FHA guidelines will allow the seller to pay up to 6% of the contract price toward purchasers closing costs, pre-paids and discount points.

Conventional guidelines will allow the seller to pay up to 3% of the contract price toward purchasers closing costs, pre-paids and discount points.

This is very important for the first time homebuyer purchasing homes below $150k.  I recently had a client approved for FHA financing but the property was not FHA approved.  Client had enough money to put a 5% down-payment and qualified for conventional, except...the seller could now only pay 3% of closing which left a shortfall of about $1800. 

The $1800 left over closing costs added to the 1.5% more in down-payment killed the purchase.

Refinancing your currrent mortgage can be very beneficial to your financial situation.  Whether you are doing a rate and term refinance or a cash-out you may be able to save hundreds of dollars per month.

In today's economic times it is important for your money to work harder for you.  There is still money to lend and we are closing loans everyday. 

Remember, the people refinancing today are the one's who will be purchasing a new home in 6-12 months.  Do you know anyone in need of getting themselves in a better financial situation?

The last 3 days have been a blur but days I will never forget!  There are Angel's Amoung Us, walking around everyday.  We just don't always take the time to find who they are and what they have the power to do. 

Please share in our three day journey and see what hard working women are able to accomplish for someone in desparate need. 

Recently, I had the privilege of attending a seminar and the guest speaker was Bob Beaudine.  Bob has one of the most amazing stories to share.  The Power of Who is a life changing book written by Bob. 

Bob says, all the power we need to succeed is already at our grasp.  The Lord has already placed these people in our path by way of friend, family, co-worker and acquaintances.  In our "WHO" we have the ability to change the lives of our friends and family, or even a stranger.  When someone calls on us, we need to first think of "WHO" we know that could help, and then simply ask.

The last couple of months, after hearing Bob speak and reading the book, I have implemented my "WHO" and have been surprised at how easy it is to help someone in need.  By doing this, I have received blessings unexpected.

I encourage each of you to not only buy this book for yourself but also pick up a dozen copies and pass them out to your 12 top "WHO".  http://powerofwho.com

Have any of you read this book or heard Bob speak? 

To qualify for the Refinance Plus pogram you must be in a Fannie Mae or Freddie Mac transaction.  If so this program is to help borrowers:

*Reduce Mortgage Payments                                                                                                                                               *Obtain More Stable Mortgage Product                                                                                                                        

If you are currently in an FHA, VA or USDA (Rural Housing Loan), you are ineligible.

The Max loan to value is 105% and combined loan to value is $110%, 2nd mortgages must be subordinated.

The new loan amount may include payoff of first mortgage and closing costs.  Borrower cannot receive any money back on the loan.

You must have a 620 credit score, no mortgage lates in the past 12 months and no new financing is authorized on second liens.  The second lien must re-subordinate to second position.  New borrowers may be added to the loan but the original borrower cannot be removed.

If you have questions please let me know.

Effective May 1, 2009, the HVCC will be the new guideline for appraisal orders on Conventional financing.   This means the loan officer will no longer have the ability to order the appraisal.  Appraisal orders will be chosen from a pool of licensed appraisers and ordered by the investor. 

I have some concerns.

1.  There are good and bad in every field, we will no longer be able to weed out the bad.

2.  Time is a concern as in the past we could get an appraisal done quickly if needed, now we will not even know who was chosen for the appraisal until we receive the report.

3.  Appraisals will be increased in price as there is much more work to be included in the new guidelines.

4.  No longer able to have a preferred appraiser in "new construction" subdivision, one that knows every property sold???, three houses could be sold and each of the three will have a different appraiser.

The new HVCC was structured to prevent pressure to increase the value of a home when it was not justified.  It is an attempt to have appraisers not feel the need to "bring in the value" for fear of not receiving more business.  Should reduce the number of fraudulent appraisals submitted to investors for financing.

I hope this will be a smooth transition and the end result will be worth the extra effort.  We will see!

Your thoughts?

If you are planning to purchase a home in the City of Alabaster, AL, in the heart of Shelby County, you have chosen a great place to call home.  Alabaster in very convenient to shopping, restaurants, interstates, golf courses and a great school system.

Alabaster is also very diverse with homes available in nearly every price range.  Come visit Alabaster, you will be happy you took the time.  Call me with questions about refinance or purchase.

There is much talk in the media about what may come of the future announcements from our government.  There is some hope that interest rates may be cut but in the meantime, they may never come to fruition.

This means from your clients they may wind up waiting for the best and lose out on reality.  If your client is fence sitting today, you must get them into the game.  Whether it is a past client calling you for your opinion of whether to refinance or an active lead waiting for the best time to purchase we have short windows of opportunity.

Rates are important but the differences in payment between a 5.25% and 4.50% may be very little monthly.  Yes they could save $50 per month but they could also wind up paying another $50 per month should they move higher.  Rates are not the  most important part of the decision.  The value of the home you are purchasing, the amount of PMI if you are putting less than 20% down are all factors.  PMI rates adjust just about as often as interest rates, but that is something that is not taken into consideration. 

The more risky the loan the higher the PMI.  So, if you save $50 a month and your PMI factor increases by the same amount, you have not gained.  Let's do our best to communicate to our clients to find the dream home and then we will worry about the rate over the next 30 days while we are awaiting our closing date.  Are we on the same page?

Rush Limbaugh wrote a Bipartisan Stimulus that was published in the Wall Street Journal today.  I read the article and it  sounds like a winner to me.  Basically he is saying give the liberals pork barrel spending, give the conservatives their tax cuts.  If both sides help the economy even greater.

If the conservatives get their tax cuts, the wealthy and those willing to take risks will move, in doing this as they rise higher they will pull the rest up with us.

If the liberals get their wishes granted and this indeed works for our economy we are in a no lose situation.  If you would like to read the article go to www.wsj.com

What are your thoughts?

If you are in the market to purchase a home in Helena, AL you have picked a wonderful area to raise a family, enjoy life and simply relax. 

Helena is very unique.  The City caters to families and is always planning special events for family participation.  The school system is excellent and you will feel like your neighbors truly care about you.  Old Towne Helena is filled with specialty shops where you are certain to find one of a kind treasures.  Don't miss a chance to take a tour and see for yourself.

For more information please contact Debbie Hutchins, Realtor RE/MAX First Choice.  www.debbiehutchins.com .  Debbie will find your dream home and I will help you with your financing.