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HARP allows for the following refinance products released by Freddie Mac and Fannie Mae; Freddie Mac Relief Refinance, Fannie Mae Refi Plus and Fannie Mae DU Refi Plus. We intend to support these initiatives and high focus is being given to their release. We are working with external agencies and mortgage insurance partners and are awaiting clarification of outstanding items.

These refinance products are intended for borrowers with existing Fannie Mae or Freddie Mac loans that are current, but due to declining property values have been unable to refinance. The products allow for up to 105% Loan To Value. An announcement will be issued once agency and mortgage insurance guidelines are finalized and systems are updated. Please be assured that the Loan Product Descriptions will be available as soon as possible.

We anticipate huge number of refi apps so have your clients go to my website www.TheDreamLoan.com  ASAP and click on FULL APPLICATION then fill it out and hit SUBMIT

Gordon Team - Weekend Rate Report ? June 12, 2009

If you need daily rate quotes, please contact me.

WEEKLY RATE REPORT :

INTEREST RATES ARE UP THIS WEEK.

Mortgage rates jumped to the highest level this year. The highest they have been in seven months since November 2008.

Now, keep in mind that on a $150,000 loan every one-half point in rate is less than $50 per month. The benefits of homeownership today, including historically low prices, should make rising rates less concerning.

If rates are an issue, consider the 5/1 FHA Hybrid. Its at 4.250% today!!!

Its fixed for five years at 4.250% today (4.521 APR). It can only adjust to 5.250% in year six and it may be able to be refinanced in a streamline refinance (no appraisal, no income verification, no asset verification) at a later date if the 30 year rate lowers.

WEEKEND RATES - PLAN ON AROUND:

5.500% (APR 5.770) FOR A 30 YR FIXED CONVENTIONAL LOAN with 1.000 points, NO ORIGINATION!

5.500% (APR 5.792) FOR A 30 YR FHA / VA LOAN, WITH 1.250 POINTS, NO ORIGINATION!

4.250% (APR 4.521) FOR A 5 YR FHA HYBRID, WITH 1.250 POINTS, NO ORIGINATION!

5.875% (APR 6.174) ON A 30 YR JUMBO LOAN OVER $417,000 with 1.250 POINTS, NO ORIGINATION!

5.000% (APR 5.262) ON A 5 YR JUMBO ARM with 1.000 POINTS, NO ORIGINATION!

6.375% (APR 6.648) ON A 30 YR INVESTOR LOAN UNDER $417,000 WITH 20% DOWN with 0.875 POINTS, NO ORIGINATION (720 mid score)!

6.000% (APR 6.278) ON A 30 YR INVESTOR LOAN UNDER $417,000 WITH 25% DOWN with 1.000 POINTS, NO ORIGINATION (720 mid score)!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE.   These rates are for purchases only. Refinance rates are slightly higher.

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TIP OF THE WEEK :

"EVERYTHING YOU WANT TO KNOW ABOUT THE $8,000 FIRST-TIME HOME BUYER TAX CREDIT"

For more info: http://www.federalhousingtaxcredit.com/2009/faq.php

Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009.

What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home´s purchase price up to a maximum of $8,000.

Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return.

How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return.

What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

I read that the tax credit is "refundable." What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return. You should consult with a tax advisor to ensure you file this return properly.

Can I claim the tax credit if I finance the purchase of my home under the Nevada Bond Program?
Yes. The tax credit can be combined with the program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in this program.

Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer´s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.

Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding.

Can I get my $8,000 and use it for my 3.5% minimum down payment on an FHA loan?
No.

The Secretary of Housing and Urban Development has announced that HUD will allow "monetization" of the tax credit. What does that mean?
It means that HUD will allow buyers to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain increased down payment, after you have paid the minumum 3.5% yourself, and for closing cost expenses.

Under the guidelines announced by HUD, non-profits and FHA-approved lenders will be allowed to give home buyers short-term loans of up to $8,000.

In addition, approved FHA lenders will also be able to purchase a home buyer´s anticipated tax credit to pay closing costs and downpayment costs above the3.5% downpayment that is required for FHA-insured homes.

Banks have not yet announced how they will do this however. Stay tuned.

If I´m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. Ask your tax preparer.

For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008, then you can choose the year that yields the largest credit amount. Ask your tax preparer.

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QUESTION OF THE WEEK :

TIP OF THE WEEK :   "USE NEVADA BOND PROGRAM FOR 100% FINANCING"

http://nvhousing.state.nv.us

From that website, click "NHD ? Down Payment Assistance Program"

One of the only 100% financing options left. A statewide initiative offered in every county in the state. This is a loan program that the State of Nevada is offers first-time homebuyer's the down payment for your loan.

It´s a loan. A second mortgage. Not a gift. Up to $10,000 for down payment and closing costs. The interest rate on a 30 year bond loan is 6.2000% today. As of 5/18, its 4.750% on FHA when you don´t use the bond.

The second mortgage of 3.5% to cover your down payment comes with an 8.20% interest rate and is a 20 year loan.

When is this good? Your buyer has no other way possible to get the 3.5% down payment on an FHA loan.

On a $165,000 purchase, the Bond loan will cost the borrower an extra $150 - $175/mo. It makes a lot more financial sense to try and get the 3.5% or $7,000 down on this loan. It will pay for itself within three years.

EXAMPLE:

$165,000 sales price $165,000 sale price
3.5% REGULAR DOWN PAYMENT ? 4.75% RATE 0% DOWN PAYMENT ? 6.20% RATE
$845/MO. $992 + $49 for 2^nd = $1041

This loan is not available for everyone and is based on qualifying guidelines.

Although there are some strict eligibility requirements, this program may work for many first-time homeowners.

There are limited lenders in Nevada, Bank of America Home Loans is the main servicer.

Qualification Guidelines for the Nevada Bond Program

A first-time home buyer is defined as someone who has not owned or co-owned their own residence within the past three years. So even if you owned a home a few years back, if it´s not in the last three you may still qualify.

If you are purchasing in a "Targeted Area" there are no restrictions on former home ownership. Please contact me if you think the home may be in a targeted area. These are usually areas where this is not as much resale activity and the State wants to stimulate its growth.

Total gross household income must fall within the Maximum Income Limits.

In Clark County, if you have a 1-2 person household, income cannot exceed $78,480. If you have a 3 person or more household it cannot exceed $91,560.

In Washoe County it can be a bit higher. In Elko County a bit lower. See the website for details.

The purchase price of the residence you wish to buy may not exceed the Maximum Purchase Price Limits for the area in which it's located.

Those maximums currently look like this:

Clark $349,515
Nye $283,981

Keep in mind, on a $349,515 sales price, the 3.5% down payment requirement would be $12,233 plus closing costs. Therefore, the $10,000 max bond help won´t quite cover that. Keep it under $300,000 if your borrower can´t come up with anything.

Income must support the repayment of the loan pursuant to the underwriting criteria applied by FHA, VA, or Fannie Mae, as applicable.

This simply means your loan has to be able to be approved by FHA, Fannie Mae, Rural Housing, or VA.

Also, if you require that assistance, you will have to prove that your assets, after closing, are $5,000 or less including, without limitation, cash, savings accounts, stocks, bonds and equity in real property. 401K is exempt3;which is great news!!

You will also be required to successfully complete a First Time Home Buyer Education Course in person.

This is a fantastic loan program for first-time homebuyers who find themselves unable to qualify because they lack a minimal down payment.

However, due to historic low interest rates, they will want to exhaust all gift possibilities first.

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QUESTION OF THE WEEK :   "I bought a B of A Owned Property "As-Is" but now my lender, who is also B of A, is requiring repairs, why?"

When you buy a bank-owned property from a B of A, Wells Fargo, or other bank, they are not usually the actual seller. The actual seller is the holder of the Note on that property. Its usually a fairly large institutional investor. We are the servicing company for that loan and we represent the seller (investor) through the dispursement of the property through foreclosure.

That division of asset management is completely separate than the division that finances your property.

In a bank-owned property we often see "as-is" language. The main purpose of the "as-is" clause is to warn the buyer that the bank will not make repairs nor concessions based on the results of an appraisal or home inspection.

When you buy a bank-owned property, and you are seeking financing, its important to assess the property and the repairs it will likely require before making your offer. Consult with your lender before making an offer on an "as is" home. Not all loan programs will allow you to buy a home that needs substantial repairs.

When buying an REO property, you must be prepared to do some repairs yourself. Banks may not agree to make these repairs. They may not pay for these repairs. This may require out-of-pocket expense for you.

They may be willing to help with some, but don´t plan on it. Know what you are buying before you make your offer and be prepared to spend some money for repairs before you move in.

If you barely have enough money for the down payment and closing costs, be very careful in buying a bank-owned property, unless you have arranged for repairs with the seller.

LOWER YOUR INTEREST RATE TODAY: If you have an FHA or VA loan or you have a loan with Countrywide or Bank of America, you definitely want to call and find out about your streamline refinancing options. No appraisal on most loans, no credit report on some, and no income or asset documentation on most.
=========================================================== Introducing Freddie Mac´s Relief Refinance program! Relief Refinance allows borrowers who are current on their existing Freddie Mac owned mortgage to refinance up to 105% LTV.

Product Features include:

Mortgage Insurance is not required on new Relief Refi loans if there is no MI on the existing loan
LTV´s up to 105%. No CLTV or (H)CLTV restriction
Streamlined documentation allowed, including no appraisal if applicable.
1-4 unit Primary Residence and Investment Property, and 1 unit Second Home
Loan amounts up to the Temporary 2009 limits
Only three (3) months seasoning required (note date to note date)
No min. fico requirement if P&I payment is not increasing more than 20%
No DTI requirements if P&I payment is not increasing more than 20%
Condo approvals are not required
Loan proceeds may be used only to:

- Pay the unpaid principal balance and accrued interest of the eligible first lien, or

- Pay not more than $2,500 in closing costs and/or prepaids

Appraisal

For some one (1) unit properties, a Home Value Estimate (HVE) may be available for use in lieu of an appraisal:

Mortgage Insurance

Mortgage Insurance is not required on the Relief Refinance loan if:
- The LTV of the new loan is <=80%; or
- The existing loan does not currently have MI
Mortgage Insurance is required when the LTV of the new loan is >80% and the existing loan has MI

Borrower Eligibility

Determine if the mortgage is currently owned by Freddie Mac by checking the following Freddie Mac website: https://ww3.freddiemac.com/corporate/

The Nevada Bond Program, which offers 100% financing, and is serviced by Bank of America Home Loans, has raised their income limitations.
Effective with all new bond reservations on/after April 15, 2009.
If you have a 1 to 2 Person household and your income is less than $78,480, you may now qualify. This is an increase from around $72,000.

If you have a 3 + Person Household and your income is less than $91,560, you may now qualify. This is an increase from about $84,000.

Keep in mind, you must be able to qualify for an FHA loan and you can't have more than $5,000 in liquid assets excluding 401K.

The rates are slightly higher, but if you need 100% financing today, BOND may be the way to go.

Remember we don't have a 620 minimum credit score on FHA loans like many lenders today

FIND REFINANCE AND MODIFICATION GUIDELINES AT:

http://www.treas.gov/press/releases/reports/guidelines_summary.pdf

http://www.treas.gov/press/releases/reports/modification_program_guidelines.pdf

As we learn more about the program, we will work with our customers to determine their eligibility.

Although the participation of each bank is voluntary, Bank of America and Countrywide are supportive of this program and the positive impact it will have on homeownership nationwide. We will work to implement the plan specifics as quickly as possible.

Child Support Income. Income in this category may be considered as effective if such payments are likely to be consistently received for the first three years of the mortgage. The borrower must provide a copy of the divorce decree, legal separation agreement, or voluntary payment agreement and evidence that payments have been received during the last twelve months. Acceptable evidence of regularity of payments includes canceled checks, deposit slips, tax returns, court records, etc. Periods less than twelve months may be acceptable provided the payor's ability and willingness to make timely payments is adequately documented by the lender.

FHA permits properly documented child support to be grossed up under the same terms and conditions as other non-taxable income sources. This income may be grossed up 25%.

NOTE; Payment of arrearage is not to be included as income. If the decree states child support income of $200 and the borrower is getting an additional $100 towards the arrearage, we will not use the additional $100 as income or even as a compensating factor.