Bob Buchanan

To address increasing occurrences of the practice known as "buy and bail," FHA has issued Mortgagee Letter 08-25- Converting Existing Homes to Rentals- underwriting instructions. FHA is instituting the following requirements for borrowers who purchase a new primary residence without selling their existing primary residence. The term "buy and bail" refers to a developing trend where borrowers purchase a new primary residence either closer to their employment or in close proximity to their existing primary residence. Once the new mortgage is closed, the borrower stops making mortgage payments on the original primary residence and allows the lender to foreclose.

Effective for loans with case numbers assigned on or after September 19.2008 and are temporary measures being implemented until FHA determines what, if an permanent action is required:

1. All borrowers must fully qualify with both mortgages payments , and no rental income may be used for the property being vacated.
2. in addition to #1 above, most lenders are requiring 12 months reserves - based on the PITI of the property being retained or 6 months PITI combined on both properties.

Exceptions could be relocation with a new employer or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance, rental income from the property being vacated may be used. The other exception is when the LTV of the property being vacated is 75% or less, rental income may be used.

Folks, understand that things are changing, stay on top of the changes, if a client needs to sell there current home before entering into a new purchase, then get it sold first. Changes in the mortgage guidelines are the name of the game. Check with your lender, and make sure you have the most current information.

About Us

With 7 years of experience working with Realtors, Investors, and most importantly BUYERS. The client always comes first. As a Broker, I can provide the best rates, and fair closing cost. My GFE's usually are spot on, and never are to be exceeded without written notice to the buyer usually weeks in advance of closing.

My follow up with my clients and co marketing plans are welcomed by all my referral partners.

My rates can change by the hour because I have direct real time bond market information all day long.

Because I offer a free float down services when the markets change, my clients can expect the lowest rates, even after a lock is established.

My staff is fully licenced and highly trained to support my demanding requirments to provide excellent customer experiences.

Areas of Expertise

First time home buyer classes held monthly my office. FHA, VA, USDA, Fannie Mae, Freddie Mac conforming, and Commercial lending with 30 yr fixed terms.

Member of KAMB. Completed education in Fair Credit and Credit Scoring. Fraud detection, Guaranteed Rural Housing Programs.

Served two years on the Lawrence Board of Realtors committee's: Education (2 yrs) and Community Relations (2 yrs)

Testimonials

" Just wanted to take a minute during this crazy busy time of the year to wish you two a Merry Christmas and Happy holidays. Thank you both so much for taking time out to teach me and explain so much stuff, being forthcomming, and honest, ans so very kind. You guys have made a difference in my life, THANK YOU! Reagan W. A Lawrence Homes for Sale buyer.

"We wanted to think you for doing such a wonderful job w/ our whole closing process. Thanks for answering ALL of our question. You made everything go very snooth" N&B a Lawrence Homes for Sale Buyer.

"Thanks again for saving us SOOOO much money" LD A Lawrence Homes for Sale Buyer

" Thanks for your due diligance and hosesty and integrity, it nees to be recoginized, We love our new home. KE A Lawrence Homes for Sale Buyer.

9/22/08

Volatility continues to be the name of the game. Rates are opening up higher that Fridays close. Inflation is pushing up commodities, and we have a slow week of information that can confirm inflation. Wednesday existing home sales number will be out followed the next day with new home sales.

Trend for new is to lock if you can, I see rates on the move, in the wrong direction. However with the volatility in mortgage bonds just about any news can send rates in another direction. Watch your news and see where are next move will be.

Bob Buchanan, co founder

First Assured Mortgage

4830 Bob Billings Pkwy Suite 100A

Lawrence Kansas 66047

ph 785-865-5626

fx 785-856-72832

toll free 866-754-5311

A week in History

There are three huge announcements that are changing the financial markets around the world.

First, fear over the safety of money in savings for many Americans. Banks are either folding or on the brink of collapse, bonds are losing some or all of their value, and stocks are dropping at an alarming rate, all causing fears and anxiety for investors.

Second, Today Treasury Secretary Hank Paulson announced that the government will guarantee money market funds. This action is helping settle the markets and as a result stocks around the world have responded very favorably to this.

Third, The SEC has placed a ban on short selling. The amount of greed is incredible. Many short sellers have used currently illegal tactics such as "naked short selling. This means they are shorting a stock without the required step of first borrowing it. This has exacerbated the problem in financial stocks as they beaten down in value. This in turn hurts their balance sheets which also limits their ability to take on credit. This is the vicious cycle we have been witnessing. There are some politicians and other who are commenting on what a negative move this is as well as saying there are legitimate short sellers. The problem is that they have failed to Police this problem for a long time... they should take a long look in the mirror before casting stones. The SEC did the right thing here and hopefully this will add another level of calm to the current financial crisis.

This is only the beginning, and the above will not fix everything, but it sure looks like a step in the right direction. Short term rates will have a short bump upward, but with you look at the alternative, who cares. The health of our financial system and confidence that out savings will not be wiped out is far more important.

Rate will continue to ride the VOLATILE roller coaster.

Bob Buchanan | Co Founder

First Assured Mortgage

4830 Bob Billings Pkwy., Ste. 100-A

Lawrence, KS 66049

P. 785-856-LOAN (5626)

C. 785-766-3788

F. 785-856-RATE (7283)

E. bobb@firstassuredmortgage.com

W. www.firstassuredmortgage.com

UPDATE:

Starting today, all PMI company's have discountiued offering private mortgage for non owner occupied purchases. This means 80% LTV max. or at least 20% down on all investment property.

About Us:

With 7 years of experience working with Realtors, Investors, and most importantly BUYERS. Mortgages are what I do. The client always comes first. As a Broker, I can provide the best rates, and fair closing cost. My GFE's usually are spot on, and never are to be exceeded without written notice to the buyer usually weeks in advance of closing.

My follow up with my clients and co marketing plans are welcomed by all my referral partners.

My rates can change by the hour because I have direct real time bond market information all day long.

Because I offer a free float down services when the markets change, my clients can expect the lowest rates, even after a lock is established.

My staff is fully licenced and highly trained to support my demanding requirments to provide excellent customer experiences.

Areas of Expertise

First time home buyer classes held monthly my office. FHA, VA, USDA, Fannie Mae, Freddie Mac conforming, and Commercial Lending with 30 yr fixed terms.

Member of KAMB. Completed education in Fair Credit and Credit Scoring. Fraud detection, Guaranteed Rural Housing Programs.

Served two years on the Lawrence Board of Realtors committee's: Education (2 yrs) and Community Relations (2 yrs)