Ameridream; Nehemiah Programs
These program have been around a long time helping people who do not have the liquid cash to be able to purchase home. Many think that they are a great way for these home buyers to afford the AMERICAN DREAM.. of owning your own home.
Unfortunately, statistically from January 1 of this year until July 1 60% of the people that this program got into a home using these and other downpayment assistance programs did not even make their first months payment... yes, that means they were in default of the loan they obtained within the first month... this is an amazing statistic and unbelievable. That is why the government is doing away with these types of programs. These programs are planned to go away as of Oct 1, however, paperwork and contracts must be submitted by September 15th in most cases and close by September 30th to qualify.
Don't worry the RUMOR is there will be new Bond Programs with money available to help those who qualify for such programs and I will keep you posted as to when those programs are available and what they offer. If you would like to be on my update list please email me your information and I will include you in any updates I receive about the Bond Programs. They should be available in both Maricopa and Pinal County.
email me at home4you@hotmail.com
Dani
Thursday, August 14, 2008
Tuesday, August 12, 2008
Sleep on It!
Have you seen HGTV's Sleep on It?
Well, what a concept. I have recently had a discussion with one of my clients whose house is for sale and she thought that if she could not sell her home in a timely matter we could consider such an aspect. Just think.. Try it before you buy it! This is a great opportunity to allow potential buyers try your home before they buy it. Of course you are probably thinking what the risks are involved, but we would definitely start with a game plan and make sure we only allowed well qualified interested parties take part in such an endeavor. There would be a rental agreement (even if only a day) and money deposited into escrow for potential damage involved. This could truly become part of the buyers 10 day inspection period. It would be great for those whose homes back a major street, a freeway, side a park or commercial space... many people are afraid of noise and just don't want to take the risk, but if they could live there for a day or two, eat there, shower there and leave for work to be able to test their commute? Wouldn't they be more apt to buy or know it, especially if they really love the house, there is just one little thing holding them back.
For a sneak preview of the show visit: http://www.hgtv.com/hgtv/shows_hslep
How would you like to try a home before you buy it? It could become the new thing.
For more information as to how we can market your home for sale using this concept or other ways to think outside the box when selling your home, give me a call at 480-695-2010.
Well, what a concept. I have recently had a discussion with one of my clients whose house is for sale and she thought that if she could not sell her home in a timely matter we could consider such an aspect. Just think.. Try it before you buy it! This is a great opportunity to allow potential buyers try your home before they buy it. Of course you are probably thinking what the risks are involved, but we would definitely start with a game plan and make sure we only allowed well qualified interested parties take part in such an endeavor. There would be a rental agreement (even if only a day) and money deposited into escrow for potential damage involved. This could truly become part of the buyers 10 day inspection period. It would be great for those whose homes back a major street, a freeway, side a park or commercial space... many people are afraid of noise and just don't want to take the risk, but if they could live there for a day or two, eat there, shower there and leave for work to be able to test their commute? Wouldn't they be more apt to buy or know it, especially if they really love the house, there is just one little thing holding them back.
For a sneak preview of the show visit: http://www.hgtv.com/hgtv/shows_hslep
How would you like to try a home before you buy it? It could become the new thing.
For more information as to how we can market your home for sale using this concept or other ways to think outside the box when selling your home, give me a call at 480-695-2010.
Thursday, August 7, 2008
Housing Rescue
Housing-Rescue Law Q&A
Questions and answers about the Hope for Homeowners Act of 2008, signed into law by President Bush last Wednesday to try to steer as many as 400,000 struggling homeowners away from foreclosure:
Q: What exactly will the legislation do? A: It will allow those who qualify to cancel their old mortgage loans and replace them with 30-year fixed-rate loans for up to 90 percent of the home's current value. The FHA will insure a total of $300 billion of the loans over a three-year period.
But the decision on whether to write such a loan remains up to banks, which would have to be willing to take a loss on the existing loans in exchange for avoiding an often-costly foreclosure.
Q: Who is eligible? A: Eligible borrowers must have spent more than 31 percent of their monthly incomes on their mortgages as of March 1, 2008. The troubled loan must have originated no later than Jan. 1, 2008, and be on the borrower's primary residence. And the borrower's income must be verified.
Q: When does the program start? A: It takes effect Oct. 1 and runs through September 2011, although the FHA isn't likely to have it operating at full capacity until next year.
Q: Since lenders can pick and choose which loans to refinance, how can consumers determine if theirs will be selected? A: Check with the bank or financial company servicing your mortgage, but it may be weeks before they make decisions concerning the new guidelines and assess individual loans.
Even then, keep expectations limited. "Servicers are going to be reluctant to take the government up on their offer," predicted Mark Zandi, chief economist at Moody's Economy.com. "The earliest they'll start taking them up on it is early next year. And even then it's likely to be modest."
Q: Is there anything a homeowner can do to improve chances of benefiting from the program, such as crunching numbers to make a case for the bank?
A: Not really. The best step is to keep up your payments as best you can. Q: But doesn't this provide an incentive to NOT pay your mortgage, if you're barely keeping ahead of bills and are underwater on your house, so you can qualify?
A: No. If your situation deteriorates enough, the bank may reject any possible new loan. "Turning yourself into a financial basket case is not going to work," said Dan Seiver, a finance professor at San Diego State University. "If you turn into a complete deadbeat, the servicer is going to just foreclose and dump it."
Q: So what should I be doing now besides trying to keep up with payments? A: Talk to a local credit counselor and call the toll-free hot line of the Hope Now alliance — an industry group trying to coordinate a response to the mortgage crisis — at 1-888-995-HOPE. It is available 24 hours a day to provide mortgage counseling in multiple languages.
Mary Thomason, director of resource development for The Impact Group of Atlanta, a housing counseling group, also suggests tracking expenses and income closely in order to be able to forecast your cash flow for the next six months and give yourself better control of your finances.
Q: If the banks and lenders refuse to write these loans, then what? A: Public and political pressure may prompt them to participate. If not, and more people continue to lose their homes, Zandi says the next White House administration subject them to additional regulations or investigations if they remain unwilling to take on the risks.
Q: What happens if I'm able to sell my home after I refinance? A: If you sell during the next five years, you must agree to share 50 percent of any profits from the resale with the government. What's more, homeowners can only retain equity gains based on a sliding scale. The homeowner would have zero equity from a sale in the first year, with the amount rising 10 percent in each succeeding year and capping at 50 percent from a sale in year five and thereafter.
The equity must be repaid because the maximum amount on the new loans will be capped at 90 percent of the current market value, which automatically gives the previously troubled homeowner 10 percent equity in the home.
Q: Where can consumers find more detailed information about the plan? A: Click here for a six-page summary of the housing act, and the FHA's Web site is a place to watch for updated information. Click here for the entire 694-page bill.
Questions and answers about the Hope for Homeowners Act of 2008, signed into law by President Bush last Wednesday to try to steer as many as 400,000 struggling homeowners away from foreclosure:
Q: What exactly will the legislation do? A: It will allow those who qualify to cancel their old mortgage loans and replace them with 30-year fixed-rate loans for up to 90 percent of the home's current value. The FHA will insure a total of $300 billion of the loans over a three-year period.
But the decision on whether to write such a loan remains up to banks, which would have to be willing to take a loss on the existing loans in exchange for avoiding an often-costly foreclosure.
Q: Who is eligible? A: Eligible borrowers must have spent more than 31 percent of their monthly incomes on their mortgages as of March 1, 2008. The troubled loan must have originated no later than Jan. 1, 2008, and be on the borrower's primary residence. And the borrower's income must be verified.
Q: When does the program start? A: It takes effect Oct. 1 and runs through September 2011, although the FHA isn't likely to have it operating at full capacity until next year.
Q: Since lenders can pick and choose which loans to refinance, how can consumers determine if theirs will be selected? A: Check with the bank or financial company servicing your mortgage, but it may be weeks before they make decisions concerning the new guidelines and assess individual loans.
Even then, keep expectations limited. "Servicers are going to be reluctant to take the government up on their offer," predicted Mark Zandi, chief economist at Moody's Economy.com. "The earliest they'll start taking them up on it is early next year. And even then it's likely to be modest."
Q: Is there anything a homeowner can do to improve chances of benefiting from the program, such as crunching numbers to make a case for the bank?
A: Not really. The best step is to keep up your payments as best you can. Q: But doesn't this provide an incentive to NOT pay your mortgage, if you're barely keeping ahead of bills and are underwater on your house, so you can qualify?
A: No. If your situation deteriorates enough, the bank may reject any possible new loan. "Turning yourself into a financial basket case is not going to work," said Dan Seiver, a finance professor at San Diego State University. "If you turn into a complete deadbeat, the servicer is going to just foreclose and dump it."
Q: So what should I be doing now besides trying to keep up with payments? A: Talk to a local credit counselor and call the toll-free hot line of the Hope Now alliance — an industry group trying to coordinate a response to the mortgage crisis — at 1-888-995-HOPE. It is available 24 hours a day to provide mortgage counseling in multiple languages.
Mary Thomason, director of resource development for The Impact Group of Atlanta, a housing counseling group, also suggests tracking expenses and income closely in order to be able to forecast your cash flow for the next six months and give yourself better control of your finances.
Q: If the banks and lenders refuse to write these loans, then what? A: Public and political pressure may prompt them to participate. If not, and more people continue to lose their homes, Zandi says the next White House administration subject them to additional regulations or investigations if they remain unwilling to take on the risks.
Q: What happens if I'm able to sell my home after I refinance? A: If you sell during the next five years, you must agree to share 50 percent of any profits from the resale with the government. What's more, homeowners can only retain equity gains based on a sliding scale. The homeowner would have zero equity from a sale in the first year, with the amount rising 10 percent in each succeeding year and capping at 50 percent from a sale in year five and thereafter.
The equity must be repaid because the maximum amount on the new loans will be capped at 90 percent of the current market value, which automatically gives the previously troubled homeowner 10 percent equity in the home.
Q: Where can consumers find more detailed information about the plan? A: Click here for a six-page summary of the housing act, and the FHA's Web site is a place to watch for updated information. Click here for the entire 694-page bill.
Time To Make Your Move
This is a fantastic opportunity for those of you who are on the fence about purchasing at this time. A colleague of mine wrote this great article of information about obtaining a loan as a first time home buyer. - Dani
Fed Stands Still – Time to Make Your Move
The Federal Reserve held the line on Tuesday–leaving the Fed Funds Rate at 2.00% for the third straight meeting. The decision, however, was anything but cut-and-dry.
Earlier in the week, the Personal Consumption Expenditure data indicated that inflation climbed 0.8% overall in June, which is the highest inflation jump in 27 years. In addition, the report indicated that inflation now sits at 2.3%–above the Fed's desired range of 1-2%.
Although the Fed ultimately left interest rates unchanged, inflation obviously remains a concern and the recent rise may lead to an interest rate hike by the Fed in the near future.
What Does This Mean to You? Many experts believe the housing market is nearing the bottom and may even be set to bounce back up. For now, home prices remain low, personal incomes are high, and interest rates are still very attractive.
If you've been weighing your options and waiting to see how things shake out, this is the ideal time to act–especially when you consider the new Housing and Economic Recovery Act benefits for home buyers:
Tax credits. First-time home buyers who purchase their primary residence between April 9, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, as long as they haven't owned a home in the last three years. The credit is actually a generous interest-free loan, so we'll have to talk about some income parameters and payback terms. But if you're a new home buyer – or know someone who is renting or in the market to buy – this is a huge benefit that we should discuss.
Lower rates for larger loans. In the past, mortgages of $417,000 or more have been considered "jumbo" loans that were more expensive to finance. Thanks to recent provisions, however, those jumbo loans were able to qualify for better financing rates in some parts of the country. Although those provisions were set to expire, they are being extended–with a minor change to the maximum amount eligible. This is great news that may save you a ton of cash, so call me to find out how this impacts our area, and if it could help you.
Down Payment Assistance...going, going, not gone yet. Another provision of the legislation eliminates some down payment assistance programs later this year...but they are still available right now, and depending on your circumstances, we may be able to take advantage of them to double your benefit as a home buyer.
Bottom line...now may be the ideal time to put together a purchase strategy based on your unique situation.
Call today to discuss your situation and set up a time to talk
Michael S. Yamamoto
President
Phone: 602-490-0205
Mobile: 602-402-9999
Fax: 800-630-1396
yamo@homerunfinancial.net
www.homerunfinancial.biz
Fed Stands Still – Time to Make Your Move
The Federal Reserve held the line on Tuesday–leaving the Fed Funds Rate at 2.00% for the third straight meeting. The decision, however, was anything but cut-and-dry.
Earlier in the week, the Personal Consumption Expenditure data indicated that inflation climbed 0.8% overall in June, which is the highest inflation jump in 27 years. In addition, the report indicated that inflation now sits at 2.3%–above the Fed's desired range of 1-2%.
Although the Fed ultimately left interest rates unchanged, inflation obviously remains a concern and the recent rise may lead to an interest rate hike by the Fed in the near future.
What Does This Mean to You? Many experts believe the housing market is nearing the bottom and may even be set to bounce back up. For now, home prices remain low, personal incomes are high, and interest rates are still very attractive.
If you've been weighing your options and waiting to see how things shake out, this is the ideal time to act–especially when you consider the new Housing and Economic Recovery Act benefits for home buyers:
Tax credits. First-time home buyers who purchase their primary residence between April 9, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, as long as they haven't owned a home in the last three years. The credit is actually a generous interest-free loan, so we'll have to talk about some income parameters and payback terms. But if you're a new home buyer – or know someone who is renting or in the market to buy – this is a huge benefit that we should discuss.
Lower rates for larger loans. In the past, mortgages of $417,000 or more have been considered "jumbo" loans that were more expensive to finance. Thanks to recent provisions, however, those jumbo loans were able to qualify for better financing rates in some parts of the country. Although those provisions were set to expire, they are being extended–with a minor change to the maximum amount eligible. This is great news that may save you a ton of cash, so call me to find out how this impacts our area, and if it could help you.
Down Payment Assistance...going, going, not gone yet. Another provision of the legislation eliminates some down payment assistance programs later this year...but they are still available right now, and depending on your circumstances, we may be able to take advantage of them to double your benefit as a home buyer.
Bottom line...now may be the ideal time to put together a purchase strategy based on your unique situation.
Call today to discuss your situation and set up a time to talk
Michael S. Yamamoto
President
Phone: 602-490-0205
Mobile: 602-402-9999
Fax: 800-630-1396
yamo@homerunfinancial.net
www.homerunfinancial.biz
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