Georgia Home Buyers: Now You Can Overcome Past Bad Credit With the NEW FHA Loan!

If you have been contemplating buying a home, but you have credit problems, recent changes in the guidelines for FHA loans may provide the answer to your problems. FHA loans are not actually a new program, but the guidelines have been revised so much in the last couple of years that the real estate agent or seller you are trying to work with will probably not recognize the program anymore.

The initials ''FHA'' stand for Federal Housing Administration. The FHA is a part of the Department of Housing and Urban Development (HUD). When you see HUD homes for sale, they are foreclosed homes that were financed with mortgages guaranteed by FHA.

The program was established in 1934 as part of the National Housing Act with the mission to expand credit and home ownership opportunities for borrowers who may have had credit problems, have a limited credit history, or whose bills take up a higher percentage of their total income than typically allowed on conventional loans. The FHA program accomplishes this goal by providing insurance which will pay off the loan if the borrower defaults. Because of the guarantee of FHA's mortgage insurance, the lender can take more risk approving mortgages for borrowers who would not fit into conventional loan programs. The FHA loan guidelines were designed around the needs of the first time homebuyer, but the program can also be used for a purchase or refinance by any borrower who does not already have an outstanding FHA. The standard FHA loans are only allowed for owner occupied homes and are not for purchasing investment property.

Many real estate agents and sellers are hesitant to recommend that anyone use an FHA loan because they have heard horror stories about the red tape involved. In the past, the FHA guidelines were much stricter on the property and caused the seller to have to pay higher fees than a conventional loan. Using an FHA insured loan often caused the closing to have to be delayed while arguing over seemingly silly red tape issues. However, this red tape has been almost completely unraveled over the last couple of years. If you have an agent or seller who is reluctant to accept an offer involving FHA financing, here are some of the benefits:

* Low down payment. Typically 3% of the purchase price AND gift funds are allowed for the entire down payment, closing costs and prepaid items. These gift funds can come non-profit foundations with easy qualifying requirements.

* Seller-paid contributions for closing costs and prepaid expenses are allowed up to 6% of the purchase price. This means that a buyer can negotiate terms which will result in having to bring absolutely no money to the closing!

* The borrower is not required to have any financial reserves. You can qualify for an FHA insured loan with $0 in your checking or savings account!

* Recent FHA appraisal reform eliminated the need for minor cosmetic repairs to the property before closing. The program now allows ''as is'' appraisals and no longer requires automatic inspections for termite, well or septic. These conditions were part of the red tape that aggravated sellers and agents so much in the past.

* No minimum credit score. There is an automated underwriting system called FHA Total Scorecard. If this system approves your loan, there are no further requirements to explain bad credit, pay off collections accounts or meet a set debt to income ratio.

* If the automated underwriting system does not approve your loan, the loan may be underwritten manually and the underwriter is given discretion to use common sense in the decision to approve the loan. The underwriter often does not have this discretion on conventional loans where they are not allowed to override the automated decision.

* No prepayment penalties. Many loans for borrowers with credit problems have significant penalties for paying the loan off within the first 3-5 years. These penalties prevent refinancing for a lower rate or for debt consolidation. FHA loans have no prepayment penalties. As a matter of fact, FHA loans allow for a program called streamlined refinancing. As long as you make your mortgage payments on time, you can refinance if rates go down without having to produce all of your qualifying documentation again.

All these factors benefit both the buyer and the seller. Without this program, the market for the seller's home would be greatly reduced. With the FHA insurance, potential homebuyers who cannot get approved for a conventional loan can get a mortgage with the same interest rates as a borrower with perfect credit and a low debt to income ratio! And they can buy the home with no money out of pocket!

Carl Pruitt is a 21 year veteran of the mortgage/real estate industries. He helps first time homebuyers with credit problems get into a home with no money down and low rates. Free mortgage reports and advice, including more information on FHA loans, are available at [http://24hourmortgageinfo.com]

Georgia Department of Insurance Health & Life Insurance Producers - Mouth of the New South

The Georgia Department of Insurance health & life insurance producers have broken a new mold. They have led the Southern rebellion, changing from laid back to aggressive insurance reps to be reckoned with. In the last few years, Georgia insurance marketing has leaped ahead of near and far away states. Not that long ago debit agents in Georgia, like most southern states prevailed. These health and life insurance producers sold very small premium insurance policies on their established routes, where weekly or monthly premiums collections would be picked up from their clients. (Sort of like playing the neighborhood numbers game, before the state lotteries knocked them out of competition?). As these debit agents were employees of the insurance company, when they left, so did their unvested renewals. An old route as simply assigned to a new agent trainee joining the company.

Needless to mention, low income potential, high training costs, agent awareness, and modern banking policies have fairly well decreased debit life insurance company presence to becoming a minimal factor nowadays. When I refer to Georgia insurance producers becoming the "mouth of the south," this reflects on many of these southerners formerly waiting back for the train to come in. Georgia is often a highly underrated state, where misconceptions abound. Georgia residents have an income level slightly below that of the national average. That is typical of all southern states. The noteworthy factor is that the median income of Georgia insurance agent families is $10,000 more than those in Arkansas, and Mississippi. A very positive note effecting Georgia Insurance Agents, Georgia has experienced major population growth. The average state experienced 5.3% population increase between 2000 and 2005. In Georgia, the amount more than doubled the average, becoming a 10.8% increase.

These Georgia insurance agents suddenly had approximately 1,000,000 new potential clients to sell to. Moreover, a lot of these were established families with good incomes moving into the state. In fact, 12.4 % of the households have a $100,000 or higher income. This is not typical of many southern states. This is a great opportunity for Georgia insurance agents to offer annuity and financial products. In addition, as the number of seniors is percentage wise, much lower than most states, health agents should concentrate more on the healthy individual, worksite, and group plans My Georgia advice: Stay OUT of Atlanta.

Georgia is split in two zones, 55% of the licensed agents in the Atlanta Area, Zips 300-303. The other 45% are outside this metropolitan area. On the demand for Georgia agent recruiting, probably four will be for the Atlanta area, 2 for the entire state, and 1 for areas outside Atlanta. That would mean that Atlanta area agents receive 85% of insurance recruiting solicitations. 42% of the mail would be sent to rural agents. In addition, Atlanta agents are bombarded with almost daily solicitations by fax, email, or telemarketing.

Two recruiting tips. One: Atlanta area brokers, and Georgia rural agents, broker almost the same amount of business, with roughly the same number of total insurance carriers. Two: A rural Georgia agent is twice as likely to stay loyal to you, that the Atlanta city slicker. Our database indicates this very distinctly. We examine the frequency a Georgia insurance agent signs with another insurance company. Make your move to reward yourself with a sweet piece of the Georgia pie, rural style. Some Statistics. The state population in 2005 increased almost 11% upward since 2000 to over 9,000,000. The number of agents to thousand residents is a respectable, not overcrowded 3.6 agents. A strong median family income along with a strong percentage of high school graduates illustrates a strong economic base.

Well published author, Don Yerke likes to concentrate on what you don't know or what no one else dares to print. Tell it like it is.

Watch for his new paperback book debuting on Amazon early this summer. It is loaded with great insurance marketing and recruiting information.

Come and get your FREE "Think and Grow Rich" Ebook by Napoleon Hill instantly. The website address is [http://www.agentsinsurancemarketing.com]

Georgia Department of Insurance Health & Life Insurance Producers - Mouth of the New South

The Georgia Department of Insurance health & life insurance producers have broken a new mold. They have led the Southern rebellion, changing from laid back to aggressive insurance reps to be reckoned with. In the last few years, Georgia insurance marketing has leaped ahead of near and far away states. Not that long ago debit agents in Georgia, like most southern states prevailed. These health and life insurance producers sold very small premium insurance policies on their established routes, where weekly or monthly premiums collections would be picked up from their clients. (Sort of like playing the neighborhood numbers game, before the state lotteries knocked them out of competition?). As these debit agents were employees of the insurance company, when they left, so did their unvested renewals. An old route as simply assigned to a new agent trainee joining the company.

Needless to mention, low income potential, high training costs, agent awareness, and modern banking policies have fairly well decreased debit life insurance company presence to becoming a minimal factor nowadays. When I refer to Georgia insurance producers becoming the "mouth of the south," this reflects on many of these southerners formerly waiting back for the train to come in. Georgia is often a highly underrated state, where misconceptions abound. Georgia residents have an income level slightly below that of the national average. That is typical of all southern states. The noteworthy factor is that the median income of Georgia insurance agent families is $10,000 more than those in Arkansas, and Mississippi. A very positive note effecting Georgia Insurance Agents, Georgia has experienced major population growth. The average state experienced 5.3% population increase between 2000 and 2005. In Georgia, the amount more than doubled the average, becoming a 10.8% increase.

These Georgia insurance agents suddenly had approximately 1,000,000 new potential clients to sell to. Moreover, a lot of these were established families with good incomes moving into the state. In fact, 12.4 % of the households have a $100,000 or higher income. This is not typical of many southern states. This is a great opportunity for Georgia insurance agents to offer annuity and financial products. In addition, as the number of seniors is percentage wise, much lower than most states, health agents should concentrate more on the healthy individual, worksite, and group plans My Georgia advice: Stay OUT of Atlanta.

Georgia is split in two zones, 55% of the licensed agents in the Atlanta Area, Zips 300-303. The other 45% are outside this metropolitan area. On the demand for Georgia agent recruiting, probably four will be for the Atlanta area, 2 for the entire state, and 1 for areas outside Atlanta. That would mean that Atlanta area agents receive 85% of insurance recruiting solicitations. 42% of the mail would be sent to rural agents. In addition, Atlanta agents are bombarded with almost daily solicitations by fax, email, or telemarketing.

Two recruiting tips. One: Atlanta area brokers, and Georgia rural agents, broker almost the same amount of business, with roughly the same number of total insurance carriers. Two: A rural Georgia agent is twice as likely to stay loyal to you, that the Atlanta city slicker. Our database indicates this very distinctly. We examine the frequency a Georgia insurance agent signs with another insurance company. Make your move to reward yourself with a sweet piece of the Georgia pie, rural style. Some Statistics. The state population in 2005 increased almost 11% upward since 2000 to over 9,000,000. The number of agents to thousand residents is a respectable, not overcrowded 3.6 agents. A strong median family income along with a strong percentage of high school graduates illustrates a strong economic base.

Well published author, Don Yerke likes to concentrate on what you don't know or what no one else dares to print. Tell it like it is.

Watch for his new paperback book debuting on Amazon early this summer. It is loaded with great insurance marketing and recruiting information.

Come and get your FREE "Think and Grow Rich" Ebook by Napoleon Hill instantly. The website address is [http://www.agentsinsurancemarketing.com]