Does Fannie or Freddie Own Your Loan?

The Homeowner Affordability and Stability Plan recently passed by President Obama, which became effective March 4th, focuses on homeowners looking to refinance into a more stable loan but currently unable to due to declining property values.

The plan focuses solely on homeowners whose loan is owned by Fannie Mae or Freddie Mac. The links below will help you get started.

http://loanlookup.fanniemae.com/loanlookup/

https://ww3.freddiemac.com/corporate/

Determining the amount owed on the 1st mortgage is important as the plan will allow homeowners, who currently own up to 105% of the current market value of their property, to refinance into a 30 or 15 year fixed loan.

As you are aware, there are many factors that come into play regarding loan qualification. Make sure you are working with a mortgage professional that is aware of the changes.

Fannie Mae and REO

Fannie Mae, much like HUD before them, now offers low home financing for buyers of their foreclosed properties. The program, called HomePath, requires a minimum down payment of 3%.

In today’s market, it is extremely important that you know which loan programs are available to your prospective home buyers. The link below provides you access to the properties available, marketing information and how to become a listing vendor.

http://reosearch.fanniemae.com/reosearch/

As always, do not hesitate to contact me should you have any questions.

Random Notes

1. All over the news is word that interest rates could drop even further. Please refresh yourself on previous blogs I put together. Remember, not everyone qualifies for the lowest rates out there.

http://kotarnews.com/2009/01/do-they-qualify-for-lower-interest.html

http://kotarnews.com/2009/01/should-i-refinance.html

2. I received an email from my contact at the USDA Rural Development office regarding the correct link to the adjusted income limits for both the USDA Rural Development Direct and Guaranteed loan programs.

When clicking below, the income information link is toward the bottom left of the page.

http://eligibility.sc.egov.usda.gov

3. One more bank is stepping up and doing the right thing, this time out in Washington. This bank is using the funds the Government gave them and now has loan programs for those purchasing with home builders. A little something else to think about when speaking with your local and/or regional banks.

The Media Finally Caught On

While researching material for my book (“Buying a Home? 10 Questions You Must Answer"), I stumbled upon an article on CNN, which speaks to the issues discussed in my “Impact of Government Intervention” course.

The article addresses the impact of appraisals and how it affects loan approval.

Good for the media, they are finally reporting on things you as a real estate professional already know.

Remember to keep asking the questions of your local and regional banks, credit unions, etc. Find out how they are reviewing appraisals; is it through AVM’s, Field Reviews, 2nd appraisals or BPO’s.

Also, do not forget to find out the costs associated with these “review” appraisals as many times the buyer ends up paying for them.

$8,000 Tax Credit Revisited

A few weeks ago, I wrote a blog on the $8,000 tax credit for first time homebuyers. I received a number of questions asking for further clarification of the credit and how does it compare to the tax credit that Congress passed in July 2008.

The primary difference between the two “tax credits” is significant. Last July’s tax credit had to be repaid at some point. This new program does not have to be repaid if the buyer stays in the house three years.

The second major point is that this tax credit is “refundable.” This means that even if the home buyer might not have a tax liability to offset the tax credit, the government will send the buyer a check for a portion up to the entire amount of the refundable tax credit.

I have attached a link to the federalhousingtaxcredit.com site for a detailed explanation of the program.

http://www.federalhousingtaxcredit.com/2009/faq.php#