FHA loans and consumers?

Overcoming the misconceptions about the "credit crisis"
(Published with permission from David Reed)

You’ve watched the news and read about it in the papers. You know, the “credit crisis” and how buyers need 20 percent down in order to buy a home? And even if you found a buyer with 20 percent down, lenders aren’t making loans anyway. So, why bother, right? Wrong!

We’re right smack in the middle of what just might be the biggest disservice ever perpetrated on potential home buyers. It seems the press just can’t get enough of all the gloom and doom in the housing industry. The fact is that mortgage money is as available today as it was a year ago and loans are being made this very moment with little or no money down. And, no, platinum credit isn’t required. You just need to know where to look. Who are these lenders? They’re right down the street.

Federal Housing Administration (FHA) loans are exploding onto the mortgage scene; recent estimates are that one out of five mortgages are FHA loans. FHA loans never went away, their reemergence is a result of the collapse of the sub-prime market. FHA doesn’t technically have a minimum credit score, although, in practice, lenders won’t approve an FHA loan with a credit score below 500. But that’s a far cry from the notion that an 800 score is the only thing lenders care about.

The best part? FHA only requires 3 percent down. 3 percent. And that 3 percent can come in the form of a gift or grant. FHA borrowers only need to have $500 in a transaction. All the while, FHA mortgage rates are as good or better than their conventional counterparts. Low or no down payment, extremely competitive rates and easier qualifying. No wonder FHA is moving up the charts!

Please contact me if you would like more information about FHA loans or help getting into your first home.

Loudoun Senior Interest Network (LSIN)

Below are the minutes of the June 2007 meeting. Please email or call us if you have any questions about this group of senior serving professionals and volunteers.

LOUDOUN SENIOR INTEREST NETWORK (LSIN)

MEETING MINUTES June 6th, 2007

Meeting opened by Toni Reinhart, Comfort Keepers.
Introductions.

Minutes of meeting held May 2nd, 2007, approved.

Treasurer’s Report –Tim Moore, Visiting Angels, reports Senior Expo
funds of $9,873.61 with some final invoices to pay. LSIN group suggested that we may use part of the funds to revamp the website and then LSIN will decide which Senior Charity should receive the remaining funds. Christmas in April was suggested.

Human Services Network (HSN) report - No report.

Senior Expo May 2007 – We had 90 exhibitors and around 1,000 visitors attend the Senior Expo. Exhibitors had a successful Expo and reported that there was an increase in traffic this year

LSIN web site. LSIN received a proposal from Joyce Cimbalista to make improvements to the current website. This proposal will be considered by the members.

LSIN Spotlight: Susan Simon, Tall Oaks of Reston. Renovations to the common areas have started and each area will be completed before moving to the next. The outside patio will be enclosed allowing more outdoor space for residents to enjoy. There are 162 units and offering Assisted Living, Respite Care and Dementia Care. The annual Luau will be held on August 4th and there will be an event in September with a Talbots Fashion Show and live auction.
http://www.talloaksatreston.com/

Spaloo, a toilet seat bidet, was introduced to the members by Bruce Santhuff, 703-752-0502. Visit the web site for more information http://www.spaloo.com/ This device is very helpful for stroke vistims, people with disabiities or people with loss of motor skills.

Announcements:
Save the date, Saturday, July 21, 2-4pm Top Senior Model Contest followed by reception 4-5pm at Sommerset Retirement Community, sponsored by Home Instead Senior Care. Live music and celebrity judges. Holistic treatments for Seniors. Beryl Joiner, 703-727-8312

LSIN nominating committee to nominate and fill the following positions for next year's Senior Expo. The following members have accepted the positions for this year.
Chair: Ray Mauk, Remax Renaissance
Co-Chair: Pat Growney, Area Agency on Aging
Treasurer: Mike Dean, Keller Williams Realty
Secretary: Maureen Clarke, Morningside House of Leesburg

Next regular LSIN meeting will be Wednesday, July 12, 8:30am at the Leesburg Senior Activity Center, 215 Depot Ct., SE, Leesburg VA 20175.

Maureen Clarke, LSIN Secretary, Morningside House of Leesburg.

Is Your Career Still on Target?

After working for most of your adult life you may be asking yourself, “Now what do I do for fun?” Many of us have already stopped at this crossroad and are still looking for the answer. Well, I found the answer for some of us, that is, I found someone who can help find the answer. Her name is Jane Trevaskis and she has spent most of her adult life finding answers for other people, redirecting human interest, and lately wrote a book titled,” Is your career still on Target?” After hearing about the book (in progress) about a year ago, I was anxious to get my hands on a copy and see what all the buzz was about.

The book is written in a workbook style with exercises in research, personal interviews with yourself and friends, a polite way of getting you to write down your strengths and weaknesses, followed up with how to negotiate in today’s job market and finally what to do after your hired. As you go through the workbook you will find some outstanding resources for help with your particular interest.

So, if you’re about to change careers or have been out of the work force for awhile, this quick study work book could help you identify your wisdom areas and get you back in the game. You can order the book from her web site http://www.career-on-target.com and as a gift you’ll receive a free half hour session with Jane to help set up your next career path. Jane Trevaskis can be reached through her web site http://www.success-catalyst.com/ for additional coaching information and to consult with her about your next move.

Other readings about the job market for the 50+ crowd.

AARP 2005 Best Employers

Senior Job Bank

Business Week

REVERSE MORTGAGES – Introduction

REVERSE MORTGAGES – Introduction

Older homeowners can tap into more of the equity in their homes with a reverse mortgage. If you're 62 or older you can use a reverse mortgage to tap into some of the equity in your home in the form of a loan without having to sell or give up title. Why would the older homeowner want to do this?

1) Needs to: retrofit the home to stay in it, cash to pay bills, add on an addition for visiting family to use or house a caretaker and other needs.
2) Enhanced lifestyle – funds are used to purchase things like a Recreational Vehicle, houseboat, or even a motorcycle.

The best feature: The loan doesn't have to be repaid until you move, sell or upon your death. When the loan is repaid, any remaining equity is distributed to you or your estate if deceased. In addition, the repayment amount can never exceed the value of the home. And because the money received is in the form of a loan, it's not considered taxable income, which means it won't affect your Social Security or Medicare benefits.

Borrowers can take the loan in the form of:
1) A line of credit, a lump-sum payment,
2) Fixed monthly payments or,
3) A combination of the above.


The amount of money you can borrow depends on your age, the current interest rate and other loan fees. It also takes into account the appraised value of your house and the mortgage limits for your area set by the Federal Housing Administration.

To determine how much you could borrow or just to learn more, read about it on these websites:
http://www.reversemortgage.org/
http://www.aarp.org/revmort

Information provided by:
H. Duane Cunningham
First Horizon Home Loans
Direct Line: (703) 728-4219
20098 Ashbrook Place # 250
Ashburn, VA 20147
www.firsthorizonusa.com/duanecunningham

Auction: Going once, Going Twice, SOLD

Until just recently, when I saw an “Auction” sign in front of a property I would think the owners were in distress. Ugly yellow auction signs were at the street corner for weeks, on auction day cars were parked all over the yard, and people hovered outside as if they were expecting a three ring circus event. It seems I was wrong about selling your home through the auction method.

Curiosity got the best of me so I attended an auction specialist course. Auctions have been around for years to sell virtually everything under the sun to the highest bidder. Within the past ten years eBay has emerged the strong contender to auction houses and the occasional upscale yard sale. But in today’s real estate market you need some options to create a market for your home when there are 7 homes for sale in your neighborhood.

The auction process has seen many improvements with technology and time tested marketing ideas. To begin the process, each seller needs a few moments of education. The home needs about 6 weeks of aggressive marketing with signs, open houses, classified ads, internet ads, and a 24 hour free hotline for detailed information. Statistics show that about 40%-60% of the homes receive an offer before auction day because of increased buyer traffic.

Instead of paying a commission, the seller pays a marketing fee of $1,800-$2,500 depending on the price range of the home. The buyer pays a 10% premium (on top of the highest bid price) which covers all other selling costs and commissions. Auctions are non-contingent “AS-IS” sales, except for the three day review period for home owners documents and generally settle within thirty days (negotiable).

Auctions are not for everyone. However, it did work for one of our clients by attracting the right buyer and the seller was able to move on with their life. If you have any questions about this article or the auction method of selling your home, give me a call or email.

Mike Dean
Certified Auction Specialist
1-866-238-1342
Mike@Dean-Morris.com

Potomac Green (Del Webb) Celebrates

The story about Potomac Green reads like a novel. For several years the developer [Del Webb] worked with Loudoun County government to fine tune the plans and put this 55+ community together. Using their experience from other developments Del Webb pulled together their best practices, mixed in some new processing for this project and here we have what is shaping up to be a beautiful place to live, play and sometimes work.

Recently, we received notice that a big celebration was planned. The 100th occupant was in their new home. I had to see this for myself so I paid a visit to the community and WOW, was I surprised. A row of single family homes stretched for several hundred yards out to the well defined main entrance. Along the main entrance drive there are single family homes with high pitched roofs, beginnings of landscaping and hard surface access roads. The clubhouse, designed to be the centerpiece of the community, is taking shape amidst all the construction debris. Sorry, I didn't take any pictures as it was too late and not enough light. I’ll be in the area several times in the next few weeks and take pictures for viewing by the most curious.

Thanks for reading this blog.

LifeStyle Transition Symposium

Occasionally, we get a chance to write about subjects we feel pationate about. Here is a subject we have worked on for years, its about making a transition from one lifestyle to another. I'm talking to boomers and above right now. We are involved in so many things on a daily basis that we reach this stage in our lives and wonder what happened. The traffic, careers, scheduled meetings and scheduled vacation. When you stop for a moment to take a breath its time to retire or move on the next phase in your life.

On September 30, 2006 we are joining forces with several other professionals to host a LifeStyle Transition Symposium, a meeting of the minds, a gathering of information and a panel of local experts. We are providing this information free to people who need some help to declutter, plan and move forward to the next big adventure, the next career or the next horizon. Our group of experts will provide you with information on taxes, legal issues, finances, what to do, where to live, and even some fun places to travel.

Event time and location:
September 30, 2006, 9:00AM-2:00PM
The Center for Innovative Technology, 2214 Rock Hill Rd., Herndon, VA 20170
This is a free event with lunch, drinks, a workbook and all materials.

Pre-registration is requested (we need to know how much food to order). For more information and driving directions, please contact Jim Williams at 703-748-5836 or email him at info@LifeStyleTransitions.org