We got a call this week from a local Book Store. The Manager said, he got our name out of the phone book and looked us up online. He said, he was going to hold a Home Improvement Workshop this weekend and wanted to know if we would be interested in being part of the workshop. He wanted us to talk about Home Re-design, Organizing and Home Staging.

He told us that he wanted to have as many representatives as possible there who did home improvements, Painters, Contractors, Landscapers, even a Mortgage Broker for anyone who needs a loan to do home improvements. He advertized it in the local paper, local radio station and in the county events register.

It sounds great, we are trying to get stuff together now for the event. If you have any suggestions as to what we should have on hand, please let us know. It is this Saturday, July 11th, 2009.

Thanks!!!

Stage with Divine Style serving the Greater Bay Area. Call us toll free at 877.267.4649 for a free estimate of our services. We are dedicated to assist you in realizing your Dreams!!!

I’m sure many of you have heard over the past few weeks, or maybe even saw some of the advertisements touting that FHA will now allow First-time Homebuyers to use the stimulus packages $8000 tax credit as a down payment for a home. As exciting as that may sound to a first-time homebuyer, it is not entirely true.

As you may remember, when the Bush administration came out with the original stimulus package, the amount was actually $7500 and in truth was not as much a tax credit, but a 15 year loan. With the Obama stimulus package the tax credit amount was raised to $8000 and did not have to be paid back. However, this money could not be used for the down payment mainly because the borrower would receive the tax credit after the close.

However, over the past weeks, HUD has come out with a new policy for FHA loans announcing that the stimulus tax credit can be used for down payment on an FHA loan. But can it? When you are approved for an FHA loan you are still required by current FHA guidelines to provide the 3.5% down payment as before. This still can be achieved by the same standard methods of either the borrower providing it in total, or from a relative or family member, Federal, State, and local government non-profit agencies, FHA approved non-profits or borrowing from your employer or 401 K. However, once you obtain the original 3.5% down-payment, you can then apply for the $8000 tax credit prior to close of escrow. All in all, what this means is you come up with the 3.5% down payment, then the $8000 tax credit can be used as an addition to your down payment. In essence, what this is normally classified as is a Bridge Loan. By definition, a Bridge Loan is a loan which enables buyers to get financing to make a down payment and pay closing costs on a new home. The question here is how many lenders or banks will be willing to secure a second loan against a tax credit?

As confusing as the above may be, there are additional items within the guidelines that many lenders are trying to sort through. When you combine the tax credit with the FHA first loan, cash back to the borrower is not allowed. The second lien may not exceed the total amount needed for the closing costs, down payment and prepaid expenses. In other words if your total costs are $6000, that’s all you can use out of the $8000. Secondary financing may be a silent or soft second. If payments are required, these must be included in the borrowers qualifying ratios, meaning your debt-to-income ratios will increase. I could go on and on. But you can see the confusion building. It may be a silent second, but then again maybe not. You could be asked for monthly payments, maybe not.

At this point, no one seems to know how this tax credit for FHA loans is going to be used, if it will be used at all. I already know of a few of the big retail banks who have decided not to participate at all. There are just too many legal consequences that could occur the way it is currently presented.

At Ascent Home Loans, we make the loan process easy and now more affordable by lowering our fees. Call today for a rate quote or if you have any questions.

The Santa Rosa Chapter of Realtors Presents:

Strategies and Questions On Short-Sales--All*Star Panel

When: Tuesday July 7^th 8:30am to 10:00am--This is taking the place of our regularly held Marketing Breakfast Meeting, however, will we DO Broker's Open Houses!

Cost: $7.00 An unbelievable Deal!!

Where:Jockey Club,1350 Bennett Valley Road (ne corner of the big Fair Grounds parking lot across from the East entrance)corner of Bennett Valley road and Cooper Road

What: Short-Sale panel to discuss the process of successful short-sales, lender requirements, underwriting Title Issues and to answer many questions by all concerned Realtor/Agents

Why:The Mortage Bankers Association, tracking 45,000,000 loans found almost 4,000,000 either IN forclosure or now technically in default. With these numbers there is NO WAY the lenders are going to foreclose on ALL of these so the Short-Sale will be coming into it's own. Find out how you can professionally and with a high standard of practice, represent the Short-Sale seller. They need are help but you must know how to work them RIGHT! Come join us!

Panelists:

• • • Jeremy Olsan,NorBAR Chief Counsel-Legal Pitfalls of Short-Sales-what to avoid.
    • Brian Hurley,VP Stewart Title-underwriting guidelines, issues with lender requirements on Short-Sales
    • Sam Bedros Short Sale Manager, Wachovia Mortgage, FSB
      Sonoma County representative-What Wachovia see for the future of short-sales and how they are working through them-working with the lender in the deal
    • Three Realtors now working with Short-Sales successfully:
    • Brenda Alarcon-CPS Properties
    • Juan Barretto-RE/MAX Central Santa Rosa
    • Shaun Hermosillo-Keller Williams Realty

Should be a great panel with many, many questions answered on processing a Short-Sale.

If you one of the many who are eager to join the "Go Green" movement, what better way than go and check out the Solar Fair at the Finley Center in Santa Rosa on June 20th. The fair opens it's doors at 11am and closes at 6pm.

In partnership with PG&E, the fair will have many activitesd throughout the day. You will be able to learn about solar enerthy and energy efficiency. There will be speakers, panels and also several workshops.

You will also be able to learn how to finance your home energy projects, along with how to prepare to finance and install solar for your business and commercial properties.

Looking to take advantage of the growing employment opportunities within the green job zone? There will be information in regards to how and where to get training for the green jobs market

Classes and workshops will not be the only things offered at the fair. There will also be live music by John Allair, Fishbear, and the Taiko Drummers and more. There will also be activities for both kids and teens in the Fun Zone.

In regards to the panels and workshops, here are just somwe of the courses that will be offered.

Panel

• Sonoma County's Public Financing
• What is you government doing for solar?
• Training and opportunites fro green jobs

Workshops

• Make your home energy efficient
• How to go solar - PV and hot water
• Financing solar and energy efficiency
• Solar and efficiency for business

So come on down to the Solar Fair June 20th between 11am to 6pm. The Finley Center is located at 2060 West College Ave., Santa Rosa. For further information you can also go to the Solar Fair's website at Solar Fair.

DONOVAN ANNOUNCES RECOVERY ACT'S HOMEBUYER TAX CREDIT CAN IMMEDIATELY HELP THOUSANDS OF FIRST-TIME HOMEBUYERS TO BUY A HOME
FHA plan will stimulate new home sales and help stabilize housing market

WASHINGTON - Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today's action will help stabilize the nation's housing market by stimulating home sales across the country.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.

"We believe this is a real win for everyone," said Donovan. "Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation's housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today's announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower's own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today's action permits the first-time homebuyer's anticipated tax credit under the Recovery Act to be applied toward the family's home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.

According to estimates by the National Association of Home Builders, the Administration's homebuyer tax credit will stimulate 160,000 home sales across the nation - 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA's current market share, it's estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.

Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.

For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

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