Hi all!

It got cold over the last few days (ok, "cold" for this part of Florida is in the 30's at night and not getting above 50 during the day), but I have to admit, I'd rather have this weather than what they are dealing with up north! Digging snow tunnels is great when you're a kid though!

Anyhow, I had a conversation with a friend of mine this morning, a mortgage broker and one question that came up that many buyers are wondering right now...are there ANY 100 percent financing home loans available left? With all the changes, and stricter guidelines for getting a loan, people still may not have 20 percent of a down payment saved up to buy their home.

Well, believe it or not...the answer is yes...for starters, the Veterans Administration is still offering 100 percent financing (which in some cases can be raised to 103 percent to roll in the funding fee you must pay). If you are a disabled veteran, though, you do NOT have to pay that funding fee (minimum of 2.2 percent of the loan amount). You do need to ensure your lender gets a copy of your disability determination as part of your necessary paperwork.

But what if you are not a veteran? What are your options? Well, the only program out there that still does offer 100 percent financing is Rural Development loans. This means that the house itself has to be considered in a rural area--which may be different than what you think. In Okaloosa County, Florida, the area between Hurlburt Field, and Eglin AFB is NOT rural (Fort Walton Beach), however, areas of Mary Esther, Navarre and Destin (YES, DESTIN) are considered rural development.

So what about this Rural Development program? Right now, with one of the programs my friend was telling me about is that the seller gets an appraisal on the property when they list the property. Rural development lenders will not lend more than what the house is worth "today" (ok--so that's the way it is with ANY lender). However, since Rural Development lenders will lend up to 100percent of the property VALUE (not just contract price--all other lenders lend based on the LOWER of appraisal price or contract price).

Once the seller has the appraisal on their Rural Development property, they KNOW that the buyer cannot get more than that for their loan, so now they can determine how much they are willing to pay towards the buyers closing costs on top of their realtor fees, and determine their bottom line early in the process.

So why is this such a good idea? Many times, a house is listed and while the realtor does a comparative market analysis on it, the true value isn't known until the appraisal is done. With knowing the appraisal amount now, both the buyer and seller know what they're dealing with in terms of an appraisal. If the seller gets the appraisal and realizes that it won't give them enough, they don't have to waste their time listing the property for more than they will know it will sell for today.

So, are you ready to buy? Does this give you some good options? Then don't hesitate, do something about it!

www.rurdev.usda.gov

www.homeloans.va.gov