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    Saturday, December 20, 2008

    It’s been an exciting week in the bond market

    It’s been an exciting week in the bond market. The Fed announced its new target rate to be 0-0.25% and slashed the rate from 1% to 0.50% This cut to rates affects what banks lend banks overnight and any instrument tied the prime interest rate like home equity lines of credit and credit. This is a new historic low for the fed funds rates.

    Mortgage interest rates are at an all time low and it is a great time to think about refinancing. If you or someone you know can save several hundred dollars a month and it didn’t cost anything or the costs were justified by the savings wouldn’t you want them to do it? Call me for details.

    Wednesday, December 17, 2008

    Homestyle Loans- Rehab for Investment Homes

    Please see the update below. There are some great programs for loan right now. I’d like to point out the Conventional – NOT FHA- Homestyle Loans. These loans are REHAB loans for Primary residences, Second Homes AND Investment properties! Call me for more information at 760-837-1488!! Talk soon! Homestyle Loan,

    · FHA’s minimum down payment is being increased from 3% to 3.5% as of Jan 1, 2009. The only way to honor the 3% down payment option for your client, is to get their loan approved before the end of the year. So, if you don’t already have an approved offer and a loan submitted, then you should be notifying your clients about the change.

    · FHA’s new Loan Limit for Riverside County is $355,350, not $500,000. This is also in effect on January 1, 2009, and under the same scenario as above.

    · Conventional Loan limits have also been reduced back to $417,000, not $500,000 anymore. Any loan amount above 417K, is going to be considered a jumbo mortgage.

    · Reverse Mortgages are going to be a great mortgage tool moving forward to help seniors over the age of 62 purchase a new home, with no income or credit qualification required. Yes, you heard that here first.

    · Rates are great today, why not help you and your past clients out by sending them to us to do a cash out refinance on their primary residence at 5%, so they can get the down payment needed to buy a investment property from you today.

    · USDA & VA Loan’s – both offer your clients 100% financing as long as they qualify for the program.

    · 203(k) FHA remodel home loan – This program will allow your clients to include in the loan the cost of improvements the home will need to make it complete. This program requires only 3.5% down, and works on owner occupied properties only. Max loan $355,350.

    · Fannie/Freddie’s Homestyle Loans – this program works very similar to the above program, which allows you to include the cost of the home improvements in the loan, except that it works for all occupancy types. Primary, Second Homes, and Inv. Properties. Loan amount goes to $417,000, and down payments vary based on occupancy.

    Monday, December 15, 2008

    Short sales, however, are slightly different.

    FNMA hasn’t changed the 3-year foreclosure guideline for about 18 months now. That much we knew. Short sales, however, are slightly different. We read in the underwriting guidelines that if you had a short sale on your credit you could be approved for a loan after two years with good re-established credit. Now, we know that investor guidelines are looking at “Short Sales” on credit as needing 3-years after completion to be eligible.

    Fair Isaac, the credit reporting company, doesn’t have a specific category for short sales, but it does show on the credit report that the loans were settled for less than balance or “shorted”.

    It is possible for the bank to report it differently such as “paid in full” negotiate with the bank on how they will report it and it doesn’t mean that it will report it that way every single time.

    · Fed Cuts Possible Tomorrow?
    · Property Taxes too High?
    · See the newsletter below.

    Saturday, December 13, 2008

    Credit Qualifying - Short Sales - Foreclosures

    One thing we are learning more about is doing loans for those who have had a short sale or foreclosure on their credit. If you have clients who have had a short sale on their credit instead of having to wait two years to purchase we are learning that it is now three years. The banks are looking at this credit profile as if it is a foreclosure on their credit and are held to the same guidelines as having a foreclosure. Even if they credit qualify with their credit scores this is something to consider when speaking to your potential buyers.

    Credit Qualifying, Short Sales, Foreclosures,

    Sunday, December 7, 2008

    Rates going to 4.5%?

    There have been recent rumors of interest rates being brought down towards 4.5% by the Treasury. Rates are not going to 4.5% with the wave of a wand by Hank Paulson or Ben Bernanke. As a matter of fact, the massive borrowing to fund the TARP program has a negative effect on rates. This irresponsible release included no definitive plan, no indication of who might qualify, or what the restrictions would be. Remember, it may make sense for you to act now, and take advantage of current historically low rates...with the possibility of refinancing should rates decline further. Waiting for rates to fall to 4.5% may leave people sorely disappointed.

    Friday, December 5, 2008

    Canadian / Foreign National financing

    Attached is a flyer for Canadian / Foreign National financing. No one else has this program at these loan to values!! So check it out.

    Market Update

    The November jobs report was released today showing some of the worst numbers in decades. Non-farm payrolls dropped 533,000 last month and was only the fourth time in 58 years that our economy lost over 500,000 jobs. The unemployment rate ticked up to 6.7%, the highest since October of 1993.

    The news sent the Stock markets lower while the Bond markets didn't have much of a reaction. We are currently in a bad economy and only news of a better report would have been a surprise.

    Mortgage bonds are down a little today and we have had several reprices…. I am floating clients until Monday to see how the market continues.