Craig Bland's Blog

Energy Efficient Mortgage from FHA

Craig Bland (Brand Mortgage ) — Thu, 17 Jun 2010 06:56:58 -0700

What are you thoughts on an FHA energy efficient mortgage?

FHA’s Energy Efficient Mortgage (EEM)

As the single largest housing expense after a mortgage payment, your utility costs can have a direct impact on how large a mortgage you can afford. You can save money on the cost of utilities by purchasing new energy-efficient heating and cooling systems or by making home improvements, such as weatherizing and insulating older homes and these investments can end up saving you money through lower utility bills.

As a new homebuyer or current homeowner, you may be able to use FHA’s Energy Efficient Mortgage (EEM) to finance the cost of these improvements. FHA which is part of HUD offers the Energy Efficient Mortgage Program to allow homebuyers to finance the purchase of a home—or refinance your current mortgage—and include the cost of the energy-saving, cost-efficient improvements through a single mortgage. FHA’s EEM program recognizes the monthly utility cost savings when homebuyers make energy-efficient improvements. Borrowers may use the EEM program to finance the cost of energy efficient improvements into their new mortgages, without the need to qualify for additional financing, because cost effective energy improvements result in lower utility bills making more funds available for their mortgage payments.

Call Craig Bland at Brand Mortgage today to talk about how you can buy a home get up to $8000 and qualify for $1500 tax incentive and other rebates.

How the Loan Works

You can take out an EEM loan as a 15- or 30-year fixed-rate mortgage or as an Adjustable Rate Mortgage (ARM) from an FHA-approved lender. (Please note that not all lenders are currently offering this product)

FHA requires that you make at least a 3.5 percent cash investment on the property, based on the sale price. The total amount of your mortgage is based on the value of your home plus the projected cost of energy-efficient improvements. Because your home will be more energy efficient, you will save on utility costs and, therefore, be able to devote more income to the monthly mortgage payment. Your final loan amount can exceed the maximum FHA mortgage limit by the amount of the energy-efficient improvements. To find FHA mortgage limits in your area, visit the HUD website at www.hud.gov. A Home Energy Rating System provider or energy consultant will complete a measurement of your home’s energy efficiency and provide a report listing recommended cost efficient energy improvements and an estimated cost of the energy improvements and estimated energy savings to you and your lender. You may finance the cost of the energy inspection report as part of the mortgage if the entire package, including these fees, is cost effective. The amount of the energy efficient improvements is placed in an escrow account and released after an inspection verifies that the improvements are installed and the energy savings will be achieved. You can begin making energy improvements after the loan’s closing. You are responsible for hiring contractors and getting bids for the work to be done on your home. The work must be completed within 90 days after closing.
Estimated mortgage payments are based upon principle and interest only, and do not include taxes and insurance. Value indicated here is for comparison only, and will vary from home to home. Many homes qualify for energy upgrades. This home qualified for $4,816 in upgrades. With the EEM, lenders recognize the savings the upgrades will bring. Borrowers may use these potential savings like extra cash, and add the cost of upgrades into the mortgage, paying them off easily as part of the monthly mortgage payment. Once the upgrades are installed the potential savings turn into real savings.
Eligibility
Almost anyone who has satisfactory credit, enough cash to close the loan, and sufficient steady income to make monthly mortgage payments can be approved for a FHA-insured EEM loan. There is no upper age limit and no certain income level required. The following types of properties are eligible under the EEM program, including new construction or existing one- to four-unit single-family residences:
•
Detached houses
•
Townhouses
•
Condominiums (certain restrictions apply)
The Cost and Types of Improvements You may finance into your mortgage the cost of the energy-efficient improvements determined to be “cost effective,” which means that the total cost of the improvements, including any maintenance costs, is less than the total present value of the energy saved over the useful life of the energy improvement. The maximum cost of improvements that you can add to the mortgage is either 5 percent of the property’s value (not to exceed $8,000) or $4,000, whichever is greater based on the value of your property. For example, if your property’s value is $75,000, the maximum cost of improvements allowed is $4,000 because this is greater than 5 percent of the property value. If your property’s value is $100,000, the maximum amount of improvements allowed is $5,000 because this is 5 percent of the property’s value, greater than $4,000 but less than $8,000. Finally, if your property’s value is $160,000, the maximum cost of improvements allowed is $8,000, which is 5 percent of the property value and the maximum allowed overall. Examples of improvements that are made under an EEM loan:
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Replacing a furnace/cooling system
•
Fixing or replacing a chimney
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Insulating an attic, crawl space, and/or pipes and air ducts
•
Replacing doors or windows
•
Installing active and passive solar technologies

As an energy efficient mortgage specialist i would love to answer any questions you may have - this product can help buyers sellers or existing homebuyers. Call Craig Bland today at 678-234-0545

Increase in Upfront Premiums for FHA Mortgage Insurance

Craig Bland (Brand Mortgage ) — Fri, 22 Jan 2010 14:17:02 -0800

ML 2010-02: Increase in Upfront Premiums for FHA Mortgage Insurance (01/21/10)

TO:

ALL APPROVED MORTGAGEES

Effective for FHA loans for which the case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent. This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit qualifying and non-credit qualifying streamlined refinance transactions.

Programs Covered by Insurance Premiums Shown Below

The upfront and annual premiums and the requirements described in this Mortgagee Letter apply to all mortgages insured under FHA's Single Family Insurance Programs except those listed below:

Title I

-	Home Equity Conversion Mortgages (HECMs)

-	Hope for Homeowners (H4H) - Section 247 (Hawaiian Homelands)

-	Section 248 (Indian Reservations),

-	Section 223(e) (declining neighborhoods)

-	Section 238(c) (Military Impact areas in Georgia and New York)

Upfront Premiums

FHA will charge an upfront premium in an amount equal to the following percentages of the mortgage:

•	Purchase Money Mortgages and Full-Credit Qualifying Refinances = 2.25 percent

•	Streamline Refinances (all types) = 2.25 percent

•	HOPE for Homeowners (Delinquent Mortgagors) = 2.00 percent

•	Home Equity Conversion Mortgages = 2.00 percent

Annual Premiums

Annual premiums will not change at this time.

For FHA traditional purchase and refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule:

LTV	Annual for Loans >15 Years	LTV	Annual for Loans < 15 Years
< 95	50 BPS	< 90	-None-
> 95	55 BPS	> 90	25 BPS

•	HOPE for Homeowners (delinquent mortgagors) In accordance with guidance issued in Mortgagee Letter 2009-43, HOPE for Homeowners borrowers will pay 75 basis points (.75 percent of the base loan amount), regardless of the loan-to-value ratio, which is collected monthly.

•	Home Equity Conversion Mortgages (HECMs) The annual premium for all HECM borrowers is 50 basis points (.50 of the outstanding mortgage balance) and is collected monthly.

First-Time Homebuyer with HUD-Approved Pre-Purchase Counseling

The National Housing Act, as amended by the Housing and Economic Recovery Act in 2008, authorizes upfront premiums of up to 3.00 and authorizes premiums of up to 2.75 percent for first-time homebuyers who complete HUD-approved pre-purchase counseling. Since the upfront premium rate of 2.25 percent remains below the statutory cap, no variable rate for counseled first-time homebuyers is provided for under this Mortgagee Letter.

If you should have any questions concerning this Mortgagee Letter, call 1-800-CALLFHA. Persons with hearing or speech impairments may access this number via TDD/TTY by calling 1-877-TDD-2HUD (1-877-833-2483).

Take a break

Craig Bland (Brand Mortgage ) — Tue, 22 Dec 2009 05:16:54 -0800

Are you like me? Worn out? It is tiring at this time of the year! Are you ready for a break? NO I mean a REAL break!!

I am one of those crazy guys that seems to work 24/7. Do you find yourself up at 5am (like right now) writing blogs or sending out marketing emails via icontact or contact contact etc. Sometimes I think I am crazy. Actually I know I am crazy! But it is also this commitment to my referral partners and my willingness to answer my phone pretty much anytime that makes me successful. I have built a reputation around getting it done! And to get it done - you gotta be there.

My blog today is about time off - I mean real time off. I have to also be honest and tell you that i have not always been faithful to what I am going to share this morning. I can tell you I have taken loan applications while riding a bike in Hilton Head, I have worked on the beach in Florida and I am on lots of family photos with my cell phone pressed against my ear while trying to work - when I should be on vacation.

Do you know it is important to take time off. To recharge our batteries. If we worked a regular job and got a regular paycheck - we would not be seen dead working on our hard earned time off.

Well about two years ago I made a commitment to my family that that was it. And so the past few trips away I have left my cell phone with my assistant - my computer at home and "turned off" for a few days. I can tell you now that was the best decision I have ever made.

So fellow grafters I challenge you this holiday season. Turn off to it. Give your phone to a team mate or partner. Don't look at emails. Enjoy your family. Talk to your spouse.

Just FYI - I am heading to NYC with my two girls and wife for four days between Christmas and New Year. I will not have a phone or computer, just my family. And they are much more important.

Merry Christmas to you.

Craig Bland

Is anyone looking at me?

Craig Bland (Brand Mortgage ) — Wed, 09 Dec 2009 04:36:38 -0800

Do you have a website? STOP. If not go and get one. They are really cheap. If you need one there is a really easy way to get one. Go and get a bid from hundereds of developers at www.elance.com. You will be amazed how many developers will work for next to nothing.

Once you have a website you need visitors right?

Well. Listen up Active Rainers here are a couple of fairly simple ways to give people a reason to interact and also make it easy for them to interact with your website.

1. A Reason: The rule of thumb is give first and then you will receive. So that means give them valuable content, tips/insights, a free widget, or a white paper. Giving will encourage the first interaction and begin to build credibility.

2. Make it easy: Make is easy to interact with you, i.e. follow you on twitter link, become a fan on facebook link, youtube channel link, blog comment links (you get the gist) should all be very visible. This way you form a connection and can being to communicate regularly and keep yourself in the user's mind.

Once these two things are done, begin to solicit interaction. Ask questions, ask their opinion, answer this questions, listen to what they are talking about and address topics of interest to your users.

From there, you will hopefully begin to build an active community.

Now - Not only do you want them to interact on your website, but you want them to keep interacting. The longer people stay on your website (referred to in the industry as web "stickiness"), the higher your organic search engine rankings will be, which will help to drive more traffic to your site.

Creating a sticky website is a function of knowing your customer, and knowing what they want. Create website features that are interactive, such as polls, blogs, shopping carts that you can save for later, etc. The point is to get the customer to your website and keep them there doing things for a while.

Why not take it one step further and place your website in their inbox? Coined Email Marketing, you can take your website and directly email it into your customer's inbox allowing them to not need to remember to visit your site to interact. With email marketing, you can also set up triggers to notify you of links clicked, and so on, to show how the customers are interacting. From that info, you know what works and what doesn't.
All of the above are great answers with great info, this would simply make it easier to get in front of the customers.

Hope you guys are having a VERY productive December. maybe this style marketing can be part of your plan for 2010.

Master Mind Groups - How to make it work

Craig Bland (Brand Mortgage ) — Fri, 13 Nov 2009 06:17:31 -0800

Napoleon Hill hits on the Master Mind concept pretty hard in chapter six of Think and Grow Rich. Truth be told, we don't know it all, so if we really want to do something big we do need the help of others. I would seek out (via referral) a small Master Mind team. Get a Realtor, a CPA, a Lender, an Estate Attorney and an insurance person and you're good to go.

Then come up with an educational "Webinar" idea. Work on it weekly together until you have the all the details penned out. You can get an account at www.GoToWebinar.com pretty cheap, especially if your group shares the cost (why not, since you'll be doing these at least once a month right?). Now you market the webinar via email to your databases, each to his own. I would market it at least two or three times before the webinar. These webinars can be set up so that when it's over, an email gets sent automatically to the participants. This email of course would have the contact information for all of the "hosts" of the webinar, allowing the participants to make contact with them for their services.

It's a simple idea, but you need the right team. Remember, Hill tells us if we don't hit the "sweet spot" the first time, don't freak out. Simply go back to the drawing board and keep what worked and re-tool what didn't. Eventually you'll have a lead genertating machine on your hands.

Go for it.

Craig Bland - Brand Mortgage

Hello - is anybody there?

Craig Bland (Brand Mortgage ) — Thu, 12 Nov 2009 05:45:18 -0800

I was talking to a Realtor that works for Keller Williams a while back. She was super excited to be with them because of how innovative they are. One of the things she pointed out was that they offer coaching. Their coaching is a little different with respect to how they get paid - the coach gets 10% of every closing. Personally I think that’s pretty cool seeing how the coach’s pay is directly connected to the results of the person being coached.

So I asked her what the coach did for her. I’ll make it short and sweet for you – even with all the technical innovations that are out there, the coach hammered her on “making her calls”. It’s so interesting to me to make note of how sales has really never changed over the ages. I read sales books almost every day, and I can tell you, it’s all about relationships and personal contact – that’s it. The other thing that’s interesting to me is that in my 7 years in the mortgage sales industry and sales carreers prior to that, I’ve found that “personal contact” through “making calls” is the number one thing that salespeople don’t want to do – weird.

So all the sales greats say that we should make our calls and most of the salespeople in the world don’t do it. Why? This doesn’t make any sense. Are all the sales teachers and coaches in the world wrong and all of the salespeople right? Nope. Based on my personal experience all of the coaches and teachers are 100% correct. I remember back in 2005 I decided to employ the services of a coach.

My coach had one thing in mind for me – make my calls (go figure). The difference between me and most others is that I did it. I wanted to see if there would actually be an increase in my business, so no matter how uncomfortable I felt about it, I picked up that phone and dialed. I was making at least five calls a day for several months and tracking it. The first thing I discovered is that literally everyone that I spoke to was very happy to hear from me – everyone. No one was mad or irritated, they were genuinely glad to speak with me – weird.

The next thing I discovered was heartbreaking to me. Within my first 50 calls or so, I realized that I had LOST about six deals within about a four month period from the people in my database. These are my past clients, family and friends here. Keep in mind, that although I wasn’t a “phone caller” I was very consistent with monthly mailers to stay in touch, and yet I still lost deals to my competitors. Another startling discovery was the consistent responses from the people that “left me for someone else”. I asked every one of them “why didn’t you give me a call? Have you been receiving my mailers?” Their response was always something like “yeah, wow, I’m sorry. I should have called you but “I was TALKING to this guy” and one thing led to another”. Hmmm.. “Talking” to this guy? Newsflash people – if you think for a second that your past clients, family and friends are 100% loyal to you even if you don’t make your calls – you’re simply being foolish.

The results were staggering. During one of the most difficult times to generate business in our industry, I was originating and closing about six deals consistently every single month. Now I know these numbers may not seem like much to some, but at that time in that market I was one of the top producers in my office and I was managing it. I was watching good loan officer’s drop like flies around me as the market caved in around us and I was closing deals. I did my best to coach them by encouraging them to make their calls. I would show them my results as well, but mostly to no avail. Only a few took heed to what I was doing, and guess what? They are still in the business to this day. All of the others fell away to leave the industry completely, why? Because they didn’t have the guts to pick up the phone and simply “talk” to their past clients, family and friends and ask them for a referral – how sad is that?

Make your calls and have an awesome day.

Craig Bland

Brand Mortgage

Will tax credit for ‘move-up' homebuyers spur you to act?

Craig Bland (Brand Mortgage ) — Thu, 05 Nov 2009 06:09:11 -0800

7:00 am November 5, 2009, by Craig Bland

Late Wednesday, the Senate voted 98-0 to extend the first-time homebuyer tax credit of $8,000 to April 30.

The Senate also took action to spur sales to "move-up" buyers, AJC reporter Bob Keefe writes.

Legislation, which still must be passed by the House, would provide a $6,500 tax credit for homebuyers, as long as they had been in their previous home for at least five years.

The tax credits would be limited to homebuyers who make $125,000 or less as an individual or $225,000 or less as a couple. The cost of the home being purchased may not exceed $800,000.

If these provisions become law, will it push you off the fence? Why or why not?

First time homebuyer tax credit

Craig Bland (Brand Mortgage ) — Fri, 30 Oct 2009 06:15:13 -0700

Those of you that have been waiting for an update on the first time homebuyer tax credit, and a possible extension, may be happy to hear that this is all but certain now.

http://www.bloomberg.com/apps/news?pid=20603037&sid=ai5ZNuz56Q4g

The senate will vote next week on the bill but it appears certain it will go through.

Great news for first time homebuyers is that the income limits have been increased from $75,000 to $125,000 for individuals and up to $225,000 for couples. This will bring more buyers into the market that will be able to buy larger homes and boy have we needed that!

The other great news is that the tax credit is available to to folks who have owned their current homes for more than five years! This is awesome news and I am sure will help the momentum that have seen house prices climb now for two months in a row. The amount for this category is $6500.

Don't forget in the Atlanta market we have about 20 programs that will allow buyers to borrow 100% of the sales price by using grants and government down payment assistance programs.

FHA Changes coming - 5% down payment

Craig Bland (Brand Mortgage ) — Tue, 06 Oct 2009 18:49:21 -0700

H.R.3706 - To require borrowers under FHA-insured mortgages for single-family housing to make downpayments of at least 5 percent and to prohibit financing of closing costs under such mortgages.

More to come

Georgia Dream "Plus"

Craig Bland (Brand Mortgage ) — Mon, 21 Sep 2009 14:42:39 -0700

Atlanta, GA -

Today the Georgia Department of Community Affairs announced a new down payment assistance option to its Georgia Dream Homeownership Program. The Georgia Dream "Plus" option offers down payment and closing cost assistance for first time home buyers with incomes up to 100% of their Area Median Incomes (AMI). Georgia Dream's down payment assistance options are normally restricted to borrowers whose incomes are at or below 80% AMI. This assistance comes in the form of a second mortgage loan, with a zero percent interest rate and requires no repayment until the home is sold, refinanced, or no longer used as the principal residence of the borrower.

The Georgia Dream "Plus" option provides $5,000 for down payment and closing costs to borrowers whose total annual household income does not exceed the following:

In the Atlanta MSA:

One to two person household- $71,000

Three or more person household- $82,000

In all counties outside the Atlanta MSA:

One to two person household- $61,000

Three or more person household- $70,000

Georgia Dream's "Plus" option can be used in conjunction with the Federal & State tax credit for first time home buyers. The "Plus" option is available to eligible borrowers through Georgia Dream participating lenders and must be used in conjunction with a Georgia Dream first mortgage loan.

There is limited funding for Georgia Dream "Plus," therefore, all interested borrowers are encouraged to check with Craig Bland at Academy Mortgage -678-234-0545 ASAP.

$8000 tax credit. Can your parents co-sign and you still qualify?

Craig Bland (Brand Mortgage ) — Wed, 02 Sep 2009 12:20:32 -0700

One of the questions I am often asked as a mortgage advisor is "if my parents co-sign will I still be eligible for the $8000 First Time Homebuyers Tax credit?"

Well I have an answer - direct from the IRS's mouth!

Finally an answer to the question we get so often - Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much?

Hi,

I researched your question concerning the First Time Homebuyers Tax Credit. I've included the web links to the information as your source material.

The link to the IRS - American Recovery and Reinvestment Act of 2009 Information Center is: http://www.irs.gov/newsroom/article/0,,id=204335,00.html

First Time Homebuyer Credit Scenarios at: http://www.irs.gov/newsroom/article/0,,id=206294,00.html

Here is a sample of what is on this web page above:

QUESTION - Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much? A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence.

Finally, more answers can be found on our web page titled: First Time Homebuyer Credit: Answers at http://www.irs.gov/newsroom/article/0,,id=187935,00.html.

Craig Bland is a Mortgage Advisor with Academy mortgage in Atlanta. Call today 678-234-0545

GEORGIA PROPERTY TAXES - IMPORTANT DUE DATES FOR 2009

Craig Bland (Brand Mortgage ) — Fri, 28 Aug 2009 09:55:20 -0700

Many property tax deadlines have been extended for 2009:

Fulton County: bills have not been generated yet- the county is seeking a Temporary Collection order to bill and collect taxes

Usual due date: October 15^th

2009 due date: Undetermined

City of Atlanta: if in Fulton County, will be billed as shown above

If in DeKalb County, already billed and due 9/15/09

DeKalb County: payable in two installments

1. 8/31 (extended from 8/15 just for 2009)

2. 11/15 (same deadline for 2^nd installment)

Gwinnett County: payable in two installments

1. 10/15 (extended from 9/15 just for 2009)

2. 11/15 (same deadline for 2^nd installment)

Cobb County: due 10/15 (no change)

Clayton County: due 11/15 (no change)

OTHER 2009 DEADLINES:

Federal first time homebuyer credit (up to $8,000): must close by 11/30/09

Georgia first time homebuyer credit (up to $1,800 over 3 years): must close by 11/30/09

The 10 Commandments - when applying for a mortgage

Craig Bland (Brand Mortgage ) — Thu, 27 Aug 2009 13:16:56 -0700

1. Thou shalt not change jobs, become self-employed or quit your job. Longer employment time shows stability and a reduced likelyhood of default.

2. Thou shalt not buy a car, truck or van (or you may be

living in it)! This will increase your debt to income ratio.

3. Thou shalt not use charge cards excessively or let your

accounts fall behind. This shows poor money management and an increased risk of default.

4. Thou shalt not spend money you have set aside for closing. It costs money to borrow money - make sure you have enough.

5. Thou shalt not omit debts or liabilities from your loan

application. This is tantamount to fraud - never a good thing!

6. Thou shalt not buy furniture or other big ticket item on credit. Like buying a car, this increases your debt to income ratio.

7, Thou shalt not originate any inquiries into your credit. The algorhythm is a secret but you'll get dinged a few points for most inquiries.

8. Thou shalt not make large deposits without first checking

with your loan officer. Money needs to "season" in your bank account, typically for 60 or more days.

9. Thou shalt not change bank accounts. A strong banking history, like a strong employment history, shows stability.

10. Thou shalt not co-sign a loan for anyone. Like buying cars or furniture, this increases your debt to income ratio.

95% Conventional Financing is Back

Craig Bland (Brand Mortgage ) — Thu, 27 Aug 2009 12:10:26 -0700

Wonderful News.

95% conventional loans are back!

Academy Mortgage can now offer a combo loan with a 80% first loan and a 15% second loan.

This is great news as it was very difficult to get mortgage insurance ob loans greater than 90%.

Call Craig Bland at 678-234-0545 for more details.

"Talk to the Hand: The Utter Bloody Rudeness of Everyday Life"

Craig Bland (Brand Mortgage ) — Wed, 19 Aug 2009 16:20:04 -0700

"Manners are about showing consideration and using empathy. But they are also about being connected to a common good; they are about being better. Respect and consideration are traditionally due to people for all sorts of reasons, some big, some small. Here are 20 (most lapsed) reasons to show special politeness to other people:

1. They are older.

2. They know more than you do.

3. They know less than you do.

4. They got here first.

5. They have educational qualifications in the subject under discussion.

6. You are in their house.

7. They once helped you financially.

8. They have been good to you all your life.

9. They are less fortunate than you.

10. They have achieved special status in the world.

11. You are serving them in a shop.

12. They are in the right.

13. They are your boss.

14. They work for you.

15. They are a policeman/teacher/doctor/j

udge.

16. They are in need.

17. They are doing you a favor.

18. They paid for the tickets.

19. You phoned them, not the other way around.

20. They have a menial job."

Possible Extension of the Home Buying Credit

Craig Bland (Brand Mortgage ) — Wed, 24 Jun 2009 11:33:45 -0700

Yesterday, USA Today reported that Congress is considering an extension of the first-time home-buyer credit due to expire this fall. Some in Congress are even proposing to raise the credit from $8,000 to $15,000 and apply it to anyone who buys a home.

It seems likely the credit will be extended beyond the fall as there are a few proposed House bills to do so. Each bill carries a different twist beyond merely extending the credit past the fall.

According to the article, four separate proposals and ideas to continue to spur the housing market have emerged:

A Senate bill submitted by Sen. Johnny Isakson, R-Ga., and co-sponsored by Senate Banking Committee Chairman Chris Dodd, D-Conn., proposes raising the credit to $15,000 for any homebuyer with no income limitation. This bill was entered last month.
Rep. Kenny Marchant, R-Texas, last month submitted a House bill that would extend the current $8,000 credit for first-time homebuyers through June 2010 and would also provide a $3,000 tax credit to current homeowners who refinance.
Rep. Eddie Bernice Johnson, D-Texas, introduced a bill that would extend the $8,000 credit to 2010 and now include ALL homebuyers.
The Business Roundtable, a separate group composed of CEOs from large companies, earlier this month asked Congress to raise the credit to $15,000 and make it available to all homebuyers.

Of the four options, tell us which one you think is best and why.

Craig Bland - Academy Mortgage - 678-234-0545

Read the article at

http://www.usatoday.com/money/economy/housing/2009-06-22-homebuyer-credit-may-be-extended_N.htm

Customers

Craig Bland (Brand Mortgage ) — Tue, 23 Jun 2009 09:03:11 -0700

I ran across this and wanted to share with you all. This is the essence of what our customers mean to us!!!

Customers are the most important people in our business.

Customers do not depend on us, we depend on them.

Customers never interrupt our work, they are our work.

Customers do us a favor when they call; we don't do them favors by letting them in.

Customers are a part of our business, not outsiders.

Customers are flesh-and-blood human beings, not cold statistics.

Customers bring us their wants; we fulfill them.

Customers are not to be argued with.

Customers deserve courteous attention.

Customers are the life blood of this and every business.

Customers are who we are when we are not working (So let's treat them the way we want to be treated ourselves!!)

All of these guidelines are saying the same thing: Concentrate on the customer. You can't make many catches if you take your eye off the ball.

Are Banks Stupid?

Craig Bland (Brand Mortgage ) — Wed, 03 Jun 2009 09:43:48 -0700

I know that is a rhetorical question and I am sure like me you truly believe that banks are stupid anyway but let me elaborate.

Question. If someone buys a car today and in a year the car is repossessed what happens? Well the car is taken back and put on a car lot and sold for what the Kelly Blue Book tells the dealer what the value should be. Correct?

Question. Why on earth are banks taking houses back in foreclosure and then taking huge losses on those homes and selling them at 30-40% of what they are worth?

We have had two horrible years now but you can’t buy cars at 40% of what they are truly worthy. Why oh why are we allowing homes to be sold that way. Even when gas was at $4-5 a gallon and the car companies couldn’t sell SUV’s and trucks they still didn’t cut the cost to less than they owed on them.

Am I the only person out here that doesn’t get that model of economics? It just does not make sense.

Let me know what you think

Craig Bland

Georgia Dream NSP Program

Craig Bland (Brand Mortgage ) — Tue, 05 May 2009 16:27:42 -0700

The Georgia Dream Homeownership Program makes purchasing a home more affordable for low-to-moderate income families and individuals by offering fixed, low-interest rate mortgages loans.

The Georgia Dream NSP Purchase Program was created to encourage the purchase of foreclosed properties. Funds utilized are an allocation of federal dollars received by the Department of Community Affairs from the Housing and Economic Recovery Act of 2008.

The program provides $14,000 to eligible borrowers purchasing foreclosed properties in eligible areas. Funds are disbursed in the form of a second mortgage lien with no interest and no monthly payments. The lien is released over a period of five years and six months. Funds may be used for required repairs and/or down payment assistance.

This program begins April 1, 2009 and all funds must be disbursed by June 30, 2010.

How do I apply?

All buyers must receive eight hours of in-person home buyer education/counseling provided by a HUD-approved housing counseling agency.

Contact Craig Bland at Academy Mortgage a Georgia Dream participating lender for pre-qualification and to begin the mortgage loan process. His direct number is 678-234-0545. The lender will evaluate your credit worthiness based on FHA or VA guidelines and your qualifications for the program based on the Georgia Dream NSP Down Payment Program guidelines.

Frequently Asked Questions:

How do I locate a Georgia Dream participating lender?
Call Craig Bland at Academy Mortgage 678-234-0545

May I take home buyer education online?
No. This program requires attendance at a home buyer seminar or face to face counseling. Call Craig Bland at 678-234-0545 and he will advise you where the nearest class to you is.

Can I buy a home anywhere in Georgia?
No. You must purchase a foreclosed property in an area of greatest need. Need was determined by the volume of foreclosed properties in a county. Call Craig Bland at Academy Mortgage 678-234-0545 for more information on eligible counties.

Are there income limits?
Yes. Eligible borrowers must have a total household income less than 120% of the area median income. Call Craig Bland at Academy Mortgage 678-234-0545 for the maximum income limit in each of the eligible counties.

Are only first time home buyers eligible for the Georgia Dream NSP program?
Applicants do not have to be first-time home buyers and they are not prohibited from owning other residential real estate. However, the applicant must occupy the NSP financed property as his or her primary residence within 60 days of closing. Any rental income generated from the ownership of other residential real estate would have to be counted as household income for NSP qualification purposes.

If I am a first time home buyer and I use the Georgia Dream NSP program do I still qualify for the federal first time home buyer $8000 tax credit?
Yes. If you purchase a home prior to December 1, 2009. Consult your income tax preparer or the IRS. www.irs.gov

I would like to use the $8000 federal tax credit as part of my down payment. Can DCA include this amount in my mortgage loan?
No. DCA does not have a mechanism in place to monetize the federal first time home buyer tax credit for use as a down payment.

Can I use other down payment funds in conjunction with this program?
No. Unlike the traditional Georgia Dream down payment programs, the Georgia Dream NSP program cannot be combined with other down payment assistance programs.

What interest rate will I pay on my first mortgage loan?
The first mortgage loan will be a 30 year fixed rate FHA or VA loan originated by your lender within NSP guidelines. The rate will be determined by current market rates and the lenders choice of investor. Georgia Dream first mortgage interest rates apply only when DCA funds the first mortgage loan.

Can I use the Georgia Dream NSP program to purchase a short-sale or a home that is pending foreclosure?
No. the property must have been foreclosed and the title transferred to the mortgage lien holder or an eligible agency. Eligible properties must be owned by HUD, VA, USDA, Bank, Government Entity or an eligible Non-profit.

Can the Georgia Dream NSP program be used to purchase a home that was a foreclosure, but was already rehabbed by an investor making the home move in ready?
Only if the investor used a local government’s NSP program to purchase and rehabilitate the home.

Can I use the Georgia Dream NSP program if I am also using the DCA Housing Choice Voucher Program?
Yes. However, you must use a Georgia Dream participating lender who also participates in the HCV program. Foreclosed properties in need of repair may not be eligible for purchase. When using the HCV program the first mortgage must be a Georgia Dream first mortgage loan and will be serviced by State Home Mortgage.

Call Craig Bland at Academy Mortgage today to discover if you qualify for the Georgia Dream NSP Program.

Craig Bland

Asst. Vice President

Academy Mortgage

678-234-0545

Refi Plus is HERE!

Craig Bland (Brand Mortgage ) — Wed, 15 Apr 2009 12:16:12 -0700

Effective 4/15/2009, Academy Mortgage (678-234-0545) will begin accepting loan application and locks on loans originated using Fannie Mae's DU Refi Plus program.

DU REFI PLUS CRITERIA

•· Rate and Term (no cash out) refinance of an existing Fannie Mae loan.

•· Owner Occupied transaction only

•· Mortgage Insurance will be waived if the existing mortgage was originated with an Loan to Value less than or equal to 80%. DU will issue the following message:

•o Mortgage Insurance is not required for the DU Refi Plus loan case file.

•· Maximum LTV of 95% (2nd loans no limit on combined CLTV)

•· No maximum CLTV on existing re-subordinated second liens

•· Minimum credit score of 620 for all borrowers

•· Maximum DTI ratio of 41% for FICO scores between 620-659

•· Maximum DTI ratio of 45% for FICO scores 660 and above

•· 2 months reserves on all loans

Additional Fannie Mae DU Refi Plus requirements

•· DU Refi Plus transaction must provide a benefit to the borrower in the form of either:

•o Reduced monthly mortgage principal and interest payment or

•o More stable loan product

•· Borrowers on the existing mortgage must be the same borrowers on the DU Refi Plus transaction

•· Lenders are prohibited from specifically targeting borrowers, whose mortgages are owned or securitized by FNMA, for a refinance

Desktop Underwriter Findings Requirements	An approve eligible is required. The AUS findings must state the following message to be eligible for the DU Refi Plus program: "This loan case file was underwritten according to the DU Refi Plus expanded eligibility guidelines offered on certain limited cash-out refinance loan case file where the borrower's existing loan is identified by DU as a Fannie Mae loan."
LTV/CLTV	The maximum LTV is 95%. No maximum CLTV for existing subordinate financing that is being re-subordinated.
Occupancy	Owner Occupied only
Eligible Transactions	Rate and Term refinance only Existing purchase money subordinate financing cannot be satisfied with the proceeds of the DU Refi Plus mortgage.
FICO Scores	Regardless of DU findings a minimum FICO Score required: 620 for all borrowers
Mortgage Late	No mortgage late payments in the last twelve months
Ratios	Regard less of DU findings, the follow ratio guidelines are required: FICO Score 620 -659 Maximum DTI ratio cannot exceed 41% FICO Score >660 Maximum DTI ratio cannot exceed 45%
Reserves	Regardless of DU findings, the minimum reserve guideline is required: 2 Months liquid assets
Subordinate Financing	New subordinate financing is not allowed with the DU Refi Plus. Existing subordinate financing can be re-subordinated with no maximum CLTV requirements.
Mortgage Insurance Details	Original LTV of existing loan	MI Coverage currently in effect on existing loan	MI coverage required for a DU Refi Plus new loan
</equal to 80% LTV	NO	NO 1
>80%	YES	Not Eligible for financing
Additional Documentation Requirements	DU may require "streamline" income documentation with the findings. Such as one year W-2. Regardless of DU findings the following income documentation will be required: Salaried Borrowers: Full income documentation in the form of VOE, Paystubs and W-2. Transcripts for the most recent year. Self Employed Borrowers: One or two years tax returns with all schedules along with tax transcripts for the years of taxes supplied.
Appraisal Requirements	Regardless of DU findings the following appraisal guidelines are required: A new full URAR
Eligible Programs	Fannie Mae 30 year fixed rate conforming Fannie Mae 30 year fixed rate Agency High Balance (separate IHM program) 5/1, 7/1 and 10/1 Agency conforming ARM's
Pricing	Call Craig Bland 678-234-0545

USDA Rural Housing Loans up to 102% of Appraised Value

Craig Bland (Brand Mortgage ) — Fri, 03 Apr 2009 07:42:40 -0700

USDA Rural Housing Loans up to 102% of Appraised Value

If you live in a rural area of Georgia, and have little or no money to put down on the purchase of a home, we may have very good news for you.

USDA rural housing loan programs offer flexible underwriting guidelines, relaxed credit requirements, no PMI (private mortgage insurance) options, and the ability to finance closing costs into the loan amount. They also offer lenient seller concessions, and rates as low or lower than conventional fixed-rate mortgage programs.

Loans may be for up to 102% of the appraised value or sales price (whichever is lower). A one-time 2% guarantee fee can be included in the loan (this is how the loan can go up to 102%). This feature allows buyers to finance this expense into the loan amount versus paying it out of pocket.
No PMI (private mortgage insurance)
Secure, fixed-rate 30 year mortgages
Sellers can assist with paying the buyer's closing costs
Little cash reserves needed for qualified borrowers.

Call Craig Bland at Academy Mortgage today for more details. 678-234-0545

First-Time Homebuyer Tax Credit - Revised Feb 2009. $8000 limit

Craig Bland (Brand Mortgage ) — Sat, 14 Feb 2009 07:39:54 -0800

$8000 FIRST-TIME HOMEBUYER TAX CREDIT

As Modified in the American Recovery and Reinvestment Act

Major Modifications Shaded - February 2009

NOT YET SIGNED INTO LAW (as of posting)

FEATURE	CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008	REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
Amount of Credit	Lesser of 10 percent of cost of home or $7500	Maximum credit amount increased to $8000
Eligible Property	Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.	No change All principal residences eligible.
Refundable	Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.	No change Purchasers will continue to receive refund for unused amount when tax return is filed.
Income Limit	Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).	No change Same income limits continue to apply.
First-time Homebuyer Only	Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.	No change Still available for first-time purchasers only. Three-year rule continues to apply.
Revenue Bond Financing	No credit allowed if home financed with state/local bond funding.	Purchasers who utilize revenue bond financing can use credit.
Repayment	Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.	No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture	If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.	If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination	July 1, 2009 (But note program changes for 2009)	December 1, 2009
Effective Date	Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.	All revisions are effective as of January 1, 2009

EXPERIENCE THE DIFFERENCE - CALL ME FOR ALL YOUR MORTGAGE BUYER NEEDS.

Ouch - Halve your holiday budget -- twice

Craig Bland (Brand Mortgage ) — Sat, 29 Nov 2008 07:45:30 -0800

Shopping is tough enough, but the economy has made the idea of heading to the mall that much scarier. (My poor colleague finally dared to peek at his retirement plan, and it was a real wake-up call - it was down 50%.)

This year, many of you are wondering how to recession-proof your finances. Well, we're going to have to get really creative to be able to give this holiday season -- while still paying off that debt. Think of it as "doubling down" on your financial life.

A few facts first: Each of us will spend $832 this winter buying presents for friends and family, according to the most recent survey by the National Retail Foundation. That's up from last year's $817.

Unfortunately, we're not good at paying off our holiday debt -- that's not a good thing in this job climate. One survey suggests that while 30% of Americans pay off Christmas debt within three months of Christmas, another 25% carry it for over a year.

Friends, you can't afford that this year -- or any year, for that matter. I'd rather see you bulking up your bank accounts.

So let's get smart. Let's think how to use what we already know and have to give -- and still pay down debt. Think I'm crazy? Here are five ideas that prove it's possible:

1. Halve your holiday budget -- twice. Chopping your budget in half, and then doing it again, sounds drastic, but drastic times call for drastic measures. I just noted above that the average person will spend about $800. That's the typical person. So, don't be so typical. Dare to be different. Cut that in half, then in half again. Make your holiday budget $200 tops. If you go over by a couple bucks for your big family, we won't tell.

2. Carry a "recession-proof" envelope. You need two things in your envelope: a list and cash. I'm a big believer in lists because it helps me save time and stay focused. It's also a great way of ensuring you buy what you or your loved ones want. That's more important this year because what's on their list might be something they need. So make a list of who's been naughty and nice, find out what they want, and then assign a dollar value to it. Carry that list with you, along with your cash budget. You'll be one of my card-carrying recession-proof consumers and you'll feel better because of it!

3. Work in pairs. Don't go it alone this season. Here's where we really start to use "what and who we know" to recession-roof our holiday giving. Rather than busting your budget to buy your brother what he really wants, pair up with your sister, grandparents, etc., to buy a bigger present from a few people. You can do the same for those special friends and even Mom and Dad.

Better yet, if you're an adult, say good-bye to gifts altogether. Instead of buying gifts for your siblings and the nieces and nephews, make a pact with the siblings that you'll just buy for each others' kids. Another alternative: Draw names from among the adults so you buy for only one person -- something my family did for many years.

4. Get creative. Think eBay, Craigslist, consignment and experiences. So, you think I'm getting really cheap here, huh? Well, I just bought a fabulous coat at a consignment shop and I can bet there will be lots of stores looking to unload their inventory through eBay. And I can't tell you how many of my own loved ones light up when I take them to a play or a movie as a gift. So when it comes time to get those gifts, open your eyes to the things around you that could be fresh and reasonable and involve your kids.

5. Find extra cash. People have asked me how they can make some extra money to pay for gifts that must be purchased. There might be seasonal holiday jobs at your local retailer, but chances are many people will be competing for the few available. Remember, health care continues to be one of the biggest opportunities for jobs. There's a good chance elderly people in your area need driving to the doctor or help around the house. Check Craigslist, post at your local church or club, and spread the word.

Or, turn to what you know and love, whether it's a hobby or a skill, and discover ways to cash in during the holidays. I know a woman who turned an idea into therapeutic pillows and then sold them at a cart in a mall during the holidays. Lastly, consider selling art and other items you don't use or need on eBay.

Follow these strategies and you will avoid debt and keep more money in your bank account. You'll be a card carrying member of my recession-proof club, and hopefully proud of it.

Mark to Market - What's the Scoop?

Craig Bland (Brand Mortgage ) — Thu, 09 Oct 2008 13:47:33 -0700

Dear Valued Partners,

The Chinese have a proverb: "May you live in interesting times." And we are living through interesting times indeed.

Whatever the political posturing regarding the rescue plan, a plan needed to be passed. Credit markets are frozen and banks are going bust every day. This is not totally because of "toxic" mortgages. This has a lot to do with FASB 157, also known as "mark to market".

Each day, lenders must mark their assets to the marketplace. It's like you having to appraise your home everyday and, if your neighbor was under duress because she got very ill, divorced, lost her job and was forced to sell her home quickly, she may have sold it super cheap. Now, does that mean your house is worth that super cheap price, too? Clearly not. Why? Because you are not under duress. You have the time to sell your home and get a more normal price, which more accurately reflects true market conditions. But "mark to market" does not allow for this, which creates a vicious cycle.

Why is this so bad? Because, as lenders mark down their assets the amount that they have previously loaned becomes much riskier in relation to their assets. For example, say a bank has $1 million in assets and say they have $15 million in loans outstanding. Their ratio is an acceptable 15 to 1. But should they take a paper write down of $500 thousand due to "mark to market" requirements, their ratio suddenly changes to 30 to 1. This is because their assets are now only $500 thousand after taking the paper loss, while their loans outstanding are still $15 million. And at 30 to 1 this bank is viewed as a risky investment. So the stock price starts to get hit, it becomes harder to borrow, and most importantly harder to make money. The bank is then forced to sell some of its loans to reduce its ratio...at cheap prices. And this makes the vicious cycle continue.

And a quick look at the holdings of these loans show that 95% are problem free. Additionally, the Credit Default Swaps (CDS) that are used with the pools of mortgages are relatively safe. But this requires a bit of understanding. You see, when a pool of mortgage loans is put together it isn't just A paper or B paper etc. it's everything. It's got some A paper, B paper, C paper...and even what looks like toilet paper. An "A" investor buys the whole pool but because they are an "A" investor their safety is greater because they can avoid the first 20% (an example) of defaults. So they own the whole pool but are sheltered from the first batch of defaults, and for this they get the lowest rate of return. As you can figure from here the more risk investors want to take, the higher the return. So the investments are relatively safe, but the accounting rules currently place undue pressure on the banking institutions.

Now add to all this, the opportunistic "shorting" done on the financial stocks, much of it illegal because those shorts did not legitimately borrow shares (called naked shorting), and you exacerbate this whole problem. Thank goodness for the recent temporary ban on shorting in the financial sector. As for the plan, the government is the only one who can step in to do this. And they have to do this. And they will do this.

The nauseating political posturing from both sides is just part of the process.

This is not easy to understand for the general public. In fact most politicians don't get this either. That's why it is a difficult yet critical bill for them to vote on.

Once this is done, it will take some time but the markets will stabilize. As for the real estate and mortgage industries, it will take a bit of time but we will make it through this. Rates will remain attractive and the influx of credit availability will help the housing market gradually improve.

This ultimately will be the medicine needed to improve the situation overall.

As always - please keep in touch during these volatile times. I am here to help you and your clients in any way that I can.

Craig Bland

Sales Manager - Loan Officer

678-234-0545

Wachovia's Fate?

Craig Bland (Brand Mortgage ) — Thu, 09 Oct 2008 09:58:21 -0700

Wachovia's Fate Undecided
After Citigroup announced on Sept. 29 that it had agreed to pay $2.16 billion for the banking operations of Wachovia Corp., Wells Fargo extended a $15.1 billion offer for all of Wachovia. Citi filed a $60 billion lawsuit against Wachovia and Wells Fargo for breach of an exclusivity agreement, and said Wachovia would have failed on Sept. 30 if Citi hadn't responded a request from the federal government to intervene. Federal authorities brokered a moratorium on legal action this week, during which Citi was reported to be in discussion with potential partners to join its bid for Wachovia. Analysts and others speculated that Wells and Citi may reach an agreement to divide Wachovia.

Source: Laurie Kulkiowski, TheStreet.com, 10/08/08
http://www.thestreet.com/story/10441277/1/citi-seeks-partners-in-wachovia-bid-report.html?puc=googlefi&cm_ven=GOOGLEFI&cm_cat=FREE&cm_ite=NA