Orlando Real Estate News

Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent.

Read more »

Blue Skys For Orlando First Time Homebuyers!

I saw the following posted by Phil Slezak of the Slezak Realty Group in Raleigh, NC posted the following on a chat board, and I had to share it. This is HUGE for all first time homebuyers. Even if you're not a first time homebuyer, but have not owned a home in the past 3 years, you may qualify as a first time homebuyer. But hurry! The $8000 tax credit is only available through November 30th, 2009.  See Phil's message below!

"GREAT NEWS!! Tax Credit Can Be Used for Down Payment Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment. Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change. "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C.. He says FHAs approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table."

Read more »

Financing Solutions with David Reed

Family loans remain a solid down payment option

Visit Reed's Website

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 financing.

As of Oct. 1 of this year, the FHA will no longer allow seller assisted down payments. Not only that, but the FHA actually increased the down payment requirement from 3 percent to 3.5 percent-a setback for those who want an FHA loan and are already having problems saving enough money to close on a home.

Fortunately, there is another financing option that can bring these folks a little closer to home: family loans. This feature is unique to  FHA. And while it's not permissible for buyers to borrow the down payment from individuals when securing any other type of mortgage, FHA's guidelines allow buyers to borrow from family members. But to obtain a family loan, borrowers must keep some specific requirements in mind: 

• The family member making the loan can be a parent, grandparent, son, daughter, stepson or stepdaughter, or a legally adopted child or foster child.
• The term of the loan cannot be less than five years.
• The FHA loan and family loan combined cannot be greater than 100 percent of the value of the home.
• The scheduled loan payments, if any,must be factored into the buyer's debt ratios.
• Funds cannot be directly or indirectly associated with the seller, or anyone in the transaction who has a financial interest in the sale.

Now let's combine the family loan with another advantage afforded by the Housing and Recovery Act of 2008: the $7,500 tax credit. If Grandpa is a likely candidate to supply a family loan, then he might want to know how he would get paid back. If the buyers are first timers and qualify for the tax credit, then Grandpa could get repaid come tax time.

Remember that lenders will want to verify the source of all funds to close the transaction, so be prepared to provide a copy of the loan agreement that spells out the terms and verifies that Grandpa has sufficient funds available to make the loan.

Sometimes when a window closes, another one opens, So while the recent Housing Recovery Act of 2008 has put the squeeze on the seller-funded down payment assistance program, a family loan can provide another avenue to closing on a home.

Written by David Reed, Texas-based mortgage banker with more than 20 years experience

and author of Mortgages 101 and Mortgage Confidential.

Looking for specific information regarding Orlando Florida real estate prices and communities?    Get Your Free Market Snapshot.

Read Also:  Orlando Florida Relocation Resource Guide

Read Also:  Business 2.0 Magazine has named Orlando the number 1 hottest market with America's best jobs.

Read Also:  Orlando Florida Facts & Resources

Read Also:  Orlando Florida City - Everything You Need To Know!

If you are wanting to sell your Seminole County or Orlando area home in the next 6 to12 months, now is the time to begin putting your plan into place, while time is still on your side. Please contact us for any real estate assistance you may need.

We're experts at putting people together with homes they love and can afford. Contact us today for information on Orlando and Seminole County real estate, Orlando & Seminole County homes for sale, Orlando & Seminole County relocation information, a free market analysis of your Orlando area or Seminole County home or statistics on homes in Orlando & Seminole County Florida or the surrounding Central Florida area, including Seminole County, Orange County, Lake County and Volusia County. We're always available to answer your questions.

 Orlando Florida Real Estate

How will Orlando's Real Estate market be impacted by the Housing and Economic Recovery Act? 

We've all seen the headlines about the "Housing and Economic Recovery Act". We've also seen many interpretations on how this will impact the Orlando Florida Real Estate market.  However, I want to make sure you understand the impact of the most important part of it...

If you or someone you know is trying to purchase a home without any funds
THIS IS THE LAST CHANCE!

Seller-Funded Down Payment Assistance programs, i.e. AMERIDREAM AND NEHEMIAH are going away effective October 1st, 2008!

We're seeing many buyers in the Orlando Real Estate market utilizing these programs to purchase a home, so it's important to get moving quickly. 

This means that FHA buyers will no longer be able to ask the sellers to pay for their down payment which is also increasing from 3% to 3.5%. For example, IF YOU WAIT, on a $200,000 sales price the buyer would need to come up with $7,000 instead of $6,000 which would be required today(3.5% of the sales price). The good news is that this amount may still be a gift from a buyer's relative. This means anyone needing this assistance (getting into a home with no money) must GET MOVING and close AS SOON AS POSSIBLE!

Call or email me TODAY to go over your options!!!!!!

"It's only a buyer's market if you're ABLE to buy!"

Read more »

Orlando Florida Real Estate Resource

Fannie Mae Announces Single National Down Payment Policy;
Replaces Policy Regarding Markets Where Home Prices are Declining

The following post was provided to us by Nate Morris of First Horizon Home Loans

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today announced a new, national policy on down payment requirements for conventional, conforming mortgages the company will purchase or guarantee. Starting June 1, 2008, Fannie Mae will accept up to 97 percent loan-to-value ratios for conventional, conforming mortgages processed through its Desktop Underwriter^® (DU^®) automated underwriting system, and 95 percent loan-to-value ratios for loans underwritten outside of DU, in all geographic locations in the United States, including Orlando Florida. The new national down payment policy will supersede the policy the company adopted in December 2007 that required higher down payments in markets where home prices are declining...such as Orlando Florida has done recently.

"As another part of our 'Keys to Recovery^TM' initiative, we are today announcing that we will be equalizing the down payment requirements for borrowers in all parts of the country, regardless of local market conditions," Marianne Sullivan, Senior Vice President, Single-Family Credit Policy and Risk Management, said. "This new down payment policy reinforces our goal to support successful home-owning, not just home-buying, as we seek to bring liquidity to all communities and help the housing market recover."

The new national down payment requirements of 3 or 5 percent will apply to loans for purchase of single-family, primary residences. Down payment requirements will vary for other occupancy, property and transaction types. The company will implement systems and operational changes over the summer to accommodate the new national policy.

Read more »