Joe Metzler's Minnesota Mortgage Blog - Mortgage and Real Estate News You Can Use

Home Buyer Tax Credit Extended - First Time Buyers and Repeat Buyers

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Thu, 05 Nov 2009 15:38:10 -0600

The House of Representatives on Thursday approved an extension of jobless benefits and a tax credit for home buyers, sending the measure to President Barack Obama for signature. The bill, approved unanimously by the Senate late Wednesday, keeps a first-time home buyer tax credit alive until next spring, and expands it to include some people who already own a house.

How the homebuyer tax credit would work:

Tax credit: Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for repeat buyers. First-time homebuyers are defined as people who have not owned a home in the previous three years. Repeat buyers must have owned their current home at least five years. The credit cannot be used for houses costing more than $800,000.

Deadline for qualifying: Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30.

Military deadline: The deadline is extended by a year for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009, to May 1, 2010.

Income limits: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

How to apply: Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.

Joseph Metzler, MMS, UMB
33 Wentworth Ave E #290
West St Paul, MN 55118
Ph: (651) 552-3681
Cell: (651) 592-4460
Fax: (651) 994-6425
www.JoeMetzler.com

We Beat the Banks Everyday

High Offers Offset By Low Appraisals - Fair And Balanced? Or Unfair?

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Wed, 04 Nov 2009 09:40:39 -0600

Via Lisa Udy Realtor Utah Real Estate Specialist (Logan Utah Real Estate Immaculate Homes):

With the amount of offers coming in on REO properties(Bank Owned Properties), there has been a new trend among buyers. The trend is to just offer as high as possible to get the property under contract. After the contract is accepted by the bank, they have to get an appraisal for the loan.

The appraisal comes in quite a bit lower then their original offer price, which means the buyers won't be able to get the financing. These buyers then have the right to withdraw from the contract based on the appraisal contingency. The deal is dead right?

Not so fast. The buyers agent has been planning this all along. The agent and the buyers will submit an addendum to the price to meet the appraisal, and will re-submit to the bank.

Now, the bank wants to get this deal done, and knows the same thing will happen with any other buyer. The appraisal has already been done. So, the bank just accepts the lower price, and the buyers get away with it. They knew the appraisal would not meet the original offering price, and they get a great deal.

With the new appraisal guidelines, this is happening more and more. Appraisals are coming in low, buyers are aware this is what's happening, they are offering high to get the property over the competition, and just wait out the appraisal to get a great deal.

How fair is it to the buyers that put in an offer closer to asking price? Is this fair and balanced? Is it unfair to the other buyers that put in a reasonable offer? Or is it a smart way to get your buyers the house they wanted?

Is a NEW First time home buyer and move up buyer tax credit ABOUT to be approved??

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Wed, 28 Oct 2009 13:07:57 -0500

Looks like the NEW home buyer tax credit is ABOUT to be approved:

Here are the details directly from a contact in DC:

1) Sen Isakson, Dodd, Lieberman have agreed, and Senate Finance [Baucus and tax staff] have agreed to this credit extension and expansion:
2) For first time homebuyers, the income level to qualify is $ 75,000 single / $150,000 married
3) Move up buyers AND first time home buyers qualify
4) For move up buyers the income level to qualify is $125,000 single / $250,000 married
5) For move up buyers, they must have been residing in their primary residence for 5 years
6) The credit is 10% of the sales price, with a maximum of $ 7290.
7) The credit runs from Dec. 1, 2009 to April 30, 2010.
8) For legitimate sales contracts as of April 30, 2010 you have 60 days to close.
9) There is a waiver for military.
10) This will be added to the Unemployment Insurance bill. It will then go to the House.

Signs are that they House will accept this proposal. It could go to the President soon.

Stay tuned for details, but remember, as of this posting, IT IS NOT OFFICIAL

HomePath, special home financing from Fannie Mae

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Tue, 27 Oct 2009 08:09:42 -0500

HomePath^® Mortgage Financing
This special financing is available on Fannie Mae homes with the HomePath logo!

Have you seen the HomePath ^® logo and wonder what it is? For a limited time, the HomePath^® program is available to home buyers when purchasing a Fannie Mae foreclosed home.

How Does It Work? Simple. Just qualify for a traditional financing with at least 3% down. Then you MUST select a home to buy from the list of available foreclosed Fannie Mae owned properties
Where can I see the list of available houses? Easy. Simply contact us, and we'll put you in contact with a qualified Realtor Partner who will analyze your needs, and show you a list of qualified HomePath properties. Follow this link to instantly view homes: http://www.homepath.com
What about closing costs? Closing costs can be rolled into the transaction, up to 6% of the loan amount.

EXTRA BENEFITS: The benefits include:

Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
No mortgage insurance
No appraisal fees
Also eligible for HomePath ^®Renovation Mortgage

This is a national program, and there are qualifying homes in every state.

We lend on this program for homes ONLY in Minnesota and Wisconsin, so please do NOT contact us about other states. However, if you are looking for HomePath in MN or WI, it all starts with a no obligation online loan application or a call to (651) 552-3681, where one of our specially trained Loan Officers will assist you.

Getting the Best Interest Rates or Lowest Closing Costs?

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Thu, 22 Oct 2009 10:12:38 -0500

Best Interest Rate or Lowest Closing Costs?
Plus, NO Lender Fee, NO Closing Costs Mortgages. How do they work?

A common mistake shoppers make is to ask: "What's your best interest rate?" or "What are your closing costs?" Both logical questions to ask, but they do not give the response most borrowers need to make a proper decision. Borrowers must understand both rates and fees. Rates are only half the answer to getting the best deal. It is possible end up with the lowest rate, or with low or no closing costs, but not necessarily the best deal.

Remember that nothing is ever free. Lenders simply use "reverse points" whenever they claim to offer any sort of low closing costs, or no fee mortgage.

Simply put, the lowest rate & the lowest fees do not go hand-in-hand. NO LENDER can offer both together. I can give you rock bottom rates, but it will cost you in fees. I can give you the lowest fees, but it will cost you in interest rate. Most lenders quote their best rate in combination with covering all third party fees (appraisal, credit report, title company, state taxes, county recording fees, etc) with 1% origination ("standard" in the example below).

Here is an example of Rate vs. Costs on a $200,000 - 30 year fixed loan RATES NOT ACTUALLY OFFERED - THIS IS JUST A SAMPLE FOR EDUCATIONAL PURPOSES
	Lower Rate	Standard Quote	Low Cost	Total NO Cost
Rate	4.75%	5.0%	5.25%	5.75%
Origination	1%	1%	None	None
Discount Points	1%	None	None	None
Closing Costs	$5042	$5042	$3042	$0.00
Closing Costs with Points	$7167	n/a	n/a	n/a
Monthly P & I Payment	$1043.29	$1073.64	$1104.41	$1,167.15
10 Years of Interest	$92,352	$95,240	$98,151	$108,037
20 Years of Interest	$155,609	$162,618	$169,718	$188,181
30 Years of Interest	$181,300	$190,232	$199,311	$221,909

WHICH LOAN VERSION is RIGHT FOR YOU?
I can offer you all four options on all of our loans.

The combination of rate & fees can be very confusing. One lender is screaming "No closing costs." A second lender may quote you 5.25% with $2246 in fees, while another lender is offering 5.00% with $4130 in fees. So are closing costs and fees bad? Well if you ask everyone's brother who has a real estate license and knows everything about mortgages, then the answer you will most likely hear is yes. I am here to tell you everyone's brother is probably wrong.

Good enough answer? I didn't think so...

Begin by asking yourself "How long am I going to be in this property?" This is the single most important question to determine which option is best for you. Now look at the chart above. It becomes very obvious based on how long you are going to be in the home if 'Best Rate or Lowest Cost' makes the most sense for you and your family.

To properly shop, you must get all estimates on the same day at the same time. All estimates must have the exact same interest rate. Then you are only comparing cost.

Congratulations, you are now smarter than everyone's brother, mother and sister with a real estate license.

----------------------------------------------------------------------------------------------

Mortgage Lenders and Brokers in Minnesota and Wisconsin

$8000 Tax Credit EXTENDED for military personal?

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Wed, 14 Oct 2009 11:24:24 -0500

$8000 Tax Credit Possibly Extended For Military Personal

No news yet about the possible extension of the $8,000 Federal Tax Credit beyond November 30, 2009 for all first time home buyers, but the House of Representatives has voted unanimously to extend the first time buyer tax credit to active military personnel, foreign service and intelligence officers. The bill (HR3950) would extend the existing tax credit to this group only until November 30th, 2010. The bill now goes to the Senate, and is expected to pass with the same ease.

The bill was brought up because it was thought that military personal serving oversees this year did not have the same opportunity to take advantage of the tax credit as other future home owners. The extension applies to military personnel who spent at least 90 days of the current calendar year oversees. It also does not require borrowers to payback the tax credit if they are deployed after receiving it. The current tax credit requires borrowers payback the tax credit if they do not occupy the home within three years of receiving the tax credit.

THIS IS NOT LAW as of the time of this posting, but should be soon.

Combining the $8000 federal tax credit with a VA 30-year fixed loan is something I as a loan officer and Mortgages Unlimited are proud to be able to offer all military personal, both active and discharged, for properties located in the Minneapolis St Paul area, and all of Minnesota and Wisconsin.

FHA Streamline Refinace Rules Changed - now HARDER to qualify

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Sat, 19 Sep 2009 10:58:42 -0500

FHA Changes Streamline Refinance Rules - makes it harder!

FHA streamline refinance has always been a great tool for home owners. In the most simple format, a person who currently has an FHA loan could fill out some paperwork, and close a new loan shortly thereafter with a new lower rate (payment), and with no out of pocket closing costs.

As long as the person had made their past 12 FHA loan payments on time, and had a job, you were approved. There was no appraisal, no credit score requirement, and no income or asset documents required. The client still has normal closing costs, but they could be rolled into the new loan.

The new rule revises current procedures for streamline refinance transactions to establish new requirements for loan seasoning, payment history, income verification, and demonstration of net tangible benefit to the borrower. It also provide for collection of credit score information; and to cap maximum loan-to-value at 125 percent.

A BIG CHANGE IN THE RULES will be that in order to roll in the closing costs, an appraisal will now be REQUIRED. If the loan-to-value is UNDER 125%, this shouldn't be an issue other than they now have the added cost of an appraisal. If the customer wishes to pay closing costs out-of-pocket with cash at the closing, then an appraisal will NOT be required. This rule alone will effectively kill FHA streamline refinances as we know them today as EVERYONE rolls closing costs into their new loan.

These revisions also bring NEW documentation standards for streamline refinance transactions in line with other FHA loan origination guidelines, ensures the borrower's capacity to repay the new mortgage, and prohibits the dangerous practice of loan churning, where borrowers raise cash through successive cash-out refinancing that put them further in debt.

These new rules are in part due to the increasing level of FHA foreclosures. FHA doesn't actually provide loans, rather, it guarantees loans for lenders in exchange for lenders taking on higher risk, lower credit score, and small down payment home buyers according to FHA guidelines. FHA foreclosures have increased steadily recently as the mortgage industry no longer offers sub-prime and exotic loans, leaving many potential home buyers with no other option BUT FHA.

Worried about the changes? APPLY NOW, and get your FHA streamline refinance done BEFORE the new rules take effect!

Mortgages Unlimited and the Joe Metzler Team provide FHA home loan financing

Minnesota and Wisconsin ONLY.

FHA Plans Lender Net Worth Requirement Increase

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Sat, 19 Sep 2009 09:40:44 -0500

The FHA plans to propose to increase the net worth requirement for approved mortgagees to meet industry standards.

The requirement is currently at $250,000 and has not been increased since 1993. HUD is proposing an initial increase of approximately $1,000,000 that would be in place within one year of the enactment of this rule.

To maintain consistency with industry standards, HUD may propose that the net worth requirements be increased further in future years to a level comparable to those required by GSEs (Fannie Mae and Freddie Mac) and other market institutions.

These changes will help to ensure that FHA lenders are sufficiently capitalized to meet potential needs, thereby permitting HUD to mitigate losses and decrease risks to the FHA insurance fund.

As with anything the government does, this proposed networth requirement is both good and bad.

GOOD: It potentially eliminates many small lenders who lack the proper knowledge, experience, and oversight.

BAD: It eliminated many small lenders who do a great job, and gives more power and control to the BIG BANK lenders. As the big banks continue to gain more control, the consumer options drop, competion drops, and ultimately, the consumer will end up paying more and get less as they deal with the application takers versus knowledgable mortgage professionals.

Are low mortgage interest rates coming to an end soon?

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Sun, 23 Aug 2009 09:36:31 -0500

MORTGAGE INTEREST RATES ARE GREAT TODAY. BUT WHAT ABOUT TOMORROW?

Let's face it, mortgage interest rates have been averaging in the low 5% range, and that is great for the real estate market. But do you know where mortgage interest rates come from and why they change?

Lenders don't just make up rates! Long-term interest rates are based on Mortgage Backed Securities, also known as Mortgage Bonds. As money flows in and out of the bond market, the bond "yield" changes and the corresponding interest rate goes up or down.

May people think the 10-year Treasury Note is the correct index to "follow rates" with. While this note usually trends in he same directs as Mortgage Bonds, it is not unusual to see them move in completely opposite diretions. Be careful not to work with a Loan Officer who has their eyes on the wrong indicators.

This is a bit simplistic, but you can look at Fannie Mae and Freddie Mac as a clearing house which "buys" loans from lenders based upon rules they make, then package those loans into Mortgage Bonds, which the public buys on the bond market.

With everything going on in the mortgage world, bond players ramped DOWN the purchase of Mortgage Backed Securities. If no one buys Mortgage Bonds, there is no money for Fannie and Freddie to buy loans from lenders. If lenders can't sell the notes, they run out of money, the supply dries up, and consumers can no longer get a mortgage loan.

With no confidence in the mortgage market, bond players simply stopped buying mortgage back securities, creating a huge liquidity problem in 2007 and 2008.

In order to calm, and ease the strain on the markets, the US Treasury Department started buying up to $1.25 trillion worth of Mortgage Backed Securities which would help keep money flowing to the mortgage markets. By spring 2009, the Treasury Department was buying 2/3rds of all mortgage bonds, which has kept 30-year fixed mortgage rates artificially low.

The overall mortgage bond market has started to improve, and confidence is starting to return because "new loans" are being written to more traditional safer and strictor guidelines. Traditional private sector bond players have started to again purchase mortgage bonds, which is good, as the money pledged by the Treasury to buy bonds in expected to run out over the next few months.

Once the Treasury Department stops buying bonds, all bets are off as to what interest rates will do. If the private market continues to increase their rate of buying bonds, interest rates should continue to stay low, or increase slightly. If the private-sector doesn't carry the load, expect to see mortgage interest rates climb.

While it is too early to know exactly what is going to happen, but if you are on the fence about buying a new home or refinancing an existing home, I'd suggest you take advantage of today's mortgage interest rates RIGHT NOW.

Are you working with the right Loan Officer?

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Mon, 17 Aug 2009 13:04:25 -0500

In this market it takes an extraordinary amount of energy to get a loan closed with new regulations, lenders changing their guidelines and rates shooting up and down.

Are you working with the right Loan Officer?

For most people, a home is the biggest investment they will ever make. However, few people do the research necessary to make a good buying decision. The home-purchase process is extremely confusing for most people. With a little bit of homework, and some advice from family and friends who have been through the process before, you can make this a little easier on yourself. There is no substitute for taking the time to educate yourself before you buy or refinance a house, which typically costs you 25% to 40% of your gross income!

By far, the #1 Mistake is choosing a lender simply because they are recommended by your Realtor, or using the Realtor's affiliated companies. While your real estate agent has basic mortgage knowledge, your Realtor is not a mortgage finance expert! They are trained & licensed to help you buy & sell homes. They are NOT trained in mortgage financing! They may not know what's the best loan for you. The Realtor only gets a commission when your house closes. As a result, the Realtor may refer you to a lender that is sure to close the loan, but not necessarily the lender that has favorable rates or fees. Also, many Realtors refer you to their friends in the loan business––who again may not be able to get the best loan for you. Even if the Realtor is very professional and looking out for your best interest, you should still do homework on your own.

WARNING: Be wary of "affiliated companies" (Example: XYZ Realty Company, XYZ Mortgage, and XYZ Title Company). Usually all in the same building, and all owned by the same people. Although it is very convenient to use the affiliated lender and title company across the hall, you typically PAY for that convenience with higher rates and fees than you could find elsewhere. Sometimes the Realtor makes it sound as if you have to use their affiliated companies. YOU DON'T.

A very large portion of my business comes from Realtors referring clients to us (and we appreciate it!) But if you are already approved with a lender, and your Realtor or Builder is now 'pushing', 'forcing' or speaking negatively about your choice while pushing hard for you to use their lender or title company, it almost always means you pay more!

If your Realtor walked you across the hall to get approved with their in house lender, and you haven't gotten a SECOND OPINION, call me right now! You are entitled to a second opinion, even if you have already been pre-approved for your mortgage with them!

Federal Law Requires Choice of Title Insurers & Lenders
The Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. 2600, requires that all Buyers and Borrowers be given the choice of title insurance providers and lenders. Many people working in the sale, purchase, or construction of real estate have a financial interest in the title and mortgage company and are receiving compensation for settlement and lending services.

I recently took a loan away from a large local Real Estate Company that very aggressively twists their real estate agent's arms to get them to get you to use both their title company and mortgage company. I beat their mortgage company by $1500 in closing costs and 1/2% in interest rate. The title company I suggested using was cheaper by $400. Their purchase agreement VERBIAGE even goes as far as making is sound like your loan won't close if you use someone else.

We recommend shopping for a loan with at least 2 mortgage companies before you make a decision, maybe the one your Realtor suggested, and someone else! Remember to GET A GOOD FAITH ESTIMATE IN WRITING. There are countless stories of consumers who wind up paying higher rates or getting a loan program that was not right for them because they blindly followed their Realtor's mortgage advice.

Choosing a lender just because she/he has the lowest "quoted" rate or cost, or not getting a written good-faith estimate is also another major mistake. While interest rate is important, you have to look at the overall cost of your loan. Your largest financial transaction is too important to place in the hands of a rate quoter, or the high cost in-house lender across the hall.

This includes looking at the APR, the loan fees, as well as the discount and origination points. Some lenders include origination points in their quoted points, while other lenders add an origination point in addition to their quoted points. So when one lenders says 2 points they mean 2 points, whereas another lender means 2 points plus 1% origination. Click HERE for closing cost information.

The cost of the mortgage, however, cannot be your only criteria. There is no substitute for asking family and friends for referrals and for interviewing prospective mortgage companies. Learn how to Pick a Good Lender. You must also feel comfortable that the loan officer you are dealing with is committed to your best interests and will deliver what he/she promises. Often, the company that has the absolute lowest quoted rate (far from everyone else) may not be telling you something. It is hard to compare apples to apples, when someone is slipping you an orange. Your mortgage company is required to provide you with a written good-faith estimate of closing costs within 3 working days of receiving the application. When you do receive one from each lender, CHECK THEM CAREFULLY! All lenders have basically the same fees and costs for doing your loan. If one lender is significantly lower, chances are they are not telling you something up front. Check the other Good Faith Estimates to see what is missing.

Call me at (651) 552-3681. I will be happy to go over a competitors Good Faith Estimate with you. Also, be sure to read our article "Beware of the BAD, Good Faith Estimate.

BUYER MUST BE APPROVED BY XYZ MORTGAGE COMPANY. WHO BENEFITS?

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Wed, 29 Jul 2009 13:29:26 -0500

Not my post - this is re-blogged, but well worth reading as it happens everyday. Unfortuntely, unsuspecting buyers are again being redirected to unscrupulous lenders who clearly do not have the buyers best interest in mind.

While the seller can mandate you get an approval letter from a specific lender - you DO NOT have to use that lender in the end, and in every single transaction I've seen cross my desk, MY DEAL BEAT the other lender hands down!

- Joe

Mortgages Unlimited provides home mortgage loans in Minnesota and Wisconsin only.

---------------------------------------------------------------------------------------

Via Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate:

BUYER MUST BE APPROVED BY XYZ MORTGAGE COMPANY. WHO BENEFITS?

What is behind all of the listings that say "buyers must be approved by "XYZ mortgage company".

These third party lender requirements are included in about 1/3 of the bank owned listings.

EXAMPLES FROM A FEW LISTINGS FOR BANK OWNED PROPERTIES FOR SALE:

"pre qual from Wells Fargo (REQUIRED!!)"

"Pre-qual with Countrywide, free credit report and appraisal if Countrywide is used"

"BANK OF AMERICA PREQUAL REQUIRED"

PRE-APPROVAL, PRE-QUALIFIED, BREATHING. We're used to this requirement in the listing remarks and generally don't object. While our buyers are well qualified and our contracts prepared in great detail with pre-approval letters, financial statements, etc., we understand that many contracts received by listing agents are not. Listing agents receive written offers that are incomplete and accompanied by so called "pre-approvals" where the only thing reviewed by the loan officer is the credit report. Quite often the loan officer has not verified the money to close or income to qualify. Once the listing agent receives our offer, they do not require third party lender pre-approval of our buyers.

A NEW TWIST ON AN OLD REQUIREMENT. In consultation with a Maryland broker in my network yesterday, the broker related a situation that was very revealing. While we're aware of this requirement stated in the AGENT REMARKS in many REO/bank owned property listings, this particular situation was very revealing.

ENOUGH IS ENOUGH. We understand the need for the seller to feel comfortable with the buyer's ability to close. However, this situation appeared to involve more than just verifying the borrowers ability to obtain a mortgage loan. After contacting the loan officer named by the listing agent as the person to review the buyer's financial information, the buyer called and related the conversation. There's something fishy in. . .

HOW FAR DOES A QUALIFYING LENDER GO?? The loan officer took the buyer's credit information and shortly, after reviewing the credit report told him that his credit was fine, however, to make sure that he got the contract, he should change his offer to include:

a price of $xxx,xxx

remove the home inspection

etc., etc.

This, mind you, for a very, very well qualified home buyer with excellent credit scores, money to close and making a 106% offer with only a customary split of transfer and recordation taxes which is pre-printed in our contract of sale. The buyer did, however, want a home inspection.

WHAT'S UP, DOC? This loan officer is NOT the bank/seller. It is the loan officer identified by the listing agent to pre-approve the buyer. Seems to me that this lender, and the listing agent/seller, went beyond the normal pre-approval by a third party lender requirement.

The Maryland Association of Realtors Residential Contract of Sale includes a clause that states:

36. NOTICE OF BUYER'S RIGHT TO SELECT SETTLEMENT SERVICE PROVIDERS: Buyer has the right to select Buyer's own title insurance company, title lawyer, settlement company, escrow company, mortgage lender or financial institution as defined in the Financial Institutions Article, Annotated Code of Maryland.

WHAT PART OF "BUYER'S RIGHT" DO THEY NOT UNDERSTAND? The loan officer clearly gave the home buyer the impression that, if his suggestions were followed, that the buyer would be more likely to be accepted by the seller. What the buyer also got from the conversation was that this loan officer was not an objective third party lender.

WHAT'S GOING ON? Inquiring minds want to know.

* Is the listing agent using their property listings to STEER buyers to a loan officer?

* Is the loan officer giving the listing agent some benefit for these referrals?

Fortunately, the home buyer, an attorney, believed that the loan officer was going too far, broke off the conversation and immediately contracted his buyer's agent.

QUESTION: What action, if any, would you take or recommend that the agent take? I'm a pro-active practioner and prefer to take advantage of any opportunity to enhance our buyer's position rather than sitting by an doing nothing. I know what I would do.

I value the experience and opinions of my ActiveRain friends, therefore:

Would you relate the conversation to the listing agent?

Would you notice the agent's broker of this conversation?

Would you do nothing?

WHAT WOULD YOU DO???

Goodbye Timely Closings. Truth-in Lending rules change - MDIA Info

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Fri, 24 Jul 2009 10:54:30 -0500

The new "Mortgage Disclosure Improvement Act" (MDIA) starts next week (July 30 2009) and will likely seriously delay closings - especially over the next few months as unprepared lenders everywhere drop the ball until they all get comfortable and familiar with the new APR (Truth-in-Lending) disclosures.

Learn what you need to know by watching this quick video at http://www.thinkbigworksmall.com/mypage/player/tbws/12733/1110605

The Federal Reserve Board changes to consumer protection regulations for APR disclosure, while mandated with good intention, will certainly cause delays right at the last moment as FINAL numbers used to prepare the ACTUAL APR are not always known until the last moment. The new rules have such a tight tolerance that lenders will almost ALWAYS have to be redisclosed, and DELAY THE CLOSING while everyone waits for the 3 day waiting period to pass.

The Federal Reserve Board approved final rules that revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending) . Regulation Z is a consumer protection regulation that requires lender disclosure of the cost of financing a home, and has been revised to provide greater consumer protection. The revisions are an amendment to the Truth in Lending Act (TILA) called the Mortgage Disclosure Improvement Act (MDIA) . The MDIA covers primary residences and second home applications made on or after July 30, 2009, and requires that lenders provide disclosures earlier in the mortgage process. The MDIA requires the following waiting periods:

Lenders must give good faith estimates of mortgage loan costs ("early disclosures") within three business days after receiving an application for a mortgage loan (unchanged from current rules). The only fee that can be collected within this three day period is a nominal credit report fee.
Lenders must wait seven business days after they provide these early disclosures before closing the loan (usually not a problem, as it takes longer than that to get every done anyway).
If there are any changes during processing to the terms or cost of the mortgage, lenders are required to give a new disclosure with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan. A change that results in an increase to the APR of 0.125% requires re-disclosure. Closing can occur no sooner than three business days after re-disclosure. "Business days" include Monday - Saturday (excluding holidays).

The burden of proof is on the lender to deliver disclosures and most will not want to make exceptions in fear of closing a loan that is out of compliance. Responsible lenders have already been doing this disclosure/re-disclosure all along. On most transactions, the actual increased time required to process loans due to MDIA may be three to seven days.

Plan on additional delays in closing your next real estate transaction as lenders adhere to the new law.

We are ready and fully prepared for the changes. Remember the lender choice reflects heavily on your future referrals. Once a deal is on the table, time becomes a critical factor. Any delay or hiccup could mean that the deal doesn't get done. There's nothing more frustrating than having a deal on the table that falls apart because it doesn't seem to be a priority to the lender who is too busy for your deal while he works on some refinances, or hasn't figured out the new laws.

That's why I make it a habit to make your problems, my problems; your obstacles become my obstacles. And I work tirelessly to get your deals funded. For properties in Minnesota or Wisconsin Only, 7 days a week, call (651) 552-3681, or E-mail me your questions.

- Joe Metzler, MMS

What do you mean "why is it taking so long?" You're lucky it's closing!

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Fri, 24 Jul 2009 08:46:11 -0500

Great post - and one worth Re-Blogging. This is NOT written by me, but it sure could have been!

Via Novation Mortgage:

(Warning: Not for babies or whiners :) [Unless you read it as it was written: the vent, the whole vent and nothing but the vent] If you plant your tongue firmly in your cheek while you are reading and go ahead and hit a great big old Cheshire Cat smile right now you will probably make it through this ... erm ... post.

Last week I closed an FHA purchase in 8 days from application to the closing table. It was a miracle. It happens. Last month I closed an FHA streamline refinance in 5 days. No joke. 5 days. It happens. Yesterday I had a call from a client wanting to know if we could close a Fannie Mae purchase by the end of this month - it's the 22nd. Uhm, no.

First of all it's the end of the month and the 11,000 people who had their application, appraisal and documents in underwriting last week also want to close "by the end of this month". So the agent called me. Why? No idea - boy did he ever tell me a few things about my business and what a tool I am if I can't get a loan closed in 7 business days because HIS lender certainly could do it.

Why, then were they wasting time on the phone with me?

Ah, the buyer is self employed, has two other streams of income, owns 16 homes, is moving from a bigger house to a smaller one and the old one isn't sold and it's just down the street. Hmmmm ....

Let me state this for the record: Loan officers ocassionally lie. One of the things they lie about is their turn times. They like to say, "Our turn times are 48 hours". That may well be true - with absolutely no hiccups and a perfectly clean file submitted and an acceptable HVCC appraisal which will take a MINIMUM of 10 days to get back. Then there's the issue of middle lenders are sitting on files for days AFTER the approval because the secondary market won't purchase loans fast enough BECAUSE THERE IS A MONEY SHORTAGE. There, I said it.

There is a money shortage even with all the TARP money that went mostly to big banks. Guess what they did with it? THEY SAT ON IT AND GAVE EACH OTHER BONE BONE BONUSES. Okay, I know, I'm typing a lot in caps. You'll get that with people who have a long fuse when it gets down to the nib. And if I hear that snivelling weenie Barney Frank say one more time this is not his fault I'll fax him a picture of my bootie. No wait, better not.

One problem is with people, like Bozo the Barfly agent who obviously called me from the local watering hole, thinking they know how to qualify a borrower. "Man, Ken, I've known this guy for umpteen-eleven years. He took my baby sister to the prom back in 1988. He's a big time developer with a bazigillion jillion dollars. In 2006 he sent my whole family to Hawaii for a week. He owns a 36' SeaRay up on the lake. What's the problem?"

Pretty much everything you have told me is the problem. At best this is going to take 30 days because, believe it or not, people who can fog a mirror and have nothing more than a good story can no longer borrower money BECAUSE THEY DON'T PAY IT BACK! As I have written at least once before during the last 4 years just here on AR - the stupid loans for stupid people are going, going, GONE! Now it is an across the board requirement to PROVE everything. Regardless of what "your lender" says. (Especially that lender - rhymes with GunRust.)

Then there's this little thing called "buy and bail". Haven't heard of it? It's where people buy a smaller house they can afford, move out of their bigger house they cannot afford and let the bigger house go or file bankruptcy! Then there is the very high likelhood that Mr. Country Club the mega-developer took about the same amount of a paycut over the last 24 months as yours truly - making us both suitable for the soup line.

So STOP GIVING ME CRAP about how long it takes to close a loan and for PETE'S SAKE SHUTUP ABOUT "YOUR LENDER"!!!! I know you called me last even though I can do things that make Countrywide, Ditech, Wells Fargo and Chase spit burning nails. I even do it faster and less costly - always could, still do.

If you have any issues with my comment please see my manager, Lenn Harley. Thanks, bye.

Zero Down Payment in Zip Code 55106

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Mon, 20 Jul 2009 07:28:34 -0500

First time homebuyer grant and assistance program allows you to get
ZERO Down Payment in ZIP code 55106 to buy your first home!

It is the dream of everyone to own their own home. Many potential home buyers have the income and credit to qualify for a mortgage. However, many lack the one essential ingredient to make homeownership a reality; the up-front money needed for down payment and closing costs.

If you want to buy a home in area code 55106 (East Side of St Paul, Minnesota - Ramsey County), we have access to a special program that will GIVE YOU YOUR DOWN PAYMENT. This down payment and closing cost assistance program is a bona fide gift to homebuyers. There is no obligation to the homebuyer to ever pay it back as long as they live in the home 7-years.

PLUS, you still qualify for up to $8,000 in first-time homebuyer tax credits if they buy BEFORE 12/1/2009.

Call (651) 552-3681 right now to get started.

White House widening mortgage refinance relief program to 125% LTV

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Thu, 02 Jul 2009 08:00:20 -0500

WHITE HOUSE WIDENING MORTGAGE REFINANCE RELIEF PROGRAM

The Obama administration has made changes recently to the current homeowner bailout program available to homeowners who are underwater on their home mortgage loans in an effort to stem the foreclosure problem.

The program is designed to allow homeowners to refinance to today's lower interest rates when under normal and traditional underwriting guidelines, they would not be able to do so.

The current program would allow strapped borrowers with mortgages up to 105% of their homes value as long as they were not behind on their mortgages. The changes just made allow borrowers to now have up to 125% loan-to-value and still be able to refiance.

BUT HOLD ON. While this sounds great on the surface, and while there has been a lot of consumer interest, the program has not come even close to expectations, helping significantly fewer people than Washington anticipated. It is because of these failures that they have expanded the loan-to-value limits.

This programs failures comes on the heals of two previously highly announced homeowner bailout programs called FHASecure and Hope For Homeowners, which both failed miserably in helping consumers.

Why do they fail? A huge issue on the current program has been that so many people owe more than 105% of the current value of their home. So this change should help qualify more people.

With this and the other programs, there is no lender mandate forcing lenders to participate. Many lenders understand giving people 100% (or higher) loans were part of the original problem, and simply refuse to offer the loans.

Underlying guidelines, shall we say "the small print" is also preventing many people from taking advantage of these programs.

In the end, while this announcement should help many more people, I also see this program being labeled a failure.

NOTE: If you previously tried refinancing, and you were OVER 105%, but UNDER 125%, please contact us to APPLY AGAIN! (we lend in MN, and WI only)

For more information on the "Making Homes Affordable Program", simply follow this link:

http://joemetzler.com/making_home_affordable_program.htm

Investor CASH OUT requirements have changed

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Tue, 30 Jun 2009 10:24:27 -0500

Are you an investor looking to take advantage of today's housing market?

Real estate investing is not a major venture to undertake for the average person, but it can be dangerous without the proper tools, if its success you looking for.

The best of tools which would go along way in assuring your success in real estate investing, other than financial capital is information. The adage,' knowledge is power' holds a lot of truth when it comes to knowing when, what and how to invest in real estate. Having and using the right information will keep you even when the property markets are experiencing tough times. You can even beat the recession and achieve your wildest dreams.

With that said, in recent days, a new wrinkle has come into the market that is catching investors and the Realtors they rely on for information off guard (heck, even many loan officers). MANY INVESTORS BUY PROPERTY with CASH. Shortly thereafter, and usually after repairing the home, they look to get a standard loan to replace the money they spend on down payment and repair costs

75% LOAN-TO-VALUE on INVESTMENT PROPERTY is now pretty much the rule of the land when using standard Fannie Mae and Freddie Mac financing TO TAKE CASH OUT as lenders everywhere continue to tighten, rather that loosen underwriting guidlines.

Thats right, CASH OUT is 75% loan-to-value on investment property.

So, while investment properties can be a great deal, having the correct information in the pre-purchase stages is very important.

So what about purchasing an investment property? 20% down is still king when buying.

Dramatic drop in number of licensed mortgage lenders in MN

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Wed, 17 Jun 2009 07:54:59 -0500

Dramatic drop in number of licensed mortgage lenders in Minnesota

In 2007, the State of Minnesota tightened requirements for mortgage lenders in an effort to weed out some of the smaller and more likely to be fly-by-night operations. One of the big requirements forced mortgage companies to maintain a large "net worth" requirement, or a large surety bond.

These efforts, along with the general state of the mortgage business has dramatically reduced the number of licensed lenders from over 4,100 in early 2007, to fewer than 1,100 in May 2009.

Hidden in those numbers is the fact that while the number of licenses are down, the number of individuals working in the industry is a bit harder to guage.

Many companies previously required their individual Loan Officers to carry their own license. New Minnesota rules only allow companies to be licensed, not individuals. Many of these people still work in the industy, but simply folded their individual license under the corporate umbrella, or closed their own small company to merge with larger ones.

In related news, the State Commerce Department recently cited 92 mortgage originators for a variety of infractions, but most were for failing to maintain the above noted net worth requirements. Of the 92 cited, just 7 of the companies or individuals kept their licenses.

FHA ANNOUNCES CONSUMERS CAN USE THE $8000 TAX CREDIT FOR DOWN PAYMENT

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Fri, 29 May 2009 15:35:54 -0500

FHA ANNOUNCES CONSUMERS CAN USE THE $8000 TAX CREDIT FOR DOWN PAYMENT

Consumers across the country are now being told they can take advantage of a Federal Housing Administration program to allow qualified home buyers to apply the $8,000 tax credit when purchasing a home.

FHA has said it will now permit its lenders to provide a short-term bridge loan that will let qualified home buyers use the tax credit to either make a larger down payment above the FHA required 3.5 percent, cover closing costs, or buy down their interest rate.

BUT WAIT: Don't get too excited, as nothing from Washington is this easy!

FIRST: if you read the actual Mortgagee letter from HUD, it says "AFTER you contribute your normal and required 3.50% down payment, you can use the $8,000 for a BIGGER down payment." WOW... What a joke Washington! This will have little effect for most buyers.

SECOND: You CAN use the money for closing costs - but most people already just "roll it in", so this option is of little significant help

THIRD: We still need to see how the lenders and banks respond and roll this out to actual Main Street home buyers. We also have to see how the ‘bridge loan' companies respond to this and how they will implement this.

Who is going to lend this short-term money, where is it coming from, how much are they going to charge, how to do you get approved? These and more questions all need to get answered before anyone gets too excited about this news.

We also suspect that the $8000 "loan" minus any fees to get this early from the bridge company won't come cheap!

I think this is a good idea, but clearly Washington has misses the mark (AGAIN), and this deal stinks. We only need the recent examples of FHASecure and Hope For Homeowners to see that what sounds good in Washington doesn't usually play out so good for Main Street.

So while this is good news, it is NOT the homerun that some of us were hoping for - at least not yet.

$8000 tax credit for down payment? Is it true?

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Tue, 12 May 2009 16:54:57 -0500

We've been receiving calls all day about the "announced" ability to use the $8000 first-time homebuyer tax credit FOR DOWN PAYMENT. "

HOLD YOUR HORSES... it doesn't exist.... YET!

HUD Secretary Donovan appeared at a NAR function earlier today, and this is an exact excerpt of his remarks:

"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly."

Okay - so what does that MEAN? It means that they are about to "officially" put their stamp on approving the process (and authority) on who/where/why/when a first-time homebuyer can get a LOAN for the $8000 tax credit - to be used as part of the required down payment!

THIS IS HUGE! As soon as the "official" announcement is out, we will get it to you.

The death of Private Mortgage Insurance (PMI) Companies

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Sat, 14 Mar 2009 11:08:41 -0500

The Death of Private Mortgage Insurance Companies

Ahhh the ever hated PMI on your home loan. The necessary evil. Is it going away?

Private Mortgage Insurance (PMI)? It is (was) an insurance policy required by mortgage lenders on conventional loans when the borrower had a loan-to-value (LTV) greater than 80%. PMI was established to help borrowers with little cash buy or refinance houses. I always called it the necessary evil. The rules were simple. If you didn't have 20% down, you didn't get a loan.

To get the loan, lenders required an extra bit of insurance to protect them, but YOU had to pay for it. The less down payment, the more expensive PMI is as your risk as a borrower went higher.

Then along came 2nd mortgages and home equity lines of credit. With these loans, home owners attempted to skirt PMI by dividing up their loan into two. The first mortgage at 80% loan-to-value or less, and therefore no PMI, plus a second mortgage to cover the difference.

Terms such as 80/10/10, 80/15/5 and 80/20 became common and PMI became an afterthought as people thought they had beaten the lenders. The reality was that for many people, the perceived savings were false, as the second mortgages came at a dramatically higher rate, or with higher risk. I can tell you many stories of people caught with their pants down as the "great rate" on the second mortgage climbed higher and higher. The payments ended up far surpassing the "savings" of avoiding PMI.

OTHER HIDDEN COSTS ABOUND: Most first lien lenders charged you a higher rate on your first mortgage because they knew what you were doing, and you really were not any less risky to them by having two loans. For example, if you had taken a loan WITH PMI, your rate may have been 6.00%, but by doing an 80/10, your first mortgage rate was 6.25%. Also, those second mortgages were never free in terms of closing costs. For many people, the extra closing cost of getting the second mortgage completely ate up all the benefits.

Of course each individual transaction is different, and while some truly gained benefit from two loans, few people ever did the real math to determined the true total cost of their loans over time. Plus, they almost never calculated in the fact that private mortgage insurance can be dropped once your loan-to-value reached 80%.

BEHIND THE MAGIC CURTAIN: Something few borrowers understand about the mortgage industry is who actually underwrites loans. For many companies, the underwriter is actually employed by the private mortgage insurance company, not the actual lender. In simplistic terms, this puts the PMI company on the additional hook for bad underwriting and adds another layer of protecting to the lender. Because of this, while the lenders typically follow Fannie Mae or Freddie Mac guidelines, the PMI company can add their own ADDITIONAL guidelines on top of Fannie and Freddie rules. These additional private mortgage insurance company add on rules have become a major lending industry issue recently, making getting a loan for many, much more difficult.

WHO CAN BLAME THEM? PMI companies are losing $ Billions $ of dollars to lender claims, and 2nd mortgages and home equity lines are a thing of the past, thrusting PMI companies back into the "only game in town" position as lenders look to reduce their risk. I would anticipate within a short-time, that the private mortgage insurance (PMI) companies will not exist as we know them today, throwing further turmoil into the housing market

NO PMI? NOW WHAT? If the PMI companies die, will you be able to get a loan with less than 20% down or equity in the future? Sure, but I would assume that instead of PMI on your loan, you will probably have some sort of lender self-insured policies which will probably come in the form of dramatically higher rates.

We shall see...

What does this mean for homebuyers and homeowners wanting to get a loan with less than 20% equity in the property? MOVE NOW, and be sure working with a professional loan officer who can properly analyze your individual situation and explain current market conditions. This is almost never the guy quoting the lowest interest rate or the guy answering the phone on some big lender 800 phone number.

Call me with any questions you have concerning the current market, but only for properties located in Mnnesota or Wisconsin.

Obama Making Homes Affordable Refinance program details

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Thu, 05 Mar 2009 09:59:57 -0600

Making Home Affordable Program

The Obama Administration unveiled the final details of its "Making Home Affordable Program," which is designed to help up to 9 million American families refinance or modify their loans to a payment that is affordable now and into the future.

One of the initiatives in this program is aimed at helping responsible homeowners "refinance" their loans to take advantage of historically low interest rates. Here are some common Questions and Answers about the Refinancing Initiative in the program.

REFINANCING INITIATIVE

Who is eligible? You may be eligible if:

You own and currently occupy a one- to four-unit home.
Your mortgage is owned or controlled by Fannie Mae or Freddie Mac.
You are current on your mortgage payments.
The amount you owe on your first mortgage is about the same or slightly less than the current value of your house.
And, you have a stable income sufficient to support the new mortgage payments.

How do I know if my loan is owned or controlled by Fannie Mae or Freddie Mac?

Simply call or email me. I'll help you determine if your mortgage is backed by Fannie Mae or Freddie Mac.

I owe more than my property is worth. Do I still qualify to refinance under the Making Home Affordable Program?

Eligible loans will include those where the first mortgage 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.

If I am delinquent on my mortgage, do I still qualify for the Refinance Initiative?

No. But the good news is, you may qualify for the Modification Initiative. Contact me to discuss your situation and review your options.

I have both a first and a second mortgage. Do I still qualify to refinance under Making Home Affordable?

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 for the Refinance Initiative.

Will refinancing lower my payments?

That depends. If your interest rate is much higher than the current market rate, you would likely see an immediate reduction in your payment amount.

However, if you are paying interest only on your mortgage, you may not see your payment go down. BUT... you will be able to avoid future mortgage payment increases and may save a great deal over the life of the loan.

What are the terms of the refinance and what will the interest rate be?

All loans refinanced under the plan will have a 30- or 15- year term with a fixed interest rate.

The interest rate will be based on market rates at the time of the refinance. Currently, interest rates are at historical lows, which makes this a good time to examine your refinancing options.

Will refinancing reduce the amount that I owe on my loan?

No. Refinancing will not reduce the principal amount you owe. However, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

Can I get cash out to pay other debts?

No. Only transaction costs, such as the cost of an appraisal or title report may be included in the refinanced amount.

How do I apply for the Refinance Initiative?

Call or email me today to discuss your specific situation and to examine your options. If this plan is right for you, we can begin working on your refinance immediately. PLEASE UNDERSTAND FULL DETAILS HAVE NOT YET BEEN RELEASED TO US, and while we will start taking applications, we will have to wait just a bit for full details and the program to be implemented internally.

As part of the discussion, we may need to look at the following information:

Recent pay stubs to help determine your gross (before tax) household income.
Your most recent income tax return.
Information about any second mortgage on your house.
Account balances and minimum monthly payments due on all of your credit cards.
Account balances and monthly payments on all other debts, such as student loans and car loans.

As always, if you have any questions or would like to discuss how this may specifically impact you, I'd be happy to sit down with you. Just call or email me to set up an appointment.

If you are a homeowner who is current on your mortgage payments but unable to refinance to a lower interest rate because your home value has decreased, you may be able to refinance.

Do I qualify for a Making Home Affordable refinance? Answer these questions:

Is your home your primary residence?
Do you have a Fannie Mae or Freddie Mac loan? If you don't know contact:
- Fannie Mae,
  - 1-800-7FANNIE (8am to 8pm EST).
  - www.fanniemae.com/homeaffordable
- Freddie Mac
  - 1-800-FREDDIE (8am to 8pm EST)
  - www.freddiemac.com/avoidforeclosure/
Are you current on your mortgage payments?
- "Current" means that you haven't been more than 30-days late on your mortgage payment in the last 12 months.
Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house?

IF YOU ANSWERED YES TO THESE FOUR QUESTIONS, YOU PROBABLY QUALIFY

Contact your local lender for more information

In MINNESOTA and WISCONSIN? You can Apply Online 24/7

FOR MORE INFORMATION, Visit www.FinancialStability.gov

$8000 Federal Tax Credit for First Time Home Buyers EXPLAINED

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Sun, 01 Mar 2009 07:08:54 -0600

Enhanced $8000 Federal Tax Credit Provides Outstanding Opportunity for First Time Home Buyers

$7500 tax credit for First Time Homebuyers, replaced with $8,000 TAX CREDIT to First Time Home Buyers

Washington has been busy lately. In one of the most rapidly approved bills in memory, the Housing and Economic Recovery Act was passed into law, and could have significant implications on the housing and mortgage industry. When Congress passed the housing rescue bill (The Housing Assistance Act of 2008) this past July, it included a new $7,500 tax credit for first time homebuyers. This has since been replaced with a NEW bill providing for an $8000 first time homebuyer tax credit!

In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.

$8,000 Home Buyer Tax Credit at a Glance

The tax credit is for first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Frequently Asked Questions About the Home Buyer Tax Credit

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

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. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

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.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

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?
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. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phase out limits.

Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase out to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Here's another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

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. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

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. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

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.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

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 with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.

I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

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.

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. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.
Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a down payment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

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 ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

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 phase out would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

But time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible

Obama Homeowner affordabilty and stability plan

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Wed, 18 Feb 2009 15:21:10 -0600

Obama Homeowner Affordability and Stability Plan- Executive Summary

The deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout the country.

Millions of responsible families who make their monthly payments and fulfill their obligations have seen their property values fall, and are now unable to refinance at lower mortgage rates.

Millions of workers have lost their jobs or had their hours cut back, are now struggling to stay current on their mortgage payments – with nearly 6 million households facing possible foreclosure.

Neighborhoods are struggling, as each foreclosed home reduces nearby property values by as much as 9 percent.

The Homeowner Affordability and Stability Plan is part of the President’s broad, comprehensive strategy to get the economy back on track. The plan will help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. In doing so, the plan not only helps responsible homeowners on the verge of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs. The key components of the Homeowner Affordability and Stability Plan are:

Affordability: Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices

Enabling Up to 4 to 5 Million Responsible Homeowners to Refinance: Mortgage rates are currently at historically low levels, providing homeowners with the opportunity to reduce their monthly payments by refinancing. But under current rules, most families who owe more than 80 percent of the value of their homes have a difficult time refinancing. Yet millions of responsible homeowners who put money down and made their mortgage payments on time have – through no fault of their own – seen the value of their homes drop low enough to make them unable to access these lower rates. As a result, the Obama Administration is announcing a new program that will help as many as 4 to 5 million responsible homeowners who took out conforming loans owned or guaranteed by Fannie Mae or Freddie Mac to refinance through those two institutions.

Reducing Monthly Payments: For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year:

Consider a family that took out a 30-year fixed rate mortgage of $207,000 with an interest rate of 6.50% on a house worth $260,000 at the time. Today, that family has about $200,000 remaining on their mortgage, but the value of that home has fallen 15 percent to $221,000 – making them ineligible for today’s low interest rates that now generally require the borrower to have 20 percent home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% – reducing their annual payments by over $2,300.

Stability: Create A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners

Helping Hard-Pressed Homeowners Stay in their Homes: This initiative is intended to reach millions of responsible homeowners who are struggling to afford their mortgage payments because of the current recession, yet cannot sell their homes because prices have fallen so significantly. Millions of hard-working families have seen their mortgage payments rise to 40 or even 50 percent of their monthly income – particularly those who received subprime and exotic loans with exploding terms and hidden fees. The Homeowner Stability Initiative helps those who commit to make reasonable monthly mortgage payments to stay in their homes – providing families with security and neighborhoods with stability.

No Aid for Speculators: This initiative will go solely to helping homeowners who commit to make payments to stay in their home – it will not aid speculators or house flippers.

Protecting Neighborhoods: This plan will also help to stabilize home prices for all homeowners in a neighborhood. When a home goes into foreclosure, the entire neighborhood is hurt. The average homeowner could see his or her home value stabilized against declines in price by as much as $6,000 relative to what it would otherwise be absent the Homeowner Stability Initiative.

Providing Support for Responsible Homeowners: Because loan modifications are more likely to succeed if they are made before a borrower misses a payment, the plan will include households at risk of imminent default despite being current on their mortgage payments.

Providing Loan Modifications to Bring Monthly Payments to Sustainable Levels: The Homeowner Stability Initiative has a simple goal: reduce the amount homeowners owe per month to sustainable levels. Using money allocated under the Financial Stability Plan and the full strength of Fannie Mae and Freddie Mac, this program has several key components:

A Shared Effort to Reduce Monthly Payments: For a sample household with payments adding up to 43 percent of his monthly income, the lender would first be responsible for bringing down interest rates so that the borrower’s monthly mortgage payment is no more than 38 percent of his or her income. Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent. If that borrower had a $220,000 mortgage, that could mean a reduction in monthly payments by over $400. That lower interest rate must be kept in place for five years, after which it could gradually be stepped up to the conforming loan rate in place at the time of the modification. Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.

“Pay for Success” Incentives to Servicers: Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. They will also receive “pay for success” fees – awarded monthly as long as the borrower stays current on the loan – of up to $1,000 each year for three years.

Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.

Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.

Home Price Decline Reserve Payments: To encourage lenders to modify more mortgages and enable more families to keep their homes, the Administration -- together with the FDIC -- has developed an innovative partial guarantee initiative. The insurance fund – to be created by the Treasury Department at a size of up to $10 billion – will be designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Holders of mortgages modified under the program would be provided with an additional insurance payment on each modified loan, linked to declines in the home price index.

Institute Clear and Consistent Guidelines for Loan Modifications: Treasury will develop uniform guidance for loan modifications across the mortgage industry, working closely with the bank agencies and building on the FDIC’s pioneering work. The Guidelines will be used for the Administration’s new foreclosure prevention plan. Moreover, all financial institutions receiving Financial Stability Plan financial assistance going forward will be required to implement loan modification plans consistent with Treasury Guidance. Fannie Mae and Freddie Mac will use these guidelines for loans that they own or guarantee, and the Administration will work with regulators and other federal and state agencies to implement these guidelines across the entire mortgage market. The agencies will seek to apply these guidelines when permissible and appropriate to all loans owned or guaranteed by the federal government, including those owned or guaranteed by Ginnie Mae, the Federal Housing Administration, Treasury, the Federal Reserve, the FDIC, Veterans’ Affairs and the Department of Agriculture.

Other Comprehensive Measures to Reduce Foreclosure and Strengthen Communities

Require Strong Oversight, Reporting and Quarterly Meetings with Treasury, the FDIC, the Federal Reserve and HUD to Monitor Performance

Allow Judicial Modifications of Home Mortgages During Bankruptcy for Borrowers Who Have Run Out of Options

Provide $1.5 Billion in Relocation and Other Forms of Assistance to Renters Displaced by Foreclosure and $2 Billion in Neighborhood Stabilization Funds

Improve the Flexibility of Hope for Homeowners and Other FHA Programs to Modify and Refinance At-Risk Borrowers

Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac:

Ensuring Strength and Security of the Mortgage Market: Today, using funds already authorized in 2008 by Congress for this purpose, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability.

Provide Forward-Looking Confidence: The increased funding will enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.

Treasury is increasing its Preferred Stock Purchase Agreements to $200 billion each from their original level of $100 billion each.

Promoting Stability and Liquidity: In addition, the Treasury Department will continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities to promote stability and liquidity in the marketplace.

Increasing The Size of Mortgage Portfolios: To ensure that Fannie Mae and Freddie Mac can continue to provide assistance in addressing problems in the housing market, Treasury will also be increasing the size of the GSEs’ retained mortgage portfolios allowed under the agreements – by $50 billion to $900 billion – along with corresponding increases in the allowable debt outstanding.

Support State Housing Finance Agencies: The Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving homebuyers.

No EESA or Financial Stability Plan Money: The $200 billion in funding commitments are being made under the Housing and Economic Recovery Act and do not use any money from the Financial Stability Plan or Emergency Economic Stabilization Act/TARP.

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

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Fri, 13 Feb 2009 17:39:29 -0600

$8000 FIRST-TIME HOMEBUYER TAX CREDIT

As Modified in the American Recovery and Reinvestment Act

Major Modifications Shaded - February 2009

SIGNED INTO LAW

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 FIRST TIME BUYER NEEDS.

Down you have limited down payment funds? Do you need a zero downpayment type program? YES YOU CAN buy a home in 2009 with JUST $100 DOWN.

Visit www.just100down.com to learn all about the HUD Repo program.

The Joe Metzler Team at Mortgages Unlimited Inc. lends for properties in Minnesota, Wisconsin, and Florida. Apply online at www.JoeMetzler.com

Current vs Pending Home Buyer Tax Credit Details

Joseph Metzler MMS UMB (Mortgages Unlimited, Inc) — Sat, 07 Feb 2009 08:18:46 -0600

Home Buyer Tax Credit BILL vs Current Home Buyer Tax Credit

Prepared February 5, 2009 - Subject to Change

FEATURE	CURRENT LAW	HOUSE VERSION H.R. 1	SENATE VERSION (Isakson-Lieberman Amendment)
Amount of Credit	Lesser of 10 percent of cost of home or $7500	Same as current law	Lesser of 10 percent of cost of home or $15,000, but only for purchases beginning the date the President signs bill.
Eligible Property	Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence	Same as current law	Same as current law
Refundable	Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.	Same as current law	No. The credit can reduce tax liability to zero, but if purchaser's tax liability is less than the amount of the credit, the unused portion is not refunded to purchaser.
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, respectively).	Same as current law	None.
First-time Homebuyer Only	Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase	Same as current law	No. All purchasers, not just first-time homebuyers, are eligible for credit.
Recapture/Repayment	Yes. Portion (6.67% of credit) to be repaid each year for 15 years, starting with 2010 tax filing. If home sold before 15 years, then remainder of repayment amount recaptured on sale.	Yes and No. Repayment will apply to 2008 purchases. For 2009 purchases, the credit will not be repayable UNLESS the home is sold within three years of purchase.	Yes and No. For 2009 purchases, the credit will not be repayable UNLESS the home is sold within two years of purchase. Repayment will continue to apply to all 2008 purchases and 2009 purchases before date of enactment.
Effective Date	Purchases on or after April 9, 2008. Repayment to begin for 2010 tax year (return filed in 2011.)	Repayment elimination applies only to 2009 purchases	$15,000 amount and repayment feature effective as of date of enactment (date of President's signature).
Termination	July 1, 2009	July 1, 2009	September 1, 2009
Interaction with Alternative Minimum Tax (AMT)	Can be used against AMT, so credit will not throw individual into AMT.	Same as current law	Same as current law
Allocation Election (Utilizing the credit over 2 years rather than only in the year of purchase)	No provision	No provision	A purchaser can make an election to take the credit over 2 years. If the purchaser makes this election, the amount claimed must be the same in both years.

Down you have limited down payment funds? Do you need a zero downpayment type program? YES YOU CAN buy a home in 2009 with JUST $100 DOWN.

Visit www.just100down.com to learn all about the HUD Repo program.

The Joe Metzler Group at Mortgages Unlimited Inc. lends for properties in Minnesota, Wisconsin, and Florida. Apply online at www.JoeMetzler.com