What Buyers Need to Know to Get a Loan

Credit score primer: What buyers need to know to get a loanDALLAS – Dec. 5, 2007 – In the wake of the credit crisis, lenders have become much pickier about whom they lend to. Here are some basic facts that will help potential borrowers understand what they face.The measurement that most lenders use to assess applicants’ credit risk is the FICO score developed by Fair Isaac Corp. The score ranges from 300 to 850.There’s not one FICO score. Buyers have three: one for each of the three credit bureaus, Experian, TransUnion and Equifax.Each credit score is based on information the credit bureau keeps on file. Since credit bureaus don’t share their data with one another, the three FICO scores may differ, sometimes by as much as 100 points.The components of a FICO score are:• Payment history: 35 percent• Amounts owed: 30 percent• Length of credit history: 15 percent• New credit: 10 percent• Types of credit used: 10 percentA consumer with a 580 credit score might qualify under FHA requirements, but, generally, in order to qualify for a prime loan, a borrower must have a credit score above 620 for a conventional loan at all, and above 720 for a loan at terms and rates most borrowers would consider desirable.Source: The Dallas Morning News, Pamela Yip (12/03/07)© Copyright 2007 INFORMATION, INC. Bethesda, MD

Yes, you can still buy a home for 0% Down!

Using the Nehemiah Program, home sellers can
legally gift buyers with up to 6% of the final contract price for FHA Loans. That 6% can go towards up to a 3% downpayment, closing costs, loan points and more. The maximum FHA Loan amount in St. Lucie County and Martin County is $267,640.00.



Thanks to The Nehemiah Program ®, more than 230,000 individuals and families now own homes.
Let us help you achieve the American dream:
Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs
Gift funds for both first time and repeat homebuyers
(Nehemiah charges a nominal processing fee that may be paid by the seller, homebuyer, or lender.)
Gift funds for both new construction and resale homes
No repayment of gift money
No income or asset limits
No geographical restrictions
If you are a qualified homebuyer using an eligible loan program, such as an FHA loan, you may be able to move into your new home with zero cash out of pocket! The Nehemiah Program can help you become a homeowner!

www.getdownpayment.com

30-Year Rates Are Lowest In More Than Two Years

McLean, VA –Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.10 percent with an average 0.5 point for the week ending November 29, 2007, down from last week when it averaged 6.20 percent as well. Last year at this time, the 30-year FRM averaged 6.14 percent. The 30-year FRM has not been lower since the week ending October 13, 2005, when it averaged 6.03 percent.
“Interest rates for U.S. Treasury securities have been drifting lower this month over market concerns that the housing slump and stress in the credit markets could slow future economic growth,” said Frank Nothaft, Freddie Mac vice president and chief economist. “As a result, interest rates for fixed-rate mortgages had room to slip lower this week. In addition to these concerns, the Federal Reserve also noted in its November 28th Beige Book that the glut of available homes continued, keeping downward pressure on prices and construction activity.
“Add to this the S&P/Case-Shiller® 20-composite index showing house prices falling 4.95 percent in the 12-months ending September, with 15 of the metropolitan areas showing annual declines and the overall picture does, indeed, appear glum with no immediate relief in sight.”

-November 29, 2007 www.FreddieMac.com

Letter From Charlie Crist, Mortgage Rates and FHA Loans

Attention Savvy Investors

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3 Bedroom/3.5 Bath/ 2 Car Garage

Features: Deeded Dock, Ocean Access, Elevator, 3 Balconies,

Plenty of Upgrades and Priced to Sell at $475,000.00

Located in Downtown Stuart

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LONG-TERM MORTGAGE RATES EASE SLIGHTLY
Short-Term Rates Down In Response To Fed's Recent Actions
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.24 percent with an average 0.4 point for the week ending November 8, 2007, down from last week when it averaged 6.26 percent. Last year at this time, the 30-year FRM averaged 6.33 percent. The 30-year FRM has not been this low since the week ending May 17, 2007, when it averaged 6.21 percent.
For More Information Click Here
-November 8, 2007 www.FreddieMac.com

Letter from Charlie Crist Concerning Tax Reform

Dear Friends,

Today is a great day for Florida’s homeowners. The great Florida Legislature has given the people the opportunity to create a historic $12 billion property-tax cut. This tax relief is in addition to the $15 billion tax cut passed earlier this summer. Together, they add up to $27 billion in property-tax cuts over five years. I believe Florida’s homeowners will agree – that’s good news for Floridians.

Lt. Governor Kottkamp and I visited today with homeowners who will benefit from this additional property tax relief. In Tallahassee, Jacksonville, Orlando and Port St. Lucie, we heard how people have felt locked in their homes because of skyrocketing property taxes. This is the same message I have heard as I travel throughout the state.

All over this state, retirees and “empty nesters” have been reluctant to buy smaller homes. Growing families have held back on buying bigger homes. People have lost the freedom to make the most basic choices about their lives because of high property taxes. Now, with this tax cut, if you want to move to another home, you will be able to take your tax savings with you. The transfer, or portability, of Save Our Homes will cut the assessed value of your new homestead – in many cases, by about half, depending on how long you have lived in your current home.
In addition to helping homeowners who want to move, others will benefit, too. Doubling the homestead exemption will help everyone. Businesses will receive a new $25,000 exemption for tangible personal property, which will create an even better bottom line for our state. People who own second homes will be able to better predict property-tax costs because their property taxes will never increase by more than 10 percent.

The tax-cut package put together by the Legislature is a good one that will help jump start Florida’s housing market and make Florida even more business friendly. Their work ensures that you – the people of Florida – will have the opportunity to lower property taxes even more. You have the opportunity to vote three months from today – on January 29th. Now, the choice is up to you.

Usually when we hold a signing ceremony, a bill becomes law. However, the legislation I signed today is different. Instead of creating a law, it gives you the choice to cut property taxes. I congratulate the Legislature for their bold leadership and determination to pass property-tax cuts. But what they have done represents only the first step. The power to cut property taxes is now in your hands. Today is a great day for you, people of Florida – our bosses, but your approval of additional tax cuts could make January 29th an even better day.

May God bless you and the great state of Florida,

Charlie Crist

Attention Buyers:
How Getting a FHA Loan Now Can Help You Sell in the Future

An FHA Loan is a government insured loan used to help you buy a house. It is projected that over the next few years mortgage rates are going to start going up again. An FHA Loan is a great tool because the loan is assumable. That means when you decide to sell your home in the future, the balance of the mortgage is able to be taken over by the buyer.

So lets say a few years down the line that mortgage rates go up to 8 or 9 Percent and you want to sell your home. If your rate is locked in at this weeks average 6.24% the buyer can assume the balance of your mortgage and take a second loan for the remainder of the sale price at the going market rate. If the house next door is exactly the same and is offered for the same price, but you are offering an assumable loan, (that could save the buyer possibly over $100 a month or more on their payment) then your home will certainly look more attractive and sell first. Please feel free to call me with any questions.


Click Here to learn more about FHA Loans

Tax Reform Update

Tax Reform Update

I would like to take this opportunity to update everyone on the tax amendment that will be on the ballot in the primary elections on January 29, 2008. The amendment needs to be passed by a 60% vote, so if you are registered to vote in Florida, make it a point to get out there and voice your opinion.

It is my opinion that this will be a great change for Florida’s economy and the real estate market. The major points, in red below, will encourage those wanting to move to Florida and those who already live here, but have stayed put due to the tax increase they would face by moving, to finally make a move without facing high taxes. This amendment is certainly a step in the right direction.



Florida Legislature passes property tax reform in time for January ballot



TALLAHASSEE, Fla. – Oct. 30, 2007 – It’s voters’ turn: The Florida Legislature passed property tax reform and a proposed amendment will appear on the January ballot. The amendment offers moderate relief for homeowners and slight relief for commercial property, but it does not go as far as an earlier House proposal. To become law, the proposal must still receive 60 percent of the votes in the Jan. 29, 2008, election.The vote went down to the wire. Had the House and Senate not agreed by today, it would have been too late to get it on the January ballot, postponing any kind of tax relief.“We are pleased the Legislature understood that missing the deadline for a January vote of the people was not an option,” says the Florida Association of Realtors (FAR) President Nancy Riley. “Tax reform is necessary to stimulate our economy. To put tax relief off to November 2008 would have been devastating to our state.”The discussion included a number of considerations and not all made it into the final version. A complete breakdown of the individual considerations and how they fared in the final tax proposal is available in chart format at www.floridarelators.org under “What’s New.” Highlights of the passed legislation include:• Double the homestead exemption, but only for homes valued at more than $75,000 and not for school taxes• Allow owners of homestead property to transfer up to $500,000 in Save Our Homes benefits, including school taxes, to a new home• Impose a 10 percent assessment cap on non-homestead property for the next 10 years. The cap does not apply to school taxes. After 10 years, voters will have the option to restore the 10 percent cap• Allow businesses to exempt $25,000 in taxes paid on computers, office equipment and other personal propertyWith the deadline at hand, lawmakers had to quickly agree, and the final package represents a product that everyone could accept. The House, however, emphasized repeatedly that it would continue to work on property tax reform during the Legislature’s regular session next year, an opinion echoed by FAR.While in favor of portability, FAR worries about including a portability provision without also adding some kind of relief for first-time homebuyers, a move promoted heavily but one that did not make it into the final version. Without any kind of first-time homebuyer protection, the U.S. constitution’s “right to travel” provision could be the basis of a court challenge.© 2007 FLORIDA ASSOCIATION OF REALTORS®

Welcome to My Blog!

It is my goal to provide my readers with information about buying and selling real estate on Florida's Treasure Coast in simple and enjoyable terms. I would also like to include information about some of my favorite places to visit and things to do and experiences I have had in this little slice of heaven. Please stay tuned for my future posts, as I hope to give you knowledge and entertainment at the same time.