The guest post below is by Melinda Carter, Guest blogger. I take no responsibility for the accuracy of the information. If you have further questions, I can recommend a local lender. ~Damion Flynn, Broker

No market in the United States has really avoided the issues that have affected many real estate scenes throughout the country. Some areas have managed to take small, steady hits, staying afloat and looking to thrive in the near future.

One potential sign of the future is the dipping mortgage rates throughout the nation, as well as the Southeast. Even though this type of statistic may seem trivial, these decreases could have a long term impact on the buyer’s market in areas such as the Gulf Coast and other southeast cities.
In the Biloxi real estate market, a 30 year fixed rate mortgage is currently at 4.078 percent. With these mortgage rates dipping into the sub four levels, they are tapping record lows in many areas of the country. The levels throughout the country are lower than they have been in a mere 60 years, but what does this mean for buyers and sellers?

Mortgage rates going so low have had a twofold effect. It has certainly played up a benefit for potential buyers but it hasn’t done too much to drive people into the buying market and away from the rental scene. One positive in this area of the country is the fact that record low mortgage rates are combining with continually rising rental rates. This has an effect on those potential first time buyers who are on the fence, deciding whether to keep renting an apartment or look into purchasing their first home.
A good example of this peaking interest is in major cities such as Biloxi and New Orleans. In Biloxi, the average rental rate is between $650 and $750 these days. With the 30 year fixed rate mortgage at 4.078 percent in the area, prospective buyers may choose to stay away from rising rates. New Orleans apartments are sitting between $750 and $900, as 30 year fixed rate mortgages in the area sit at 4.312 percent.

Mortgage rates alone aren’t necessarily set to drive prospective buyers into the market any time soon, but they could play a role as a factor for those interested in purchasing. In the end, most families and potential buyers will make their decisions based on a set of important factors during their own process. Rather than a focus on recent trends throughout the southeast or Gulf Coast, a purchase is more likely to take place today because a house fits a need for that individual buyer. Although they won’t have a huge effect on consumer confidence, the low mortgage rates can have an effect as a small factor for those who are already interested in buying somewhat, especially in areas such as the southeast where rental rates continue to rise.

Veterans’ Day is a time which many Americans spend proudly remembering and honoring the service of our nation’s military members. However, in lieu of celebration, many Americans forget the current homelessness crisis many of our nation’s veterans and current active duty personnel now face.
In late September, Representatives Tim Walz and John Boozman introduced the Veterans’ Homelessness Prevention and Early Warning Act of 2010. The bipartisan legislation addresses increasing veteran homelessness by implementing a stronger level of VA support for veterans and active duty service members facing foreclosure on their VA loan.
“American heroes living on the streets, out of cars and on the couches of family members is a disgrace,” said Rep. Walz. “These men and women fought for our country and we must do everything we can to address their unique needs, which all too often are a contributing factor in homelessness amongst this population.”
Although, the VA does not own or service VA loans, the department is considered responsible for the loan as it guarantees each loan received by eligible military members. The VA’s guarantee is what provides military members and certain military personnel spouses with the competitive interest rates and mortgage terms exclusive to the VA loan, so long as the veteran or active duty personnel qualifies for this unique VA – provided benefit. The VA home loan program has experienced continued success in spite of the current mortgage crisis, however, still saw 15,145 VA loans foreclosed in 2009 – a number that has nearly doubled since 2007.
To reduce the likeliness of homelessness amongst veterans and active duty service members, the Veterans’ Homelessness Prevention and Early Warning Act of 2010 will mandate that the VA:
• Alerts VHA homelessness case managers within 7 business days of being notified of a VA home loan defaulting
• Ensures each VHA case manager can provide alternate housing for the veteran and his or her family should the veteran lose his or her home
• Submits a plan for the Act within 6 months of enactment, and will have the regulations in place within one year of enactment.

“Stable, permanent housing is the cornerstone of health and family – our veterans deserve nothing less,” stated Nan Roman, president of the National Alliance to End Homelessness. “This bill represents the first step in connecting all veterans to the support and resources necessary to achieve that stability for themselves and their families. I applaud Representatives Walz and Boozman for demonstrating urgency on this critical issue, and I look forward to their continued leadership to prevent and end homelessness for all our nation’s heroes.”

Guest Post By James Kelley:
James Kelley blogs on veteran’s issues and real estate in the United States at VA Benefit Blog .He also works for VA Mortgage Center, proudly serving American military families as the nation’s premier VA lender.

If you are planning to refinance your mortgage it is first important to determine whether or not you are going to take the right decision. There are various things which are to be considered before you are going to take out a refinance home loan. Actually in case of refinancing, you are required to take out a new loan in order to change the terms and conditions of the previous loan that you had taken to finance your home. So, it is important to first determine your affordability and to do that you can use a mortgage calculator from the different websites offering free usage of calculators.

Factors to weigh before refinancing

Some of the factors that you should weigh before actually taking out a new refinance loan are:

• Are interest rates low – It is important for you to find out if the interest rates of the current mortgages in the market are lower than that of the home loan which you had taken to refinance your home. Only if the interest rate in the mortgage market is low, can you use a refinance loan in order to topple over the terms and conditions of the previous home loan.

• Can you afford another loan – You will have to determine if you can at all afford to take to another loan. Though it is true that a refinance loan can help you in paying off the previous one, you cannot deny the fact that with this loan (more of a second mortgage) you are taking on additional responsibility of paying off the new loan. So, it is important for you to decide on your affordability and for that you can use a mortgage calculator

• Is it your only option – You need to decide if refinance is your only option to save your home from foreclosure. This is because, it is always better to add up additional debt in order to pay off previous debt. So, you need to know that you can also try to modify your loan rather than directly opting to refinance it. The results of both the processes are same. Both lower the interest rate on your mortgage and extends the loan term. But in loan modification the loan remains the same; only the interest rate and the loan term gets modified.

• What are your options – There are various options through which you can refinance your home loan. There are mainly two options through which you can refinance the home loan. One is the simple refinancing and the other is the cash out refinancing. In case of cash out refinancing, you are able to get more money than what you owe to the lender. Moreover, in order to get cash out refinancing, your home needs to have enough equity in it.

So, you can see that there are various things that you are required to consider before even taking out a refinance loan in order to simply change the terms and conditions of your home loan.

Guest Post written by Peter for MortgageFit.com

Even with Tax Day 2011 more than nine months away, it’s not too soon for some military personnel to think about taking advantage of the homebuyer tax credit extension.
Though some non-military taxpayers already got the tax return, and others have until Sept. 30 to close a deal, qualified members of the Armed Forces, Foreign Service and intelligence community have longer deadlines if they served official extended duty.
To use the homebuyer tax credit, qualified members need to sign a binding sales contract by April 30, 2011. They’ll then have two months to close the deal. Military members who were overseas for at least 90 days between January 1, 2009 and April 30, 2010 are likely eligible for the extension.
Service members coming back to Keesler Air Force Base and NCBC Gulfport will get some great benefits if they can find a home in the local area. Besides proximity to the bases, homes here are close to the beautiful St. Louis and Biloxi Bays. Also, first-time homebuyers can earn $8,000 or 10 percent of the home’s price depending on which figure is lower. For a $150,000 starter home, the maximum return could be more than 5 percent of the purchase price.
Repeat buyers can get a maximum return of $6,500. As with any tax credit program, there are several eligibility requirements:
-Military members and their spouses cannot have owned a home in the last three years in order to be considered a first-time homebuyer.
-Married couples with an annual income of $250,000 and individuals with that of $125,000 are not eligible for the tax credit extension.
-The maximum purchase price of a home cannot exceed $800,000.
-For repeat buyers, all requirements are the same and they must have occupied their last home for five of the last eight years.
-The tax credit will not be recaptured if homebuyers have to sell or vacate their home within three years of purchase because of another stint overseas.
Active-duty military members have the additional option of using the tax credit in combination with a VA loan, which boasts myriad financial benefits. Since its creation in 1944, the VA loan program has helped more than 18 million men and women purchase a home.

There’s no better time than now for military personnel to decide on using the tax credit extension, even if filing for taxes is at the bottom of priority lists.

Guest Post By James Kelley:
James Kelley blogs on veteran’s issues and real estate in the United States at VA Benefit Blog .He also works for VA Mortgage Center, proudly serving American military families as the nation’s premier VA lender.

The My Home My Coast grant program has been getting a lot of attention lately, and unfortunately a lot of wrong information. If you are a current approved recipient of the My Home My Coast assistance, please contact us to have us go to work helping you find your new home.

Who is eligible?

• A person/family who is not a current homeowner in the 6 eligible counties
• A renter who wishes to own a home and has not owned a home in the past 6 months
• A person displaced by Hurricane Katrina who wishes to buy a home in the 6 eligible counties
• A new resident to the 6 eligible counties
• An individual whose income is not more than 120% of median income as defined by HUD (see Chart)

What about participant support?
As part of the My Home My Coast program, participants will go through a class on home ownership, and counseling both before and after the purchase of their home. The My Home My Coast program is designed in a manner to help people own homes long term and provide counseling to help mitigate the possibilities of foreclosure.  This counseling is also designed to help participants with credit repair and is individually catered to each person to achieve the highest possible results.

How much money can you get?
The program is determined by each participants needs but offers up to a 40/60 value loan program. Local approved lending institutions fund as little as 40% of the loan while  the remaining (up to) 60% is provided through block grants as a 0% loan. Closing costs and downpayment assistance is also provided. Down payment assistance is determined based on participant’s income to the Average Median Income (AMI) – See Chart.

Are there any other requirements?
The My Home My Coast program does require that you use specified lending institutions and closing agents when you buy your home. This list of “acceptable” suppliers is used to create a more seamless transaction as these suppliers are familiar with the unique way the program is handled.

Where do I go from here?
If you have already received My Home My Coast approval, contact us to help you find your new home. If you still need to apply, you can view the My Home My Coast website at MSGCRC.com. At the time of this writing, the My Home My Coast program is not taking additional applicants. I am in contact with the MSGCRC staff to get updated when this occurs. You can also call 1-888-49-Coast (888.492.6278).

Effective March 1, 2009, which also happens to be my daughter Trinity’s second birthday, Fannie Mae will start, once again, financing up to 10 properties for investors – one heck of a birthday present if you ask me. Maybe I will go buy her an investment property

Fannie Mae has decided to do this to help with lending recovery and to help put some gas back in the ol’ real estate investment engine. Of course, they are playing it a bit on the safe side and have some pretty hefty stipulations, but none that most serious real estate investors shouldn’t be able to overcome.

Basic Guidelines:

• Single Family 75% Loan to Value (LTV) with a 70% LTV on Duplexes – Fourplexes
• 720 Minimum Credit Score
• No foreclosure/bankruptcy in the past 7 years
• No delinquencies (over 30 days) in the past 12 months on ANY mortgage loan
• 6 months reserves for all mortgaged properties
• a few additional items such as tax info etc…

This information comes as a great surprise. If you are looking to invest on the Mississippi Gulf Coast, it is perfect timing. Get in now and find your properties before other investors get the scoop on this and start taking all the “good stuff”.

A link to the Official Release by Fannie Mae. (HERE)

For more information about real estate investing or to have us help you find investment properties, please Contact Us here on the site – we welcome and appreciate your business!