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It looks like USDA (Rural Development Financing) may be coming back sooner rather than later. This allows a 100% loan program.

Will keep you posted as I hear more.

Brad.

This is an issue that has seemingly worried the real estate market since the tax credit was instituted. The fact of the matter is that the past two weeks here in Murfreesboro and Smyrna Tn have been an artifically inflated seller's market. Home sales have increased over the past two weeks to a point that it felt like 2007 again.

It really is anyone's guess how the real estate market will be in Murfreesboro over the next year. My guess is that the non-tax credit candidates have sat out of the market unless it was absolutely necessary. This makes sense because the credit drove prices up. Those that received no tax benefit shouldn't have been trying to pick up property while prices were artifically inflated.

Given this information, the non tax candidates should enter the market now to see what values are out there. This will help the market, as well.

100% money is now a thing of the past, at least for the short term. FHA still has great rates however, around 4.875 with no points, no origination with some wholesale direct lenders.

Contact me if you have any questions or are looking to make a move in the future.

Brad.

Good day!

One of the most important questions I'm asked is "When is it time for me to buy?". I think this is something that deserves some time.

First of all, you have to decide if you are a highly leveraged buyer. If you are taking on a large percentage of the purchase price in mortgage, then you are highly leveraged. When you are highly leveraged, it is just as important to look at mortgage rates as it is to think about pricing. Price is always important, but the interest rate can make or break a buying decision for the highly leveraged buyer. In my opinion, now is the time to buy for these buyers because rates are going up.

If you are a cash buyer, in my opinion, now is not the time for you to purchase unless you are purchasing for flip, or tax shelter. As the rates continue to go up, prices will continue to fall. This means that your cash will buy more property down the road than it will now. I would wait to find a severely under valued property, or not buy at this time.

Have a great week everyone!

Bradley

Hello all!

I want to remind the homebuying community out there that the homebuyer's tax credit will be expiring soon. The credit states that there must be an approved purchase and sale agreement on a property by April 30th. You will have more time to close, but the cut off for contracts is April 30th.

The credit is available for first time homebuyers and for some current homeowners. See www.irs.gov for more information.

The real tricky part here for the first time homebuyer is how FHA is changing at the same time the credit does. If you are expecting 100% money later in the year, you may be disappointed. Right now, the tax credit can be a piggy back loan in the state of Tennessee via the THDA homebuyer program. In other words, the FHA financing which is typically a 3.5% down (and soon to be 5% down) program, because of the tax credit, is able to be a 100% loan program because the 3.5% is borrowed against the tax credit. Once the credit is expired, be prepared to bring 3.5% minimum cash to close if you go FHA (HUD properties excluded).

But what about Rural Housing 100% Financing?

Well, bad news there too. They have stated that they will be out of funds by April 30th as well. My lenders are telling me that as long as we have the final approval from USDA underwriting by April 15th that we will be in good shape, but anytime after, there will be no guarantees.

This typically happens during the year with USDA but just not this early in the year. USDA is not expected by some to be funded until October. As soon as I hear more about this, I will let you know.

Brad.

Please enjoy this video.

My friend Steve Cook.