Home Finance in a Changed Mortgage Market
Americans are hopeful that 2009 will bring a turnaround for the real estate and mortgage industries. We have come through some rough times, some in great shape and some forced into the ultimate despair of foreclosure.
Loan guidelines have tightened up. Gone are the days of 100% financing, stated income loans, and especially the “no doc” loans in which a borrower had to supply little more than a decent credit score. Down payment assistance programs and first-time homebuyer programs have dried up.
In the midst of the turmoil, some positive things that have emerged and good opportunities are available for home financing in 2009:
| • |
The conforming loan limit was raised to $625,500 in high cost areas as of January 1, 2009. This has allowed more borrowers to qualify for financing at better rates and more reasonable guidelines than before, when anything above $417,000 was Jumbo loan financing. |
| |
|
| • |
The increase in limits for FHA loans allowed more borrowers with low credit scores and low down payment funds ( 3.5% in 2009) to qualify for a loan. FHA loans might be a good option for refinance if the value of your property has dropped and your equity is slim. |
| |
|
| • |
Lower priced homes, while a hardship for many current homeowners, have made homes in our area more affordable. An experienced Realtor can help you evaluate the short sales and bank-owned properties on the market. |
| |
|
| • |
Loan modification programs are being encouraged by the government and offered by banks in an effort to prevent more foreclosures on their books. For best results, work with a reputable company who negotiates on your behalf. |
| |
|
| • |
Good credit is more important than ever. With the exception of FHA financing, loan programs are credit-driven. To obtain a loan, especially at the best rate and terms, you must have good credit. |
| |
|
Whether you are trying to buy a home or are struggling to hold onto your current home, I offer a
free consultation to help you evaluate where you are, where you want to go, and how to get there. I can refer you to an excellent CPA, Realtor or Financial planner, or will work with your support team. The sooner you take action, the sooner you will find out what it takes to achieve your goal in 2009.
Loan Modification Consultation |
Free 1 Hour Credit Consultation |
| |
|
|
|
| • |
Attorney-based program |
• |
Established Bay Area Company |
| • |
Dept. of Real Estate Approved |
• |
20 years of experience |
| • |
Successful Loan Modifications |
• |
Increase your credit knowledge |
| • |
As Low as 3% interest, 50 year term |
• |
Improve your FICO score |
|
