Good Bye Tax Credit, Hello Purchase Power

So, the end result is that the tax credit did was it was designed to do, or did it? Well, kind of. The tax credit is no longer available, but interest rates have dropped, including on FHA loans which are down nearly half a point since May 1. That means buyers using an FHA loan to buy a $200,000 home will have nearly $9,000 more purchasing power.
The following illustrates this point:

Using this same scenario, buyers purchasing a $400,000 home using an FHA loan have close to $18,000 more purchasing power. In other words, for the same monthly payment, today’s buyer could purchase a home worth $18,000 more than they could have on May 1, 2010.

Make sure you look at this Rent vs Own Blog that CLEARLY and HONESTLY shows that buying a home today is equally or more beneficial than buying with only a $8,000 tax credit incentive.

Who knows how long interest rates will remain this low, but for those looking to buy a home in the near future, this increase in purchase power could be their golden ticket. For specific guidelines and tips for getting even a sweeter deal while either purchasing or selling a home, reference the blog I wrote on Strategic Financing Using A Seller Interest Rate Buy Down.

Lastly, here is a good article that recently ran in the Wall Street Journal about the dip in interest rates and what it means for homebuyers and the U.S. economy: Home Buyers Get Surprise Boost From Europe Crisis as Loans Drop to Below 5%

These are a couple of very important facts and stats to present to your buyers and sellers... for more information, please contact me directly at (425) 350-7136 or dan.mortgageadvisor@gmail.com

Dedicated to Your Success,
Dan

a special thanks to Lennox Scott for providing the insight and information to this blog entry

Fannie Mae Homepath Program Seattle, Wa - Buy A Foreclosure & Pay No PMI or Appraisal

I've been able to partner with a couple banks and FANNIE MAE to help stabilize communities impacted by recent foreclosures while creating the opportunity for more buyers to achieve homeownership. The HomePath® Mortgage program is now available to my agents and buyers, and can provide up to 97% financing for qualified borrowers wanting to purchase an eligible Fannie Mae-owned property. Even investors and multiple home owners can use this program!

These homes may be a great opportunity for borrowers that have little money for a down-payment, first-time homebuyers, buyers looking for a fixer-upper, investors and more. Now you can help even more borrowers make homeownership a reality.

Key HomePath Mortgage Features:
- Low down payment - up to 97% financing for primary residence and up to 90% for investment property
- No MI required; however specific MI adjusters apply
- Fixed rates, ARMs and Interest-Only payment feature available
- May be available to buyers with less-than-perfect credit
- Eligibility for high balance conventional loans
- Eligible properties include primary residences, second homes and investment properties
- Minimum credit score requirements are as follows:

o 660 required for LTV > 80%
o 620 required for LTV <= 80%
Down payment can be funded by a borrower’s own savings; a gift; a grant; or a
loan from a nonprofit organization, state or local government, or employer (very similar to FHA guidelines, but without the additional FHA MI costs...).
· Purchase transactions only
· No appraisal required

Make your buyers aware that you can now provide a HomePath Mortgage option to compare to FHA. And even if a HomePath loan isn’t right for them, our other products or programs may fit their needs. Let me know if you would like a side-by-side comparison. I'd be happy present that to you!

You can go to http://www.homepath.com/ to search for direclty for eligible Fannie Mae properties, or contact me directly and I can help!

Dan Keller
dan.mortgageadvisor@gmail.com
(425) 350-7136

Save Hundreds of Dollars And Fight Your Real Estate Tax Bill WITHOUT A Lawyer

Visit msnbc.com for breaking news, world news, and news about the economy

More than 60 percent of U.S. homes are “over-assessed”, says an industry trade group. Homeowners in Washington State pay more in property taxes than they otherwise should have to. You might be one of them. Have you considered fighting your real estate tax bill?
In this 4-minute piece from The Today Show, you’ll learn:
•When to file your tax bill dispute for the best chances of winning
•How to pull your “property card” and check for tax bill-raising errors
•What to do if the taxing authority turns down your request
Most importantly, you’ll learn that don’t need to hire an attorney to fight your tax bill. You just need to be prepared. Do your research and make your case. It’s estimated that nearly half of all contesting homeowners are successful.

As always, please do not hesitate to contact me with any questions - dan.mortgageadvisor@gmail.com

Breaking News! Rep Shelly Capitio Introduces Bill To Resolve USDA Funding Crisis

I am pleased to share with you that a supplemental bill has been introduced today by Republican Shelly Capito, Mrs. Capito happens to be a ranking member of the Financial Service Committee and Subcommittee on Housing and Community Opportunity. Below is a copy of the announcement.

Capito Introduces Bill to Continue Access to Home Ownership in Rural Communities

This Legislation Would Increase USDA Rural Housing Loan Guarantee Program’s Capital Reserve - Washington-Rep. Shelley Moore Capito, R-W.Va., the Ranking Republican Member of the House Financial Services Subcommittee on Housing and Community Opportunity, yesterday introduced legislation in the House Financial Services Committee to shore up funds for the U.S. Department of Agriculture 502 Rural Housing loan guarantee program. Capito's bill, H.R. 5003, The Rural Housing Improvement Act, would ensure that responsible families in rural communities continue to have access to the credit market to finance their homes.

"I have received hundreds of letters, emails and calls from my constituents, including home buyers and sellers, who are concerned that the 502 loan guarantee program will soon run out of funds," said Capito. "My legislation would continue to assist thousands of responsible, low to moderate income West Virginians who otherwise wouldn't have access to home ownership."

This supplemental bill will resolve the funding crisis and will help us get through the year without any funding interruptions. All concerned USDA GRH originators and other interested parties (real estate agents, builders, settlement agents, appraisers, community leaders, etc.) are encouraged to contact their members of Congress and Senate regarding their support for this bill. Please click here, and take 20 seconds to email our congress rep in WA State!
http://bit.ly/9yIbjb

AGENTS, FOR FREE TOOLS, PLEASE VISIT MY FB PAGE FOR AGENTS & BECOME A FAN!

NW REAL ESTATE AGENT NETWORK

You May Want To Get Your Pre-Approval RE-Approved

On a weekly basis I am getting 911 calls from Real Estate Agents at the 11th hour of a closing begging me for a miracle... Their client's previous financing (or the other agent's buyer's financing)has failed and they are in need of dire help... With all of the banking guideline changes that we have seen thus far in 2010, this blog post in overdue, and I apologize...

As the Federal Home Buyer Tax Credit approaches its April 30 end-date, there are numerous would-be home buyers throughout our area who are still working to get under contract.

Here is an important piece of advice to pass along: If their pre-qualification and/or pre-approval letter is more than 6 weeks old, it is strongly advised that they have their lender “Re-Approve” their Pre-Approval. Mortgage guidelines have been in flux and their original lender letter may now be invalid due to recent changes in qualification criteria.

For example, over the past half-dozen months, the majority of mortgage lenders have reduced their risk tolerance with respect to:

* Maximum debt-to-income ratios
* Minimum allowable credit scores
* Calculation of “assets in reserve”

For buyers of condominiums and co-ops, it is reported that the complex in its entirety has come under tougher scrutiny.

Mortgage applicants today MUST be in complete compliance and many new factors can now affect the qualification of the buyer. It takes more than just good income and credit to get approved in this market. It is strongly advised Agents inform their buyers revisit their qualifications. What qualified underwriting in January may not be adequate in May.

Being proactive will provide additional advantages: For instance, in the event, a mortgage re-pre-approval does happen to unearth an issue, it can be addressed immediately and resolved, rather than trying to clean up a mess and put fires out, causing potential delays and undo stress...

It is a good idea to advise buyers to have a discussion with their Agent and/or Loan Officer about their pre-qualification/pre-approval letter prior to making the offer on a home. If you are a Realtor and would like more information and FREE access to my daily "Tools You Can Use" tips to help you grow your business, you can follow me on facebook at NW Real Estate Agent Network. Enjoy!

Dan

Is USDA Out of Funds To Loan Home Buyers?

The answer today (April 4th, 2010) is NO. The Department of USDA-RD still has allocated funds to cover mortgage loans. Now, with that said, as of today, USDA is reporting that they have $2.8 billion dollars left to lend. That sounds like a lot of money, but considering they were allocated $13+ billion in October of 2009, it's not. Based on the current volume of fundings, experts are estimating that USDA will be able to uphold their committment to funding mortgage loans through April 2010. At that time when funds are exhausted, the USDA-RD division will await a re-allocation of funds, which sceptics say will not be filled until October-November 2010. I on the other hand tend to be more optimistic and realistic, and "speculate" USDA-RD will be re-allocated funds by July 2010 ("by" being the key word, I beleive sooner...). I am currently closing USDA purchase loans in 17-20 days. So to date, I am continuing to take USDA mortgage applications. Make sure you visit my USDA Website @ www.snohomishcountyusdaloans.com and feel free to contact me directly at (425) 350-7136 with any questions!

Free Live Chat Software