Buckeye Chuck's Blog

This is a directed response to "USDA: The New Subprime Lender", A Blog written by Vince McEveety on Aug 30th

I wanted to say first of all, I waited four whole days before I commented on this.

It seems to me that Vince completely disagrees with 100% financing for someone or anyone.  The basic message I got was that the less skin one has "in the game" the more likely they are to default on the mortgage. 

Then as I read thru the comments section there were several comments that stood out in regards to whether 100% PLUS financing was a good or bad thing.  Of course, this is just one more reason why the market crashed!

Again, this is my understood synopsis -- So here is my response!

Apparently 45 other people did.

So I will be number fourty six -- And I wanted to address certain aspects and comments

First of all, USDA, FHA, VA ALL (yes, all three of them) have a 100% PLUS Financing product.  So who really is to blame.  Is it the Government?  Is it the borrower?  Is it the Banks who loaned the money?  Is it the economy?  Or is it (wait here is a "shocker") THE MEDIA?

It is a combination of all of the above.  But I blame mostly the media who had the hype of the negative amortization and balloon payment loans that were not fully explained to clients.  I mean why would someone really believe that a 1.99% Rate Mortgage actually help them in the long run.

Yes, some borrowers were to blame by being steered to and accepting these types of loans.  But I also think that the media, government, banks also are not with out fault.  In fact, I personally dont see how the national licensing system is going to keep this from happening in the future.  It is flawed to begin with (but I will save that for another post)

So for the record - I wanted to address why VA loans have such a low failure rate -- Because most of those borrowers are in the military.  Default on something (including credit cards or student loans) as a member of the military and trust me -- Those people in trench coats come and have a conversation with you in a back room.  Or worse yet (trust me when I say this) the service-member's direct chain of command gets involved (thats really bad and unpleasent)

But although that product, along with FHA Zero Down Payment Home Loans in Tampa, Florida and the USDA loan are 100% PLUS financing products.  All required VERIFIED INCOME.  As for "skin in the game" I can go to my local, state or federal government and get down payment assistance - Or to a relative (or someone else who "has a vested interest in [me] the borrower, such as a fiance {not on the loan} or an employer" according to HUD 4155).  I have to agree with Cory (response #41) and Greg (response #31) - There are way too many changes in external factors such as higher healthcare costs, higher fuel prices, higher utilities in the home and loss of job for two plus years that even the borrower with high credit score with reserves did not expect (but again, it is all the mortgage person's fault, a statement I have heard time and time again!)

Over half of us in society (and I am sure that this number is more than half among the real estate industry professionals) live paycheck to paycheck.  One major event such as a sickness, accident, significant time of work, and most of us would be homeless.

Do you want to change the negative image of the housing industry.  All it takes is EVERY realtor putting their "skin in the game" and getting ONE person to buy a home that otherwise was not in the market. 

Stop complaining about the government and their programs.  We, as a society, approved these programs. If you dont like what is going on in your capitol or in Washington DC - Then Be Informed and Make a Change and Vote in/out those people who don't have skin in the game. 

Until our leaders stop spending more than what they are making, how will the rest of society change.

LEAD BY EXAMPLE

Things to do in Tampa, Florida this weekend

One thing to do in Tampa, Florida this weekend is AIRHEADS USA indoor trampoline arena in Tampa, Florida

This past weekend, the last one before Hillsborough County School District in Tampa, Florida start for the 2010/2011 school year was rainy.

How many times, as a parent, do you tell your kids – “Stop Bouncing Around!” However, do you fall short in finding things to do in Tampa for kids. As a parent of two young boys, those words have been uttered, spewed and screamed numerous times. I had to eat my words on Saturday. It wasn’t the first time. This time though, it was rather tasty. What words did I eat? “STOP BOUNCING AROUND!!!” .

On Saturday, however, I drove over to AirheadsUSA. Located at 5072 Linebaugh, Tampa. Handed each child a helmet, and said, “Please. Go. Bounce off the walls. I’ll come with you” Courtesy of AIRHEADS indoor trampoline arena, my children had the time of their life running, jumping, and yes, bouncing off the walls, floors, and occasionally each other (though that’s not encouraged). By the way, I had a pretty good time, too, as did all the other parents who were “treating” their children to a fun day on several hundred feet of trampolines. A dodge ball game between strangers (adults vs adults vs children) even got started.

AIRHEADS USA indoor trampoline arena is the brainchild of two former real estate partners. Opening for business in August 2010, I expect that Florida residents looking for Things to do in Tampa, Florida this weekend will keep their business (and gym) filled.  You can definently give something to do in Tampa for kids (and wear them out so that they go to bed early!)

We paid $12 for our first hour, and fully expected to add more time for an additional $10 per hour. One single hour wore my children out so much so that they barely had the energy for Air Hockey and Pac-Man in the AIRCADE that takes up part of the bottom floor. Though we didn’t partake of anything, there was a snack bar where weary souls refueled before returning to the trampoline area.

AIRHEADS USA indoor trampoline arena offers this type of fun during (daily) open Jump times, Friday Night Flights, as well as hosting private parties and corporate events.  Definently,a thing to do in Tampa for kids. There is even an AEROBICS class. Monthly membership are definitely the way to go, and start at $79 per month and gives you a thing to do in Tampa, Florida this weekend and every weekend thereafter.

Beyond the fun and Things to do in Tampa, Florida this weekend, AIRHEADS USA indoor trampoline arena works with charities, such as the Fallen Officer’s Fund, by donating a portion of the proceeds from events. College Students, show your ID for $2.00 off jumping. You can also host business or corporate team builder events.

If you are looking for Things to do in Tampa, Florida this weekend, go to AIRHEADS USA indoor trampoline arena. This upcoming weekend, 25% of all proceeds will go to the Fallen Officers Fund for Tampa Police Officers Kocab and Curtis who will recently killed in the line of duty.

Their website is airheadsusa.com and their phone number is easy – 813 AIR HEAD

(Airhead!)

Zero Down Payment Home Loans in Tampa, Florida

Well it is Friday.  That means that it is time for this weeks snap shot of qualifying newly listed homes that have 0 down payment home loan requirements.

As I previously reported in my article about Zero Down Payment Home Loans in Tampa, Florida the Dept of HUD regularly insures homes against default.  Although a small percentage of homes in America were backed and insured by HUD in the "old days", FHA mortgages are becoming more and more popular due to the down payment requirements (formerly at 3%, now at 3-1/2%).

However, a little known program long buried in the vaults of HUD and FHA allows for a small percentage of homes to be sold for as little as $100 down plus 12 months of insurance.  This program is known as the "Hundred Dollars Down" program and is the last remaining zero down home purchase program other than VA (which is for a select number of people) and USDA (which is income and property specific).

These homes that qualify for 0 down payment home loans in Tampa, Florida generally have mortgage payments that are lower than the average rent.  Also, repairs are included into the mortgage and payments, in some cases, can be deferred up to six months

Take, for instance, this home in Riverview, a southern suburb of Tampa, Florida.  A 2001 beauty that boasts of 1,511 square feet.  This home is sold as is on a bid basis.  Owners who live in the house can buy this thru the special Zero Down Payment Home Loans in Tampa, Florida. Assuming a fixed thirty year zero down home purchase, mortgage payments (just the principle and interest portion) for this home range from $407 to $516 monthly

Or this home.  Also located in Riverview.  Here is a single family residence, 2 bedrooms and bathrooms, one car garage built in 1999.  As is price of $75,000, owners who buy this and use it as a primary residence, the special Zero Down Payment Home Loans in Tampa, Florida, the mortgage payments (again, just the princple and interest portion) ranges from $355 to $450 monthly

Are you a first time home buyer with bad credit? Are you one of the thousands of people looking to buy real estate with bad credit?  We can help you with your credit (legally and honestly) thru our assisted credit audit and verification service.  All costs associated with this are refunded to you at the time of closing.  You too can qualify for the special Zero down Payment Home Loans in Tampa, Florida.

Fill out an application for this Zero Down Home Purchase in Tampa, Florida

Waterfront Home for Sale in Pensacola, Florida - Bayside Island

Listing Courtesy of MyOnlineHouse.com

I will not be able to adequately describe the beauty this Waterfront Home for Sale in Pensacola, Florida - Bayside Island offers. First, nature has smiled on this home. The sunsets, the birds, the nature surrounds you.

Second, this waterfront home for sale on Bayside Island has immaculate upgrades that will impress even the most discriminating buyer. The wine cooler in the kitchen is demonstrative. Nature is brought into this Waterfront Home for Sale in Pensacola with the tile, silestone countertops and hardwood flooring. This Waterfront Home for Sale in Pensacola truly presents a Jimmy Buffet lifestyle in Donald Trump comfort. Here, you are buying a lifestyle with all the conveniences to make that lifestyle very comfortable. From the see-thru fireplace to the custom UV protection shades in the Florida Room you will know you are at home when you buy this Waterfront Home for Sale in Pensacola, Florida - Bayside Island.

This waterfront Home for Sale in Pensacola, Florida - Bayside Island home is 10 minutes from the Interstate; 20 minutes from the Airport, and 40 Minutes from NAS Pensacola.

The pictures will try to show how this Waterfront Home for Sale in Pensacola is quite possibly the house for you, but to really appreciate this home you will have to come visit. Your time won't be wasted. If you are looking for a 3,000 square foot home with 3 bedrooms, 3 baths and a 3 car garage, this Waterfront Home for Sale in Pensacola, Florida on Bayside Island may be the home for you.

If you are looking to sit on the dock overlooking Escambia bay to fish or watch the sun set, this waterfront Home for Sale in Pensacola, Florida may be the home for you. If you are interested in a piece of paradise with luxury, this may be the home for you. If you are ready to get on the water, this should be your home. If you ever want to see the most beautiful sunsets anywhere, you should want this home. Maybe you should take a view of this home. Maybe you’ll see what I see. Maybe you’ll know you are home as you pull in the driveway. Maybe it will be as you walk through this home. Maybe it will be as you are on the deck watching a heron fly by.

I don’t know, but I’ll be surprised if you don’t want this home.

Please feel free to call or email for an appointment to view this unusual piece of Florida. Click on the MLS Button (immediately below) to sign into the online listing or text 97038 to 79564

Tax Deductions for New Homeowners in Florida

This morning I saw a post from a fellow real estate professional in Maryland discussing whether origination points were legitimate income tax deductions for new homeowners in the United States

So it got me thinking, how many of us know what real estate related costs are tax deductible.  I know that when I bought my first home almost three years ago (in four days), I had to learn a lot really quick, especially when it came time for taxes to be paid.

So here is a list that is not by any means complete, but should get one's thinking juices flowing

Origination Points:  These are common source of tax deductions for new homeowners in Florida.  To qualify, the point must be expressed (shown) as a percentage, not flat fee.  They are put on Schedule A if the buyer is not renting the home.  If so, then put it on Schedule E.  However, typical for refinances, origination points can be deducted if you take the cost of the point and amortize it over the life of the loan (ie - more trouble then it is worth)

Discount Points: Second most common source of tax deductions for new homeowners in Florida along with refinance transactions.  The cost again, must be "expressed as percentage" and not as a flat fee and must significantly give you a lower interest rate

Mortgage Insurance Premiums: Any qualified mortgage insurance premiums (including the financed portion for FHA loans, known as the UP Front MIP), any amount set up in an escrow account (deposited with lender).  But don't forget the amount that you pay monthly with your mortgage payment also.  IRS Rules for Tax Deductible Mortgage Insurance Premiums is a good place to go.

HomeOwners Association Fees (HOA Fees): Prorated from the settlement statement, these are not tax deductions for new homeowners in Florida.  However, what you pay during the year (after purchase) is deductible.  Put it on Schedule A.

Prorated Assessments (Taxes, HOA Fees):  These are not legitimate tax deductions for new homeowners in Florida as they only decrease the amount of money you are bringing to the table to close the loan and get your keys.

Mortgage Interest: Now most of us know that the interest portion of a mortgage payment is the BIGGEST tax deductions for new homeowners in Florida.  Now remember, this homeowners tax deduction is true even if you have seller financing, that is to say, you pay the payment to the person who sold you the house.

However, the IRS gave me some new and interesting facts that an hour ago, I did not know.  Included under the mortgage interest deduction are such items as:

• Prepayment Penalties
• Home Improvements for Health Reasons (if you have to bring money to the table)
• Prepaid Interest
• Ground Rents (aka lot rents)
• Late Payment charges as long as "it is not for a specific service in connection with your mortgage loan" (Source: IRS.GOV website)
  

Sales Taxes:  I would think sales taxes refer to doc stamps, intangible taxes, and deed stamps.  At least, that's what I did three years ago.  I even got audited last year and the IRS said nothing. So again, this might be an overlooked tax deductions for new homeowners in Florida but check with a tax professional in Florida to make sure that you get the most homeowners tax deductions.

I get a lot of questions from people who are looking to buy a home but are down payment challenged.  There are three great programs out there for zero down payment home loans in Florida.

However, if you have money in a deferred retirement account (401k, 403b, etc) you can take out up to $10,000 per person (so 20,000 if a couple from a joint account or two separate accounts).  Now, here is the mistake commonly made.  That 10k is counted as income, and you do have to pay taxes on it - But you don't have to pay the penalty tax if you are buying a primary residence

If I can help, please let me know!

Real Estate Webinars Work in Florida

FREE AUTOMATED ONLINE INFORMATION WORKSHOPS. Free Real Estate Webinars

Listen Up!  Old School, Hard Core Selling is Dead!  Nobody wants to be sold anything. What they want to is find someone who cares enough to give them real information they need, when they need it.

What if you could provide a growing library of "Live" Online, Related Real Estate Workshops, which present you as the expert, to your clients and prospects all for free?

(The best part?:  These free housing webinars run all by themselves.)

Integrated Registration System

This Real Estate Webinar system has Links that go to an internal video registration page where prospect can reserve a seat for your online workshops.  Each real estate webcasts workshop has it's own sign up page complete with video, calendar buttons and share links.

Themed Countdown/Player page

Attractive graphic welcomes registrants by name and displays the time remaining before the Real Estate Webinars begins.  Each player inside the different Real Estate Webinars can be branded with the realtor's information before and during the workshop.  Free Real Estate Webinars help to create a massive presence for you (the real estate agent or referral partner) in the local buying community. You can even include a smaller video or a chat monitoring script to proactively welcome subscribers to your  free housing webinars.

Subscriber List

All of your registrants and attendees of your co- branded free real estate webinars are added to a list for easy export and follow up.  A separate list is created for each free real estate webinars work-shop. It can be downloaded as a CSV file for easy import to any CRM program (such as ACT, Mortgage Quest, etc).

Autoresponder

One of the most powerful things you can do with your list from the free real estate webinar seminar is send cregistrants of your housing webinar reminders to come to the workshop.  This free real estate webinar system does this all by itself for you. 

Each on demand Real Estate Webinar comes with already done-for-you workshops.  You can also add your own housing webinar with your own referral partners (insurance agents, CPA, accountants, home inpectors, etc) very easily.

Get a Free CMA Report and Sell Your House Online in Pensacola, Florida

The mission of MyOnlineHouse.com  is to be the most efficient real estate firm possible. 

The mission of MyOnlineHouse.com is to be the most efficient real estate firm possible. MyOnlineHouse.com offers a free cma report. You can sell your house online because we incorporate proven, professional state of-the-art techniques specializing in the marketing, listing and selling of Real Estate. MyOnlineHouse.com maintains a full-time staff of well-trained real estate professionals who continually strive to provide top quality service for their individual clients and customers. From the offer of a free cma report which begins the process of selling your house online, MyOnlineHouse.com utilizes the latest web and mobile technologies. We are a creative, innovative and people-oriented organization providing individual opportunity, personal satisfaction and rewarding challenges to all members of the firm.

Real Estate with Options. In today’s real estate world buyers and sellers look to find ways to market and buy homes in ways that give them control. They demand a free cma report and ways to sell your house online. MyOnlineHouse.com allows sellers to market their homes with any amount of control they desire. They may act as a FSBO with some marketing help or allow MyOnlineHouse.com to handle all aspects of home selling today. Buyers maintain their choices in homes, lenders and all aspects of the process while choosing to have their first payment made for them or lower interest rates for the first two years.

No Gimmicks, Just Service. MyOnlineHouse.com operates to serve the home buying and selling public with Promises Kept not gimmicks. From the free cma report to helping you sell your house online, service is the reason we exist. We know that service is the basis of long term success in any endeavor, but especially one as people reliant as real estate. We will always under promise and over produce to those who place their real estate trust in us.

Realtors are the key. MyOnlineHouse.com is not interested in the quantity of Realtors, but the quality of their service. Only Realtors with a long track record of consistency, loyalty and service will practice their craft here. Realtors who care more about buyers and sellers than their commissions are welcomed. Realtors who know how to offer a free cma report that is accurate and timely. Realtors with proven ability and knowledge of the market and all procedures involved are welcomed. Realtors who understand how to help you sell your house online. Realtors who understand our mission and practice of real estate are welcomed.

MyOnlineHouse.com is ready to prove to you that your decision to choose us will be honored and respected.  It's your home and it's your money that will buy your next home.  Let us help you realize your real estate dreams today.

Sell Your House Online with MyOnlineHouse.com today using a very aggressive property marketing system that offers free virtual tours, unlimited pictures, weekly posts to Craigslist, syndication to other state and national websites and other high tech items, including “texting for” more information and pictures, the next generation of call capture.

 It Sure Does Smell in Here: The Spice and Tea Exchange - Tarpon Springs Sponge Docks, Florida

If you are new to or moving to the Tarpon Springs or Clearwater area and need help buying a home, we have a one - stop shop set up for your convience. That can be found at Florida Home Benefits

If you are new to the area or visiting, then one place to go is the Tarpon Springs Sponge Docks. This past weekend, I took the family to the Sponge Docks in Tarpon Springs, Florida.  This was the first time that my family had been, the second time for me.

All around are boats and trawlers.  Some are shrimp boats. Others are fishing vessels.  Intermixed with these are crab boats and sponge boats.  We took a nice 105 minute water excursion across the Anclote River to Anclote Key (home of an operational lighthouse, built in the 1800s).  Very nice, peaceful and scenic.

By the time we returned to shore, the shore party was hungry.  So we went to a very nice (and cool, as in air conditioned) Greek Restaurant that was steps away from the Sponge Cruise Vessel.  I had two gyros (should have had one because they were big!) and watched USA Soccer not do so well.

We walked down (west) Decodenese Avenue.  Tarpon Springs is a Greek community very rich in culture and traditions.  There is a very small aquarium that is at the end.  Speckled between are several small shops selling sponges, olive oils soap, and other wares. At lunch we had decided a few shops that we would visit.  One being the Spice and Tea Exchange at the Tarpon Springs Sponge Docks. The docks sit on the Anclote River, approximately 4 or so miles from Anclote Key

From the moment I walked in - I sniffed the air.  Wow, it sure does smell in here (but that a GOOD THING).  Upon opening the door, you can smell the differents spices in the air.  I first noticed very smoky hues.  Along the west side of the store are salts.  Smoked Salts caught my eye, because I like to grill a lot and smoking food is tasty for me as I don't care much for extreme hot spicy foods.  I learned that one can smoke salt over certain types of wood (alderwood, applewood, chardonnay oak) but that you can mix them.  Such as Black Truffle Salt (Black Truffles are an expensive mushroom).  Did you know that there is even a chocolate salt (my mother would be in heaven!) 

So I settled for a few salts, one blend and two teas.  After my long drive how (I live clear at the opposite end of the county from Tarpon Springs Sponge Docks)  I put some chicken, brushed it with olive oil with a little Backwoods Hickory Rub. Cathy had told me at the store after throwing in an extra bag of paprika, try it with both, "a little dab will do ya" - Wow, now that's good chicken (I can see Cathy is going to get more of my money, maybe she will deliver for me or something)

So if you are visiting the Tarpon Springs Sponge Docks, make sure you stop by and see Cathy at the Spice and Tea Exchange.  If you can't make it in person, they take internet orders also.

Get Preapproved for a Mortgage in Tampa, Florida

Here (below) is a story about the age old debate of mortgage preapproval letter (sometimes known as mortgage prequalification letters) versus an mortgage approval letter.

As you can see from the article written by Greg - He details an experience of a fraudulent mortgage pre-approval letter in which the borrower was not even pre-approved credit wise

There are basic steps in the home loan approval process and home  purchase process.

1. Pick your Professionals; Both realtor and a lender.  This can be done thru referrals from other professionals (attorneys, CPAs, Insurance Agents), family or friends and most of the time the agent that you are dealing with
2. Converse with your LENDER regarding to get pre-approved for a mortgage. Supply him or her with documents including but not limited to:
   1. Tax statements (all forms)
   2. Two to three months bank statements - front and back (Yes even those that are blank but say "page # of so many #s)
   3. Copies of Insurance Binder
   4. Copies of Rent Payment Verification (VOR)
   5. Copies of ALL asset statements (that means every single one, 401k, 403B, Stocks and Bonds, All Banks accounts, mutual funds, IRA)
   6. Have your credit pulled by your mortgage lender.  (if you are not credit qualified, go get it repaired and come back)
   7. Copies of Paystubs for the last 30 days (whether it be SSA/SSI, Retirement, or a normal job)
   8. Gift Letter , deposit reciept and account statement from where it is being gifted from
   9. Certificate of Eligibility (For VA Loans)
   10. Copies of Picture ID and SS Cards
3. Once this is completed, then you will be issued an mortgage approval letter up to a maximum amount.  I reccommend that if you, the reader, are a two income family, then your maximum payment should be 65% of the higher income on a monthly basis
4. When you have your mortgage approval letter in hand, Go make a dream list and go shopping with it
5. Once your have picked out a home that mets all or most of your requirements from step 4, sign a contract and write a check for the escrow deposit.  Make the contract for 45 days minimum closing time and contingent upon affordable mortgage financing and affordable insurance cost
6. Complete the home inspections, surveys, and appraisals.
7. Don't forget about your home owners and flood insurances
8. Get a clear chain of title. 
   1. Titles cannot be transferred nor can a property be sold if the prior action was a foreclosure AND the right of redemption has not yet expired
9. Endure a second credit report check (new requirement)
10. Get a loan committment (clear to close)
11. Bring your closing funds (cash to close) to the title office in the form of a certified bank check (cashiers check)
    1. If your lenders approval requires you to pay off an account to make your debt to income ratio within guidelines, include that amount in your closing costs
12. Sign off on the documents (Ask for clarification if you don't understand something or the terms as you know it has changed).  Bring copies of the original GFE (Good Faith Estimate) and TILA (Truth in Lending Agreement) supplied to your at the time of initial application

My whole point here is that with a mortgage pre approval letter or a home loan prequalification, things are more than likely going to fall apart. Yes that can happen with an full DU/LP backed mortgage approval letter (but that is usually for things other than credit). Mortgage pre-approval letters are bad.

Next time, take the extra time to complete the home loan approval process up front to save extra time on the end of the loan.  Your experience will be much less chaotic along with more pleasent and joyful.

Zero Down Payment Home Loan in Tampa, Florida

Foreclosed Homes are very prevalent in todays economy. It is estimated that in Tampa, Florida some 70% of todays listings are short sales or REO (real estate owned by the bank) homes. While most of these homes have conventional mortgages, a small percentage had FHA mortgages.

Foreclosed Homes that were insured by HUD are eligible for no money down mortgages.  For literally $100 - $1000 escrow deposit and a pre-approval letter from a lender, you can buy a home like this one and have 0 down payment on the home loan requirements and even 2.49% of the closing costs included.  This is not a special program nor will it expire anytime soon

Repairs and Kitchen Appliances Included.  With the 203(k) loan, the cost of repairs to a house are included.  Those costs cannot exceed $35,000.  And the buyer does not make a mortgage payment until the work is complete. Yet still the home loan is a zero down purchase.

See the list of Tampa properties for yourself that qualify for zero down payment home loans in Tampa.  This list of zero down home purchase eligible properties in Tampa changes every Friday.  New homes are put up.  Homes are awarded based on bids.  Not moving to Tampa or Hillsborough county? You can also find a list of homes that qualify for zero down home financing in the entire state of Florida.

Most mortgage payments are cheaper than rent.  According to the a recnet post on Simply Hired, Tampa's median rent is $720.  For the average 3 bedroom home, mortgage payments are $564

Here is example of a home for sale with 0 down payment home loan.

Let us know if the mortgage animal can assist you in helping you find and finance the next (or first) home of your dreams for 0 down payment.