Thursday, October 18, 2007
HUD Down Payment and Closing Cost Assistance of up to $25,000
In order to qualify for HUD Down Payment and Closing Cost Assistance of up to $25,000, you need to complete the secure Homebuyer Application. Your personal information will not be shared outside the system for your personal security and protection. Your information is protected by DigiCert Security and is guaranteed and insured for up to $1,000,000 when you are on the American Housing Programs website. If you have any questions or concerns regarding the Homebuyer Application, please contact us. If you saw a Down Payment Assistance Sign or have an MLS Flyer:Enter the MLS number, or the property address, or the ZIP code or the home builder name of the property in the Enter Property Details box below. The system will do a seach and when it identifies the home, click on that home and it will send you directly to Homebuyer Application page.
FHA Secure
A new loan product called the FHA Secure Loan is going to come the rescue of some homeowners who are unable to refinance at this time and to help stop foreclosure for many homeowners who are struggling with adjustable rate mortgages. President Bush announced plans today at the White House to expand the Federal Housing Administration so that an additional 80,000 risky borrowers can benefit from its mortgage insurance program. I believe that this is the first step by the White House to combat the war to help stop the foreclosure crisis.Bush's plan would allow risky borrowers to qualify for FHA's mortgage insurance even if they have recently become delinquent, as long as they have relatively sound credit. FHA currently does not allow delinquent borrowers to qualify for loan insurance. It would also alter the code to help borrowers refinance their loans with FHA insurance.Bush said that ``in the coming days'' the FHA will begin a new program called FHA Secure Loan that will permit homeowners who have a good credit rating but can't afford their current payments to refinance into FHA-insured mortgages. ``This means that many families who are struggling now will be able refinance their loans, meet their monthly payments and keep their homes,'' Bush said. ``We going to start reaching out and make sure people know this option is available to them.'' This is great for homeowners who can "qualify" for this program and I am anxious to see what the underwriting guidelines will be. That will show me exactly what this will do to assist borrowers to refinance out of their current ARM and into a fixed FHA Secure Loan.A lot ( a whopping 1.9 million plus) of homeowners will still be left to fend for themselves as President Bush announced there would be no bail out for borrowers who purchased homes that he claimed they could not afford. He forgot to mention that many of these homeowners were pushed into these loans and properties with the help of these lenders and real estate agents who were just doing their jobs and hell if they could "qualify" for a loan then they can "afford" the home. They were acting on the advice of their "trusted" professional advisors. Isn't that why we have underwriting and guidelines? Isn't that how they determine the affordability or was that all a dream and those weren't really loans at all?What about these people?
Friday, October 5, 2007
Sickly credit markets and a worsening housing slump may force the Federal Reserve to cut
Sickly credit markets and a worsening housing slump may force the Federal Reserve to cut interest rates again this month despite a less dire employment outlook.
This makes the Fed is likely to cut rates again at it next meeting in the last two days of October, despite a new report showing the labor market is not faring as badly as once believed.
Central bank officials have gone out of their way to argue that last month's aggressive half percentage point rate cut was not a bail out of Wall Street, but rather insurance against the broader effects of the credit crisis.
But despite modest signs of improvement in the credit markets, things are far from normal.
The housing market just keeps getting worse despite widespread forecasts it would soon hit bottom, a trend that could further compromise financial institutions and once again tighten the noose on lending.
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Dennis Cook / AP |
"Some traders may think that this will keep the Fed on the sidelines, but it doesn't take them out of the picture," said Gary Thayer, chief economist at A.G. Edwards & Sons.
Futures markets are now split down the middle regarding the chances of an October reduction in rates.
But even the employment report contains elements that would point to another Fed move.
The economy did add 110,000 new jobs in September, beating forecasts. August's surprise contraction was also revised away to show a gain of 89,000.
Yet the unemployment rate rose, dispelling fears by policy-makers that a tight job market would put upward pressure on inflation.
"A rising unemployment rate is more or less a done deal," said Ian Shepherdson, chief U.S. economist at High Frequency Economics. "Nothing motivates the Fed to cut rates more than a loosening labor market."
In addition, the trend of ever more subdued hiring remains firmly in place.
"What counts is that household employment has averaged just 100,000 over the past six months compared to 225,000 over the previous six months," Shepherdson added.
True, some of the worst dislocations in credit markets, which in part prompted the Fed to push rates lower, have subsided somewhat.
Commercial paper issuance over the past week showed its first signs of life since the credit crunch began in early August. Some key interbank lending rates, which had been behaving erratically, have come down. A decline in discount window borrowings also suggests banks are less need of immediate cash.
This has encouraged investors to once again dip their toes into risky assets, with stock markets worldwide reaping the benefits -- pushing major averages to record highs from Wall Street to Brazil.
However, analysts say the Fed's rate cut and, importantly, expectations of further steps, have largely underpinned this improvement. Take away the stimulus, pessimists say, and the markets are back to square one.
And then there is history: it is very rare for the central banks to cut rates just once and then call it day.
"The economy is nowhere near recession, but that does not mean that the Fed does not need to be concerned about the problems we are seeing in the financial markets," said Mark Vitner, economist at Wachovia in Charlotte, North Carolina.
"Those problems are a threat to economic growth in the fourth quarter and the first quarter of next year. They are likely to cut rates again."
Copyright 2007 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters.
4 steps new home buyers should take....
Four Steps New Home Buyers Should Take
Tuesday , September 5th, 2007
By Marshall Loeb
A
Assess your credit.
Most mortgage lenders use FICO scores to determine loan eligibility. In general, the higher your FICO score, the better your interest rates. With a score of 650 or above, you're considered a good risk and should have no problem securing a mortgage. If your score is 600 or below, you may want to consider improving it before applying for loans. Also, keep in mind that mortgage lenders are reluctant to lend money to people spending more than 36 percent of their gross monthly income on debt.
Determine how much to borrow.
Many first-time home buyers make the mistake of borrowing as much as their banks or credit unions are willing to offer. While most lenders are comfortable issuing loans worth up to 33 percent of your gross income, many financial planners believe 25 percent is a more prudent number.
Factor in ongoing costs.
One of the upsides of renting is that when the pipes break or the refrigerator goes kaput, you can simply call your landlord to have it repaired. As a homeowner, you'll be charged with these responsibilities. So, before taking out a mortgage be sure to factor in expenses like home improvements, basic maintenance and property taxes.
Save up to buy.
Buying your first home isn't just a matter of bidding on a house and signing on the dotted line. Before you make an offer on a home, be sure to set aside enough money for a home inspection and appraisal. These fees vary from region to region, so ask your real estate agent how much you can expect to pay. And don't forget about closing costs! They generally run you from 3 percent to 6 percent of the cost of the house, according to the National Foundation for Credit and Counseling.
Copyright (c) 2007 MarketWatch, Inc.
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