Category: Uncategorized

IdeaCamp this Thursday Night at the New ATC at Gulf Coast!

 

The wildly successful IdeaCamp held by the Panama City Beach Chamber of Commerce and made possible by Southwest Airlines is happening this Thursday evening, October 24th from 5:30 to 7:30 pm at Gulf Coast State College’s brand new Advanced Technology Center.

Community members are invited to Share, Learn and Network with other residents and business people in a relaxed environment. IdeaCamp attendees will enjoy light eats and a FREE drink ticket for the first 50 registrants that arrive.  Please REGISTER HERE in order to secure your spot.

The event is FREE to PCB chamber members and $20 to non-members. Door prizes are awarded so make sure you bring your business card and look forward to a tour of the ATC at this IdeaCamp.

 

 

Government Shut Down and Tax Deadline

While the Government Shut Down has closed IRS help centers, and the online and phone help lines, your tax forms are still due by October 15 for those who have filed an extension.

According to irs.gov no refunds will be issued during the lapse in operations and everyone should try to file electronically if possible.  However, if you do owe this year – payments are being accepted.

And that taxpayers…….. is your tip for today from Abby our mascot here at Adams Business Solutions!  Have a tax or bookkeeping question?  Send it to us at lauree@adamsbusinesssolutions.com  you may see it answered here!

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Government Shutdown and Housing: How will it impact home buyers and sellers?

As of the day of this writing, we are in day 7 of the government shutdown and neither side seems to be close to a compromise. How is this currently impacting the housing market?

The greatest item that I see potentially impacting the mortgage market is related to the IRS Form 4506-T. This is a required verification of the tax return numbers against the IRS database and is a fraud prevention requirement to make sure the tax return numbers are accurate vs. what the IRS has on file.

Currently this function is not being supported by the IRS due to the shutdown and there has been a great deal of speculation that this would delay or prevent loans from closing until this function is up and running again.

However, we have received word from two of our investors that we are being allowed to continue underwriting and closing our loans, and we can provide the 4506-T verification once the IRS is processing them again, and sell the loans to the investor at that time.

Basically, this means we are still doing business as usual!   However, our processors and underwriters will be carefully reviewing the tax returns, and if a potential error is discovered, it could trigger the need for the 4506-T to be completed prior to loan closing.

FHA and VA loans are very automated for the most part and our underwriters are approved to underwrite and approve these loans without the direct involvement of the agencies. We do not need FHA and VA to sign off on the loans we approve, so we are able to continue processing and closing most loans like normal. (FHA is not currently originating Reverse Mortgage HECM loans right now.)

We can get FHA case numbers without the involvement of FHA personnel in most cases.

We can obtain VA Certificates of Eligibility online without the involvement of VA personnel in most cases.

In the few cases that might require the involvement of FHA or VA personnel, they are still working with skeleton crews and taking care of business as they are able. Closings might be delayed for this reason but we would learn of this delay during loan processing and communicate it to the buyer, seller and agents involved.  Most loans can still be processed and closed without delay.

USDA Rural Housing loans are not being closed right now. A visit to USDA’s website offers the following message: “Due to the lapse in federal government funding, this website is not available. After funding has been restored, please allow some time for this website to become available again.”

Prior to the shutdown, Florida USDA Rural Housing was advising us of a 30-45 day backlog meaning that loans could easily take 60+ days from application to closing. When they start working again, look for this loan type to take even longer to close.

Fannie Mae and Freddie Mac are both open for business and we are processing, underwriting and closing conventional loans like usual.

Again, the largest potential risk of not being able to close mortgage loans was the inability to verify tax returns vs. the IRS database and our investors are allowing us to continue closing loans now, and verifying later prior to selling the loan to them.

One final impact of the shutdown is that interest rates are still very low. The Federal Reserve’s decision not to taper its QE3 Bond Purchasing last month helped to lower rates and the shutdown has also had the effect of lowering rates while investors flock to the safety of bonds.

In summary, government backed loans like FHA and VA continue to be approved and closed as usual.  Certain specialty loans including USDA Rural Housing Loans and FHA HECM Reverse Mortgage Loans are not being closed right now, but we can take applications and process files to be ready for approval and closing when the government re-opens.

 

We are doing business as usual and are still taking applications this week for loans to be targeted for closing in October.

 

Mike Tarleton
Sr. Mortgage Loan Officer
Bank of England

5410 E. Hwy 30-A, Suite 212
Santa Rosa Beach, FL 32413

850-866-2963 (Cell)
706-888-0980 (Cell / Text)
866-727-8521 (Fax)

NMLS: 264821
http://www.bankofengland.us

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Thinking of Building a New Home?

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Building a new home has several advantages:

  • If you have not found the perfect house, you can design one and have it built to be just like you want it.
  • A new house is low maintenance; you can move in and enjoy it without having to worry about upkeep, repairs, etc… Many new homes include a warranty so you don’t have to worry about unexpected repairs.
  • New homes have the latest energy saving features to save you money on utilities costs.

Unless you are paying cash or using a builder that offers construction financing, building a house can involve multiple loans to get from start to finish.

  • Lot financing
  • Construction financing
  • Permanent financing

This can be a daunting task with many moving and complex parts. In my 20 years in construction lending I have financed hundreds of houses. I have assisted my clients from start to finish in building houses ranging from less than $100,000 to $1,000,000+. I have made loans for clients to buy, move and renovate 100+ year old historical houses and even financed the renovation of a 100 year old schoolhouse into a residence for a Hollywood videographer. I have financed all types of loans and have the experience to make the process as smooth as possible.

In this post I’ll touch on the basics, but there are too many variable and potential loan structures to cover everything. Feel free to call or email with questions you might have that are not addressed here.

Also, make sure you work with a Realtor through the process. They can provide a wealth of information as to what to expect your house to be valued in comparison to others in the neighborhood, what features will be best for resale, etc… They can also provide recommended builders that will do a great job for you!!

Lot financing can be the most difficult part of the equation to obtain. Most of the banks were financing too much lots and land when the recession hit back in 2007 and are still holding a high concentration of lot loans on the books. For this reason not many banks are making lot loans any more. However, I do have a couple lenders that are still loaning money to buy lots; but they will expect you to put down around 30% or more to get financed.

If you have already designed the house plans and have selected your builder prior to buying the lot, it is possible to close on the lot purchase and construction loan together so you only have the one loan. The bank will still look for you to have a reasonable amount of cash to put down. Most banks look for a 20% minimum down payment. Assuming the cost of the house is $200,000 your construction loan would be $160,000 and you would have a $40,000 cash down payment.  If you are taking out a loan down payment permanent loan such as FHA, VA or Conventional with 5% down, there are ways to minimize your construction loan down payment.

While the house is being built funds are advanced based on the construction progress. The bank will send out an inspector to see how much progress has been made. Assuming the progress is 25% towards completion the bank would then fund 25% of the remaining funds for construction to you to pay to the builder.

While the house is being built you pay interest only on what is advanced on the loan. Most banks require the interest to be paid monthly. During the early months of the construction loan the interest cost is very low because not much is advanced, and towards the end when it approaches being 100% funded, the interest bills are higher so make sure you budget for that.

When the house is complete you convert the loan over to a permanent mortgage loan. This will pay off the construction loan and you will have a long term mortgage loan. Rates can be locked in up to 60 days in advance so if rates are increasing, it can benefit you to lock in as early as possible when you know the completion date of the house.

Some lenders offer what is referred to as a ‘one-step’ construction-perm loan that allows you to close on your construction loan and mortgage loan at the same time. This product has been around for a long time and in my experience there are several factors that make it less attractive than getting separate construction loan and mortgage loans:

Myths of the ‘one-step’ construction to perm loan

  • You only have one closing – while the loan may close on both loans in one sitting, when construction is complete the home owner may still required to go back and sign a deed to convert the construction loan over to the mortgage loan.
  • Closing costs are lower because there is one closing – this also is not accurate. Typically the lender for a one-step construction perm loan will charge a 1.5% origination fee at the closing. When a mortgage loan is closed with Bank of England we do not charge a 1% origination fee so the buyer would be paying more by going with the one-step loan than if they had a construction loan with a 0.50% – 1.00% fee and a mortgage loan with no origination fee.

Also when you get separate construction and mortgage loans, we use the same closing agent for both loans to save money and get approximately the same amount of closing costs that a one-step loan would have.

  • Having only one closing makes the process easier. If you have any changes orders during construction, this is not the case. With the one-step loan you must not only get the bank to approve the change, but also the mortgage underwriters. This can delay the process and stop construction while you are waiting on the approval to be granted. With the separate construction loan, you only have to get bank approval which is usually a swift process.
  • It is a better loan because you are locking your rate at the closing of your construction loan.  I am told by lenders that do these loans frequently that commonly the permanent mortgage loans are locked in ARM (Adjustable Rate Mortgage) products, and the home owners then refinance their loan soon after construction is complete, thereby defeating the whole purpose of a one-step closing.  If you are considering this loan type, ask your lender what a 30 year fixed rate lock would be at time of construction loan closing.  You will find because of the length of time and potential delays that can arise during construction, locking a 30 year fixed rate that early will result in a much higher mortgage rate.

In summary building a house can be a challenging yet rewarding process. If you are considering doing so, having a lender that is very experienced in both construction lending and mortgage lending can help make the process easier and flow more smoothly so you can enjoy that new house!

We have numerous loan programs for our borrowers and we go the extra mile for our clients. Call now with any questions or a fast and free pre-qualification.

Mike Tarleton
Sr. Mortgage Loan Officer
Bank of England

5410 E. Hwy 30-A, Suite 212
Santa Rosa Beach, FL 32413

850-866-2963 (Cell)
706-888-0980 (Cell / Text)
866-727-8521 (Fax)

NMLS: 264821
www.bankofengland.us

Amazing Deals on The Beach Show!

Hot property #1 is a Ft. Walton Beach home for only $149,900

Well Cared for Brick home with just under 2,000 square feet

3 bedroom 2 bath

1 story brick with low maintenance and great neighborhood

Close to great schools and shopping

Courtesy of Beachy Beach Destin

Hot property #2 is a Beautiful lot in Forest Lakes for $120,000

Very close to the neighborhood pool and pavilion

Gorgeous catch and release lake

Peaceful walking trails along the lake

Right off of 30A

Courtesy of Beachy Beach 30A

Hot property #3 is a fabulously decorated condo for $284,900

On the quiet west end of Panama City Beach

2 bedrooms 2 baths and large balcony with forever views

Meticulously decorated and oh so stylish and comfy

Comes with its own parking space

The First Time I Wanted to Die I Was 12 years Old

 

Forgive me for my bluntness, or don’t .  But I knew if I made the subject line “National Suicide Prevention Week Sept 8 -13“, many of you would not click to read more.  Not out of apathy, it just probably would not have caught your eye.

I chose that heading because I know that first step to getting rid of the stigma associated with suicide is to talk about it.  The first time I wanted to die, I was in fact 12 years old.  I was at church camp and I scavenged through pill bottles looking for something I could overdose on, luckily my knowledge of pharmacology as a sixth grader were very limited and I ended up having an asthma attack before I could get my hands on anything.

I wanted to end my own life many times over the years, especially as my mental health worsened.  It is now twenty years later and thankfully I did not choose a permanent action for a temporary problem.  I owe my being here to my mother who made sure I got the help I needed so I would be safe and not do myself any harm when I was in these dark periods of my life.

Thanks to a support system of family and friends and the help of mental health professionals, I am here today.  But not everyone is so lucky, which is what this week is about.  I know if I had not received professional help, I would not be alive today.

I offer these candid words because I know unless you know my history, you would never have pegged me as someone who struggled with depression and suicidal thoughts over the years.

I post happy pictures and optimistic quotes and love to laugh.  I have above average intelligence, am attractive and physically skilled.  I can sing, dance, and throw a great party when in a pinch.  I generally “succeed” at just about any task I tackle.  I say all these things because often after a suicide I hear people say things “But he was so talented or she was so smart….” as if to beg the question “What do they have to be sad about?”

That is precisely the point.  Mental Illness is not rational nor does it discriminate which is why we need to take it more seriously.  There is a local group in our community hoping we will join together and do that very thing.

SPARE which stands for Suicide, Prevention, Awareness, Response and Education,  is a coalition of several local organizations and citizens who want to spread the word about suicide to prevent future suicides.  They are hosting a walk this Saturday, September 14th at Gulf Coast State College, meeting at the Hwy 98 side at 8:30 am and beginning the walk over Hathaway Bridge at 9 am.

Everyone is welcome to join the walk and will get a T-shirt with a $10 dollar donation.

SPARE hopes to bring awareness to the public about suicide and its devastation on families, increase prevention and proper response to signs and symptoms, and educate about ways to help prevent Suicide. This walk is an effort to help SPARE accomplish their goals.

For more information, please call Christine Hurst at 850.522.1516 or email nwflspare@gmail.com or visit their Facebook page www.facebook.com/sparenwfl

If you or someone you know is in crisis, have them call 1-800-273-TALK (8255) or locally the Life Management Crisis Center Hotline at 850-873-8573.