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.

Jobs Report for August

Wow another great – shortened week! I know you are getting busy out there! Let me know what I can do to help. Make it a great weekend!

Market Update

The Jobs Report for August came in this morning at 84,000 jobs lost. But the real buzz in trading is the swelling unemployment rate, which jumped from 5.7% to 6.1%. This marks the highest unemployment rate since September 2003.

Mortgage pricing has been on a rally for the past several days and looks like it’s about to turn the other way. It’ll interesting to see what happens next week! Stay tuned!

THE TIME IS NEARING END FOR NEHEMIAH AND DOWN PAYMENT ASSISTANCE PROGRAMS (DAP)!

THE TIME IS NEARING END FOR NEHEMIAH AND DOWN PAYMENT ASSISTANCE PROGRAMS (DAP)!

Let’s get those buyers off the fence asap! Franklin Loan Center’s platform is strong so utilize me with your clients who need to close fast. FHA IN 21-30 DAYS! At the end of September, as you know, the DAP will be going away, yet we have until September 5th to get the deals accepted and opened. If you have a buyer who needs to use these programs call me asap! If they can’t close before the end of September we can use a gift from a family member or other non-profit organization as long as the seller is not contributing toward the downpayment, up to 6% toward closing costs are still okay!

Call me today to get the ball rolling. I’ll pay for the appraisal send along the attached flyer with your client during the pre-qual interview.

I’m never too busy for any of your referrals.

Give me the opportunity to make you look good…
We’ve had a great rally this week in the mortgage market and I’ve locked my pipeline to protect my clients from higher interest rates. This week I’ve save most of my clients 0.125% or more on their interest rate and they’re happy with the lower payments.

Market Update

FHA loans and are going strong. Franklin Loan Center’s in-house closing platform is getting the job done quickly and the ability to sign loan docs in-house makes it easy for the clients with out-of-the-area escrow companies.

Market Update

Market Update

Mortgage Bonds are trading higher this morning, despite a report that manufacturing in NY is stronger than anticipated.

Normally a better-than-expected economic report would be bad for Bond prices. However, the declining prices of oil, precious metals and other commodities have decreased inflationary pressures and have helped push Bonds higher so far today.

We got a rally late today for the better I recommend floating for now.

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 http://capwiz.com/nehemia/issues/alert/?alertid=11598811and 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.

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.

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.