August 2008

There are 10 blog entries for August 2008.

AHFA “First Step” Bond Money Program - A Piece of Cake

By: Rob Smith   Alabama Housing Finance Authority has brought back the Mortgage Revenue Bond Loan, and it’s a Piece of Cake! The First Step program is designed for low to moderate income applicants. It is a 30 year fixed rate mortgage loan with a below market interest rate and up to 100% financing for down payment and closing cost assistance.   Interest Rate: 5.875% (current issue) 30yr fixed rate loan   Programs: FHA, VA, Rural Development, and My Community Mortgage Conventional Loans. There is also newly enhanced down payment assistance available with First Step loans.   Income: Total household income and sales price of the home cannot exceed federally established income and…
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Shopping Around the Red Tape - Financing the Purchase of a Home   Financing the purchase of a home is likely to be one of the most important decisions and significant investments that most people will make in a lifetime. Shopping around can be a very critical part to ensuring that every need is meet by your financing company. Think about it, when job hunting or applying to college, people rarely set their sights on just one position or college. It’s foolish to put all of your eggs in one basket. So why put your life savings and emotional energy on a house purchase at stake by applying for a loan with only one financing company? Shop around, weigh all your options and examine carefully their programs and services. Then you can wisely choose a lender…
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Disaster Supply Kit

Check boxWater - at least 1 gallon daily per person for 3 to 7 days

Check boxFood - at least enough for 3 to 7 days
— non-perishable packaged or canned food / juices
— foods for infants or the elderly
— snack foods
— non-electric can opener
— cooking tools / fuel
— paper plates / plastic utensils

Check boxBlankets / Pillows, etc.

Check boxClothing - seasonal / rain gear/ sturdy shoes

Check boxFirst Aid Kit / Medicines / Prescription Drugs

Check boxSpecial Items - for babies and the elderly

Check boxToiletries / Hygiene items / Moisture wipes

Check boxFlashlight / Batteries

Check boxRadio - Battery operated and NOAA weather radio

Check boxTelephones - Fully charged cell phone with extra battery and a traditional (not cordless) telephone set

Check boxCash (with some small bills) and Credit Cards - Banks and ATMs may not be

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Alabama Housing Finance Authority (AHFA) Bond “Step Up” Loan Program   30 year fixed rate mortgage loan with a market interest rate  6.5% (as 8/25/2008). Qualify with FHA Guidelines. Newly enhanced down payment assistance is available with Step Up loans. This will allow up to 100% Loan to Value (LTV) on FHA loans.               Qualifying Requirements   Total household income and the sales price of the home cannot exceed income and sale price limits. Maximum Loan Amount:                                                                               $285,000.000 Maximum Household Income (Baldwin & Mobile County ):                                    $97,300 There is NO first time home buyer requirement. The homebuyers must
13,206 Views, 1 Comments.

Financing Solutions with David Reed

Family loans remain a solid down payment option

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The Federal Housing Administration (FHA) recently altered its guidelines as a result of the Economic and Housing Recovery Act of 2008. One significant change was the elimination of the seller-funded down payment assistance program. Often used by builders through non-profit organizations such as Nehemiah and Ameridream, this program enabled the seller of a property (either an individual or a builder) to “donate” an amount equal to the funds needed by a buyer for a down payment on a home when securing FHA

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Financing Solutions with David Reed

Help has arrived: U.S. Congress comes through with relief


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The Housing and Economic Recovery Act of 2008, the most sweeping housing legislation since the Depression era, was passed by the U.S. Senate and House of Representatives at the end of last month and was signed into law by President Bush. The new law addresses various aspects of the housing downturn, including assistance for homeowners who are behind on their mortgages, federal oversight of Fannie Mae and Freddie Mac, and funding for cities to buy and fix up foreclosed properties. Many of the

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Rock Creek Subdivision, 117 Cedar Pointe, Fairhope, AL

BEST PRICE IN ROCK CREEK (under $120.00 per sq. ft.)Great 4 bd.3 1/2 bath home w/ office. Master and Office downstairs,3 large bdrms with walk-in closets and 2 baths upstairs. Scored floors throughout the downstairs. Formal din.oversized garage. ALL STUCCO MAINTENANCE IS UP TO DATE WITH 5 YR. WARRANTY. (STUCCO IS CONCRETE BOARD NO EIFS) Seller also to furnish home warranty.

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Financing Solutions with David Reed

A bad wrap!

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We’ve all heard the term, “wrap around,” but what exactly does it mean? A wrap around mortgage, or simply a “wrap,” is an agreement where the buyer of a property makes monthly payments to the seller of a property, who then pays the original lender each month. This is perceived as a way of an owner “selling” a property to a buyer without the buyer obtaining conventional financing.

While a wrap can be viewed as a traditional sale, in reality it’s anything but.

All mortgage loans contain a “due on sale” clause. That means if the

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Financing Solutions with David Reed

Getting a cash gift? Lucky you!

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Getting a gift in the form of cold, hard cash to buy real estate is a wonderful thing. Gift funds are a common way parents help their kids buy a home, but there are certain requirements to follow to ensure the gift transfer goes smoothly.

What exactly is a cash gift? Technically, it is a transfer of funds from one party to another without any expectation of being paid back. This non-repayment factor is a key element because lenders can’t accurately calculate debt ratios if the gift is in fact a loan. How do lenders

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