If you are relying on groundwater from a spring or well, you might also want to check the surrounding area for groundwater pollution, especially if there are any industries located in your area.  More and more we are finding that industrial products and wastes have been improperly stored and are leaking into the groundwater.  In heavily fertilized areas, such as farming communities, nitrates from decomposed ammonia fertilizer infiltrate the groundwater and pollute it.  Nitrate-rich water leads to a serious disease in infants known as methemoglobinemia.

Animal feedlots provide a huge volume of water compared to their size.  For example, a 10-acre feedlot, with 1,000 head of cattle produces wastes equivalent to those of a town of 6,000 people.  One public water-supply well in northwestern North Dakota continued to be contaminated by livestock wastes more than 40 years after a nearby livery stable was abandoned.  If you are buying in a farming or livestock area, always have the available drinking water tested before you purchase property there.

If you are looking at land that is in a floodplain and if there are several other homes in that floodplain that use septic tanks and wells, it is very possible that the effluent from the septic tanks will pollute the groundwater.  Check with the local heath officials to see if there are periodic outbreaks of hepatitis due to an increase in coliform bacteria during times of high water.

If you suspect some kind of pollution of the ground water in an area you are looking at, check witht he local health department to see if they can give you any information.

One of the biggest difficulties manyLynchburg, Campbell County or Bedford County first-time home buyers face is a lack of down payment and the necessary funds for closing costs.

However, even with the widespread availability of “no-money-down programs” evaporating in the credit crisis, one national no-down payment program still remains: USDA Rural Development home loans.

Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to buy farmland or live “in the country” to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term “rural” really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhoods far outside of the city.

There are several benefits of the USDA loan program besides no money down. The program also does not require private mortgage insurance, and the seller is allowed to pay all of your closing costs and pre-paid items up to 6.00% of the total sales price of the property. And while this is great news for first-time home buyers, it’s important to note that you don’t have to be a first-timer to qualify for a USDA loan.

Other than the location of the property you’re seeking to buy, there is one other limitation to this valuable program that you must consider: your income. Luckily, however, these numbers have recently increased to allow more potential buyers to take advantage of this special program. For households in non-high cost areas, with up to four people, the income limit is $70,750. In households where 5-8 people reside, the income limitation is $93,400. These income limitations are guidelines and, in some cases, may be exceeded.

To find out more about USDA loans, give me a call. Let’s find out whether you qualify for this program.

The holidays are upon us and if you haven’t already, you will likely soon be hearing the song, “The 12 Days of Christmas”, or seeing any one of a number of “Top Ten Things You Need to Do in 2010″ lists. While you won’t find 12 things, or even 10 things here to think about when considering a mortgage or a home in Lynchburg, Campbell County or Bedford County Virginia, you will find several things you need to be aware of when seeking mortgage financing.

• Ratios A Little High?
• Short On Cash?
• When is the last time you had a check up?
• Know your numbers
• Credit Know Your Score!
• We may never see interest rates this low again

During the boom, obtaining a mortgage for a home in Lynchburg, Campbell County or Bedford County with a FICO score in the low 500 range was not unreasonable.

In fact, provided you were willing to accept the payment, you could even do so with little money or no “skin” in the game.

In much the same way you cannot get yesterday back, if you have a FICO score that needs, shall we say, improvement, you may be unable to get a mortgage today.

Depending on your lender, the amount of your down payment and the mortgage program you are applying for, the minimum standards for qualifying could be the lowest FICO score of either borrower, with a minimum score of 680.

For those applying for a loan guaranteed by the FHA, lower scores could still get you in that home but standards have risen there as well and can vary by lender.

The best path to take before you sign a purchase contract or apply for financing could warrant having your credit profile checked out by your lender in advance.

During the boom, it was not uncommon for prospective home buyers in the Lynchburg, Campbell County and Bedford County area to discover they could qualify for a housing payment that, in conjunction with their other monthly debt, would consume a majority of their income.

Examples of this could have included total monthly obligations that could meet or exceed 60% of one’s monthly income. Obviously, this could and did create issues for people when the joy of owning a new home was quickly replaced by the sinking feeling that their mortgage payment was now causing extreme financial hardships.

In the month of December, many home lenders are pulling the maximum amount of monthly debt that someone can qualify for, including a housing payment, at 45% of monthly gross income. For many folks, this amount may still be too high based on other payments including child care, insurance or other routine payments not inclusive of normal qualifying debt.

While lenders may have a maximum amount you can allocate to housing, no one knows what you are comfortable paying more than you. To ensure you won’t get into trouble later, express to your mortgage professional what you are comfortable paying and use that number to back into the maximum house you can buy.

If you have just submitted your offer on your first home in Lynchburg, Campbell County or Bedford County, you may be inclined to make an offer that might be a little over your “comfort” zone with either what your payment will be, what you qualify for, or what will make you a little short in the wallet.

One way to help your cause is to ask for a little help, and this doesn’t necessarily mean hitting up mom and dad for some extra cash. Turn your request to the seller instead and you may find that not only will you get what you need but you might get a little more “juice” as well.

You should know that both qualified first time home buyers and move up buyers are eligible for a “gift” from Uncle Sam in the form of a tax credit.

You may be getting some money a few months after you close. But, did you know if the seller pays to lower your interest rate, which could help you either qualify or make it a little easier to make your payment each month, that you could be eligible for an additional tax deduction?

The IRS treats “points” or fees paid to lower your interest rate as an item which is deductible on your income taxes and it doesn’t matter who pays them. Let’s say that your seller agrees to pay two points toward lowering your interest rate, which could drop your rate by approximately half a point as an example.

If the amount paid is $4,000, or two points on a $200,000 loan, you will not only get a lower rate but potentially another $4,000 deduction on your income when you file your tax returns, potentially putting additional money in your pocket after you file.

The key here is to make sure when you are negotiating your purchase contract, you ask the seller for a concession for buying down your interest rate.

The concession can be either in the form of a dollar amount requested, a percentage of the sales price, or a percentage of the loan amount. Ask your mortgage professional for additional guidance as to the best path for you to follow.

There is a lot of chatter in the media how people need to put more money down when buying a home in Lynchburg, Bedford County or Campbell County Virginia.

While down payment requirements have increased for some programs, it is still possible to buy a home with less than five percent and also NO money down. Yes, you did read you can buy a home without a down payment.

The loan program that allows for you to qualify with as little as 3.5% down is one that is guaranteed by the FHA and the ones that allow for no down payment are those guaranteed by the VA and USDA.

Granted, there are restrictions with each of these programs that can include maximum loan amounts based on your location with FHA loans, income and property requirements for those offered by the USDA, and your qualifying status as an eligible Veteran.

However, the ability to purchase a home in the Lynchburg, Campbell County or Bedford County area with less than five percent down is still a possibility for millions of Americans.

Also, keep in mind that sellers may still offer concessions in the form of paying closing costs which can also decrease the amount of funds you may be required to have to purchase your next home in Bedford County or Campbell County or Lynhcburg MLS area.

Most people have no qualms about making an annual trek to their family physician to check their health. However, when was the last time you had your mortgage checked out? As a mortgage is often the single largest payment someone makes each month, it can also be the cornerstone in which a financial plan is based.

With interest rates near all time lows right now, many people may still be able to restructure their mortgage to free up cash that can be appropriated to other asset building investments or debt relief.

Pick up the phone and call your mortgage professional this month to determine if the mortgage you have still matches with your short and long-term financial goals. At a minimum, you may find that you are in great shape and no changes are needed. However, you may also find that you may be able to improve your situation.

In either case, you should be able to sleep better at night just knowing that you have checked to ensure that you are still on the path to where one day, you will either no longer need a mortgage or will have enough liquid assets to help you manage the situation to the best of your abilities.

If water is declared potable by the Campbell County or Bedford County health department it is safe to drink.

The safety is determined by examining the water at your source and the conditions around it. You will probably not be surprised to learn that animal manure and soil bacteria are usually harmful to a water supply.  Human sewage and poisonous sprays are the primary causes of contaminated water.

Drinking, tasting or smelling water will tell you little about its potability, because even clear, good tasting water may be contaminated.

However, your local Campbell County or Bedford County health or sanitation department will gladly conduct a free or inexpensive water analysis for you.

A health inspector will come out to collect the sample and to examine the source and surrounding area.  The inspector will determine if an existing or intended septic tank, outhouse or cesspool is too close to the water source.  If the water flows through farmland or irrigated land it can be tested for the presence of insecticides.   Hazardous-waste-disposal sites are an increasing source of groundwater contamination.  If your land is very isolated, the health inspector will give you a sanitized bottle and tell you how to properly collect a water sample for the testing.  The basic water test includes a coliform bacterial count, which reflects the amount of human and other war-blooded animal excreta in it.  If you want a more complete mineral and bacterial analysis, which is not usually necessary, you will have to pay to have it done by a commercial laboratory.

Underground well or spring water is usually safer than surface water.

Underground water has been sifted through the porous earth, which purifies it, whereas contaminated surface water must travel a long distance to get the cleansing effect of underground sifting.

I always recommend that you get the basic water test done, no matter the history of the water on the land is.

The family living there now may have been drinking the water for 50 years, but pollution can occur virtually overnight.  Polluted water can cause choler, typhoid fever, amoebic dysentery, infectious hepatitis and possibly polio.  Don’t take any chances, get the test done.

This is a basic introduction to the types of wells you may encounter on your land in Campbell County or Bedford County.

This could help you estimate the costs of sinking a well on land you intend to buy or also evaluate wells already on the land you intend to purchase.

The oldest type of well is the dug well.

Usually 3 to 4 feet in diameter, it is dug with a pick and shovel to a maximum depth of 50 feet.  These wells are dangerous and painstaking to dig, and they often go dry because they are so shallow.  Their main advantage is in the large storage area, but this permits contamination more easily than other wells because of seepage  through the well walls and from the large opening on top.

Bored wells are similar to dug wells, except that they are often deeper and smaller in diameter.

An auger bucket, either power or hand-operated, is used to dig these wells, which often run to 100 feet in depth and are cased all along the inside walls.  The bored well is practically obsolete today because of more efficient driven or drilled wells.

Jetted or Hydraulic Well can be done only in soft sandy soils such as those found in some coastal areas.

The well is drilled by applying a high pressure stream of water that cuts through the earth and washes it out of the hole.  As this is done, a  1 1/2 inch pointed jetting tool is shoved down into the loose sand as far as it will go and when it stops the well is complete.  If you take a garden hose and get the water into the ground, you would do the same thing.  This method is useless if rock or clay is reached.

To dig a Churn, Spud or Percussion-Tool Drilled Well a large, chisel-shaped bit is pounded into the ground over and over again by lifting it high into the air and dropping it.

With each fall, the bit digs deeper into the ground.  During this process, water is poured into the developing hole to transform the loosened dirt into mud, which is then drawn out of the hole.  It takes a long time to drill a well in this manner, but it is still effectively done by commercial drillers.

A drilled well is the most common type of well being used today.

The method was first used when oil drillers built special power equipment to drill oil wells.  The type of drill used is the rotary tool, which rotates into the earth like a drill rather than pounding the surface as the percussion tool does.  The drill has a sharp cutting bit on the end, and the shaft is hollow.  As the drill turns into the earth, water is forced down into the drill stem, and the pressure of the hole.  As the drill goes deeper into the ground, additional sections of stem are screwed on to increase the length of the drill.

A driven well is usually cheaper to construct than a drilled well.

Pipe sections several feet long as screwed together with a sharp well-point and screen on one end.  The pointed end is pounded into the ground until it reaches below the water-table level and sufficient amount of water can enter the well through the screen.  The ground must be soft enough to take a driven well, because hard rock and clay cannot be penetrated.  The depth is limited to a maximum of 50 feet and only a small flow of water will be attained.  Occasionally, several driven wells are joined together with a single pump to get a greatly increased flow.  As with all wells, a driven well may be cut into the earth horizontally or vertically.

Remember to ask questions before purchasing land about the type of well is already on the land before you purchase land in Bedford County or Campbell County Va.