>  a 10% drop in housing prices is wiped out by a 1/2% interest rate hike!
>  The Denver Metro area is rated as the #2 recovering housing market in the nation.
>  Denver Metro area home inventory is down ~40% from the same time last year.
>  FHA financing only requires a 3.5% down payment & $100 down on HUD homes!
>  a First-time buyer is ANY purchaser who has not owned a home for at least 3 years
>  several Colorado down payment assistance programs are available now!

Visit my Homebuyer Resources at www.anthonyrael.com or www.SearchDenverHomesforSale.com

_____________________
Anthony Rael & Assoc.
Denver REALTOR
Metro Brokers Arvada-Northwest
12191 West 64th Ave, #210
Arvada, CO 80004
(303) 520-3179
www.anthonyrael.com

2009 Economic Stimulus Package!
Incentives for First-time Homebuyers & 2009 FHA Updates

President Obama signed off on the 2009 Economic Stimulus Package in Denver, Colorado in late February. Specific to real estate, a few details from the plan include:

• First-time Homebuyers who purchase a home in 2009 (Jan 1 - Nov 30) may qualify for a tax credit of up to $8,000 or 10% of the purchase price, whichever is less.

• It's important to note that a "first-time homebuyer" has been defined as someone (either spouse if filing jointly) who has not owned a principle residence for the past three years prior to the purchase.

• You must own the home for at least 3 years (36 months) in order to avoid a repayment or recapture penalty.

• There are income limitations.  In order to qualify for the full tax credit, a single taxpayer must have a modified adjusted gross income less than $75,000/year.  For married couples, the limitation is $150,000 or less. If your income exceeds these levels, you may still qualify for a partial tax credit.  Additionally, married couples who qualify for the first-time tax credit who file separately, would each claim 5% of the home purchase or up to $4,000 each (whichever is less) on their 2009 tax returns.  Consult with your tax attorney or CPA for specific details.

• Investment properties, rentals and secondary properties are NOT eligible for the tax credit.

• Co-signers DO work, even if parent owns a home. Income limit is not clear, but we'll assume $150,000 for combined occupant/co-signer

• Recapture Provision - If you sell the property within three years, the ENTIRE amount of the tax credit you received is recaptured (paid back) at the time of sale.  I strongly advise you to seek advice from your accountant, CPA or the IRS to determine how this entire tax credit applies to you

Unlike the "Housing and Economic Recovery Act of 2008" - which was essentially a 15-year interest-free loan - this is a true tax credit.  You will not be required to pay this tax credit back if you live in the house at least 36 months.  This $8,000 tax rebate is good news for First-time Homebuyers who may be sitting on the fence to make the big move.  Prices are low, inventory is plentiful and interest rates on 30-year fixed-rate FHA loans are still at 5%.  Now is the perfect time to purchase a home in the Denver Metro area!  Combine my cash rebates & incentives along with the US President Obama's stimulus package and save even more!  Visit my Buyer Toolbox or start searching for your dream home today!

New FHA Loan Limits in Colorado for 2009

The FHA Loan Limit for Adams County has Increased to $406,250 - (Denver-Aurora)
The FHA Loan Limit for Arapahoe County has Increased to $406,250 - (Denver-Aurora)
The FHA Loan Limit for Boulder County has Increased to $460,000 - (Boulder)
The FHA Loan Limit for Broomfield County has Increased to $406,250 - (Denver-Aurora)
The FHA Loan Limit for Denver County has Increased to $406,250 - (Denver-Aurora)
The FHA Loan Limit for Douglas County has Increased to $406,250 - (Denver-Aurora)
The FHA Loan Limit for Jefferson County has Increased to $406,250

FHA

• The minimum down payment for FHA loans in 2009 is 3-1/2%

• HUD Properties listed as FHA "Yes" are NOT always FHA Insurable (ie: inspection items)

• Foreclosure "ok"...as long as it's been 3 years from date of PT Deed or date of paid claim

• No seller down payment assistance allowed!

• Seller and/or interested party concessions up to 6% of sales price

The American Recovery and Reinvestment Act of 2009*

How will these new increased FHA loan limits effect new home buyers?
The new higher loan limits will allow FHA loans (which require a low 3.5% down payment) to be
available for a greater range of home price options where conventional loans (requiring 10-20%
down) would normally have been the only available option for financing.

How can FHA help me buy a new home?
FHA insured mortgages offer many benefits that only come with FHA:

• Easier to Qualify: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.

• Less than Perfect Credit: You don't have to have a perfect credit score to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.

• Low Down Payment: FHA loans have a 3.5% down payment and that money can come from a family member, employer or charitable organization as a gift. Other loan programs don't allow this. FHA loans also require no cash reserves in many cases.

• Costs Less: FHA loans have competitive interest rates because the Federal government insures the loans. Always compare an FHA loan with other loan types.

• Competitive Rates & Terms: Compared with other lower down payment programs, FHA interest rates are similar. In some cases FHA loans offer lower overall monthly payments when including its lower cost of monthly mortgage insurance vs. PMI (Private Mortgage Insurance).

• Non-occupying co-borrowers are allowed: such as family members that are needed to help you in qualifying for your loan, but won't actually be living with you in your new home.

• Helps You Keep Your Home: The FHA has been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, FHA has many options to help you keep you in your home and avoid foreclosure.

Who qualifies for FHA financing?
To be eligible for an FHA loan, you must have a valid social security number and have lawful residency in the United States (US Citizens, Permanent Resident Aliens, and Non-Permanent Resident Aliens) and be of a legal age to sign on a mortgage in your state.  Lenders will verify income, assets, liabilities, and credit history for all parties on the loan. FHA's mortgage programs do not typically have maximum income limits for qualifying, although you must have sufficient income to qualify for the mortgage payment and other debts. Income limits may be present when qualifying for down payment assistance or other secondary financing programs that may be used in along with an FHA loan.

Is FHA just for First-time Homebuyers?
Although it's known as a popular first-time homebuyer program, FHA is not restricted to first-time homebuyers. An FHA loan can be an excellent choice for anyone buying a new home including buyers who have used FHA mortgages in the past.

If I've had credit problems in the past, will this hurt my chances of being approved on an FHA loan?
As a general rule of thumb after having credit problems (such as bankruptcy or foreclosure
in the past), you should be in a situation where you've made your payments on time for at
least the past 12-24 months for an FHA loan.

Can FHA financing be used to purchase second homes or investment property?
NO. FHA financing may only be used to purchase a primary residence and is currently not used
for second homes or investment properties.

Can gift funds come from the seller, lender or other interested party?
The gift donor may not be a person or entity with an interest in the sale of the property, such
as the seller, real estate agent or broker, builder, or any entity associated with them. Gifts
from these sources are considered inducements to purchase and must be subtracted from
the sales price for mortgage calculation purposes.

The exceptions to this rule are:
1. When parents are the sellers.
2. When the real estate agent is a relative.
Is it acceptable to get a loan for the down payment?

Funds can be borrowed for the total required investment as long as satisfactory evidence is
provided that the funds are fully secured by investment accounts or real property. Such
assets may include stocks, bonds, automobiles, collections, real estate (other than the
property being purchased), etc.

In addition, certain types of loans secured against deposited funds, such as signature loans,
the cash value of life insurance policies, loans secured by 401(k)s, etc., in which repayment
may be obtained through extinguishing the asset; do not require consideration of a
repayment for qualifying purposes. However, in such circumstances, the asset securing the
loan may not be included as assets to close or otherwise considered as available to the
borrower.

An independent third party must provide the borrowed funds. The seller, real estate agent or
broker, lender, or other interested third party may not provide such funds.  Unacceptable borrowed funds include signature loans, cash advances on credit cards, borrowing against household goods and furniture and other similar unsecured financing.

Contact me to learn more about these new FHA rules and how they can help you get the home of your dreams. It really has never been a better time to buy a home.  Prices have "corrected" or adjusted to more practical levels & interest rates are still at historic lows.

*This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, financial, tax advice or consulting of any kind. Please consult with your lender for complete details on any lending program.

Down Payment Assistance Programs
Homebuyers, there are still plenty of State & local programs available to provide down payment assistance.  Contact me or your mortgage broker for current funding options.

• Colorado Housing & Finance Authority (CHAFA) - 3% of loan amount
  - not limited to first-time homebuyers
  - income limits apply
  - Adams, Denver, Douglas & Jefferson County = $85k/year (single) & $97,700 (2 person)
  - no purchase price limitations
  - $1,000 required investment (this is the minimum amount required from you)
  - no cash back at closing!

• Colorado Housing Assistance Corp - (CHAC)
  - Denver & Jefferson County
  - income limits apply
  - up to $10,000 with three repayment options

• City of Aurora - 5% and closing costs - up to $10,000
  - for properties located in the City of Aurora
  - income limits apply

• Adams County Housing Authority
  - down payment, closing costs & pre-paids
  - income limits apply

• March 2009 - 620 FICO score from at least one buyer required

_____________________
Anthony Rael & Assoc.
Denver REALTOR
Metro Brokers Arvada-Northwest
12191 West 64th Ave, #210
Arvada, CO 80004
(303) 520-3179
www.anthonyrael.com

Frequently Asked Questions - Homeowner Affordability and Stability Plan

> 2009 Economic Stimulus Plans - $8,000 Tax Rebates Incentives for First-time Homebuyers
> 2009 FHA Changes & Down Payment Assistance

Borrowers Who Are Current on Their Mortgage Are Asking:

What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?
Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.

How do I know if I am eligible?
Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.

I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.

Will refinancing lower my payments?
The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

What are the interest rate and other terms of this refinance offer?
The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.

Will refinancing reduce the amount that I owe on my loan?
No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?
To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.

When can I apply?
Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.

What should I do in the meantime?
You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:

• information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources

• your most recent income tax return

• information about any second mortgage on the house

• payments on each of your credit cards if you are carrying balances from month to month, and
  payments on other loans such as student loans and car loans.

Borrowers Who Are at Risk of Foreclosure Are Asking:

What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?
The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.

Do I need to be behind on my mortgage payments to be eligible for a modification?
No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.

How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?
In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

I do not live in the house that secures the mortgage I'd like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan?
No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.

I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?
Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.

I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?
Only the first mortgage is eligible for a modification.

I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe?
The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender's discretion modifications may include upfront reductions of loan principal.

I heard the government was providing a financial incentive to borrowers. Is that true?
Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.

How much will a modification cost me?
There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.

Is my lender required to modify my loan?
No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.

I'm already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?
Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.

How do I apply for a modification under the Homeowner Affordability and Stability Plan?
You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.

What should I do in the meantime?
You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available. This includes:

• information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources

• your most recent income tax return

• information about any second mortgage on the house

• payments on each of your credit cards if you are carrying balances from month to month, and
  payments on other loans such as student loans and car loans.

My loan is scheduled for foreclosure soon. What should I do?
Contact your mortgage servicer or credit counselor. Many mortgage lenders have expressed their intention to postpone foreclosure sales on all mortgages that may qualify for the modification in order to allow sufficient time to evaluate the borrower's eligibility.

> 2009 Economic Stimulus Plans - $8,000 Tax Rebates Incentives for First-time Homebuyers
> 2009 FHA Changes & Down Payment Assistance

_____________________
Anthony Rael & Assoc.
Denver REALTOR
Metro Brokers Arvada-Northwest
12191 West 64th Ave, #210
Arvada, CO 80004
(303) 520-3179
www.anthonyrael.com

> 2009 Economic Stimulus Plans - $8,000 Tax Rebates Incentives for First-time Homebuyers
> 2009 FHA Changes & Down Payment Assistance

Finally TWO great biits of local news...

Colorado foreclosures fall in 2008 for 1st time in years:
Colorado foreclosure activity fell last year for the first time since the state began collecting data in 2003, according to a report released Monday by the Colorado Division of Housing.

S&P: Denver had smallest 2008 home-price decline of 20 U.S. cities:
The monthly S&P/Case-Shiller Home Price Indices said average prices of existing homes in Denver fell 4 percent between December 2007 and December 2008, less than any of the other 19 cities in the report. 

Dreaming of Denver:
If you jumble together the five most popular American metro areas - Denver, San Diego, Seattle, Orlando and Tampa - you get an image of the American Dream circa 2009. These are places where you can imagine yourself with a stuffed garage - filled with skis, kayaks, soccer equipment, hiking boots and boating equipment. These are places you can imagine yourself leading an active outdoor lifestyle.

_____________________
Anthony Rael & Assoc.
Denver REALTOR
Metro Brokers Arvada-Northwest
12191 West 64th Ave, #210
Arvada, CO 80004
(303) 520-3179
www.anthonyrael.com

The banking industry has proven hundreds of billions of times over that they are not capable of regulating themselves, so we (consumers & agents) should all be pleased that this debate has finally been put to rest because it appears that after an eight-year battle, the war between Banks and the Real Estate industry has come to an end!

On Wednesday Congress passed an appropriations bill that would permanently ban the Treasury Department and Federal Reserve Board from finalizing a 2000 proposal to let banks into the brokerage business.  The National Association of Realtors (NAR) believes it is a victory for consumers in protecting the separation of banking and commerce and maintaining a competitive real estate environment.

We can now resume our regular programming.

452 Nob Hill Trail, Franktown, Colorado 80116 - Franktown, Colorado Real Estate - Land for Sale
Offered Exclusively by Anthony M. Rael, Denver Realtor, Metro Brokers Arvada-Northwest
 

Just Listed --- Pinewood Knolls Colorado LAND For Sale 452 Nob Hill Trail, Franktown, Colorado 80116 VISIT THE PHOTO GALLERY Location, location, location...... this is your opportunity to own a little slice of heaven. The panoramic views from the top of this 4.59 acre property are simply breathtaking! Words can not begin to describe the photos you are about to see - climb the hill and gaze at the unobstructed views from as far as the eye can see in all directions. It's that amazing! Build your dream home and let your horses run free on this premium lot in the quiet Pinewood Knolls community. Paved public roads lead you right up to the property. Natural gas, electricity & cable are available. Pine trees surround the front and sides of the property for absolute privacy. Bring your own plans & your own builder and create your dreams. Take a peek at the photo gallery - then bring an offer before it's too late! $249,900 Take a virtual tour and see for yourself! VISIT THE PHOTO GALLERY

_____________________
Anthony Rael & Assoc.
Metro Brokers Arvada-Northwest
12191 West 64th Ave, #210
Arvada, CO 80004
(303) 524-3990
www.anthonyrael.com

_______________________________________________________________________________________________
Anthony Rael is a Denver Real Estate Agent specializing in relocation, first-time buyers, home property values, residential home sales, Denver Colorado Real Estate & MLS/IDX Listings, single family homes, condos, lofts, short-sale, foreclosed, bank-owned & investment properties.  Providing professional & trustworthy real estate services to buyers & sellers throughout the Denver metro area including Arvada, Brighton, Broomfield, Denver, Golden, Highland/Sloan's Lake, Highlands Ranch, Lakewood, Louisville, Longmont, Thornton, Westminster, Wheat Ridge, Adams County, Denver County, Douglas County & Jefferson County in Colorado.