The Pendulum

Last weekend there may have been a very quiet turning point in the Real Estate and Mortgage situation. I have always said that there is a pendulum that swings both ways. For a while the rules relax until it goes too far. We have seen the latest results of that. Then it goes back the other way. The rules just tighten and tighten. Maybe we got close to the end of that last week. That is when we saw a little relaxing of the PMI rules for loan approval of high LTV loans. We can hope any way.

There is 30 days left before you have to have a contract accepted if you want to qualify for the tax credits. No pressure!

I am going to keep talking about the tax credits for the next 37 days. That is how long you or one of your friends or relatives has to get a home under contract. It is not just a first time buyer thing ( don't forget a first time buyer is someone who has not owned a principal residence in the last three years). There is also the $6500 credit for the move up buyer. And this person does not have to sell the existing home. I the case of the first time buyer, we can get the buyer in the home for zero cash and then he or she will get the tax credit back in cash to put in savings or to do whatever with. I recommend savings until they get use to owning a home.



This is a link that will answer a lot of questions. Let me know if I can help.

http://www.federalhousingtaxcredit.com/

I ranted on the new licensing system last week, but today I can point out some positives. Actually I believe I and my company were innocent of most of the sub-prime problems that our nation is enduring. We have traditionally recommended and closed conforming conventional loans and government loans for years. Not to say that we never closed a sub-prime loan. We did a few but I can safely say my clients knew what they were getting. Since we have passed the test I learned that the consumer will be able to look up mortgage originators and see if they have complaints against them. The database is just starting, but it will be good when the data rolls in. At least it is good for those with a clean bill of health. I have been advertising my license number on the videos. Turns out that is the state not federal number. But you can look me up easily by just typing in the name.


The web site is;

http://mortgage.nationwidelicensingsystem.org/profreq/testing/Pages/default.aspx

Now with all that said. You or someone you know needs to buy a house. Folks that get an FHA loan will find the mortgage insurance higher if we have not ordered an appraisal by April 5th. It is significant (a thousand bucks added to the loan on a $200,0000 loan. So the time is now.

Check the video out for a chance at a free gift card to O'Charleys'.

Starting Sunday afternoon Carolyn, Daniel and I spent 20 hours in class preparing for our Safe Exam. That is a test that our great leaders in Washington have devised for mortgage originators. It sound good and we covered a lot of good material (although it was mostly review for us). There are a lot of people that really need it. Unfortunately there is a giant flaw in the program. The originators that work for the banks (that's the guys with all the lobbying money and clout ) are exempted from the whole thing. So if you want a loan from someone who has not had the training and maybe went to work at a place specifically so he could avoid the testing, call your local bank originator.

I know you guys think I am a broken record.......but the tax credits expire in about 8 weeks. You have to have a completed contract in place by April 30 and it must be closed by June 30.

If you remember there is a $6500 credit for a move up buyer. This buyer has to have lived in their present home for 5 years. He does not have to sell it
The first time buyer is defined as someone who hasn't owned a home in 3 years.
Here is a web site to answer questions or feel free to call or e mail me by hitting the reply button.

http://www.federalhousingtaxcredit.com