“Mid-South Real Estate Opportunities-Locating Free Money and Borrowed Assistance” 11-16-13
http://mortgageloansblog.com/audio-podcasts/
Highlights from the podcast:
Questions answered by Debbie Reeves, Tennessee Housing Development Agency
1. Who or what is THDA
2. What mortgage programs does THDA offer?
3. What are the advantages to using a THDA mortgage?
4. If I get a first and a second mortgage will I have two payments?
5. Is THDA the lender on these mortgage programs?
6. What are the THDA criteria that THDA requires
7. Can a borrower get the loan for the downpayment only?
8. Will the rate on the first mortgage increase if I get a second mortgage for DPA?
9. Do you have a special program for military or veterans?
Questions answered by JoAnn Hughes, realtor with Crye Leike:
How is the Market?
Should I purchase a foreclosure?
What upfront costs are involved in purchasing a home?
How do I know how much to offer on a home or what the home is worth?
Is there any other assistance available for home buyers?
Keep My Tennessee Home: Why do I need a Realtor to assist me? Can I not just use the seller’s agent?
How do I find a reputable Buyer’s Agent?
Questions answered by Jo Garner, Evolve Bank:
- What are some of the opportunities your mortgage customers are seeing right now in the real estate market ?
- You have closed loans over many years for your customers using THDA funds. What is the biggest advantage you see specificly for YOUR clients using THDA funds?
Good morning, Memphis and IHEART listeners around the country. Welcome to the Real Estate Mortgage Shoppe program. I’m your host, Jo Garner, mortgage professional with Evolve Bank and Trust. Around the coffee table this morning we have Debbie Reeves of Tennessee Housing Development Agency. Debbie Reeves, I have said for years that you are the first-time homebuyers’ champion. Tell us a little about yourself and what Tennessee Housing Development Agency does for homebuyers and homeowners.
We have a Lifetime member of the Crye-Leike Multi-Million Dollar Club, Crye-Leike Circle of Excellence in 2012, board member for Tennessee Housing Development Agency for our area. A lady with MANY real estate designations –JoAnn Hughes, it is great to have you with us today to give us some insight into our local real estate market.
Aubrey Kobernus was in the studio. Aubrey is the liason for West Tennessee for THDA.
(Jo) Our general topic today is “Mid-South Real Estate Opportunites—Locating Free Money and Borrowed Assistance.” But if you have a question, a comment or even a quick personal story regarding your real estate or home financing, call us on the air at (901) 535-WREC. That number again is (901) 535 9732.
Speaking of opportunities—mortgage rates have been reacting favorably to Janet Yellen, the upcoming Fed chief. Rates fell back to October levels as Ms. Yellen continued to insure investors that she is going to keep buying mortgage-backed securities. Rates on the conventional 30 year fixed rate are between 4.25% and 4.375% with no points. You can get the rate a lot lower if you don’t mind paying a partial point or so. The FHA and VA 30 year rate is hanging around 4.25% or so with no points. The 15 yr rates are around 3.375. Talk about OPPORTUNITY!
My experienced mortgage assistant, Susan Belew and I have been able to save our refinance customers HUNDREDS of dollars a month on their mortgage payments or tens of THOUSANDS of dollars shortening the term on their mortgages. Some of these refinance deals do not even require an appraisal. We have customers who are switching from a small rental to a bigger, better house with many more amenities to enjoy—and paying less per month because of the low interest rates. Call me and let’s compare YOUR numbers. You can call me on the air now at 901 535 WREC or call me directly off the air at 901 482-0354. Or catch me on my blog www.mortgageloansblog.com .
One of the commentators on Bloomberg radio yesterday was complaining that his crystal ball—the long-term crystal ball AND the short term one are broken. That leaves us as individual homeowners and homebuyers to decide what works for us. We closed on a home purchase loan for a young couple last week who have a 1 year old daughter and expecting another child soon. They had been renting and wanted the stability of a bigger home with a low payment. They didn’t want to pay a lot down and the house was in a location in the county that qualified for the 100% USDA loan. They got to move into their new home last weekend and didn’t have to bring a cent to closing. For them the decision to buy was easy since we compared the price of the home they wanted and the lower than normal interest rates.
We have helped other customers close on homes that helped them get their kids into the schools they wanted, or got them closer to family who could assist them or closer to their jobs. Tennessee Housing Development Agency has come to the rescue several times for my customers who were short on funds, or customers who wanted the THDA GREAT Rates program to keep their monthly payments lower.
(Jo) The two most common barriers to owning a home are credit issues and lack of funds to close. Susan Belew, my assistant and I are trained on the Credit Simulator products. If you need to boost your credit scores quickly and with the least amount of investment, call me directly at (901) 482 0354. If you have GOOD credit scores but you’re self-employed and someone has told you your income is not enough to qualify for the mortgage, GIVE ME A CALL at 901 482 0354. Susan and I are very good at finding income for you in the back pages of your tax returns. Let’s talk about how to make YOUR transaction work. You can find me at www.mortgageloansblog.com
We are talking about whatever real estate solution or challenge or situation you want to discuss. Give us a call on the air at 901 535 WREC. That number again is 901 535-9732. Our general topic today is “Mid-South Real Estate Opportunities-Locating Free Money and Borrowed Assistance.” If you are short on funds to close, we have JoAnn Hughes of Crye-Leike and Debbie Reeves of Tennessee Housing Development Agency here to offer several solutions for ways to get into your home using Free Money or Borrowed Assistance. Debbie how can you help someone be able to realize their dream of homeownership ? <Debbie launches her topic>
Questions for 2nd and 3rd segments of show: Questions answered by Debbie Reeves, Tennessee Housing Development Agency:
1. Who or what is THDA? THDA is a state agency that was created by the legislature 40 yrs. ago to help people have safe, sound, affordable housing.
2. What mortgage programs does THDA offer? A Great Choice 1st mtg at 4.45% interest and a Great Choice Plus 2nd mtg. at 0% interest to use for downpayment, cc, or prepaids.
3. What are the advantages to using a THDA mortgage? We like to think that THDA levels the playing field between the haves and the have nots. A borrower gets the same pricing on our loans…whether their credit score is 850 or 620…which is our minimum. And, most first-time homebuyers don’t have their upfront money. That is where our 2nd mortgage figured on 4% of the Sales Price allows them the financial capability to pay for downpayment or closing costs AT NO INTEREST.
4. If I get a first and a second mortgage will I have two payments? You will repay principal and interest on the Great Choice 1st and pay only principal on the Great Choice Plus. Billing will come in one envelope, and both payments can be made with one check.
5. Is THDA the lender on these mortgage programs? THDA is the investor. One or our approved lenders, such as Evolve Mortgage, will take your application and approve you for a FHA, VA, RD or Conventional loan. Then if your loan meets THDA criteria, we purchase your loan from the lender.
6. What are the THDA criteria that THDA requires? Lenders, such as Evolve Mortgage, who initially approve your loan also know the THDA guidelines for you to qualify for our loans. A knowledgeable lender makes it very simple for you.
THERE ARE ONLY 5 TAX CODE REQUIREMENTS
1. Borrower must be a first-time homebuyer…NOT HAVE OWNED THEIR PRINCIPAL RESIDENCE IN THE LAST 3 YRS. OR BE A VETERAN OR SPOUSE OF A VETERAN OR BE PURCHASING PROPERTY THAT IS IN A TARGETED COUNTY OR TARGETED CENSUS TRACT.
2. Household Income limits for Shelby County are $68,348 for 1-2 and $78,600 for 3 or more
3. Sales Price Limits $240,000 for Shelby, but $275,000 for Fayette and Tipton – counties which also have higher income limits
4. Single Family Residence – Condos, PUDs, townhomes included as well as your regular house on a subdivision lot.
5. Owner-occupied property within 60 days of closing a remains owner-occupied for the live of the loan.
7. Can a borrower get the loan for the downpayment only? No. The Great Choice Plus is only available to borrower getting the Great Choice 1st mortgage through THDA.
8. Will the rate on the first mortgage increase if I get a second mortgage for DPA? No. Unlike our older programs, interest rate will not increase if DPA is requested.
9. Do you have a special program for military or veterans?
Questions answered by JoAnn Hughes, realtor with Crye Leike:
How is the Market?
I get asked that question quite frequently. The market is definitely improving for sellers and for buyers the market is great. Interest rates are still extremely low and with the down-payment assistance programs available for qualified buyers, it doesn’t make a lot of sense to rent if you can qualify to purchase a home. According to the latest statistics from the Memphis Area Association of Realtors, homes sales for last month were up 3.7% over October of 2012. In October there were 372 home that were on the market 30 days or less. That tells me home buyers are taking advantage of the lower interest rates.
Should I purchase a foreclosure?
Foreclosures can absolutely be a possibility. Oftentimes, though, it depends on the condition of the foreclosed property and if you have the financial ability to make repairs. However, I do find that in today’s market it is often more economical to purchase an existing home that is not in foreclosure. Many sellers are willing to assist a home buyer with closing costs and, if required, make repairs at no cost to the buyer.
What upfront costs are involved in purchasing a home?
There are some initial costs you should be aware of when purchasing a home. As a buyer’s agent, you do not pay me anything to represent you. The first expense will be earnest money that is held by the company who has the property listed. That money comes back to you at closing. If you make an offer on a home and it is accepted, you will want to have a home inspection conducted by a licensed home inspector to find out what items in the home may need attention, such as electrical outlets that do not work, heating or air conditioning units that need cleaning or repairing, roofing issues, etc. The seller can be asked to correct problems, if any, that are found during the home inspection. Another expense is a termite clearance letter. If you are getting a loan, the lender will require proof that the property has no active termite infestation. There may be other items the lender requires to be paid outside of closing such as money for a credit report or an appraisal on the home.
How do I know how much to offer on a home or what the home is worth?
That’s a good question. A home is worth what you are willing to pay for it. However, that is where the knowledge of a good buyer’s agent is extremely important. As a Realtor and member of the Memphis Area Association of Realtors, we have access to data that can help you determine if the price a property is listed for is a within a fair market value range. We will share with you information for homes currently on the market in the area, as well as those that are under contract and the ones that have recently sold. By comparing features of the home you are considering with those that have recently sold, you can make an intelligent decision on how much you are willing to offer. Once the offer is made, the skills of a good buyer’s agent will help in negotiating a price that is acceptable to both the seller and the buyer.
Is there any other assistance available for home buyers?
Of course there is the THDA down-payment assistance for qualified buyers we’ve been discussing.
Another program I am aware of is the Helping Homebuyers Program. As a part of the City of Memphis and Shelby County’s settlement with Wells Fargo Bank, Wells Fargo provided up to $4.5 million in down payment assistance to residents of both the City and the County. This program helps qualified buyers receive up to $15,000 for closing costs and down payment assistance on the purchase of a new or existing home. United Housing was chosen by the City of Memphis and Shelby County to administer this down payment assistance program. Applications for the program were discontinued for a while because United Housing was running close to the $4.5 million dollar settlement. They will be reopening the program this Monday, November 18. There is approximately $480,000 that can be obligated to the program which equates to assisting 32 home buyers. It will be on a first come, first serve basis so I’m sure these funds will go quickly. If you think you may qualify for the assistance, have your loan officer check with United Housing. Debbie, am I correct in stating that this program can be used in addition to THDA’s down payment assistance?
Keep My Tennessee Home: HHF is a foreclosure prevention program that includes counseling and mortgage assistance for Tennessee’s unemployed and under-employed. Homeowners who qualify for financial assistance may receive up to $40,000 or 36 months of monthly mortgage payments and/or funds to pay past due mortgage payments to bring the mortgage current; these funds are paid directly to the loan servicer/lender if you’ve lost 30% of your income.
Why do I need a Realtor to assist me? Can I not just use the seller’s agent?
That is a decision a buyer has to make. There is no cost to a buyer to have a Realtor representing them and looking out for their interests. The seller’s agent has a legal document – the listing agreement – in which he or she has committed to protecting the interest of the seller and obtaining the most dollars possible for their property. In other words, they are representing the seller’s and not the buyer’s best interest. When you hire a reputable buyer’s agent, you have at no cost to you, someone to guide you throughout the home buying experience. Some things your agent will handle for you include finding and making appointments to see properties that meet your criteria, helping you determine the offer price, assisting in writing an offer, negotiating the offer, making sure timelines indicated in the purchase and sales agreement are met, providing names of qualified home inspectors, working with your loan officer and closing attorney to make sure they have documentation needed for a smooth transaction, plus many Realtors will attend the closing with you.
How do I find a reputable Buyer’s Agent?
If I were trying to find someone to represent m e, I think the first thing I would do is ask friends and business associates who they used to purchase their home and how satisfied they were with the service. Don’t be afraid to ask questions. How long have you been a Realtor? How many buyers have you assisted? Do you belong to the Memphis Area Association of Realtors? What designations do you have? How familiar are you with down payment assistance programs? Can you give me some references? Ask to come to their office to meet them in person. You can ask the questions above on the phone or in person when you meet them.
Questions answered by Jo Garner, Evolve Bank:
- What are some of the opportunities your mortgage customers are seeing right now in the real estate market ?
Yesterday one of my customers came into my office with her elementary school aged son and daughter. She was SO excited because her offer was finally accepted. She has been shopping for a house for about a year and could never find the right house in the neighborhood she wanted for the financing terms she needed. She found a realtor who was dedicated to help her and with the rates dropping over the last few days, the monthly payment dropped to within her comfort level. She told me that the location of the house will allow her children to attend a good school so that she can save thousands by not having to pay for private tuition.
In most cases you’re going to live with the financing on the house as long as you have the house—unless you want to sit down with me and make a plan to make your mortgage go away faster. Rates in the 3’s and 4’s will save you several hundred dollars per month compared to what you would have saved buying the same priced house a few years ago. Even though values are starting to creep back up again, you can still find houses that you can buy below the price of what they sold for in the early to mid 2000’s. The perfect storm— low prices on bigger homes at historic low interest rates. Ching! Ching!
- You have closed loans over many years for your customers using THDA funds. What is the biggest advantage you see specificly for YOUR clients using THDA funds?
The two biggest obstacles to owning a home are #1 Credit issues which my Credit Simulator can help overcome this one with a determined customer and over time. But the #2 obstacle to homeownership is LACK OF FUNDS TO CLOSE on a home.
Debbie Reeves, the first-time homebuyers champion with Tennessee Housing Development Agency, is a big part of helping this generation and other first-time homebuyers own their own home and start the wealth-building process. The biggest advantage Tennessee Housing Development Agency offers is down payment assistance to help my clients conquer the obstacle of not enough funds to close.
Forbes Magazine recently came out with a study from the Urban Institute showing that younger Americans are having the hardest time accumulating wealth due to stagnant wages, diminishing job opportunities and lost home values during the Great Recession which hit the younger generation hardest. These same experts worry that the under-40 generation are facing even more difficulties accumulating wealth in the future because of higher taxes and no guaranteed pensions like the earlier generations have enjoyed. Forbes authors offered a solution — Start investing in the young” through education, pensions, and homeowner subsidies geared towards have-nots. In the meantime, if you’re in the 40 or younger group, work hard and save as much as you can. Debbie Reeves and Tennessee Housing Development Agency everyday are offering solutions to help people buy their own home and start the wealth building process.
9:45 AM 4TH SEGMENT: REAL ESTATE TIP OF THE WEEK (1 TO 1.5 MINUTES)
(Debbie Reeves and JoAnn Hughes shared a short, real estate money-saving, time saving tip for our listeners)
- Jo has two announcements: Talk Shoppe offers free networking and education to anyone interested in real estate or business. This week Talk Shoppe presents Attorney and Tax Specialist, Wis Laughlin “Use Them Or Lose Them—Tax Breaks Going Away in 2014” Wednesday November 13th 9A-10A at DeVry University 6401 Poplar Ave 6th floor Memphis, TN. For more information about Talk Shoppe go to www.TalkShoppe.BIZ.
- Next Saturday right here on the Real Estate Mortgage Shoppe program Duane McCrory of Top Quality Service Heating and Air will be talking about ways to get the maximum service from your heating and air system and save money on your utilities. . 9A-10A CST .
- Check out the Vesta Home Show in Southeast Germantown today at St James Place. Adult tickets are $10. Children under 6 get in free.
To catch our podcast and our other podcasts, visit me at www.mortgageloansblog.com
Transition Music: “Thank God For Home Towns” by Carrie Underwood; “There’s A Badger In The Outhouse” by High Desert Band; “The House That Built Me” by Miranda Lambert.
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Co-host: Debbie Reeves, Director of Community Outreach & Business Development
Tennessee Housing Development Agency (THDA)
Tennessee Housing Development Agency Office: 615-815-2152 Blackberry: 615-238-1480 www.thda.org
I am a business relationship builder. I use my skills to raise the recognition of THDA as a leader in the housing industry in the lines of homeownership, community programs and homebuyer education initiatives.
Experience: THDA December 2006 – Present (7 years)404 James Robertson Parkway, Nashville, TN 37219
Develop, build and maintain great working relationships with THDA partners…lenders, realtors, homebuilders, non-profits, local government officials and other housing-related entities.
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| Featured guest: JoAnn Hughes, Crye-Leike Collierville, TN. ABR, CRS, GREEN,PMN
(901) 359-3095 www.YourMemphisAgent.com |
Women’s Council of Realtors Tennessee State Chapter Member of the Year, 2013
Crye-Leike Circle of Excellence, 2012
President, Memphis Chapter of Women’s Council of Realtors, 2010
MAAR Presidential Award, 2010
Lifetime Member, Crye-Leike Multi-Million Dollar Club
_________________________________________________________________ Jo Garner’s Bio
www.MortgageLoansBlog.com www.MoneyShoppe.NET (901) 482 0354 jogarner@mindspring.com
Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.
Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.
Jo Garner has been in the real estate/financing business for over 20 years. She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 17 years. Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.BIZ She is currently the host of the Real Estate Mortgage Shoppe program 9A-10A CDT Saturdays on News Radio AM 600 WREC and IHEART Radio http://www.iheart.com/#/live/2145/?autoplay=true and currently publishes on her blog www.MortgageLoansBlog.com
For real estate financing solutions, plug into the Real Estate Mortgage Shoppe program. You can find mortgage rates, FHA Streamline refinance with no out-of-pocket costs, refinancing options, home purchase loan programs, answers and real estate, money-saving tips and more.