January 2009

As we head into 2009, I wanted to take a moment to thank you for your business and friendship in the past.  With so much going on in our industry during these turbulent times, things could be a lot worse.  I have been blessed with the opportunity to serve so many of you and I take no one for granted.  I love what I do and will be here for you for the long haul.

There has been a lot of negative talk in the media about consumers not being able to get financing in today’s environment.  Although guidelines have definitely tightened, I want to assure you that there are still plenty of funds and options available out there.  See below some of the programs currently being used to provide great purchase options for our clients.  Also included are some of the various mortgage related items of importance to be aware of now and in the near future.

¨       FHA (Federal Housing Administration) Loans- Low down payment of only 3.5% required.  It’s the only program that allows all gift funds for the down payment on such a low down payment program.  Also, non-occupant co-borrowers can help to qualify and less than perfect credit ok in many cases.

¨       VA (Veterans Administration) Loans- This is a no money down program for qualifying customers/veterans.  You can now apply for a VA Jumbo Loan up to $1,000,000 in some cases under the new VA Loans Maximum Guaranty Amount guidelines.

¨       1^st Time Buyers – Special programs and money still available for qualified borrowers.  Please call for more details.

¨       Loan Modification Programs- There are many versions available.   Pease call for more details.  You may be able to lower your payments on your current loan if refinancing is not an option.

¨       Reverse Mortgages- For clients 62 years young and older.  Let your home support you and tap your equity to provide financial security and cash flow in your later years.  Did you know you can also use a reverse mortgage to purchase a home? 

¨       Conforming Loan Amount- New limit of $625,500 for high cost counties like Santa Clara, San Francisco, Alameda & Contra Costa.

¨       $7500 First Time Buyers Tax Credit- This is one of the most exciting new provisions of the Housing and Economic Recovery Act of 2008. The credit is designed to encourage first-time homebuyers to go ahead and make the leap to purchase their first homes. Combine this tax credit with the fact that home prices are lower than they have been for many years, and indeed it is an ideal time for many first-time homebuyers to purchase homes.  This credit is available for homes purchased between April 9, 2008 and July 1, 2009

If you have questions for your lender regarding the above, please give them a call as soon as possible.  If you do not have a lender of choice, you can give Michele Morse Reen a call at Cedar Mortgage – 408-626-1879 or or email her at michele@reenteam.com.  Tell her you are a client/friend of mine and she will give you a “Complimentary Mortgage Review” as my preferred customer.  She may be able to assist you with options or to just understand what kind of loan you currently have, pre-approve you for buying a rental property or second home or help assist you with other options for refinancing or help with a loan modification programs.

I look forward to continuing to serve you with all your real estate needs and advice well into the future.Have a wonderful 2009!

Dawn O’Neal & Tom Binder