Fannie Mae's Homepath program provides homebuyers with some awesome financing options. The program requires the purchase of a Fannie Mae owned property.


The program allows for 97% financing(JUST 3% down payment) for primary residence properties, 90% for second homes and 85% for investment property, all with NO mortgage insurance and NO appraisal. FNMA owns a significant number of homes in Arizona, California and throughout the US.

Fannie Mae is also currently offering 3.5% of the sales price to the home buyer (investors excluded) to be used for Closing Cost Assistance and/or brand NEW Whirpool® Appliances. Recently extended to June 30, 2010!


Highlights for Condo Financing:

1. Condo must be on the "HomePath Eligible List"
2. Up to 97% financing on primary homes
3. Up to 90% financing on second homes (vacation home)
4. Up to 85% financing on investment properties
5. Seller can pay up to 6% (2% for investments) of your closing cost and prepaids
6. NO Appraisal required!
7. NO Mortgage insurance required!


Please contact me if you would like more information about HomePath financing from Fannie Mae.

The Home Affordable Foreclosure Alternative or “HAFA” is an initiative that was introduced to help struggling Homeowners successfully short sell their home by following a set of established and simplified guidelines. The program does not cover every homeowner or every property. See below for more detail.

Important dates to know when it comes to HAFA:

• Program is effective as of April 5, 2010
• Progam expires on December 31, 2012
• Once Homeowner signs agreement with their Servicer they are under the HAFA contract for 5 months (can be extended if mutually agreed upon)

How will HAFA help Homeowners? HAFA has...

• Created a set of standard processes and timeframes - one key timeframe is that lenders will have a maximum of 10 days to respond to buyers offers on a HAFA approved property
• Established financial incentives payable to Homeowners, Servicers and Investors
• Releases struggling Homeowner from all future liability for forgiven debt (this refers to mortgage balance and NOT potential tax liability – consult with a Tax Professional regarding your tax consequences)
• Gives the Homeowner (the seller) the ability to receive pre-approved short sale terms before even listing their home
• Keeps the Servicer from reducing Real Estate Commissions as a condition of the approval
• Streamlines Homeowners HAFA eligibility by using information from HAMP analysis

Who qualifies for HAFA, more details?

• Property is a primary residence
• Owner is delinquent or about to be delinquent on their mortgage
• Property is not financed through Fannie Mae or Freddie Mac (I can check for you)
• The mortgage loan is a first lien mortgage originated on or before January 1, 2009
• The current unpaid principal balance is equal to or less than $729,750
• The owners total monthly mortgage payment exceeds 31% of their gross income.
• $3,000 moving assistance check will be cut by the Title company at a successful COE
• Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.

Contact me for complete details on HAFA Timeframes and Guidelines or visit the HAFA website.

PARTICIPATING LENDER LIST

Allstate Mortgage Loans & Investments, Inc.
American Eagle Federal Credit Union
American Home Mortgage Servicing, Inc.
AMS Servicing, LLC
Aurora Loan Services LLC
Aurora Loan Services LLC
Bank of America, N.A.
Bank United
Bay Federal Credit Union
Bay Gulf Credit Union
Bayview Loan Servicing, LLC
CCO Mortgage
Carrington Mortgage Services, LLC
Central Florida Educators Federal Credit Union
Central Jersey Federal Credit Union
Chase Home Finance LLC
Community Bank & Trust Company
CitiMortgage, Inc.
Citizens 1st National Bank
Citizens First Wholesale Mortgage Co.
Countrywide Home Loans Servicing LP
CUC Mortgage Corporation
Digital Federal Credit Union
DuPage Credit Union
EMC Mortgage Corporation
Eaton National Bank & Trust Co
Farmers State Bank
Fidelity Homestead Savings Bank
First Bank
First Federal Savings and Loan Assoc of Lakewood
First Federal Savings and Loan of Port Angeles
First National Bank of Grant Park
First Keystone Bank
Franklin Credit Management Corporation
Fresno County Federal Credit Union
Glass City Federal Credit Union
Glenview State Bank
GMAC Mortgage LLC
Golden Plains Credit Union
Grafton Suburban Credit Union
Great Lakes Credit Union
Greater Nevada Mortgage Services
Green Tree Servicing LLC
Harleysville National Bank & Trust Company
Hartford Savings Bank
Hillsdale County National Bank
HomEq Servicing
Home Financing Center Inc.
HomeStar Bank and Financial Services
Home Loan Services, Inc.
Horicon Bank
Horizon Bank, NA
Iberiabank
IBM Southeast Employees Federal Credit Union
IC Federal Credit Union
Idaho Housing and Finance Association
iServe Residential Lending, LLC
iServe Servicing Inc.
J.P. Morgan Chase Bank, NA
Lake City Bank
Lake National Bank
Litton Loan Servicing
Los Alamos National Bank
Marix Servicing, LLC
Members Mortgage Company, Inc
Mission Federal Credit Union
Metropolitan National Bank
MorEquity, Inc.
Mortgage Center, LLC
Mortgage Clearing Corporation
National City Bank
Nationstar Mortgage LLC
Navy Federal Credit Union
Oakland Municipal Credit Union
Ocwen Financial Corporation, Inc.
OneWest Bank
ORNL Federal Credit Union
Park View Federal Savings Bank
PennyMac Loan Services, LLC
PNC Bank, National Association
Purdue Employees Federal Credit Union
Q lending, Inc.
Quantum Servicing Corporation
RG Mortgage Corporation
Residential Credit Solutions
Roebling Bank
RoundPoint Mortgage Servicing Corporation
Saxon Mortgage Services
Schools Financial Credit Union
SEFCU
Select Portfolio Servicing
Servis One Inc.,dba BSI Financial Services, Inc
ShoreBank
Silver State Schools Credit Union
Sound Community Bank
Specialized Loan Servicing, LLC
Spirit of Alaska Federal Credit Union
Stanford Federal Credit Union
Sterling Savings Bank
Tempe Schools Credit Union
Technology Credit Union
The Bryn Mawr Trust Company
The Golden 1 Credit Union
United Bank
United Bank Mortgage Corporation
Urban Trust Bank
Vantium Capital, Inc.
Verity Credit Union
Visit Financial Corp.
Wachovia Mortgage, FSB
Wachovia Bank, NA
Wells Fargo Bank, NA
Wescom Central Credit Union
Wilshire Credit Corporation
Yadkin Valley Bank

The upcoming Real Estate/Mortgage “issues” looming are no secret – especially in our Arizona market. I wanted to touch base with you on two interesting developments that indicate a potential shift in the market and how we are going to deal with the negative equity situation that we have all come to know so well.

A New Trend?

Yesterday’s article in the Arizona Republic entitled “Bank of America to lower mortgage principal” explained a program from B of A that is designed to cut principal balances. Unlike loan mods which are…well we all know what they are, this program seeks to reduce the balance of a borrowers loan. While this program is not open to all upside homeowners, it has created some curiosity as to whether or not this might be the beginning of a new trend. While most lenders are not jumping on this band wagon today, we all know that this is where the real “help” would be for homeowners. Lowering the rate or stretching out the amortization period on a loan that is significantly upside down does little more than delay the inevitable. Here is a link to the article for your reading pleasure ;). Please take a moment to read, this is a very interesting piece.

In addition, another article was released stating that the Treasury Department is very interested in Bank of America’s new program. This could be the beginning of a new trend or way of thinking and I wanted to make you aware of what’s brewing out there. With all of the political pressure and the undeniable statistics outlining what lies ahead the government is seeking some sort of resolution. I will be sure to keep you posted.

HAFA

HAFA was introduced in 2009 by the Treasury (revised March 12th, 2010) and it goes into effect on April 5, 2010. Essentially the program provides a set of guidelines and timeframes along with financial incentives for short sale transactions. I have attached a copy of the HAFA agreement letter for your review. It contains all of the guidelines and timeframes associated with the program. Please take a few minutes to read. This will be a big part of our market going forward. Some of the highlights include:

1. Servicers participating in HAMP are required to cooperate with HAFA guides – list of servicers participating in HAMP HAMP Servicers

2. Provides Pre-Approved Short Sale Terms (including minimum acceptable net proceeds to the servicer)

3. Requires Banks respond to offers within 10 days

4. Requires borrower be fully released from future liability for the 1st mortgage (no deficiency judgment allowed on forgiven sum) *this does not refer to possible tax liability

5. Provides $1,500 for “relocation assistance” to seller – basically helps pay for moving costs etc… - paid at closing through Title

6. HAFA program expires 120 calendar days after borrower receives letter (unless extended by servicer)

7. Provides up to 3% not to exceed $3,000 total to pay off subordinate liens (HELOC’s, HOA liens etc…)

8. Under HAFA agreement home cannot be sold to family, friends or co-workers – must be an arm’s length transaction

9. Real Estate Agent can NOT earn a commission if you sell your own home under the HAFA agreement

10. If the home does not sell by the end of the HAFA agreement the homeowner must convey ownership to the Servicer via Deed in Lieu of Foreclosure. In this scenario the homeowner would still receive the $1500 for “relocation assistance”

Please let me know if you have any questions.

Your Trusted Advisor,

Jeremy House, CMPS
602.435.2149 – business hours/weekends/evenings
Click Here To Apply Online

Recent news from the Federal Housing Administration (FHA) indicates some changes are just around the corner.

Tighter lending requirements, reduced seller contribution allowances and higher fees for borrowers that opt for an FHA mortgage or federally-insured loan are coming this Spring.

The reason for the change is due to mortgage insurance claims on FHA borrower defaults. Mortgage insurance is required on most home loans with less than 20 percent down payment. An FHA home loan now only requires 3.5% down payment to be made by the borrower.

FHA mortgages now account for about 50% of all new home loans today.


• The upfront mortgage premium will now cost borrowers 2.25% of the loan amount, up from 1.75% and the second increase in the past two years. The upfront premium can still be rolled into the loan.

• New borrowers must have a minimum FICO credit score of 580 to qualify for FHA's 3.5% down payment loan, otherwise the borrower must put 10% down. Most lenders still require a minimum credit score of 620 to qualifiy for a mortgage. A FICO credit score is a numerical representation of a borrowers credit, the higher the score, the easier and less expensive it is to qualify for a loan.

• Seller contributions have been very popular in today's real estate market. Currently sellers are allowed to contribute up to 6% of the sales price towards buyers closing costs and pre-paid items on their home loan. The new limit will be cut in half to 3% of the sale price.

FHA has also proposed tighter rules for lenders to reduce its risk in the market. Lenders will be required to have a new worth of at least $1 million in year one and $2.5 million within three years. The Federal Housing Administration also wants to impose tighter loan underwriting guidelines and increase liability for those that choose to originate, underwrite and service FHA loans.