Changes in Loan Programs - There is change afoot!

Dear Friends and Clients!

Happy October! Wow another great week of change! I know you are getting busy out there! I am NEVER too busy for any of your referrals!

Changes in Loan Programs - There is change afoot!

Mortgage guidelines are changing for conventional and FHA financing. I am keeping up with these to keep you informed. See the bullet points below:

· Turning a primary residence into a rental requires 30% equity for conventional and 25% for FHA to count rental income toward qualifying ratios.
· Investment properties require a 20% down payment.
· Second Homes require only 10% down!
· FHA now requires 3.5% down payment as of October 1, 2008.
· Down Payment assistance (Seller Paid) – like Nehemiah, HART, etc is not allowed as of October 1, 2008.
· Down Payment assistance – Gift funds from a family member, non-profit, employer still ok.
· Bankruptcy Seasoning – Discharged = 2 years with re-established credit Dismissed = 4 years with re-established credit.
· Short-sales – two-year seasoning period with re-established credit.

NOTE: MOST FIRST TIME HOMEBUYERS WILL QUALIFY FOR A LOAN!! IT IS NOT DOOM AND GLOOM! Let’s take a dream of homeownership and make it a reality and focus on what we can do!

Market Update
The Labor Department reported this morning that 159,000 jobs were lost in September. This is much worse than the 105,000 lost jobs that economists were expecting.

Normally, Bonds would move higher on the news; however, speculation that rate cuts may be coming in the future has Bonds bouncing around a bit.


Attached you will find my current rate sheet for the weekend. These rates have been accumulated from, Chase, Wells Fargo, IndyMac, Countrywide, Citi Mortgage, Wachovia, and Everbank. I have handpicked the best rates from all these banks for the most popular loan programs, so that I can ensure you and your clients the very best deal.