The first time buyer tax credit of up to $8000 is approaching the deadline.  Will they let it expire or extend?  The official word at this time is that it is done at the end of April.  So, what if you want to buy a home but don't have a lot of resources? We MAY have the solution.  The Minnesota Home Ownership Center has created a couple of PDF's that feature a number of available programs.  There may be more as well-some tied to specific cities.  I would encourage you to review the guidelines of available programs and then call us.  We may not be able to help you with all of them, but we would be able to help you find the home to purchase with John Mazzara as your Realtor. 

The Minnesota Home Ownership Center is AWESOME!!  They have many resources.  Here is their compilation of programs.  Remember, we access to more programs besides what is listed here. 

http://www.hocmn.org/Stock/Editor/file/Matrix/AffordableLoanMatrix_Feb2010.pdf

http://www.hocmn.org/Stock/Editor/file/Matrix/EntryCostMatrix_Feb2010.pd

If you want to find a mn home or set up a Minneapolis Online search, click on the banner below

When you watch and digest the information below, you will soon see why people are mad as hell and cynical.  It appears that the way part of the bailouts were structured, certain companys were able to have a FDIC guarantee against a loss. Was this the best way to structure the deal with the government-You decide.

 Might there have been a BETTER way to solve our mortgage mess?  Now the FDIC is back looking for more government dollars because they are running out of money. 

http://www.thinkbigworksmall.com/mypage/archive/1/29027

Refinance your edina mortgage with us by filling out an online application.  Of course, if you live anywhere else in MN, we'd love to help you with your loan as well.  As a minnesota mortgage broker, Venture Development can provide financing for homes throughout the State of Minnesota.

Search for Minnesota Homes

On a rate and term basis-meaning just changing one or both of these variables we can STILL refinance your loan.  If it saves you money, you should consider doing something SOON as the government has said they will stop "subsidizing" mortgages by keeping rates low. 

VA loans go to 90%

FHA can go up to approximately 98%

PRIVATE/PORTFOLIO LENDERS can go up to 90% EVEN ON MN JUMBO LOANS TO 900K

HERE ARE THE PROGRAM GUIDELINES-WHICH ARE ALWAYS SUBJECT TO CHANGE:

 THESE ARE THE SOME OF THE GUIDELINES TO THE PROGRAM I HAVE REFERENCED

1st Mortgage Refinances 80.01% - 90.00% LTV & No MI
Benefits and Highlights: - No mortgage insurance required regardless of LTV - Comparable monthly payments - Pay off all mortgage debts without an increase to rate - Debt consolidation (max $20,000 of non-mortgage debt) - Scores down to 650 - One day off the MLS available - No fee Escrow available Restrictions: - Primary residence only - 2+ years time in home required - No cash back/cash in hand allowed
Maximum Loan Amounts Available at 80.01-90.00% LTV Property Type 750+ score 700-749 score 680-699 score 650-679 score SFR, Duplex, Townhome, Modular $800,000 $675,000 $500,000 $350,000 Condo (<9 stories), 2-flats, row homes $550,000 $500,000 $350,000 $250,000

Begin your MN home mortgage loan application at our MN mortgage site.

Under the new law-Worker, Homeownership and Business Assistance Act which is now a new law as of November 2009, individuals and there spouses who serve on qualified extended-duty service outside the country for at least 90 days between January 1st, 2009 and April 30th 2010 with have an extra twelve month to buy and close on a home in order to take advantage of the tax credit.  So, they would have to buy a new house by April 30th, 2011 and close on this home within a 90 day time frame. 

Another cool twist is that the veteran won't have to pay back any of the credit if he/she has to move at least 50 miles away for new deployment that will be expected to last 90 days or longer. 

To find out more benefits for Minnesota Veterans visit Minnesota Veteran Loans

To begin a Minnepolis St Paul Home search go to Minneapolis Real Estate

Should You Be a Borrower or Lender? The Return of the Personal Loan

As lending requirements stay relatively tight for most consumers, the chance of borrowing outside the banking system from family or friends can be attractive. After all, it's rare to see a parent or sibling demand a credit check or other lengthy documentation.

On the other hand, it could be one of the most dangerous financial transactions you ever make simply because money can drive a wedge between relatives in even the closest of families.

There are good and bad aspects to private loans. The good news first:

• Terms can be significantly friendlier than a borrower would qualify for in the open market. For example, the rate charged on the loan can be higher than the lender would receive in a deposit account but lower than the borrower would pay a commercial lender.
• They can require little or no collateral.
• It's a way to keep money in the family.
• It's a way for a borrower to be able to buy a home, a car or other critical assets even if they have a poor credit rating.
• There's no loss of tax benefits to the borrower or lender if an agreement in the case of a mortgage loan is structured and reported properly.

Now the bad news

• Unclear agreements can lead to missed payments or default.
• If the borrower dies suddenly, the lender's investment may be lost if the agreement isn't structured correctly. A properly executed promissory note is still an obligation of the estate, and may continue to be paid to an heir or other person or entity based on the terms as agreed.
• Jealous relatives could say they weren't treated fairly.
• Disagreements between borrower and lender could kill an important relationship.

The best arrangements are formal - written in proper legal language, notarized and recorded in the county where the property resides. A financial advisor such as a CERTIFIED FINANCIAL PLANNER^TM professional can talk to both parties about what such loans - particularly large loans for real estate or tuition - can mean for their respective finances. It also makes sense for both parties to visit their respective tax professionals to make sure they know the correct ways to document the loan transaction over time for tax purposes.

 A detailed document prepared with the help of an attorney or a certified public accountant can also lay out specific scenarios if either the borrower or the lender has to break or alter their agreement. Such trained experts can talk you through the benefits and pitfalls of a private loan arrangement as it affects your particular situation (either as lender or borrower) and specific laws and requirements in your state you have to follow if both borrower and lender are going to derive tax advantages from the agreement.

You should be aware that the IRS governs these interest rates and provides an annually updated table that you can get at http://www.irs.gov/app/picklist/list/federalRates.html - these rates are Applicable Federal Tax Rates (AFR).  You can also forgive a portion of the loan each year up the annual gift exclusion which is $13,000 this year.

Generally, any private loan transaction should include a promissory note that establishes how the debt will be repaid. That's true for business loans or loans for most types of property. In the case of a business loan, it makes sense for the potential borrower to get specific advice on how lenders in their business will be treated not only in terms of repayment, but default. These agreements are particularly important for tax purposes as well.

In the case of a loan made for real estate, a mortgage or "deed of trust" statement (depending on the state you live in) or an agreement specific to the type of loan that binds the property as collateral for the promissory note will be necessary. It basically says that if you don't fulfill all the terms in the agreement the lender has the right to foreclose or repossess the property.

Even if a friend or relative makes an offer of help, it's proper for the borrower to take the initiative to structure the arrangement in a way that's responsible and beneficial to both. If a relative is drawing income from the loan, special provisions should be made for prepayment and other contingencies.

The most important thing to remember and plan for? When two people who are close to each other enter into such an arrangement, the most valuable thing really isn't the money. It's the relationship.

February 2010 - This column is produced by the Financial Planning Association, the membership organization for the financial planning community, and is provided by John Mazzara CFP http://www.Investments.mn  952-929-2577, a local member of FPA.

If you want to pursue investment property and need a hard money or private loan, we have outlets. For Twin Cities mortgage financing visit our MN mortgage site or visit our mn homes site to set up your MN MLS online search

The Clock is Ticking!
Time is Running Out for Significant Savings!

Attention home buyers! Waiting to buy a home could cost you nearly $20,000 or more over a seven-year period if you time your purchase incorrectly. While the actual impact will vary depending on purchase price, the impact will certainly be significant because of stimulus programs scheduled to end in the coming months.

Economic turmoil and the real estate bubble have created significant opportunity for all those seeking to capitalize on the situation at hand. YOU Magazine will address the real estate purchase market and what people interested in both buying and selling a home need to know this month to take advantage of the current market conditions.

We also consulted with Michael J. Maher of "The Maher Team," one of the busiest agents in the country who sold 216 homes in 2009. With a degree in mathematics, he knows his numbers and the impact on both buyers and sellers.

As little as a few years ago, it would have almost been incomprehensible to expect that actions from Washington would impact decisions involving the purchase and financing of real estate. Well, that was then and this is now and the decisions people make or don't make stand to impact wallets across the country.

Before You Buy - Things to Consider
The pressure is on to buy in the first quarter of 2010, so what should buyers focus on before pulling the trigger? Maher recommends that buyers focus on three things that are either expensive to fix later or unable to change without buying another home. His three primary areas to focus on are what he calls the three Ls: "Location, Lot and Layout."

When considering location, use technology like GoogleMaps^TM before visiting a home to save both time and gas. Mapping allows you to view the property from different angles, see if the home is on a busy street, or if it offers the other requirements you need. For example, if you need a large yard where the kids or dogs can play, a tool like GoogleMaps^TM will help you eliminate some homes immediately.

While it is relatively easy to get caught up in the aesthetics, don't do it. Overlook items you can change later like paint, carpet and other cosmetic details. Narrow your focus down to two or three homes and "all things being equal, focus on location, lot and layout."

Selling a Home?
If you are selling a home and want to make sure you can get it off the market for time crunched buyers, remember that today is what Maher calls a "price war beauty contest." Sellers need to be focused on having their home priced competitively and making it most appealing upon inspection. Sellers also should consider paying for a home warranty to alleviate any concerns cash-strapped buyers may have about paying for repairs after closing.

More than anything else for both buyers and sellers this year, Maher suggests that people not let the money savings opportunities pass them by. "Anyone that qualifies is in a no-lose situation - they are buying at the bottom of the market, economically, historically, seasonally, market-wise and interest rate-wise. The perfect storm has arrived and the pearls and treasures have floated to the surface."

Gifts from the Federal Reserve Are on the Clock

MBS Purchase Program
Mortgage rates have been artificially low the past fourteen months due to assistance from the Federal Reserve and their mortgage backed securities purchase program. Regardless of the expert, when asked what the impact has been to lowering rates, the range is from 0.50-1.00% or potentially more. The Federal Reserve reiterated in its January statement that they will be ending the program on March 31st.

While it is uncertain to what degree interest rates will immediately rise starting April 1st, the overwhelming trend will be higher. Many experts are predicting that rates will start to rise in advance of April 1st.

Tax Credit For Minnesota Buyers
Low mortgage rates are not the only stimulus program ending in less than three months. Credited for boosting a major share of home sales at entry level, first time home buyers have been taking advantage of a tax credit of up to $8,000 for over a year.

Repeat purchasers were also given incentive in November with the availability of up to $6,500 in post-closing cash. Tax credit qualifying buyers have until April 30th to get under contract and must close by June 30th. If home buyers miss either date, it will be a costly one.

HUD and the FHA Tighten Up
HUD announced in January that the upfront costs to obtain an FHA mortgage are going up for any applications received April 5th or later. The cost of the up-front mortgage insurance premium (MIP) will increase for all case numbers effective April 5th by 0.50%, from 1.75% to 2.25%.

What Waiting Will Cost You
The costs of missing out on the combined incentives add up quickly for those who fail to act by the deadlines. The first incentive scheduled to end will impact buyers on a monthly basis in the form of higher monthly payments. On a $200,000 mortgage, a 1.00% increase to interest rates could increase a monthly payment by $125 a month or $10,500 over a seven-year period. Obviously, the longer the loan remains in place, the greater the impact of the potential loss.

The second potential loss that will be incurred would be waiting to obtain a mortgage guaranteed by the FHA. In the same example of borrowing $200,000, the upfront cost would be an additional $1,000, or .50% of the amount borrowed. While this cost may be financed, the impact to a monthly payment would also be an increase of approximately $5 a month and have to be accounted for later upon the sale of the property.

Finally, the third potential cost in waiting will be the end of the tax credit for qualified buyers of a primary residence, up to $6,500 for repeat buyers and up to $8,000 for first time home buyers.

Add all this up and the cost of choosing to wait could run up to nearly $20,000 or more depending on the purchase price of a home and the type of mortgage applied for. So, even if someone believes that home prices may fall from where they are today, even with a modest decline in price, the cost of waiting could outstrip any benefit of finding a home for less.

What should you do next.  Visit Minneapolis Homes and Minneapolis Mortgage and begin your home search and mortgage prequalification process.

Those Who Wait Will Pay Thousands More This Spring

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

There is only one way to avoid being affected by all of these costly changes that lie ahead - submit all FHA mortgage applications by the last week of March.

If I can answer any questions you may have about how these changes could impact you, call me. I appreciate your business.

Sincerely,

Patti Mazzara
Venture Development
(952)285-4319
consultpatti@aol.com

Edina Mortgage broker

Yes-at least for now-it IS possible. It IS also available for first time buyers.  If FHA is not an option or you want to contrast it with conventional option, consider this loan.  Interest rates-which change daily and by the minute-were recently advertised at 3.75% for a 5/1 ARM.   Imagine that payment!!

Here are some of the qualifying criteria:

95% financing maximum in one loan

1st Time buyers OK

700 minimum Fico score

Single Family and PUD's ONLY

41% maximum debt ratio

2 months of buyer payment reserves required

Seller CAN pay up to 3% of the closing cost

It this loan sounds interesting, give us a call.  Outside the box thinking gets loans done.  We provide mortgage financing in Minnesota only.   Twin Cities Mortgage broker --Venture Development

I received an interesting email today from one of our lenders announcing the COMBO 1st/2nd mortgage was back!!! Wow-this means avoiding the mortgage insurance and their onerous underwriting.  Here is a sneak preview of the terms.  Call us about YOUR situation- Minneapolis mortgage broker

Criteria:  Subject of course to changes at any time!!!

Must be a 2nd mortgage used in conjunction with a purchase-payment is set at 1% of the outstanding balance

Maximum 85% CLTV-(combined loan to value) Some states are set at 75 0r 80%.  We only provide MN loans, so check to see where the program is at.

Maximum loan of 250K and all loans about 80% are subject to a current dollar advance limit

700+ middle credit score

Maximum Debt to income ratio of 45%

All appraisals must be ordered from the lender's approved appraisal company.

Will this loan work for everyone-NO.  But is shows that lenders are assessing the market and willing to begin to get creative again.  To me, it represents that the lenders feel that values have bottomed out.  This is the first time I've seen second mortgages advertised by a lender in about 2.5 years!!