The U.S. Department of Housing and Urban Development released Mortgagee Letter 2009-23 Sept. 5, 2008, (that means it is the 23rd this year) regarding the revised downpayment requirements of the Housing and Economic Recovery Act of 2008. This change will take place Jan. 1, 2009 and will require a borrower "shall have paid, in cash or its equivalent...an amount equal to not less than 3.5% of the appraised value of the property..." What this means is that were an FHA buyer had to have a minimum of 3% contribution into the purchase of a home, it could be a combination of down payment and closing costs prior to the change. This was actually a fairly complicated computation and the change is called "downpayment simplification." This may be one of the first times something like this is names c... 09/12/2008

I used to work for Washington Mutual in the Home Loan Center of Eugene. When they stopped making government loans, I left for a lender that did. But, because I worked there and keep in touch with my past clients, I got a call a few minutes ago that may have interest for more than my customer. She was concerned with what would happen with her loan if Washington Mutual ceased to exist. Actually, a pretty good question with the recent news about the company. Now, I am not making judgements about the soundness of WaMu, but yesterday their rating went from BBB to BBB- on long term and from F2 to F3 on short term, never a good thing. Also, they replaced their chief executive on Monday and signed an agreement with regulators requiring them to provide an update on forecasts. But, to answer the ... 09/12/2008

There are benefits to being a First Time Home Buyer. I will be going over what some of those benefits are but first I want to explain what a First Time Home Buyer actually is. By definition with the lenders, and the government, a First Time Home Buyer is someone that hasn't owned a home in the last three years. In some cases, that includes manufactured homes on rented land, in others, it doesn't. Also, there can be exceptions from someone coming out of a divorce. First benefit: The cities of Eugene and Springfield both have programs for First Time Home Buyers to assist with down payment and closing costs. In Eugene it is HAP. In Springfield, it is SHOP. I covered a lot of information on these programs in a previous blog. If someone can qualify for the program (income limited), up to $10... 09/10/2008

I saw someone else do this recently and decided it was probably a good idea. What I am doing is bringing to the front some of the blog posts I did earlier about a particular subject, in this case FHA loans. I really want to spend days and days explaining the intriquite workings of FHA loans, but I don't have the time and you don't want to spend that much time reading. So, I have decided to point you toward some of my past blogs that will explain part of the programs. More will be coming later. To understand the FHA Secure program (which ends December 31, 2008) take a look at this link: http://activerain.com/blogsview/591203/FHA-Secure or this one: http://activerain.com/blogsview/616415/Wonderful-Panacea-FHA-Secure. This is a program that, in my opinion works. Although most often the peo... 09/04/2008

First of all, it needs to be stressed that there are limitations and qualification for this program. The most stringent is that it is availalbe from homes purchased between April 9 of this year and July 1 of next year. If you miss that window, you miss the tax credit. Next, the credit is only available to single taxpayers with an Adjusted Gross Income (AGI) of $75,000 or less or married taxpayers with a AGI or $150,000 or less to get the full credit. Lesser credits are available for those making more than the limits listed here. Additionally, this is not a gift from the government. It is a tax credit that has to be paid back. It is in essence a interest-free loan. You are required to pay it back (with your taxes) at $500 per year starting with the tax return of the year after you receiv... 09/03/2008

Barry Habib, Chairman of Mortgage Success Source, was recently interviewed by Fox Business News and he was asked about inproving your credit scores. You can see the interview here. I found a lot of his answers a bit simplistic but still very helpful to the majority of people that have lower credit than their payment history deserves. Now, there are no "Credit Faries," even if you believe in the Tooth Fairy. There is not magic thing that will correct your credit if it actually reveals your method of handling credit. In other words, if you pay things late as a general rule, your credit score will reflect that payment habit. Also, if you have collections (genuine), charge-offs (genuine), public records such as bankruptcy, foreclosure and judgements (genuine), and your credit report actuall... 09/03/2008

I just received my link to the Summer newsletter from the Community Development Department of the Federal Reserve Bank of San Francisco. You can access the entire newsletter, "Community Investments" by clicking here. This issue is their Green Issue. In this issue, they ask what does it mean to go green? "But for many developers-nonprofit and for-profit alike-greening is a new concept, and assistance is needed in determining which types of designs, materials, and technologies truly contribute to the kinds of outcomes noted above. Is it enough to offer recycling bins? Or to use non-toxic paints?" Discussion of Leadership in Energy and Environmental Design (LEED), a green certification program developed by the U.S. Green Building Council, follows. Overall, it is a good read for information... 08/28/2008

I know there are Realtors out there that remember the bad old days of FHA financing. I still remember having to have and FHA certified inspector check over the house and make the sellers sweep up the basement or clean a spot on the carpet. Anyone remember the VC sheet (that hasn't been that long ago)? Well, that isn't the case anymore. FHA loans are nearly the same as conventional loans, except in some (many) cases better. Take a look at these common myths about FHA: Myth: Takes more time processing.Truth: Takes no more time than a conventional loan. Adds no additional or special requirements. Uses TOTAL Scorecard/AUS approval allowing you to complete a loan in the amount of time it takes to get the appraisal. Myth: More paperwork is involved.Truth: Requires only one additional document... 08/27/2008

Yesterday I got this e-mail from Countrywide: Effective on Friday, August 29, 2008, Countrywide will no longer accept Seller-Funded Grant Programs on FHA transactions, sometimes described by HUD as Seller-Financed Downpayment Assistance Programs. The Housing and Economic Recovery Act of 2008, which was formally passed into law Wednesday, July 30, 2008, prohibits any portion of the required down payment to be provided by the seller or any other person or entity that financially benefits from the transaction or any third party or entity that is reimbursed, directly or indirectly, by the seller. Impact to Pipeline: · Loans with applications for Seller-Funded Grant programs for all or part of the down payment must be received on or before Friday, August 29, 2008, and must be approved by the... 08/26/2008

Did you know? Conforming loans are only available to 80% loan to value for 3 and 4 unit personal residence properties and require a 620 credit score for purchase or rate and term refinance and only 75% for cash out refinances. Did you know? You can get a 95% cash out refinance on an FHA refinance for your single family personal residence, generally at a lower overall payment than if you got a 90% conforming cash out. Did you know? That a cash-out refinance on a 3-4 unit personal residence is available through an FHA loan to 85% loan to value and 97% purchase and the current loan limit in Lane County for a 3 unit property is $531,900. The credit score requirement is only 580. Did you know? Conforming 30 year fixed interest only (10 year interest only) are still available up to 95% purch... 08/25/2008

The Democratic Party Convention started today in Denver. Barack Obama is the presumptive nominee and he has chosen Joe Biden as his running mate. So what does this mean to mortgage lending? To be real honest about that, I don't know. The markets are very iffy on almost any news coming from the financial arena and I know they are watching the political arena also. If Obama/Biden are elected will this mean higher taxes and slower growth? Is that good or bad? Slower growth will mean less inflation (maybe) unless we go into stagflation. Right now, my advice is take every advantage to find out what every candidate is promoting. Don't be swayed by TV spots and sound bites. Research. There is so much information available, there is no reason for anyone to make an uninformed vote. And, not voti... 08/25/2008

FHA increased the loan limit (temporarily) in Lane County to $343,750 as part of the stimulus package. This has opened a lot of homes to FHA loans that weren't open in the past but that new limit is only good until December 31. We won't know what the new loan limit is until about a month before the end of the year, but it is my opinion that we will be very near the floor for FHA loans of $271,050. The actual amount will be 115% of the median sales price and from what I have been seeing, I think we will be about there. So, if you are selling or buying in the area between $271k and $343k, now would be a good time to get it going. It is almost September, time is running out. As always, I am available to help you in this endeavor. I am an expert in FHA financing. There are procedures that a... 08/25/2008

There is quite a bit of concern regarding the elimination of the Down Payment Assistance programs and almost all other 100% purchase programs, so I want to spend a bit of time highlighting another 100% loan program. To my mind, this is the best 100% loan program, the VA loan. VA's Home Loan Program is for veterans and active duty military personnel and certain members of the reserves and National Guard.  VA's program provides an excellent product and benefit for those individuals who have served or are serving to protect our families and our nation, as well as giving them a form of financing that will allow real estate professionals to sell more homes. To be eligible, a veteran must only have served 90 days of more of active duty. If you are unfamiliar with the program, there are severa... 08/24/2008

Hi everyone. Just so you don't think that I only operate in cyberspace, I thought it was time to do a little self awareness posting. To begin with, I work with Alpine Mortgage Planning, a northwest owned mortgage banker with headquarters in the hinterland of Lake Oswego, Oregon. For those out of state, it is one of the cities that make up the Portland Metro area. My office is is Darth Vader Number 1 as we have always called 1200 Executive Parkway. The building is so named because it sort of looks like Darth Vader's mask in Star Wars. It is an interesting structure, being bigger at the top (significantly) than it is at the bottom. It is also faced with glass, glass and more glass. The only problem with this is that it is quite warm on my side of the building in the morning when the sun i... 08/22/2008

I'm in the habit of asking my clients for ongoing feedback on my performance, and after a close I request their input on what worked well for them, what I could do to improve my service, and if they could provide a short testimonial I can use in my marketing.  I just assisted in the close of a wonderful condo - I was actually the "co-agent" handling the marketing, coordination, and customer care for my principal broker who secured the listing and handled the contract negotiation. Imagine my thrill and satisfaction when I recieved the following in email after the sale recorded: "This summer Bobby Stevens represented us in the sale of our home. We were exceptionally pleased with the service and consultation he provided during that process. In reflection, the following actions and personal... 08/22/2008

  SO, WHAT'S NEW WITH FHA?? Say "good-bye" October 1st ••          Seller funded D.P.A. (Down Payment Assistance) ••          Risk Based Premiums (Higher amounts for lower credit) LOAN AMOUNTS! ••          Temporary loan limits in effect until 12/31/08 ••          New loan limits 1/1/09 based on 115% of median sales price ••          Announced 4th Quarter (all we can do is guess right now) ••          New floor $271,050 will not change (Possible Lane County loan limit) ALSO IN THE NEW YEAR ••       Borrower contribution 3.5% starting 1/1/09 ••       Elimination of max LTV! (The 3.5% can all be closing costs) ••       FHA Condo Project Approvals performed by the Lender MOST PEOPLE KNOW THE BASICS ••          203(b) - Single Family ••          234(c) - Condominium ••          203(k) - Reh... 08/21/2008

               When purchasing a home a buyer's agent can watch your back and help you get the best deal.  Today's market is buyer oriented but seller's will still try and take advantage even while their begging you to, "Please for God's sake buy my house".  Most people that are looking to buy will scan the Internet for properties and then call the agent that is listing the house for sale.  Not a good idea.   The listing agent has a vested interest in selling that house.  If they represent both sides of the transaction they are required to keep information from both parties involved, the buyer and the seller.  This is perfectly ethical by real estate law since they are representing both of you to the best of their ability.   However it is not in the buyer's best interest.  As a buyer in... 08/21/2008

More big flavors in Eugene's Whiteaker Neighborhood. I used to work in the Whiteaker, and the New Day Bakery was my frequent go-to for a quick but healthy breakfast before hitting the shop in the morning. You can count on organic ingredients, a variety of toothsome baked goods and strong coffee. Lunchtime brought out the hearty soups and sandwiches, and I don't think I ever went away hungry.           I like to meet up with friends after work for a Pint and perhaps a slice of pizza, and for that, there's no better place than Sam Bonds Garage. You will never want for conversation when you belly up to the bar, as there always seem to be some colorful, quintessential Eugeneans hanging out and expounding on topics ranging from revolution to evolution. Conspiracy theories anyone? :-)   Head ... 08/08/2008

Eugene's Whiteaker neighborhood may be small, but it's full of big flavors. Thai food is one of my favorites, and there are a number of good sources in Eugene. I've always preferred Chao Pra Ya. They've recently expanded and remodeled, but the delicious food remains the star of the show. Last night I tried the Pepper Salt Squid for the first time, and I wish I hadn't waited! Lots of good sized pieces of tender yet crispy tempura battered squid, with onions, green and red peppers in a sweet and tangy sauce. The Pad See Yew with tofu is a favorite of my wife and daughter, and the curries are great as well. The spice can be on the hot side, so go with mild if you can't handle the heat.   Equally savory, but worlds apart in character, is Papa's Soul Food Kitchen. I must confess I stayed awa... 08/07/2008

The best real estate agents are not order takers. They don’t exist just to pound signs into the ground for sellers. Their worth to a buyer is not measured by the ability to open a lockbox. A good agent is a fiduciary. An agent worth employing owes his or her clients what are known as fiduciary duties. Huh? American Heritage dictionary defines a fiduciary like this: One, such as an agent of a principal (buyer or seller), that stands in a special relation of trust, confidence, or responsibility in certain obligations to others. Trust, confidence, and responsibility are all great virtues, but what specific obligations are we talking about? Here are the basics: Care - The Agent must use reasonable care while working for the principal. As applied to the real estate industry, that means the a... 08/06/2008