taxpayers will qualify. If a single person or couple is within the income limits, they will receive $7,500 through a tax credit. Unlike previous tax credits that were only applied to a tax liability, the buyer receives $7,500 even if they do not owe taxes. For example, if a buyer is entitled to a $2, 500 refund, they receive $10,000. A buyer that owed $0 taxes would receive $7,500. This credit is in reality an interest free loan. It is to be repaid over 15 years so if a buyer does receive the entire $7,500 they will repay at the rate of $500. per year. I don't know about you but anytime an interest free loan can be obtained and repaid this painlessly, I don't see a down side.
The preceding two topics are real and should prompt anyone considering buying a home to make it an immediate priority. For those readers in the middle Georgia area, a great selection of high quality, affordable new homes can be found at http://www.homesbydreamworks.com/.
This article is written to provide the reader with topics to investigate and verify on their own. All of this information comes from sources deemed reliable. The writer is not offering any form of tax advice but advising such information exists and they should consult sources from which they have confidence to verify the opinions expressed within. Concerned parties in the middle Georgia market can go to the website and request via email local sources that can be used.