Foreclosure Fiasco Sending Mixed Messages…

Some sources say that the recent foreclosure fiasco threatens to postpone the recovery of the housing market for another year or more. Other sources say, the banks might have mis-handled the paperwork, but the foreclosures were legitimate and “fall out” from this mess won’t be that bad. Only time will tell…

Summary of Foreclosure Fiasco:
Seven of the U.S.’s largest financial institutions are now postponing foreclosures: Bank of America, Ally Financial (formerly, GMAC), JP Morgan Chase, PNC Financial, Goldman Sacs, Litton Loan Servicing and One West Bank.

These institutions are accused with forging/missing/shredding foreclosure documents, faking social security numbers, and using “robo signers” (bank employees who rubberstamped foreclosure documents without a notary and reviewing them) to process foreclosures. This accusation has lead to federal investigations, class action lawsuits and talk of a possible national foreclosure moratorium. With all of the document fraud, forelcosures could be held up in the legal system while they are reviewed. Some foreclosures could be overturned or deemed outright fraudulent. An added worry is the possiblity of difficulty of getting title insurance for a buyer of one of these banks foreclosure properties. Old Republic National, a large title insurer, has told their their insurance agents to stop issuing title insurance policies on any foreclosed homes by GMAC or JP Morgan Chase.

Bottom line is this: A recovery in our housing market can only happen once the foreclosure properties are sold and out of our inventory. With all of the investigations and review that will need to happen on all of these foreclosures, this fiasco may only prolong their eventual return to the market and sale.

At this point, everyone, including myself, is just trying to get a handle on this entire situation and how it will play out. I hope to report more next month…

4 bedroom! 4 Bath! 2-Story! Only $189,900 in New Prague

Heated 3 car garage with stairs to finished lower level! Gas fireplace! Hardwood floors! Cozy front porch plus deck and large flat backyard~ Lots of space and amenities at an incredible price!    $189,900  MLS # 3969733

 

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Executive Townhome~Only $239,900! WOW!

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JUST LISTED! Gorgeous Executive townhome in New Prague~

3 bedrooms, 2 bath walkout townhome with beautiful pond/wildlife views! You’ll love the spacious open floor plan, crisp white enameled woodwork, stunning kitchen with granite and tile backsplash, see through fireplace between great room & master bedroom & gleaming oak floors. Other features include: Surround Sound, heated master bath floors, master steam shower, huge master closet. There is a heated 2 car garage with epoxy coated floors & floor drain. Built-in entertainment center and wet bar in the lower level family room! Main floor laundry~The space of single family living without the maintenance!!       Only $239,900  MLS # 3973678

Friends And Clients Ask…How’s The Market???

May and June were slow months with the 1st time homebuyer tax credit expiring and the “pool” of buyers dried up for awhile.  Buyers started kicking around in July a little, but even more so in August.  We’ve been busier this month than we have in a long time!  Inventory is low. Buyers are having a difficult time finding exactly what they are looking for. Therefore, we are seeing lot sales and new construction starts increasing in many areas.  Foreclosure inventory is down (although word is that we’ll see another waive soon- no sign of it yet…). Short sale inventory is up; but offers are coming in and getting processed more quickly than before as lenders are adapting their staff and systems to handle these intricate transactions.  It is still clearly a buyer’s market; so if you’re thinking of selling, you need to be in TOP NOTCH condition and PRICED AGGRESSIVELY!  Click on our blog’s “market stats” page to see real time housing sales statistics specific to your area!

Market is Ready to Rebound!!

A year ago this month, there were 7.1 houses to every buyer in the twin cities metro area.  Guess where we are this month???? 5.5  houses to every buyer.  The real estate community considers the market “balanced” between buyers and sellers when there are roughly 5.0 houses for sale for every buyer.   In all price ranges, home sales had a 17.7% year over year increase.  From March 2009 – March 2010 single family inventory has decreased 10.2%.  We all know what happens when supply goes down….demand will go up!  All signs indicate the market is ready to rebound.  Buyers – are you ready to take advantage of incredible value before prices start to increase????

Hurry! Tax Credit Expires 4/30/2010!

The latest Real Estate Buzz…the tax credit will not be extended again.

Hurry and take advantage of this!

You still have time to find a new home, submit an offer by April 30, 2010 and close by June 30, 2010 to receive your credit!

$8000 first time home buyers!!!!    $6500 repeat home buyers!!!!

Foreclosure Purchase Financing For Owner Occupants or Investors!

HomePath Financing for Foreclosures

Fannie Mae’s HomePath Financing programs replaced the ExpressPath programs as of January 5, 2009. Here is some information about the new HomePath programs:

HomePath Financing is a new program offered for the purchase of foreclosed properties. HomePath is available to both investors and owner occupiers. There is no appraisal fee, and the downpayment must be at least 3% of the purchase price. You may qualify even if your credit is less than perfect.

 

The benefits of this financing include:

• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
• You may qualify even if your credit is less than perfect
• Available to both owner occupiers and investors
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No mortgage insurance*
• No appraisal fees
• HomePath Mortgage financing is available from a variety of lenders both local and national. Please call us today!

The HomePath Renovation Mortgage is available on selected Fannie Mae homes where the home is the buyer’s primary residence. The mortgage can fund the purchase and light renovations. There is a low down payment required (at least 3%) and flexible mortgage terms (fixed- or adjustable-rate) are available.
Available only on homes you make your primary residence and offers these benefits:

• Financing to fund both your purchase and light renovation
• Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
• No mortgage insurance*

If you’re an investor interested in renovating a property, you may qualify for financing under the HomeStyle^® Renovation Mortgage product. Most HomePath Renovation lenders also offer our HomeStyle Renovation product, but there are many other lenders as well.

 

Call Pinpoint Realty today, to get a list of Home Path Financing lenders!   952.758.4040

 

 

 

  

 

$8,000 1st Time Home Buyer Tax Credit

We have recently seen a SURGE in first time home buyer activity thanks to the $8,000 Home Buyer Tax Credit.  If you have not owned a home in the 3 years period prior to your recent purchase, then you qualify for this tax credit!!

$8,000 Home Buyer Tax Credit at a Glance

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

FREQUENTLY ASKED QUESTIONS:

1. Who is eligible to claim the tax credit?
   First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
2. What is the definition of a first-time home buyer?
   The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How is the amount of the tax credit determined?
   The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4. Are there any income limits for claiming the tax credit?
   Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
5. What is “modified adjusted gross income”?
   Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
   Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.
7. Can you give me an example of how the partial tax credit is determined?
   Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

   Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
   The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous “credit” was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.
9. How do I claim the tax credit? Do I need to complete a form or application?
   Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.
10. What types of homes will qualify for the tax credit?
    Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
11. I read that the tax credit is “refundable.” What does that mean?
    The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
    Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
    Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
    Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
    No. You can claim only one.
16. I am not a U.S. citizen. Can I claim the tax credit?
    Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
17. Is a tax credit the same as a tax deduction?
    No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

18. I bought a home in 2008. Do I qualify for this credit?
    No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
    Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

    Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

    The National Council of State Housing Agencies (NCSHA) has compiled list of such programs, which can be found here.

20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
    Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
    Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Having Trouble Making Your Mortgage Payment?

First and foremost, YOU ARE NOT ALONE!! More than 1/2 of the clients that we meet with today are in  your exact same situation. 

We have helped many people like you avoid foreclosure on their homes by helping them sell on a “short sale” .  Below is a summary of frequently asked questions regarding selling your home on a short sale.  We have a TEAM of EXPERIENCED PROFESSIONALS that can help you too!  Please, don’t hesitate to contact us.  Visit our website, and CHAT LIVE w/an agent now!

Q:  What is a short sale?

A:  A short sale is when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs.  Upon sale, the seller receives no proceeds.  This type of sale is sometimes called a “short equity” transaction, because the seller has no equity, or negative equity in the home.

Q:  How do I know if the sale of my home will be “short”

A:  A market analysis is the first step.  Your realtor will then compare the estimated market value with the seller’s mortgage obligations plus closing costs.  If the market value is less than the mortgage obligations plus closing costs, then the sale will be a short equity transaction.

Q: If I owe more on my home than it’s current market value, what should I do before I sell it on a short sale?

A:  You should contact your lender and see if they will work with you on a “loan modification” or “restructuring” your loan.  They may reduce the principal, or change your interest rate.  This is sometimes called a “workout” with your lender.  Please note, in our exprience, a lender will not discuss a loan modification or approve a short sale transaction if you are current on your mortgage payments.  This fact in no way implies that we suggest you stop making your payments.

Q:  Why should I consider selling my home on a short sale?

A:  You will only want to consider selling your home on a short sale if your lender(s) will not work on a loan modification with you, and you are in default, or will start defaulting on your payments.  Selling on a short sale requires a lot of time and patience.  Depending upon your entire financial situation, selling on a short sale can be better for your credit history and your ability to qualify for a mortgage down the road than having a foreclosure on your record.

Q:  Am I still the legal owner and seller of my home in a short sale?

A:  In the state of MN, you have legal title and ownership of your home, and the right to sell it, up until 6 months after a foreclosure sale occurs.  The 6 month time frame is called your “redemption period” – the time state law allows you to come current on your mortgage obligations before the bank officially can take posession of your home.  Sometimes the 6 month redemption period is reduced to 5 weeks if the home is “abandonded” (i.e. vacant, no utilities, not listed for sale).  As the legal owner and seller of the home, you must sign the purchase agreement.  The purchase agreement will be contingent upon bank approval and your acceptance of any terms the lender requires for their approval.

Q:  What does the bank need from me to approve a short sale?

A:  You will need to provide many documents to your lender in order for them to approve a short sale.  The documents, altogether, are called a short sale package.  The documents inlcude:  W-2′s/tax returns( 2 years), pay stubs (2 months), bank statements (2 months), a financial statement outlining your income/assets/and expenses, and a “hardship” letter. The “hardship” letter is written by you, and explains to the lender why you are requesting to sell your home on a short sale.  Your realtor can assist you in drafting this letter.

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Q:  If the lender approves the short sale, will I be responsible for any portion of the difference?

A:  Depending upon the difference between your mortgage obligations and the net proceeds of any offer, the lender may attempt to pursue collecting debt from you.  They may attempt to ask you to sign a new promissory note for the difference.  2nd or “junior” lien holders are sometimes known to agree to the short sale payoff, release their lien so the property can be sold, but then sell the bad debt off to a collection agency.  The collection agency may then attempt to collect the debt from you.  We have no way of knowing what your lenders(s) may ask of you, until we submit an offer and go through the process.  Lenders are also required by the IRS to issue 1099′s (misc. income).

Q:  Will I have to pay income taxes on the difference?

A:  In years past, a homeowner was required to pay income taxes on the difference between the net proceeds of the sale and their mortgage obligations.  In 2007, The Mortgage Forgiveness Debt Relief Act was implemented.  This Act allows the mortgage debt from a short sale or loan restructuring to qualify for a tax exclusion.  This exclusion does not apply to all forgiven or cancelled debts.  The Act applies only to forgiven or cencelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.  Debt used to refinance your home qualifies for the exclusion, but only up to the extent that the pricipal of the old mortgage, immediately before the refinancing, would have qualified.  YOU WILL STILL RECEIVE A 1099 FORM FROM YOUR LENDER(S).  IT WILL BE UP TO YOUR TAX PREPARER TO APPROPRIATELY FILE FOR THE TAX EXCLUSION ON FORM 982.  THIS TAX EXCLUSION IS VERY COMPLICATED AND WE HIGHLY RECOMMEND YOU CONTACT YOUR TAX ADVISOR PRIOR TO ENTERING INTO A SHORT SALE TRANSACTION.

Q:  Are the appliances, plumbing, electrical, and mechanical systems still “warranted” on a short sale?

A:  No.  The buyer will be purchasing the property “as-is”.  Because you as the seller are already in financial distress, if something goes wrong with any of the appliances, mechanical, electircal, or plumbing systems, you will most likely NOT have the funds to cover the cost of any repair prior to closing. As well, the lender will not want to cover the cost of any repairs as they are already losing money.

Q:  Should I talk with any other professionals before selling my home on a short sale?

A:  The decision to sell your home on a short sale will have legal, financial, tax and credit implications.  As realtors are not attorneys, tax accountants, or lenders, we can not give legal, tax, or credit advice.  It is our recommendation that you consult your attorney and tax professional prior to entering into a short sale transaction.

Q:  How do I determine a list price for my home to sell it on a short sale?

A:  Your realtor will complete a market analysis on your home.  Because you are already in default, and the length of time it may take to get an approval from the lender, time is of the essence!  It is important to get a purchase agreement on your home as quickly as possible.  Your home should be priced at 10% below the current market value to immediately spark buyer interest and activity.  From the list date, we recommend regular price reductions every two weeks until a purchase agreement is received.

Q:  What if I have other bad debt and I am consider filing for bankruptcy?

A:  The bankruptcy laws are very complicated and we can not give you advice on bankruptcy.  Please be advised that if you file for bankruptcy, this can affect your ability to sell your home, as assets are sometimes frozen by the bankruptcy court.  If you are considering filing for bankruptcy, YOU MUST CONTACT A BANKRUPTCY ATTORNEY.  AFTER you speak with that attorney, we can then continue to discuss selling your home.

Q:  How long does it take for a lender to approve a short sale?

A:  Approval times vary by lender and the volume of short sales that they have.  We have seen some short sales approved in as little as 3 weeks, and others that have taken as long as 4 months.  TO SELL A HOME ON A SHORT SALE YOU NEED PATIENCE!

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Q:  Once a purchase agreement is submitted, what is the process to obtain the lender’s approval?

A:  You will need to give your lenders a signed authorization allowing your realtor to act/negotiate on your behalf.  Your realtor will be in contact with the loss/mitigation department of your lender(s).  The contact person at the lender is called a “negotiator”.  If there are 2 or more mortgages on the home, there will be 2 or more negotiators.  Your realtor will act as the liason between all of the negotiators, and will help facilitate which company gets how much of the net proceeds of any offer.  Once the negotiations are complete, all lenders will submit an approval letter so that transaction can close.

Q:  How long does a short sale stay on my credit record?

A:  Fannie Mae guidelines as of August, 2008  established a 2 year time fram that must elapse after a short sale to re-establish your credit.  These guidelines are subject to change at any time, and you must contact a lender or credit counselor to confirm this time frame.  A 5 year time frame must elapse for a foreclosure, and a 4 year time frame must elapse for a “deed in lieu” of foreclosure.

100% Financing?!?! Yes, It’s still here!

It’s called a Rural Development Loan, and there is NO downpayment and NO monthly mortgage insurance premium!  This is a government sponsored and guaranteed loan, much like an FHA loan.  However, these loans are guaranteed and sponsored by the USDA (United States Department of Agriculture), not the FHA.  Interest rates for these loans follow the FHA interest rates.  There is a 2% “guarantee fee” that is like a one time mortgage insurance premium that must be paid by the buyer – however, it can be wrapped into the mortgage. 

The purpose of this loan program is to help promote rural development by helping people re-locate to rurual areas.  Therefore, this program is not available to those of you looking to buy in urban areas.  To see if a property that you are interested in qualifies under this program, please call Tom Tupy @ Mortgage Marketing Associates:  952-758-5626.