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    Wednesday, July 30, 2008

    Down Payment Assistance (DPA) is being threatened

    Hello Friends and Real Estate Professionals,
    You may be aware that Down Payment Assistance (DPA) is being threatened and we only have a couple of days left to prevent this new legislation.
    79% of all mortgage transactions year-to-date have been backed by FHA (Federal Housing Administration). Over 80% of these FHA transactions involved some form of seller funded DPA.
    If this legislation is approved it will drastically affect, impede and reduce ALL of our abilities to buy, sell or lend on a home.
    I would like to ask you all to help by clicking this link taking 60 seconds to send out an email that will go to HUD, Congress and our Local Senate Representative. I believe your efforts will help defeat a law that will facilitate a collapse of our local and national industry.
    On a side note, while the legislation says no more DPA after Oct 1st 2008, please be aware that we must stipulate the last day of funding if the bill passes be August 29th in order to give time to get the loans sold off of bank lines.
    To all Realtors:
    We must get these people into houses by August 29th(CORRECTION SEPTEMBER 29TH) to be safe. Franklin Loan Center is a direct endorsement lender for FHA loans, which means we can underwrite FHA loans and prepare loan documents in our local offices. This will save your clients valuable time. Time is running out so please act now and get your FHA buyers off the fence and into their new home before it’s too late. Once Down Payment Assistance is gone, it’s gone. Feel free to call us so we can explain this and forward the information to your buyers to ensure they understand the magnitude of this legislation. It would be our pleasure to help in any way we can; be it marketing your listings, helping your buyers qualify for a loan or simply being an information resource for you.

    Sunday, July 27, 2008

    Last weeks rates improved slightly

    Last weeks rates improved slightly as bonds tried to rebound off the previous weeks losses. Philly Fed President is continuing to warn about inflation and it’s possible that fed rate hikes will be coming shortly. This is a good thing for the bond market because mortgage rates should come down. Following that your wallets at the pump should hopefully stay full. See the newsletter below to get some helpful gas saving tips that you can pass along to your clients.

    Make it a great week!

    Friday, July 25, 2008

    Clients & Friends,

    Happy Friday! Please don’t forget to RSVP for the event on Monday morning at 8:30am. RSVP at The flyer is attached. Thank you if you’ve already RSVPed. I’ve got your seat reserved.

    Market Update

    New Home sales for June were reported at 530,000--which was far better than expectations of 505,000. In addition, Orders for Durable Goods came in well above expectations and the Consumer Sentiment Index shocked the markets with a very robust reading.

    The positive readings are helping to strengthen the US Dollar and even lower Oil prices. As a result of these shifts, a Fed rate hike may be on its way in within the next few months--though probably not at next week’s Fed meeting.

    Wednesday, July 23, 2008

    Nehemiah Program

    Nehemiah Program
    Housing Bill an immediate threat to down payment assistance ( DPA) programs.

    The Senate and House of Representatives are fast tracking this bill, and is in danger of shutting it down. Today DPA comprises nearly 40% of all FHA’s loan volume, and will be a huge loss if passed.

    So you must act now with any of your potential buyers who have be pre-approved to use the Nehemiah DPA program. I would hate to have a family miss out on their dream home because of procrastination on their part, or congressional action. I do not have any more information than what I have told you at this time, but this program could disappear tomorrow, next month, or hopefully never. What we do know though is that it’s under attack, and is in danger of being closed.

    Friday, July 11, 2008


    Do you have a listing that needs repair to be habitable or comply with lending guidelines? Do you have a buyer looking at a property that needs some serious help?! Ask me about REHAB LOANS to get your buyers the homes the want and the financing they need to turn a junker into a castle. Ask me how it can be done.

    Market Update

    Crude oil futures jumped almost $5 per barrel this morning to hit a new high over $147 per barrel. The sharp rise is due to increasing tensions in the Middle East between Iran and Israel, as well as rebel threats in Nigeria and a planned strike of oil workers in Brazil next week.

    I’ve had several questions about Fannie and Freddie Mac today. See the article below.

    Friday, July 4, 2008

    Happy 4th of July!

    Dear Friends,

    Happy 4th of July! The Rate Sheet is attached.

    It’s been an up-and-down morning in the markets today on the heels of this morning's weak Jobs Report. The Labor Department reported that the US economy shed 62,000 jobs in June, which is slightly more than estimated. Job losses in April and May were also revised to show an additional 52,000 jobs lost in those months.

    The Initial Jobless Claims report also came in--showing more weak signals in the labor market, as layoffs have breached levels typically associated with recessions. Despite expectations of a slight decrease, the unemployment rate remained at a four-year high of 5.5%.

    In other news, as expected, the European Central Bank raised its key lending rate by .25% to 4.25% in an effort to rein in escalating inflation in the 15-nation Eurozone. It will be important to see how this news impacts our markets in the weeks ahead.

    Wednesday, July 2, 2008

    Writing an FHA and Nehemiah Program Offer: Structuring the Purchase Agreement

    These are the instructions for writing an FHA and Nehemiah offer.

    First and foremost, the seller must pay the tax service fee of $81.00.

    Check the FHA Loan box.

    Page 1:

    If asking the seller to pay for a closing cost credit FHA allows a 1-6% closing cost.

    "Seller to contribute 3% for non-recurring and recurring closing costs."

    If asking the seller to contribute toward the Nehemiah Program the seller can be asked to contribute up to 6% plus a $599 processing fee for re-sell (Short Sale and Foreclosure) properties and $399 for new construction.

    "Seller to contribute 3% of the sales price toward the Nehemiah Program plus $499 processing fee."

    Page 6: Other financing terms (line 24)

    "The seller is aware the homebuyer is receiving downpayment assistance through the Nehemiah program as set forth in the related Participating Home Agreement."

    Addendum - Participating Home Agreement to be completed and submitted with the offer.

    0. Print the attached Participating Home Agreement to complete and
    submit with offer.
    1. Calculate the percentage of downpayment assistance requesting
    1-6%. Typically 3%.
    2. Add the processing fee. $499 for re-sell properties and $399 for
    new construction.
    3. Add the two dollar amounts together for a total dollar amount due
    to the Nehemiah Corporation of America.