USDA Is Back to the Future…For Now

In October the USDA Eligibility Maps changed for the worse.  After the Government shutdown the USDA maps reverted back to the previous, more favorable maps.  On January 15th the future maps go back into effect.

USDA guarantees loans for lenders for buyer in rural areas.  This loan program offers buyers 100% financing at rates comparable to FHA and VA.  Not only is the lack of a down payment a great benefit but the monthly mortgage insurance is a third of the FHA MI.

If you are interested in getting into a home for no money down at a great rate with low monthly mortgage insurance then USDA is your best bet, but move fast!  The eligible areas shrink in January so act now!

Victory Funding offers USDA!  The areas currently eligible still include Saratoga Springs – east of the Northway, the Village of Ballston Spa, Luther Forest, Voorheesville, Round Lake and many other areas that will soon be ineligible.  Call Tim at 518-899-7700 for a pre-qualification and call Living Well Realty at 518-899-5000 to work with a professional Realtor.

 

 

Posted in Financing, Real Estate | Leave a comment

Fannie Mae Increases Minimum Down Payment in November 2013!

You read that correctly! Beginning November borrowers will not have access to 3% down mortgages through Fannie Mae. The minimum down payment will increase to 5%, forcing borrowers to turn to FHA with a higher cost due to Mortgage Insurance. Don’t forget, FHA’s mortgage insurance is now permanent, which drives up mortgage payments for the duration of the loan.

The why behind the action isn’t stated, but it appears to be pushing more borrower’s with less skin in the game to FHA products and away from Fannie Mae.

If your loans are registered and pre-approved by November 15th and closed by March of 2014 you will be able to take advantage of the old rules.

Just another change to the system, making it harder for borrowers and slowing down the anemic housing recovery nationally. Fortunately NY’s Capital Region, Albany, Saratoga, Schenectady, Malta, Troy and surrounding areas, remain stable and strong due to the growth of the tech industry in our area.

The bottom line is that it is still get harder, not easier, to be a buyer! Call us at Victory Funding at 518-899-7700 to get started today!

Posted in Real Estate | Tagged financing, Malta, mortgage, mortgage broker, real estate, Saratoga | Leave a comment

Breaking Rate News and Lending Update!

I’m pleased to tell you the FED just announced they would maintain their current MBS buying program (QE-3)!  Here is a link to the news; http://www.reuters.com/article/2013/09/18/us-usa-fed-idUSBRE98G1D620130918

 That means rates just took a nice drop after increasing sharply over the last few weeks!

 Rates should continue to drop back for the next couple of weeks.  Get your buyers in NOW!  We can lock upon application if the situation is right!

 On a not-so-bright note, the USDA maps are set to change on October 1st barring any congressional action.  That means that many many current listings that are in the USDA zone will no longer be eligible for this no-money-down, low interest program!

 At Victory Funding, we stay on top of the issues that affect our partners and clients!  Your business is our priority!  Please give Tim a call or shoot him an email if you would like to learn more. 

 Have a blessed day!

Posted in Financing, News | Leave a comment

Victory Funding is Hiring!

Title: Mortgage Processor
Victory Funding is a high integrity, professional Mortgage Broker in Malta, NY that specializes in delivering the highest level of service to every client. We have fun at work, and we value and respect each team member as a crucial part of the organization. Our business is growing and we have a great opening for an experienced and accurate Mortgage Processor to join us.
Job Description
As a trusted member of our team, you will be responsible for accurately managing and processing loans in the pipeline to closing as well as maintaining inter-office and company to client communications. This includes maintaining existing superior relationships with underwriters and Account Executives, and establishing strong, professional relationships with all underwriters and any stakeholder in a transaction such as title companies, insurance companies, inspectors, realtors and, of course the staff at Victory Funding and any affiliated companies.
Qualifications
Our ideal candidate for this role will have:
• At least 2 years in the mortgage industry, with firm knowledge of underwriting guidelines of multiple mortgage loan programs including Conventional, FHA, VA and USDA.
• Proficiency in using Calyx Point software as well as Desktop Underwriter, Loan Prospector and Total Scoreboard systems.
• Experience in uploading and extracting data across multiple lender platforms.
• Clear and professional communication skills with focus on top quality customer service.
• An organized, responsive and self-starter work style.
Apply today by emailing your resume and a brief cover letter to Tim Halladay at tim@victoryfundingonline.com.

Posted in Real Estate | Tagged banking, Job, Jobs, Loan processor, mortgage broker, mortgage processor | Leave a comment

Big Changes to 100% USDA Financing!

As of October 1st 2013 the USDA eligible housing map will change!  If your loan is not approved at USDA before that date there is a good chance it will not fund!

If you are a Real Estate Professional and you have listings that are currently in a USDA eligible area you may wake up on October 1st and realize that they no longer qualify for USDA 100% financing.

USDA – yes, the same people that inspect your meat, has  loan programs to help people in “rural” areas purchase homes with 100% financing and low interest rates.  There are two different programs.  One is their direct program where they take your application, process the loan and fund it.  This program requires the borrower to qualify with very low income.  The second program guarantees the loan.  Like FHA, USDA provides insurance to the lender against consumer default.  It also provides 100% financing and  low interest rate, but it is originated by a loan officer at Victory Funding or another broker or bank, is processed by that entity and sent to USDA for approval once the loan is approved by the lender.  There are income restrictions and the property must be located in a USDA eligible rural area.  Every 10 years USDA is required to re-draw their lines using the census data from that decade.

For the Capital District in New York, the home of Victory Funding and Living Well Realty in Malta, NY, the changes are quite devastating.  Since we have experienced significant growth with the addition of Global Foundries and other tech businesses, many areas are no longer eligible.  The areas that were considered rural that will no longer qualify include Malta, Luther Forest, Round Lake, most of Ballston Spa, the rest of Saratoga Springs, Mechanicville, Wilton, Burnt Hills, Voorheesville, Slingerlands, Bethlehem and many many other communities around Albany, Troy and Schenectady New York.

Some communities that are not affected are Charlton, Stillwater, Schuylerville, Duanesburg, Schodack and areas that are still very rural.

The bottom line is that this great loan program has helped the housing recovery and is now changing to exclude many would-be buyers.  Contact your congressman today and tell them you want this program to be left alone for now so the housing recovery can continue to take hold.

At Victory Funding and Living Well Realty we are committed to making dreams come true and this program is vital to that goal.

Posted in Financing, New Borrower | Tagged 100% Financing, albany, financing, Living Well Realty, Loan programs, low interest rates, Malta, mortgage broker, Mortgages, Saratoga, Saratoga Springs, schenectady, troy, USDA Loans, Victory Funding | Leave a comment

USDA Changes Make It Tougher For Buyers

Beginning May 1st 2013 USDA Guidelines will tighten up the once user friendly program, likely to head off losses the agency sees in the future.  USDA, yes the same people that inspect your meat, guarantees loans for lower income, rural housing.  Rural is defined on their website at www.usda.gov, and includes places such as most of Saratoga County in the Capital District of NY, Ballston Spa, Malta, and Stillwater are among the towns labeled as eligible.  Just about every where in upstate NY is eligible as are most rural places in the country.

The program currently allows credit scores as low as 620 to be underwritten even with a “refer” response from GUS (Government Underwriting System).  GUS is an automated underwriting system that weighs the risk factors in a file and produces a result that tells the underwriter what information to gather to approve the loan or that there is too much risk due to certain factors.

The new changes will only allow a file that recieves a “refer” response that requires a debt ratio waiver to be approved if there are three compensating factors.

The file must;

1.  Have a credit score of 680

2.  Have three months of reserves – the borrower must have three months of PITI payments in assets.  There are a couple other factors that could be used here as well.

3. Have a back end debt ratio that does not exceed 42% – The back end ratio is the percentage of income the borrower spends for ALL of their consumer and housing debt including car payments, student loans, credit cards and housing payments (PITI).

With these restrictions now in place the consumer is, once again, one more step away from the American Dream.  Or, will it weed out those that aren’t serious about buying?  Let’s be honest, these restrictions prevent those that are NOT following the basic fundamentals of financial management from entering into the largest financial transaction most will do in their entire lives.

These changes may prevent some from buying a home today, but hopefully they will preserve the program – arguably the best loan program in the market place today – from going belly up for the rest of the responsible consumers. 

For further information you can check out the actual letter on the USDA website at http://www.rurdev.usda.gov/SupportDocuments/an4710.pdf

Victory Funding and Living Well Realty will continue to help clients purchase homes with this 100% financing program, regardless of the new restrictions.

Posted in Real Estate | Tagged 100% Financing, Ballston Spa, First Time Homebuyers, Living Well Realty, Malta, Saratoga County, Victory Funding | Leave a comment

3 Great Lead Generation Tips

Lead GenerationProspecting is one of the hardest parts of the Real Estate business.  It separates the successful from the mediocre in every sales job.  Make no mistake about it, if you are in Real Estate, you are in the lead generation business!   Here are three ways to prospect successfully;

1.       Spend one hour a day cold calling expired listings that you want to sell in Saratoga Springs or Guilderland, NY or the city you live in.  Write and practice a script and keep it brief on the phone.  You should expect at least nine turn downs for every one appointment you book and one listing for every five appointments.

2.       Target a specific neighborhood or demographic and create a campaign that touches every home owner in the target market at least 9 times in a year.  Maybe it’s Averil Park or Rotterdam, NY.  Use news paper, post cards, emails if you can get them, phone calls etc.  The average consumer requires at least 9 “touches” before they are willing to consider using your services.

3.       Networking, networking, networking!  Consider your current community involvement carefully.  If you are not part of any organizations then determine what you interested in and volunteer!  Meeting people is the BEST way to market your services.  Be friendly, professional and consistent!  The resulting business will be an overflow of the seeds you sow!  Always remember to GIVE first and ASK later.

I grew Living Well Realty and Victory Funding in Saratoga County in upstate NY through the toughest four year market these two industries have every seen!  I can grow your business too!

Posted in Free Tips, Local, Real Estate | Tagged Averil Park, Guilderland, Malta, mortgage broker, NY, real estate, real estate agent, Saratoga County | Leave a comment

Investor Attitudes – Make or Break

AttitudeYour attitude will make or break you in the investing world.  Are you buying your first rental?  So, are you after cash flow or long term equity?  Either way, if your attitude is wrong going in, you will be angry, upset, disappointed and, ultimately, you will quit!

Many so-called “investors” purchase, inherit or otherwise gain their first piece of real estate with the idea that they will be able to continue on their merry way through life and that, somehow, at some point, they will cash in on their “investment” for tens of thousands of dollars.  Unfortunately it is an attitude like this that causes most first timers to crash and burn, hate the business and run away discouraged, injured and, in many cases, broke.  To find these individuals all you have to do is look at the Schenectady, Albany, or Troy, NY real estate markets, or any city today, and talk to nearly every investor that is trying to sell a rental property.

We are not in a market that is conducive to selling investment property so nearly every one that is on the market is from a disgruntled land lord.

So what attitude works?  When you buy a rental property you are starting a business!  You must expect to invest your time, talent and financial resources in that business in order to reap the reward of long term equity appreciation and, if you are really good, short term cash flow in the mean time.  If you have a vacancy, it represents 100% of your profit.  Unlike many businesses that can limp along with a weak month and meet expenses, when you have a vacant unit in a two family home you are losing 50% of your revenue. No matter what business you are in, that is a substantial hit.  Yet I see time and time again when a new investor has a vacant unit it sits for months until enough weekends have accumulated to finally get the unit turned around.  No one can be successful with that kind of revenue loss, but for some reason, it is acceptable if you are a land lord?!!

Take my advice; if you are considering buying a piece of rental real estate treat it like you would treat a full blown business.  If you are not prepared to do that, then leave it alone!  This is NOT a passive investment, it is WORK.

Connect with the right Real Estate Broker and the right Mortage Broker to get ALL the information you need to make good choices!

The rewards are amazing, but it takes the right attitude to succeed!

Posted in Free Tips, Investing, Real Estate | Tagged advice, albany, investing, real estate, Real Estate Investing, schenectady, troy | Leave a comment

It’s a Wonderful Life!

As I was enjoying the annual Christmas Eve extended family get-together this year it struck me!  How blessed are we to be surrounded by family in such a beautiful setting.  I want to take you on a walk through my evening and share with you a perspective you may be familiar with.  Take a moment, let your mind wander and see if this scene takes you to a wonderful place.

The day starts with my family gathering up all the gifts we (by we I mean my amazing wife) have bought and wrapped and stuffing them in the car.  Thankfully this year the whether cooperated and we headed out the door to my in-laws home in the Catskill mountains.

My Father-in-law is a quiet, strong, gentle man who still cuts his own wood to warm the home, keeps up with the current political climate and emails funny quips to his friends and family all over the country.  He frequently comments on how blessed he is and is truly amazed at what God continually does in his life. To hear him talk you would think he was a multi-millionaire without a care in the world.  In reality his body is plagued with old injuries, money is tight and his guy didn’t make it into the White House.  There is nothing he won’t do for his family.  Many years ago, when things were very tight, he and Mom brought us a Christmas tree when we were not going to have one.  That may seem small, but I can tell you that it made an enormous impact on me and my family.

My Mother-in-law is a stereotypical mother hen.  She cares for every member of the family in the most loving, thoughtful ways.  Her days are spent feeding the chickens, making meals, helping dad with the bees, texting my wife and staying connected to all four of her children’s lives.  She somehow knows your deepest thoughts and character, and loves you anyway.  Their prayers help power us through the tough spots in our lives.

When we arrive at their home around noon the quarter mile long driveway is plowed, the bee hives are all covered for the winter and a path to the house is cleared and covered with wood ash to keep us from slipping.  There are snacks and treats scattered throughout the 200 year old farm house and a balsam Christmas tree decorated with some paper ornaments created by children and grandchildren, some glass ornaments from decades ago and the big fat Christmas lights that get too hot to touch.  We are greeted by my wife’s sister’s family who drove in from Chicago and will be there for a week or so.  The snacking begins along with the requisite catching-up conversation and the bewilderment at how a child can grow so quickly when only seen twice a year.  My 15 year old niece is as tall as I am, beautiful and very funny.

With around 35 guests expected to arrive in a few hours there is much scurrying around, cooking and last minute preparation to be done.  The Christmas gifts for the extended family are set out under the tree and the outside lights are all brightly beckoning the family and friends that will fill the house.

Cousins, Aunts and Uncles, friends and neighbors begin trickling in, all commenting on the aromas and homespun splendor, the fruits of Mom and Dad’s hard work.  As the party builds and the traditional dishes of Swedish Meatballs, roast pork, pickled herring and, of course, Jesus’ Birthday Cake get gobbled up, all of a sudden a booming HO HO HO comes from the front porch.  A visit from Santa Clause tops off the children’s night.  Jack, a brilliant 6 year-old, is so excited he is shaking while his brother, only two and a half, cautiously approaches, snatches his gift and darts back to safety.  It truly is an amazing sight!  Santa is a wonderful cousin who is about 6′ 3″ tall and plays the part perfectly as a jolly, kind, gentle giant.  The party resumes after Santa departs.  Dad breaks out the home made Mead, which is honey wine, and more friends show up with an amazing cheese cake and more great conversation.

It was about then, this year, that I wandered outside to the front porch.  Even though the heat was off, the house was about eighty-five degrees and I was ready for some fresh air.  It was about thirty five very refreshing degrees outside and I sat down in a rope bottom straight backed chair and put my feet up on the railing.  The laughter and joy of the sixty year old traditional gathering was behind me.  The colorfull glow of the Christmas lights surrounded me and I gazed upon the majesty of the mountains, covered in the blanket of night and reflected in the pond below the hand laid flat-stone walls that seperated the house from the gardens and pond below.

As I drew in a breath of crisp mountain air and allowed the sounds and smells to sink deeply into the moment, it occurred to me that I was perhaps the most blessed person on the face of the Earth.  Not one single aspect of that entire scene had one thing to do with my position in life.  No money could have purchased that experience.  It was truly the grace and favor of God almighty and the amazing gift of his Son, our Saviour, Jesus Christ.

Merry Christmas!

Posted in Life | 1 Comment

USDA Property Eligibility Map to Change!

Good Morning!

We have a very important update for you today! If you have a listing in a USDA eligible area OR you are working with buyers that expect to use a USDA loan then you need to read on!

USDA is changing their property eligibility borders in March of 2013 based upon the 2010 Census! That’s right, it is unlikely, for instance, that the entire Village of Ballston Spa will remain rural after this change takes place. It could change your entire marketing strategy and your target audience.

What to do? Prepare your clients ahead of time. Have them make all necessary price adjustments NOW to capture those buyers while they are still able to buy your clients house with zero down!

For buyers, give them this info now so they can make wise decisions about their purchase sooner rather than later.

Good news! There is still plenty of time to get your buyers and seller ready for this change and take advantage of this vastly beneficial USDA Loan. Make some calls and get it done!

If you want Tim to give your office an update on the Mortgage Industry, call the office today and schedule him for your next office meeting. Slots are filling fast so CALL TODAY 518-899-7700!

Have a productive day!

Posted in Real Estate | Tagged Purchase money, real estate financing, refinance, USDA Loans, Victory Funding | Leave a comment