The details of the "Obama Refinance Program" AKA The Home Affordable Refinance Program have been released. There are two different versions of the plan and depending upon who your servicer is there are different components to each. One is for Freddie Mac serviced loans and the other is for Fannie Mae serviced loans. I have provided links to both for you below to see if you are eligible for either program.
The information below provides an overview of the current program guidelines. This program is new as of April 1st 2009 so be aware that they are subject to change.
Program Description
Freddie Version
Streamline rate/term refinance from Freddie to Freddie transactions to help:
Reduce the interest rate of your 1st mortgage
Replace an ARM, Int Only or Balloon to a fixed rate
Reduce the term of your current mortgage.
* The new loan cannot have a longer term than the original mortgage.
Fannie Version
Streamline rate/term refinance from Fannie Mae to Fannie Mae transactions to help:
Reduce mortgage payments
Obtain a more stable mortgage product
Ineligible existing first mortgages
Freddie Version
FHA, VA or Rural Housing (USDA Loans)
Loans over $417,000
Loans with current mortgage insurnace
Non Prime Loans
ALT-A Loan
Loans with Mortgage Insurance
* The program currently is not available to for loans with MI but may be offered at a later date.
Fannie Version
FHA, VA or Rural Housing (USDA Loans)
Loans over $417,000
Loans with current mortgage insurance
Reverse mortgages
Second Mortgages
Other exclusions may apply
Max Loan to Value or CLTV
Freddie Version
105% LTV
Unlimited TLTV/CLTV
Fannie Version
105% LTV
Unlimited TLTV/CLTV
Loan Amount
New loan Amount is limited to:
Freddie Version
Payoff of the first mortgage balance and accrued interest.
All closing costs, financing costs, prepaids and escrows cannot exceed $2500
You may not receive cash back at closing.
Fannie Version
Payoff of the first mortgage balance and accrued interest.
All closing costs, financing costs, prepaids and escrows up to 105%
You may not receive cash back at closing.
Property Types
Freddie Version
1 to 4 unit
Condos
Cooperatives
PUD's
Fannie Version
1 to 4 unit
Condos
Cooperatives
PUD's
Occupancy
Freddie Version
1 to 4 unit primary and investment properties.
1 unit second homes
Occupancy must not have changed from mortgage being financed
Number of financed properties may be limited.
Fannie Version
1 to 4 unit primary and investment properties.
1 unit second homes
Occupancy must not have changed from mortgage being financed
Number of financed properties is NOT limited.
Credit Requirements
Freddie Version
No Minimum score required except 620 minimum credit score if the new loan payment is 20% more than current P&I Payment.
No bankruptcy orforeclosures allowed.
No 30 day late payments in the last 12 months.
Fannie Version
No Minimum score required
No 60 day late payments in the last 12 months
Bankruptcy or foreclosure restrictions may apply.
Secondary Financing
Freddie Version
Must be re-subordinated
No replacement financing
Secondary financing cannot have an increase in balance.
Fannie Version
Must be re-subordinated
No replacement financing
Mortgagors
Freddie Version
New borrowers cannot be added
borrowers on original loan may be removed in limited circumstances only.
Fannie Version
New borrowers may be added as long as the original borrower(S) are on the loan.
borrowers on original loan cannot be removed.
Mortgage Insurance
Freddie Version
If the existing loan does not have MI then MI will not be required on the new loan.
Fannie Version
If the existing loan does not have MI then MI will not be required on the new loan.
To find out if your property is eligible for either program click the links below
You might think that passing a referral to a Visitor or Perspective Member may be a good thing but think again.
Have they been screened? Have their references been checked? No! Are you taking a risk at your reputation and that of your BNI Chapter when you refer to someone you don't know? Yes!
Isn't it one of the exclusive rights of your BNI Membership to get and receive referrals? You've committed time money and energy to get these referrals. How do you feel abut giving them away to someone who hasn't yet made that commitment back?
Here's another way you could handle it. Say "I have a referral for a prospective member today, which I will give once you have been approved for membership in our chapter. You have just shown the visitor your willingness to to share business but you have made it clear that you need commitment in turn from them. After all, why buy the cow when you can get the milk for free?
Try it out and I'll bet your closing percentage on your Visitors will absolutely increase and your Visitors will respect that fact the the referrals passed by your members are quality referrals.
1) Have they been in business for a year? Sure BNI says this only have to be in business for a year, but you know what? I only want the best professionals in my BNI Chapter.
2) Do they attend networking events? We want members with outgoing personalities
3) Are they willing to introduce their clients, and friends? BNI is not about catching a referral falling from a tree it's about farming.
4) Can they handle a 20% growth in their business? There are actually BNI members who do not want to growth their business . . .
5) Do they talk/have a conversation with 50 people a week? They need to meet enough people with whom they can have conversations where the chance of a referral can pop up
6) Do they abide by a code of ethics? You would be astounded by how many business people do not have a code of ethics . . .
7) Are they willing to change vendors? If you build trust with the members, you should be willing to change vendors both for yourself and your clients.
8) Are they willing to invite their vendors to a BNI meeting? If they love thier vendor so much, they should be willing to introduce them to other professionals.
9) Do they attend monthly/yearly training classes? IF they are not willing to grow personally and professionally they are missing a lot of what BNI has to offer.
10) Are they willing to have a fun time and make money for other people? IT'S ALL ABOUT GIVER'S GAIN
With all of the bank owned properties out there it is really important to make sure that you read the fine print on some the bank owned property purchase agreement addendum's. You don't want your clients to be surprised when they get to the closing table that they need hundreds of extra dollars that they weren't expecting. This is the verbiage that is in the purchase agreements you need to be aware of.......
"Regardless of local custom, requirements for practice and notwithstanding anything to the contrary in the contract of sale or any other addenda, seller will not pay any fees, costs, or expenses not expressly provided for in this addendum."
If you see this phrase in a purchase agreement seller's addendum, it means the seller (or bank)will NOT pay any customary sellers fees (Like Seller Title Fees) which can up the buyer's responsibility by anywhere from a few hundred dollars to over a thousand dollars.
There are some newer agents out there that don't understand this verbiage and allow their buyers to sign these counter-addendum's without realizing the consequences. We want those agents to be aware of what this means for the buyer before they sign it. Many buyers are purchasing a home on FHA financing with very little money down and don't have the extra funds to pay for these customary seller fees. There's not much that we as lenders can do because by the time we get a fully-executed purchase agreement on our desk, the buyer has already signed and agreed to those terms without understanding that the seller will not pay for them and will also not allow them to be paid for as part of the agreed "seller paid closing costs".
We have had some buyers sign purchase agreements lately without fully understanding what this means and when the file gets to us, we have to explain to them that they need to come up with more money for closing to cover the normal seller related fees. We'd like to catch this before it gets that far and save alot of headache to the buyers agent, the listing agent and the buyer.
Most of you are already aware of this but for some of you that were not aware this information may save you some unnecessary problems.
Sometimes we see people, both BNI members and non-members being miserly with their business cards. We have a saying in BNI that says: Your business card is worthless until it is the hand of either a potential client, or someone who is in the position to refer business to you. You have produced your business cards for a reason. They are to let people know your name, your business and most importantly, how to get in contact with you. So be plentiful with your business card. Is there anything more ridiculous than someone saying or thinking I won't hand out my business card to these people, because then I'll have none left.
That is the point of having them in the first place, to get them out in circulation! When they are sitting in your wallet, they're just pieces of cardboard, when they're out in circulation, they are marketing tools.
As an exercise at your next meeting, take a look at how many of your business cards are in the chapter card box. If you have none in there, you are really doing yourself a disservice. People can't refer you anywhere near as effectively without your card as they can by giving it to a potential client. If you have less than ten in the box, chances are there will be next to none left in there next week, so re-stock today. If there are between 15 and 20 copies of your card in the box, well done! You've been watching your stocks.
Finally, look at your BNI card file. Have you got at least two copies of everyone's else's card in there? If you haven't, re -stock it. Business cards are there so that you can carry every member's card with you pretty well everywhere you go.
Good networkers are ready to generate referrals anywhere, anytime. Having business cards ensures that you can make a great referral, not just mention someone's name.
Here is information pertaining to new Homebuyer Tax Credit that was recently passed by the Congress.
While that has not yet been signed by the President, I wanted you to have this important information as soon as possible.
FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications in Bold.
February 2009
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
If you are interested in a home loan contact Shawn Gerhardson with Mortgages Unlimited.
100% Financing is available on this home to qualified buyers. If you are interested in a home mortgage on this or any other homes in Minnesota contact Shawn Gerhardson with Mortgages Unlimited.
Charming home on cul-de-sac surrounded by woods wildlife. You will be impressed with the beautiful landscaping & views from the west facing deck. Roses, lavender, and other gorgeous perrenials abound! Tucked away...a bit of a country on the south side of town. You will be impressed with everything this home and neighborhood have to offer!
Features List
3 Bedrooms
3 Car Garage
Finished up and down
West facing deck
Neutral decor
Beautiful sunsets!
Gorgeous landscaping
Hardwood Floors
Cul De Sac
Vaulted Ceilings
City water and sewer
Pond view
Country Setting
Wildlife abounds!
Great neighborhood
Roses and Lavender
Equal Housing Opportunity.
CENTURY 21 Moline Realty : 202 S. Main Street - Cambridge MN 55008 : 763-689-3593
100% Financing is available on this home to qualified buyers. If you are interested in a home mortgage on this or any other homes in Minnesota contact Shawn Gerhardson with Mortgages Unlimited
This beautiful two story wood sided home is set at the back of 11.6 acres. Previously the home of some horses, you'll love it here. Sit on your deck and watch the boats speed across Rush Lake, or enjoy the sway of the breeze through the trees. Hidden from the road, tons of privacy for you here. Pergo floors, central air, and a gas fireplace/stove for cozy fires on those cold nights. A dream come true.
Features List
11.6 acres
Central air
Propane heat
Fencing
Horse shelter
3 car garage
Pergo floors
Two story
Walkout basement
Master suite
Gas fireplace/stove
Stove
Dishwasher
Rush Lake view
Easy commute
Nearly 3,000 sq ft
4 bedrooms
3 bath
Equal Housing Opportunity.
Northern Lights Realty : Mora MN 55008 : 320-225-2600
Financing is available on this home to qualified buyers. If you are interested in a home mortgage on this or any other homes in Minnesota contact Shawn Gerhardson with Mortgages Unlimited.
Beautiful property here!! Large garden area and nice views of Horseshoe Lake. Three bedrooms and main floor bath with a shower in lower level walkout. Formal Dining with Patio doors to nice deck overlooking lake.
Features List
Over 6 Ac's
On Horseshoe Lake
Beautiful gardens
3 Bedrooms
Walkout Lower Level
Forest Lake Schools
New Roof
12x9 Shed
Very Private
Close to I35
20 Min. to Cities
Equal Housing Opportunity.
ERA Muske Company : 21329 Heath Avenue Court N - Forest Lake MN 55025 : 651-982-1217
100% Financing is available on this home to qualified buyers. If you are interested in a home mortgage on this or any other homes in Minnesota contact Shawn Gerhardson with Mortgages Unlimited.
Earn equity with this home. 3 Bedroom Rambler/Walkout on 3 acres close to I-35. Full basemen is sheetrocked and ready to be finished. Home features Laminate floors in Living Room, Main floor laundry, Deck, Patio, gorgeous flower gardens and landscaping. Detached pole shed plus 2-car attached garage.
Features List
3 BDR one level
3 Acres
2 Baths
Unfinished Basment
Close to I-35
Large Walk-in Closet
Laminate Floors
Main Floor Laundry
Perenials
Patio and Deck
2 Car Garage
Landscaping
Cozy & Comfortab
Equal Housing Opportunity.
Minnesota Real Estate Group : 217 Main Street S - Pine City MN 55063 : 320-629-8030
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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