Rates are so Low!!! Chart of 30 Year Fixed-Rate Mortgages from 1998 thru 2009

Loan Limits to Remain the Same for 2009, Kind Of…

Conforming loan limit to stay unchanged for the

third year in a row at $417,000.
“Conforming Jumbo” loan limits to drop in King, Pierce, and

Snohomish counties, from $567,500 to $506,000.

For a detailed description of the changes,

call Toby Wonder anytime at his numbers below.

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FULL PRESS RELEASE
For Immediate Release
November 2008

CONFORMING LOAN LIMIT FOR U.S.
TO REMAIN $417,000 IN 2009;
DIFFERENT LIMITS IN SOME AREAS

WASHINGTON, DC – The Federal Housing Finance Agency (FHFA) today announced the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties. The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009.

According to provisions of the Housing and Economic Recovery Act of 2008 (HERA), the national loan limit is set based on changes in average home prices over the previous year, but cannot decline from year to year. Loan limits for two-, three-, and four-unit properties in 2009 will remain at 2008 levels as well: $533,850, $645,300, and $801,950 respectively, for homes in the continental U.S.

The national limit was left unchanged at $417,000 based on declines in FHFA’s monthly and quarterly house price indexes over the past year. The monthly purchase-only index declined 5.9 percent over the 12 months ending August 2008, and the quarterly all-transactions index dropped 1.7 percent from second quarter 2007 to second quarter 2008. Virtually every other measure of house prices has also fallen, with many showing even larger declines. FHFA has not yet determined whether it will continue to use a currently existing FHFA price index to gauge price movements in future years. For this year, however, all reliable metrics point to lower prices, and a price decline of any size is sufficient to determine that the national limit will not change.

Following the provisions of HERA, FHFA has set loan limits for “high-cost” areas in 2009. These limits are set equal to 115 percent of local median house prices and cannot exceed 150 percent of the standard limit, which is $625,500 for one-unit homes in the continental U.S. The new limits affect loans purchased by an Enterprise in 2009, unless the loans were made permanently eligible for purchase under the Economic Stimulus Act enacted earlier in 2008 and has generally higher limits.

Under rules set forth in the Stimulus Act, loans originated in 2008 and the second half of 2007 are subject to limits of 125 percent of local price medians up to a maximum of $729,750. As a result of the difference in the formula for determining high-cost area limits, many of the high-cost area loan limits are different for 2009 than they were for 2008. They are generally lower because of the lower median price multiplier in HERA (i.e., loan limits are 115 percent rather than 125 percent of median prices) and the lower ceiling ($625,500 rather than $729,570). For loans originated during the period covered by the Stimulus Act, the higher of those limits and the 2009 limits will apply.

In calculating loan limits, FHFA used median house price estimates calculated by the Federal Housing Administration (FHA) of the Department of Housing and Urban Development (HUD). Those values have been estimated in a manner consistent with requirements of the National Housing Act, which requires that median prices for all counties in metropolitan statistical areas (MSAs) be set equal to the median price for the highest-cost county. FHA has estimated median house prices for the purpose of setting its own loan limits and has used data from a number of sources, including aggregated county recorder data (supplied by Radar Logic), the American Community Survey, and the National Association of Realtors.

HUD will allow a 30-day appeals period for those wishing to contest its median price estimates. Appeals are to be based upon data suggesting a potentially higher price median for a given area. Details concerning the appeals process will be released today in an FHA mortgagee letter. To the extent that appeals are deemed valid and HUD’s median price estimates change in response to the one-time appeals process, the FHFA loan limits will be changed to reflect the updated data.

While FHFA has used median house prices estimated by FHA for 2009 loan limits, it may choose alternative methods in future years. FHFA will be seeking public comment on a forthcoming proposal concerning the best approach to measuring price medians for this application.

As in previous years, the 2009 maximum conforming limits are higher in Alaska, Hawaii, Guam, and the U.S. Virgin Islands than in the contiguous U.S. In those areas, as delineated in the attached list, loan limits vary from $625,500 to $721,050 for one-unit properties.

Know the Score: Three Steps to Better Credit

If you are looking to buy, invest in, or refinance real estate now or in the coming months, your credit is going to play a more significant role in today's tight-fisted credit environment than it has in the past. It's that simple. Would-be borrowers need to address any and all credit issues now to avoid having to pay for it later.

But, here's the kicker. Nearly 80% of all credit reports contain errors of some kind. Recent studies also indicate that about one-fourth of these reports contain mistakes so egregious that applicants could actually be denied credit! Don't let this happen to you.

Step One: Get Your ReportThe three main credit bureaus, Equifax, Experian, and TransUnion, are required by law to provide you with a free copy of your credit report once every 12 months. To request your free copy (one from each company) visit http://www.swiftpage6.com/SpeClicks.aspx?Acc=HomesteadMortgage.Dania&SPCED=C081105110400&LNK=0&UId=18 or call 1-877-322-8228. Please note that free credit reports do not include credit scores. Scores can either be purchased online or pulled by your mortgage professional.

While you're online, be sure to visit http://www.swiftpage6.com/SpeClicks.aspx?Acc=HomesteadMortgage.Dania&SPCED=C081105110400&LNK=2&UId=18 as well. This will help you avoid the hassle of becoming a "trigger lead" and being bombarded with unsolicited mortgage offers, and make life a lot easier throughout the mortgage process.

Step Two: Report InaccuraciesStudy your credit reports and make sure everything is accurate. If you do find any discrepancies, you can legally dispute mistakes or outdated items for free. Once notified of a mistake on your report, a credit bureau has thirty days to investigate and respond. If the information can't be confirmed, then the item should be removed. If you'd like more information on this process, give me a call. I can help you compose a dispute letter to help get you started.

Step Three: Meet With Your Mortgage Professional

Now that the information on your report is accurate, what if there are still some items in your credit history you would rather forget about? All is not lost. For some, small changes to your credit profile could yield big results that could save you thousands of dollars. For others, enlisting the services of a professional credit improvement company may be required. This important process can take up to six months or more, so don't wait. Give me a call. An experienced mortgage professional can share other insights into the ins and outs of credit scoring and credit repair.



Provided by The KEY Team - Preferred Lender:
Toby Wonder, Mortgage Consultant
Homestead Mortgage, Bellevue, WA
Office: 425-274-9524
Cell: 206-910-4766
twonder@homestead-mortgage.com
www.tobywonder.com

Today’s Loan Options

0 % down payment “Owner Occupied”
Seller can pay closing costs. TRUE zero down loans!!

1. FHA – Max sales price 335k. Must be 1st time buyer or have NOT owned a home in past 3 years. Keep in MIND…this is for Zero down, FHA finances up to $567,500.
2. USDA –Snohomish County: Anything East of Hwy 9, if home appraises for more than sales price you can borrow equity to make repairs to home. King County: Anything East of Issaquah
3. VA – Must have eligibility

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3 % down payment “Owner Occupied”
Seller can pay closing costs.

1. FHA – up to loan amount of $567,500 - Loan amount is being reduced back down to 417k Jan 1st
Down Payment source
• Family member “gift”
• Friend “gift”
• Grant program up to $10,000 > I have details if needed

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5% down payment “Owner Occupied”
1.Conventional with private mortgage insurance; No longer can I do a 1st mortgage up to 80% with a 15% piggy back 2nd mortgage to avoid Mtg. insurance. Interest only is available!!!

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If you have questions on the above or about other programs available please don’t hesitate to ask Rob!!! Times have changed and continue to change daily, he doesn't expect you to know what financing is available these days.



Provided by The KEY Team - Preferred Lender:

Robert Wolverton, Mortgage Advisor
Mortgage Advisory Group, Mill Creek, WA
Direct: 425-418-3233
rwolverton@magloans.net
www.robertwolverton.com

The Housing and Economic Recovery Act of 2008

It’s hard to believe that anything that takes nearly 800 pages to describe could be time sensitive, however, President Bush recently signed H.R. 3221, the “Housing and Economic Recovery Act of 2008” and for many, it may provide the incentive needed to act now. A few of the major provisions in the legislation that impact homeowners and homebuyers are listed here:

Tax Credits
First-time homebuyers who purchase their primary residence between April 9, 2008 and July 1, 2009, are eligible for up to $7,500 in tax credit, provided they haven't owned a home in the last three years and fit certain income parameters. The credit is generous, but it is actually an interest free loan, paid back over 15 years at $500 per year when taxes are filed.

Larger Loans at Lower Rates
There have recently been provisions in place that have allowed loans larger than $417,000 to qualify for better financing rates than normally would be available for "jumbo" loan amounts of that size, thanks to Fannie Mae and Freddie Mac. Although these provisions were set to expire, they are being extended. However, the top end of the loan size that will be allowed under these programs will be dropping down from $729,750 to $625,500, effective January 1, 2009.

FHA Hope for Homeowners
This provision is designed to help homeowners who are "upside down" on their mortgages—that is, they owe more on their house than they can sell it for in today's market. Essentially, this plan allows homeowners who meet the requirements and are upside down to refinance their mortgage to a new 30-year Fixed FHA mortgage. There are a number of qualifying details that must be met and requirements to be agreed to, but if you're upside down on your mortgage and struggling in today's economy, this is an option worth exploring in more detail.

These are just a few of the provisions that may benefit you, and there are a number of other items that impact the housing and mortgage industry as whole. But the bottom line is this, home prices are extremely reasonable right now, home loan rates are low, and new incentives are in place that may help make the decision to purchase or refinance even more appealing than before. If you're in the market for a new home or need to make some changes with your current mortgage, there's never been a better time to act.



Provided by The KEY Team - Preferred Lender:

Toby Wonder, Mortgage Consultant
Homestead Mortgage, Bellevue, WA
Office: 425-274-9524
Cell: 206-910-4766
twonder@homestead-mortgage.com
www.tobywonder.com

Nehemiah and all Down Payment Assistance Programs are gone!!!

We have finally received confirmation that FHA has "terminated" the use of seller down payment assistance programs. All files must have final credit approval and appraisal on or before Sept. 30th. In essence we should be ready to pull docs and go to escrow by month end. There will be no exceptions.

The loan May Fund After "Sept. 30th" but there can be no changes of any kind.

This is a great time to spur on your first time buyers, "fence sitters". If you can get them to commit and buy right now, we'll get the loan set up and ready by Sept. 30th!

The FHA 30 yr fixed is looking good at 5.875%. At a rate of 6.5% we have enough rebate to cover the origination fee and most of the closing costs.

For More Information Contact:
Hank Stecker, Branch Manager/Mortgage Consultant
Windermere Mortgage Services Series LLC/SBA
Phone: 425.488.3979
Cell: 206.947.3528
Confidential Fax: 425.488.3942
hstecker@windermere.com
Online application & rates

Rolling Interest Rates over the Last Year

The information below was provided by Hank Stecker with Windermere Mortgage Services.

Bush signs housing bill to provide mortgage relief

By JENNIFER LOVEN - Associated Press Writer

President Bush on Wednesday signed a massive housing bill intended to provide mortgage relief for 400,000 struggling homeowners and stabilize financial markets.

Bush signed the bill without any fanfare or signing ceremony, affixing his signature to the measure he once threatened to veto, in the Oval Office in the early morning hours. He was surrounded by top administration officials, including Treasury Secretary Henry Paulson and Housing Secretary Steve Preston.

"We look forward to put in place new authorities to improve confidence and stability in markets," White House spokesman Tony Fratto said. He said that the Federal Housing Administration would begin right away to implement new policies "intended to keep more deserving American families in their homes."

The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.

It offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac and tightens controls over the two government-sponsored businesses.

The House passed the bill a week ago; the Senate voted Saturday to send it to the president.
Bush didn't like the version emerging from Congress, and initially said he would veto it, particularly over a provision containing $3.9 billion in neighborhood grants. He contended the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers.

But he withdrew that threat early last week, saying hurting homeowners could not wait - and even blaming the Democratic Congress' delays in action for forcing an imperfect solution.
Meanwhile, many Republicans, particularly those from areas hit hardest by housing woes, were eager to get behind a housing rescue as they looked ahead to tough re-election contests.

Paulson's request for the emergency power to rescue Fannie Mae and Freddie Mac helped push through the measure. So did the creation of a regulator with stronger reins on the government-sponsored companies, as Republicans long have sought.

Democrats won cherished priorities in the bargain: the aid for homeowners, a permanent affordable housing fund financed by Fannie Mae and Freddie Mac, and the neighborhood grants.
The bill takes several approaches to curing the ailing housing market.

It aims to spare an estimated 400,000 debt-strapped homeowners, many of whom owe more their houses are worth, from foreclosure by allowing them to get more affordable mortgages backed by the Federal Housing Administration.

The FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.

The plan also is designed to relieve a broader credit crunch that has taken hold because of rising defaults and falling home values. To free up safer and more affordable mortgage credit, the bill permanently would increase to $625,000 the size of home loans that Fannie Mae and Freddie Mac can buy and the FHA can insure. They also could buy and back mortgages 15 percent higher than the median home price in certain areas.

It goes far beyond addressing the current crisis, however.

The legislation overhauls the Depression-era FHA. It requires lenders to show how high a borrower's payment could get under the terms of his mortgage. It provides $180 million in pre-foreclosure counseling for struggling homeowners.

The Treasury Department gains unlimited power, until the end of 2009, to lend money to Fannie Mae and Freddie Mac or buy their stock should they need it. The Federal Reserve takes on a new "consultative" role overseeing the companies.

The measure includes $15 billion in tax cuts, including a significant expansion of the low-income housing tax credit and a credit of up to $7,500 for first-time home buyers for houses purchased between April 9, 2008, and July 1, 2009.

Democratic leaders, recognizing that the measure could be one of the last items to become law during what's left of their abbreviated election-year schedule, tacked on an $800 billion increase, to $10.6 trillion, in the statutory limit on the national debt.

Conservative Republicans were vehemently opposed to the bill, particularly the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy lavish profits in good times and wield their outsized political clout to resist regulation while depending on the government to bail them out should they falter.