HomePath Loans Provide New Buyers

Imagine the tax credit going away. Oops. Happens tomorrow. What do we have in our marketing arsenal to get buyers? How about a loan that has a lesser down payment than FHA, has no mortgage insurance, no appraisal needed, and allows for up to 6% for buyers closing costs? Interested yet? The FannieMae Homepath loan program may be just what will bring you more buyers when you start to get the word out on this great product.
Tied to properties that are FNMA foreclosures, (there are 117 currently in my county alone), the details are as follows:

• Low down payment
• 5% down on DU Approve/Eligible findings with buyers own funds
• 3% down on DU Flex Approve/Eligible findings using buyers funds, a gift, a grant, or a loan from a non-profit, state or local government, or employer
• Available for Owner Occupied, 2nd home and investment properties
• No MI required! No appraisal needed (LTV based on FNMA sale price)
• Available for Conforming High Balance loan limits
• Up to 6% seller contributions up to 97% LTV
• Owner occupied = minimum 660 credit score - High Balance = 90% LTV & 700 credit score
• 2nd home = 95% LTV and 700 credit score
• Investment = 85% LTV and 700 credit score

A list of homes allowed under this program are readily available for your buyers. Add this to your marketing and watch the phone ring off the hook! You may contact me for further details.

Tax Credit Continues for Some Beyond April 30!

Question - Does the tax credit end for everyone that has not signed an offer to purchase by April 30?

Answer - NO!! Any member of the military, Foreign Service, or intelligence community that has been assigned on extended duty outside of the U.S. for a period of at least 90 days from January 1, 2009 to April 30, 2010, can still take advantage of the tax credit until April 30, 2011. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.


Agents should be constantly marketing this fact! Little has been said by the media. Now is your time to shine with knowledge and grab more clients. There is a website devoted to the tax credit for first time and certain long term home owners. See http://www.giveme8000.info/ for all the details.

Alert Your Buyers -FHA Loans to Get More Expensive

Perfect time to contact those fence sitting buyers. FHA will see added costs to obtain the loan starting on April 5th. All FHA case numbers assigned after that time will have an Up Front Mortgage Insurance Premium (UFMIP) of 2.25%, up from 1.75%. This increase added to the anticipated rise in interest rates as the Fed pulls out of buying Mortgage Backed Securities (MBS) will make loan more costly. In addition, the tax credit is going away unless the purchase and sale agreement is signed around by April 30.
A good article explaining interest rates and the MBS can be found here:
http://www.mortgagenewsdaily.com/03182010_mbs_purchase_program.asp

WARNING: 2010 Census Cautions from the Better Business Bureau

Be Cautious About Giving Info to Census Workers

With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft . The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.
The big question is - how do you tell the difference between a U.S. Census worker and a con artist? BBB offers the following advice:

**If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice . Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don't know into your home.

** Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. Census.

While the Census Bureau might ask for basic financial information, such as a salary range, the Census Bureau will not ask for Social Security, bank account, or credit card numbers nor will employees solicit donations.

Eventually, Census workers may contact you by telephone, mail, or in person at home. However, the Census Bureau will not contact you by Email, so be on the lookout for Email scams impersonating the Census..

Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.

For more advice on avoiding identity theft and fraud, visit http://www.bbb.org/ .

SHARE THIS INFO WITH FAMILY AND FRIENDS.

WARNING: 2010 Census Cautions from the Better Business Bureau

Be Cautious About Giving Info to Census Workers

With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft . The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.
The big question is - how do you tell the difference between a U.S. Census worker and a con artist? BBB offers the following advice:

**If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice . Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don't know into your home.

** Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. Census.

While the Census Bureau might ask for basic financial information, such as a salary range, the Census Bureau will not ask for Social Security, bank account, or credit card numbers nor will employees solicit donations.

Eventually, Census workers may contact you by telephone, mail, or in person at home. However, the Census Bureau will not contact you by Email, so be on the lookout for Email scams impersonating the Census.

Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.

For more advice on avoiding identity theft and fraud, visit http://www.bbb.org/ .

SHARE THIS INFO WITH FAMILY AND FRIENDS..

Tax Credit Extended and Expanded

Good news for those feet draggers that waited until the last minute to buy. The first time home buyer credit has been extended through June 30, 2010. Buyers will have to be under contract before April 30, 2010 and the loan must close by the end of June. First timers will still get the $8000 and the income limtis have been raised to $125000 for single persons and $225000. Income above those limits begins to be phased out as it increases until no tax credit is available.
In addition, the program has been expanded to move up buyers that have resided for 5 consecutive years over the last eight years in their same residence. This tax credit follows the same income guidelines but the tax credit is limited to a maximum of $6500. This program is exceptionally good for any senior planning to make a move. They can use a reverse mortgage to purchase their new residence instead of paying all cash or using a new forward mortgage and still bank the $6500 if they qualify. Call my office for details or visit our website at: http://www.cme4loans.com/8000.  Cobranded flyers are available.

Congressman Drafts Bill to Increase FHA Downpayment

Republican congressmen are becoming more concerned about the Federal Housing Administration's financial plight and they want to increase FHA's downpayment requirement to 5%. Rep. Ed Royce, R-Calif., said FHA is operating at the same dangerous leverage ratios that led to the takeover of Fannie Mae and Freddie Mac. Rep. Scott Garrett, R-N.J., said he has drafted a bill that would increase the FHA downpayment requirement to 5% from the current 3.5% level. "There are increasing reports of the likely necessity of a taxpayer bailout for the FHA and this legislation aims to implement reforms to try to prevent such a bailout from occurring," Rep. Garrett said at a House Financial Services Committee hearing. The Garrett bill also calls for a General Accountability Office study to determine the appropriate leverage ratio for FHA. In the early 1990s, Congress mandated that FHA maintain a minimum 2% capital ratio. A recent audit shows that the federal mortgage insurance fund has fallen below the 2% minimum. But FHA officials say the insurance fund should be able to maintain a positive capital position and FHA will not need taxpayer assistance.

I must say that should this occur, it will further damage a fragile housing growth as home buyers already stuggle to provide the current 3.5% down payment.  What we really need is a zero-down FHA product with strict guidelines such as increased up-front mortgage insurance, higher credit score, stable income, and adherance to standard ratio guidelines. Given that, the success of an FHA zero down product would more likely.

I suggest a preemptive letter to your congressman and/or senator expressing your feeling how an increase to 5% in down payment would affect the housing industry. Currently, almost 50% of all loans closing are FHA and my feeling is there would be a significant drop should buyers need to come to the table with more cash.