I no longer have the desire to do mortgages. I always loved the marketing aspect of doing them and I liked having a good team behind me that could handle the load that I brought in. So, that is what I am going to focus on. Marketing, whether it be for Real Estate, Affiliate sites or whatever comes my way.

I am taking a cue from Andy Andrews, I am Burning the Boats, I have no intention of ever going back to mortgages. I am just simply done.
I am going to focus more on speaking, marketing and helping others who need help in marketing. One of my first jobs is to help Dr. Dough Pizza look for that coming soon.

Stay Strong & Burn the Boats

Dave

- Waiting Could Cost You $1000′s

This is no April Fool’s joke, but if you wait to buy an Indiana home you will be the fool. On April 5th, the required up-front mortgage insurance premium (MIP) will increase to 2.25%. So, buying a $150,000 home in Indiana with 3.5% down payment of $5250, the up-front MIP will be increased by $732.76. Granted, the up-front MIP is financed as a part of the loan, by why pay extra when you don’t have to.

Also, later on this Spring, Indiana Home sellers will no longer be allowed to give more than 3% in sellers concessions for closing costs and pre-paids. So, if the taxes or closing costs are more than previously thought the difference will be pushed upon the shoulders of the buyer.

The only way to avoid these forthcoming short falls in FHA financing is to buy a house early in 2010. Really, why would you wait to buy a new home. The first time home buyer tax credit expires on April 30th. Well, you need to be in Indiana home contract by then, and close by the end of June 2010, the same goes for “Move-up Buyer” tax credit as well.

I think you would be safe from these Indiana FHA increases if you have your mortgage application in by the end of March.

If you have any Indiana FHA or Indiana USDA home loan questions please let me know. I appreciate your business.

Dave Woodson – The Mad Mortgage Machine

Indiana FHA Expert

Stay tuned for the Mad Mortgage Machine Podcast coming out tomorrow

As foreclosures increase across the United States and that includes Indiana, banks are looking for ways to sell their overloaded REO inventory.

FHA has devised a plan that should be able to help many of those that buy homes, do some fixing up of the home and put it back on the market.  In the hopes of turning a profit.  FHA has waived the 90 day seasoning rule for sellers.  Here are the guidelines broke down.

1. The waiver takes effect February 1st, 2010 for a period of at least 1 year unless extended. (we will see if it gets abused)
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must me arms-length. (no relation amongst the seller & buyer)
4. No identity of interest can exist between buyer and seller. (ie. land contract)
5. If sale price is 20% or greater than the seller’s acquisition cost, the lender must:

a. provide supporting documentation and/or a second appraisal and
b. order an inspection of the property and provide it to the buyer.

6. The waiver is limited to forward mortgages only. (you cannot use a reverse mortgage)

I have uploaded for your convenience the Indiana FHA mortgagee letter that further explains the “90 day waiver”

any questions feel fee to give me a call

Dave

I was thinking just the other day, “who needs me”.  No, I was not feeling sorry for myself ready to drive into the oncoming traffic and end it all, but who out there needs my services.  Who NEEDS me! Who can use my services?

This is what I came up with (in no particular order), and would love any additions……

1) Young couple talking about moving in together.
2) Young couple talking about getting married.
3) Someone expecting a new baby.
4) Someone who’s last child is in college.
5) Someone who is always talking about “investing in real estate”.
6) Someone who is looking to buy a bigger home in state of Indiana.
7) Someone who just got a job promotion in Indiana.
8 ) Someone who has an Indiana house for sale now.
9) Someone who seems to spend, spend, spend and might need to consolidate.
10) Someone who is moving into the state of Indiana.
11) Someone who recently lost a spouse.
12) Someone talking about doing renovations or additions to their current home.
13) Someone talking about ARMs in the media (if they pay attention, they usually have one)
14) Someone who hasn’t started saving for retirement or is unhappy with their current retirement savings strategy.
15) Someone whose FIRST child hasn’t even started college yet.
16) Someone who just bought a brand new house and got their financing through the builder’s lender.

There are more than that, but that is a nice kicking off point.

Dave Woodson

Just when you thought it was safe to go back into the water….

I am not just angry…I am MAD

Now, more than ever, is the time to buy in NW Indiana, with about 11 months of home inventories nationwide and home interest rates nearly all time lows one more time this year and not to mention the Indiana first time home buyer tax credit is set to expire at then end of November.

Well, many people are saying that Washington will extend the Home Buyer credit, but do you really want to take that chance. I mean, they are still trying to ram through a health care reform that may or may not help as many American as they claim. I digress, with inventories still as high as they are in many parts of NW Indiana, it is still very much a buyers market and I know that with the Indiana Home Buyer Tax Credit many new homeowners are making money when they buy a house. They are paying off debt with the tax credit, buying a home that needs a little love a fixing it up or just socking it away for a rainy day.

New home construction is up, home sales are ticking up, rates are ticking down, what are you waiting for?

D

B+
Be Positive

On Friday, I heard a commercial for mortgage guy out of Chicago and his message was just all over the place, but it was mostly negative.  He was not being negative on his competition, but on the “market” on a whole.  I was shocked by his comments.  I was thinking what a fail of a commercial.  Why even spend the money to do a commercial if you are just going to be that dower?  Why go on record for having such a lousy attitude?

B + from Dave Woodson on Vimeo.

Staying positive in today’s Real Estate & Mortgage Markets

There are lots of positives in this market as we improve daily.  Housing starts were way up for June and rates are still very low.  Now, is the best time to be a First Time Home Buyer with the the First Time Home Tax Credit.  Please remember there are only about 130 or so days left to get in on the Tax Credit.  You must close on or before 12/1/09.  Home prices have come down enough to let so many more people in the market from the First Time Home Buyer to the Move-Up Buyer to the second home buyer on Indiana’s great lake front.  Don’t let this buyers market slip past you – This time.

Dave Woodson
The Indiana FHA Expert and the Mad Mortgage Machine

Revisited…

Lately, I have been getting some calls and emails about the Indiana First Time Home Buyer Tax Credit from some very confused Indiana home buyers and agents alike.

I want take just a moment and straighten out a few of the misconceptions that are there.

Lets set the record straight once and for all and let me be the guy that does it.

Here are the provisions for the Indiana First Time Home Buyer Tax Credit

It ENDS December 01, 2009 – now unless Congress comes out and changes that here in the near future, you will need to close on your first Indiana home on December 01, 2009.

If you close on 12/02 and you don’t get it.

• First Time Home Buyers only – you cannot have owned a home in the last 3 years
• The Tax credit is is 10% of the homes COST not worth, but homes COST at the time of Purchase

Some simple math $80,000 home times 10% = $8000

• The Maximum credit allowed is $8000

More simple math $170,000 home times 10% = $8000 (hey, our gov’t is involved here, we are lucky to have roads)

• Adjusted gross income of no more than $95,000 single and $170,000 joint

Partial credit is received when you make more than the above amounts

• Credit is taken when you file your tax return

Cannot be used at a part of down payment or taken as a credit at closing; you will either pay less in taxes or a get a larger refund.

Now, I am a mortgage guy, I am the Indiana FHA Expert, and I am not a tax guy.  Please, consult a tax professional.  A tax pro can save you headaches and can find you deductions that you may not know that you deserved.  If you would like a professional referral just ask for one and I will be more than glad to give you one.

Dave Woodson
The Indiana FHA Expert

Where in Indiana do we do business and where in Indiana have I been doing business!

I cover the State of Indiana, as I am the Indiana FHA Expert and the Mad Mortgage Machine.  A few weeks ago,   we were able to do a first time home loan for a good friend of mine and his agent Evelyn Johnston was so impressed with me and my team that she asked us to do a second loan for one her clients that we were able to close in in two weeks.  We were able to do these loans that were about 70 to 75 miles from our office.

To date, I have done loans in southern Indiana, well, watch this quick video and I am sure you will understand what I am talking about.

Covering the State of Indiana from Dave Woodson on Vimeo.

Indiana FHA Expert

Dave Woodson
The Indiana FHA Expert

Good News for the Region

Combined with the $8000 tax credit for Indiana’s first time home buyers and exceptionally and, not to mention, historically low Indiana FHA rates have driven home sales in Northwest Indiana higher than the previous month by a whopping 13.4%.

Most of the questions that I am getting are about the Indiana First-time homebuyers tax credit Several of my buyers have taken the time at the closing table to fill out an amended federal tax form and mailed it on the way to their new home to get the money all that much sooner.

Pricing has also picked up in Northwest Indiana in May as many buyers, who had been priced out of the market are able to come back and in bid on homes that were previously out of their price range. A recent example is a home that sold for $132,000 but was appraised at $150,000 and the home around the corner was under contract for $188,000 and was 400 square feet smaller. Granted, this was a foreclosed home and had been vacant for over a year, but a good deal is a good deal.

Home sales, nationally, did increase in May, but at a slower pace than Northwest Indiana.

May was the 3rd straight month that home sales have increased telling me that this may be more than just a seasonal increase. There is still a glut of bank owned properties and “short sale” properties that act as a drag on the region, but with rates still great and the tax credit,

Now, is the time to buy – Now, More than ever. The tax credit ends towards the end of 2009, and there are plenty of great deals to be had.

Home sales pick up some steam

Lake County existing single-family home sales

May 2009: 363

April 2009: 320

Porter County existing single-family home sales

May 2009: 111

April 2009: 86