We have our first African American president, Larry Flynt is asking for a $5 billion PORN bailout , Bernie Madoff got caught with his hand in a $15 billion cookie jar, and of course the Steelers won a very “action packed” SuperBowl.

So where does this leave us and what should you expect in ’09?

Well, for starters, Obama’s proposed $900 billion Stimulus Plan is still being negotiated in Senate, and from the way it looks, it’s going to pass. Many are wanting to know the dynamics of what this plan is, so I wanted to outline a couple of the top points you may be interested in:

1. Instead of $7,500, a $15,000 Tax Credit to First Time Home Buyers. This is still in the works, but looks good on getting approved.

2. Tax relief to those with middle, and low incomes, in order to restore consumer spending and confidence.

3. $1,500+ tax break to car buyers to get them back in the showrooms

4. Specific measures to relieve financial institutions of their troubled assets. (Where did the “The Bailout” money go last year?)

5. Defined tax breaks for businesses, especially those which encourage them to reduce their debt.

Now I slightly recall a $700 billion Wall Street Bailout plan that passed and that did NOT go the way it was supposed to, yet we’re still paying for that tab.

So where you stand on this? Is the US just writing blank checks to solve problems, or is the “Change” we’ve been waiting for?

A couple quick updates before I start wrapping presents…

The FHA Secure Program is going away as of next Wednesday, December 31, 2008. If you are a distressed homeowner having trouble making your mortgage payments, then please contact us to find out more information on Hope for Homeowners program. Below is the mortgagee letter from HUD showing the termination of FHA Secure.

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/08-41ml.doc

There will be a new maximum LTV (Loan-to-Value) calculation in regards to FHA refinances. Due to the Housing and Economic Recovery Act of 2008, the new LTV will be 97.75% of the appraised value. Read more about it below:

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/08-40ml.doc

Here is a great breakdown from HUD getting into a little bit more detail if you’re interested:

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/08-40mlattmt.doc

Enjoy your Holidays, and I’ll be back next week.

Cheers,

Tommy

Information and documents are directly from HUD ]]> http://fhaloanhouston.com/blog/no-more-fha-secure-and-maximum-ltv-for-2009-refinance-fha-loans/feed/ 0 http://fhaloanhouston.com/blog/updates-to-2009-fha-mortgage-limits/ http://fhaloanhouston.com/blog/updates-to-2009-fha-mortgage-limits/#comments Wed, 24 Dec 2008 06:12:45 +0000 Mortgage Guy http://fhahouston.wordpress.com/?p=139 As a result of the appeals process outlined in Mortgagee Letter 2008-36, single family mortgage limits for 2009 have been updated for 54 counties. Those counties represent five Metropolitan Statistical Areas and one non-metro county.  A listing of affected counties, with the final median prices and FHA (forward, non-HECM) loan limits for 2009 is posted on HUD’s Website at: http://www.hud.gov/offices/hsg/sfh/fha2009.pdf

FHA accepted appeals for those counties where it did not already have a comprehensive listing of property sale transactions for the look-back period (January – August 2008), and where the median price from the transactions provided by the appellant was higher than the median price used in the preliminary loan-limit calculations completed by FHA last month. There were no changes to the 2009 HECM loan limits from these appeals. The HECM loan limit is the national conforming loan limit of $417,000 for all areas except for certain high-cost counties in the special exception areas listed in the National Housing Act (Alaska, Guam, Hawaii, Virgin Islands).

A complete schedule of FHA mortgage limits for all areas is available through the internet at https://entp.hud.gov/idapp/html/hicostlook.cfm

The mortgage limits described in this notice are effective for those loans which have credit approval on or after January 1, 2009, and apply to mortgages insured under the following Sections of the National Housing Act:  Sections 203(b) (FHA’s basic 1-4 family mortgage insurance program), 203(h) (mortgages for disaster victims), 203(k) (rehabilitation mortgage insurance), Section 255 (Home Equity Conversion Mortgages (HECM)) and 234(c) (condominium units).  There will be no further appeals of FHA loan limits for 2009.

Source: HUD

Here are the conditions:

1. You must be back on the job for at least 6 months
2. You must be able to document a 2 year work history prior to leaving

An example of this is saying a person had to take off several years to raise his/her kids, and then returned working again.

Happy Holidays everyone!

For a 30 year-4.75%.

For a 15 year- 4.5%.

When I was locking in a rate this morning for a home purchase closing this month, I stuttered and had a “WOW” look on my face. Rates haven’t been this low in years, and several of my past clients have been calling to refinance their current mortgage the past couple weeks- even if they AREN’T in an FHA mortgage.

It doesn’t make sense all the time to go from a conventional mortgage to an FHA, but in specific circumstances, it is VERY financially feasible.

So here’s the CONDENSED explanation on why what’s happening is happening.

For the last 6 months the Fed and the Treasury have made unprecedented moves to help the economy, but despite all their efforts, mortgage rates weren’t really effected and they were actually increasing.

That is, until yesterday.  In a matter of minutes yesterday morning, mortgage rates have taken a dive to lows we haven’t seen in years.  Why?  The Federal Reserve announced plans to buy $600 billion in debt and assets from Fannie Mae and Freddie Mac in order to oil the housing finance market and “reduce the cost and increase the availability of credit.”

It will be interesting to see how long this drop will last – given the volatility in the market it could last hours, days or months- there’s NO telling.

What I CAN give you is advice, however. When there’s a SMALL WINDOW OF OPPORTUNITY such as this, you need to capitalize on it and take advantage. You can contact me and we can do a Mortgage Check-Up (revisiting your current mortgage terms) for you at NO COST.

If you can save money, I’ll tell you. If you CAN’T and its not worth it, I’ll tell you as well.

And PLEASE, PLEEEEASE do not get greedy when it comes to these low mortgage rates. What many people do time and time again is say “Oh, let’s see if it’ll go lower.”

My suggestion- DON’T GAMBLE! Do you know any gamblers that still have any money left?

You will end up waiting yourself OUT of the market and looking back WISHING you would have gone the safe route.

Find a rate that’s low enough for you. Determine if you can live with it. Then roll with it!

Straightforward, simple, and educated advice.

2008 Taxes

The FHA Up Front Mortage Insurance Premium must be 100% financed into the mortgage or paid up front in cash at closing. It cannot be partially financed.

If the seller pays any portion of the Up Front MIP (capped at 6%), then the entire amount must be paid up front in cash.

Weekly, and sometimes daily depending on the importance of the matter, I will post market related events that affect your mortgage and your rate. In this industry, you have to keep on the button, or else it can literally cost you THOUSANDS in the long run if you do not have a mortgage planner experienced enough.

Just this week, the Jobless Claims nearly came in at 525,000, which is a pretty scary number as it looks like we may be approaching a 7% unemployment rate.

I’m sure you already know there have been a lot of job cuts this past year, and since the holidays are coming up, I figured I would see if I could send out some useful info to forward on to anyone you may know. Feel free to pass this informational along to anyone you think may need it.

http://careerplanning.about.com/cs/jobloss/ht/job_loss.htm

The bottom line is this: Losing a job is tough during any market, but finding a job doesn’t have to be tough when you are willing to be creative and use strategies that work.

If you’re interested in some of these strategies for you or anyone else, just let me know, and I can post them on here.

Special 100% FHA loan available for families whose homes were destroyed or damaged by Hurricane IKE!!!

• Borrower’s previous principal residence (as owner, renter, or resident household member) was located in a federally-declared disaster area (listed at www.fema.gov as eligible for individual assistance).
• Borrower’s previous principal residence was destroyed or seriously damaged, to such an extent that reconstruction or replacement is required.
• Borrower’s initial 203(h) purchase loan application must be dated within one year of the President’s declaration of the disaster,
• There are no special exceptions to the “one FHA loan” rule. If the former residence is encumbered by an FHA loan, borrower must satisfy that loan by sale or damage claim(s) prior to closing a new 203H purchase loan.
• Proof of permanent residence in the affected area before the disaster, such as a valid driver’s license, voter registration card, utility bills, etc.
• Conclusive documentation evidencing the destruction or extensive damage of the residence, such as an insurance report, or a property inspection report by an independent fee inspector, or government agency.
• Must be able to prove income

————————————–

Down Payment:
• Not required.
• DPA not allowed
• Closing costs may not be included in the loan amount.

Loan Term:
• 30 year only

Maximum Loan Amount:
• 100% of the lesser of sales price or appraised value, plus UFMIP.
• If not paid by the seller, closing costs and prepaids must be paid by the borrower in cash or by the lender through premium pricing. Closing costs may not be included in the loan amount.

Seller contributions:
• Seller contributions must not exceed 6% of the sales price.
• included in the 6% limitation is the payment of the UFMIP

FHA 203(h) Eligible and Ineligible Properties

Eligible Properties:

1-unit detached primary residences, detached PUD, and FHA approved condos.

Ineligible Properties:

1-unit attached primary residence, attached PUD, 2-4 unit primary residence, second homes, investment properties, co-ops, and manufactured homes.

American Banker  |  Tuesday, December 2, 2008

By Steven Sloan

WASHINGTON — In one of the more unusual marriages that could result from the financial crisis, buzz is growing that the Federal Home Loan banks might purchase the government-controlled Fannie Mae and Freddie Mac.

The idea is very early in formation, according to five sources, and nothing has been put in writing. It could ultimately be shelved in favor of more straightforward approaches to Fannie and Freddie, such as nationalization or privatization.

But if it comes to fruition, it could put the 12 Home Loan banks in charge of their one-time competitors and finally give the system something it has longed for — the ability to securitize mortgages.

“Members need an avenue to securitize their mortgages,” said a source close to the Home Loan banks. “Unless we have a healthy secondary market, it’s going to be hard for mortgages to be made in this country.”
Fannie and Freddie were seized by the government on Sept. 7 and the incoming Obama administration must decide how to resolve the companies.

Many questions surround the idea, including how Fannie and Freddie might be valued, how shareholders could be satisfied, and whether all 12 Home Loan banks are interested. Representatives at Fannie, Freddie and the Federal Housing Finance Agency did not comment.

The biggest upside for the Home Loan banks could be winning authority to securitize mortgages. The system has created several programs, most notably the mortgage partnership finance program, to become more competitive in the secondary market. But without securitization, which regulators have refused to allow, these efforts have come up short.

“The securitization business is probably the most opportune business” that Fannie and Freddie have, said Alfred DelliBovi, the president of the Federal Home Loan Bank of New York, who would not take a position on whether the system should purchase Fannie and Freddie. “It certainly is more viable than holding mortgages in portfolio.”

Other sources said a purchase would take Fannie and Freddie off the government’s hands and give the system far more political strength and control of the mortgage market.

Still, there would be steep hurdles to clear. For one, the Home Loan banks are barred from holding publicly traded stock. Though shareholders of Fannie and Freddie have been virtually wiped out in the aftermath of the government conservatorship, their needs would still have to be considered.

Another open question is whether the Home Loan banks can afford to buy Fannie and Freddie. On June 30 the 12 banks held $56.6 billion of capital, and some estimates suggest Fannie and Freddie would need roughly $60 billion to become adequately capitalized.

Some observers said that could be a nonstarter for the system, since the Home Loan banks would likely have to tap members for the needed capital. Member banks “in turn would have to go around and raise that capital, and banks are strapped for capital as it is,” said Bert Ely, an independent analyst in Alexandria, Va.
Policymakers would also be faced with questions over whether a sale to the Home Loan banks would resolve investor confusion. When announcing the conservatorship in September, Treasury Secretary Henry Paulson argued that the government-sponsored enterprises’ status as shareholder-owned companies that also serve public policy goals could not continue.

Selling Fannie and Freddie to the Home Loan banks, which are GSEs themselves, might not accomplish that.
“I don’t know how people would see the cooperative, for-the-member approach at the Home Loan banks merge with the large, portfolio … approach at Fannie and Freddie,” said Jim Vogel, the head of fixed-income research at First Horizon National Corp.’s FTN Financial Capital Markets Corp.”

While the idea of the Home Loan banks purchasing the larger GSEs might seem outlandish, observers noted the system owned Freddie until February 1990.

“This would be back to the future,” said Alex Pollock, a former president of the Federal Home Loan Bank of Chicago who is now at the American Enterprise Institute.