As a flood of first-time homebuyers rushed to take advantage of the $8,000 tax credit the Rural Development program has been strained to the limit with a year’s allocation of funds expected to be depleted sometime tomorrow. There has been little interest in Congress to extend funding and it now appears that without a last minute vote to re-fund the program, Rural Development will be out of funds on Wednesday. This will leave lenders with only the ability to secure “conditional commitments” from Rural Development. The good news is there are still a few investors out there that will purchase loans with only a conditional commitment from RD. This means that loans currently in process that missed the Wednesday deadline to secure funds will still be able to close – a relief for both lenders and the thousands of RD first-time buyers who were under contract prior to April 30th but not yet closed. Now for the bad news. Any loan that misses the deadline and is forced in a conditional commitment will see their up-front Rural Development Guarantee Fee jump from 2.041% to 3.5%. This is because legislation in the House of Representatives is calling for the RD program to be budget neutral and the higher up-front fee will ensure RD is self-sufficient.

Mortgage Rates continue to benefit from the increased volatility in the stock market as well as lingering concerns over European debt and the effects it could have on the US and global economies. The benchmark thirty-year, fixed-rate stands at 5.00% even and only a .25% point will by you down to 4.875%.  The fifteen-year fixed-rate stands at 4.375%. Jumbo rates are also beginning to feel the love as the once frozen secondary market for non-conforming loans is slowly beginning to thaw. The thirty-year Jumbo rate stands at 5.875%. So while some were pointing to a spike in interest rates in the second quarter of this year, it has, thus far, failed to materialize. Despite the $1 trillion bailout for Greece and the Euro, fears remain that the underlying global debt problem could domino into a financial calamity similar to the sub-prime mortgage crisis of 2008. Until those fears are quelled, the demand for bonds should keep yields and mortgage rates low in the short-run.

1. Lake Powell short sale only 279,000
2. Turtle cove foreclosure only $279,000
3. Like new condo at Wendwood only 99,000

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Deal 1

• $279,000
• 6 bedrooms and 5 baths
• Over 3,000 square feet
• Only $90.58 per square foot
• Heavily wooded private lot
• Walton Lake shore community across from Lake Powell
• 2 master suites and many large porches

Deal 2

• $279,900
• 3 bedrooms and 2 and half baths
• Turtle cove foreclosure
• Lake front community
• Built in 2006
• $115.38 per square foot
• Beautiful tiled floors house is just like brand NEW!!!
• Incredibly gorgeous grounds and community pool and tennis
• On the quiet West end of Panama City beach florida

Deal 3

• $99,000
• 1 bedroom 1 bath with built in bunks
• Wendwood condo right across from the beach
• Only approx 2 miles from Pier Park
• Like new building and condo
• Fresh paint, newer appliances, new carpet Air conditioner only 2 years old and 2 beach accesses right out front
• Glimpses of the gulf from your porch!!!!!

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Deal 1 – Wild Heron short sale Bungalow $325,000
Deal 2 – Village at Blue Mountain foreclosure $395,000
Deal 3 – Seacrest Beach foreclosure$352,000

Deal 1

• Wild Heron short sale
• 325,000
• 2,241 square feet
• Full golf membership to Sharkstooth golf course available for purchase
• Community pool, gated, nature trails, fitness center, boats and kayaks and beautiful lake Powell

Deal 2

• Huge foreclosure in The Village of Blue Mountain
• $395,000
• 3,338 square feet with great porches
• 6 bedrooms and 4.5 baths!!!!
• incredible community pool and fitness
• located in Blue Mountain Beach off 30-A
• needs a few more finishing touches

Deal 3

• Villas at Seacrest Foreclosure
• $352,000
• 1,960 square feet
• 4 bedrooms and 3 baths
• Overlooking the 11,000 square foot Lagoon tiered pool
• Beautiful tile with large living area with fireplace
• NOT  a beat up foreclosure all new fresh paint and carpet

1. Riviera Beach Foreclosure $129k!!!
2. Huge golf-course home with screened in pool
3. Great foreclosure for only $275,000

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Deal 1

• $129,000
• 2 bedroom, 2 bath with 1,056 square feet
• Newly painted and carpeted
• Move in ready and close to a quiet beach
• Special Financing Available

Deal 2

• $362,000
• 2,760 square feet
• 4 bedrooms, 2.5 baths with a BONUS room
• Master on the 1st floor
• Oversized garage
• Screened in swimming pool
• Golf course community of Holiday Golf

Deal 3

• $275,900
• 2,363 square feet ($116/sf)
• 3 bedroom, 3 bath
• Big corner lot, fenced in with room for a pool
• Very large open floor plan with fireplace in living area AND master

As the deadline looms for first-time homebuyers to qualify for the $8,000 Federal tax credit, lenders nationwide are fearful of a decline in loan originations as a result after a surge in recent months. Buyers must be under contract no later than April 30th and must close on or before June 30th to receive the credit. Unlike in November of 2009, when the original tax credit was set to expire, there are far fewer voices in Washington and elsewhere calling for a second extension. It will be interesting to see if the expected drop in home sales resulting from the expiring tax credit can be offset by the increased demand typically seen in the late spring and summer.

I wanted to provide updates on two issues I discussed last week. Funding for the National Flood Insurance Program has now been restored after a two week shutdown that left us in limbo unable to secure new flood insurance binders. Also, there has yet to be any resolution to the funding for the Rural Development program though there are bills under consideration in Congress to restore funding and raise the guarantee fee in an effort to make the program self-sufficient and budget neutral. While we wait on the final legislation we have been told by USDA that they now expect for the current funding to last until mid-May instead of the end of April as previously thought.

After a volatile two weeks, mortgage rates have settled back to near their lows for the year. The benchmark thirty-year, fixed-rate is currently at 5.125% with no points. The fifteen-year fixed is just under 4.50% with no points. So far, knock on wood, we have not seen the spike in interest rates predicted by some when the Federal Reserve’s program of purchasing mortgage-backed securities wound down. It now appears that despite some positive signs in leading indicators, retails sales and corporate earnings, continued weakness in the labor market and the sluggish real estate market continue to weigh on the economic recovery. Until we see more robust job creation and solid gains in housing expect mortgage rates to remain at or near their current levels.

1. 4 bedroom foreclosure in Lullwater  for $199,995
2. Vintage block beach house for $160,000
3. Upscale foreclosure in Seacrest Beach for $544,900

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Deal 1

• $199,995
• 1,790 square feet
• Great home ready for the tax buyer credit
• 4 bedroom 2 bath home with office space
• close to the beach and Pier Park in the Lullwater subdivison

Deal 2

• $160,000
• 1,008 square feet
• 2 bedrooms and 1.5 baths
• Big back yard with room for a pool
• Vintage block home just a few steps from the beach
• Very quiet neighborhood, Wells Gulf Beach Estates

Deal 3

• $544,900
• 2,510 square feet\
• 4 bedrooms and 4.5 baths
• Balconies off every bedroom, travertine and oak flouring throughout
• Seacrest Beach located near Rosemary and Alys beach

After briefly touching an eight month high of 4.00% last week, the yield on the ten year Treasury note has eased some 20 basis points allowing the benchmark thirty-year mortgage rate to settle back near 5.125%. The spike in mortgage rates was due in large part to two massive government bond auctions over the past two weeks that met with lackluster demand on the world markets.

Job growth in March for the first time in eighteen months and solid reports on durable goods orders and consumer spending added to the sell-off in bonds. Over the past week, however, new worries over the Greek debt crisis, and signs the economy may not yet be out of the woods, have lead to renewed demand for bonds leading to the drop in rates from a high of 5.375% last week.  There has been a buzz among lenders and Realtors about Freddie Mac’s recent decision to relax some of their requirements for condos leading to the potential for thirty-year, fixed-rate mortgages being available for some projects that over the past year or so have been limited to bank portfolio programs with shorter fixed terms or larger down payment requirements.

In a nutshell, if a condominium unit currently has a Freddie Mac mortgage on it or if Freddie Mac is the owner of the property, Freddie will waive their typical warranty requirements making condo questionnaires unnecessary and the subsequent problems they bring to light. These properties still require a 20% down payment as none of the private mortgage insurance companies have yet to embrace the Freddie program and the rate is typically a 1/8% to ¼% higher than the standard thirty-year due to Freddie’s pricing adjustment for condos. While this program is certainly not a panacea for the condo market, it does imply a thawing of the secondary market for these properties that has been completely absent for over a year now.

The funding for the USDA’s Rural Housing program has not been renewed and the popular zero-down, first-time homebuyer program is expected to be depleted of funds by the end of April. Unlike similar times in the past where the funding was held up by partisan wrangling or procedural issues, this time it appears there is genuine concern on both sides of the aisle that the entire RD program needs to be revisited. The zero-down payment along with relaxed credit standards has the Administration and Congress worried that RD is being used to circumvent the FHA insured program which currently requires a 3.5% down payment. It is looking increasingly likely that some revamping of the program will be required. Whether that will be a condition of additional funding, or something to be visited later, remains to be seen.

1. Deal 1 Gulf Front Splash Condo for $187k
2. Deal 2 Palm Cove 3/2 for only $124k
3. Deal 3 Super Fancy Tapestry Park Home only $125/sf

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Deal 1

• Gulf front condo in Splash for only $187,000
• 1 bedroom with bunk room and sleeper sofa, sleeps six
• Comes furnished
• Splash has on average 90 percent occupancy
• Covered waterpark for the kids and so much more fun stuff!

Deal 2

• 3 bedroom 2 bath single family home in Palm Cove only $124k
• Perfect for the new home buyer tax credit – but you have to act NOW so you don’t miss out.
• Needs some TLC, but at this price, who cares!
• Gated community with two pools

Deal 3

• Beautiful home in Tapestry Park only $420,000
• Over 3,200 square feet
• Gorgeous stacked stone fireplace
• Enormous closets
• Gigantic master bedroom
• Short sale

1. Deal 1 Riviera Beach Foreclosure 3BD/2BA move in ready for $245,000
2. Deal 2 Panama Dunes Short Sale 3BD/4BA for under $200,000
3. Deal 3 En Soleil Foreclosure 3BD +bunk/3BA for $536,900

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Deal 1

• $245,000
• Just steps to the beach with gulf views from balcony
• New paint and carpet
• Built in 2004 & move in ready!$199,000 short sale

Deal 2

• 2367 sq feet with 3BD plus bonus room on 1st floor and 4 full baths
• Beautiful hardwood flooring and tile throughout, stainless steel appliances, granite counters, upgraded lighting and cabinetry
• Walking distance to beach, close to St. Andrews Park, with community pool, hot tub, and grilling area

Deal 3

• $536,900 foreclosed unit
• Luxurious 2nd floor unit with 2316 sq feet
• 3BD plus bunk room and 3 baths, granite, stainless steel appliances, beautiful hand painted mural in foyer
• 500 sq ft balcony with built in gas grill, great views of gulf and pool

Deal 1:  Foreclosed Bungalow back on the market $284,900
Deal 2:  Short sale in gated lake community for $232,500
Deal 3:  30 A foreclosed property for $409,000

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Deal 1

• 284,900
• 2633 square feet
• Only 108 per square foot
• 4 bedrooms 3 bath
• Lake community of Wild Heron with pools, lake house with Kayaks and canoes and plenty of walking trails

Deal 2

• 232,500
• 2,113 square feet
• 110 per square foot
• 3 bedrooms 3 baths
• Great views of Lake Powell from large front deck in gated community
• Huge back yard with room for a pool
• Palmetto Bluff subdivision

Deal 3

• Foreclosure on 30-A  in Summers Edge
• 409,900
• 1936 square feet
• 3 bedroom 3 bath
• Spacious porches and balconies  in gated community with easy beach access
• Community pool