Kathleen Davis

Refinance a Conventional Loan into a FHA Loan because owe more than value of home (edit/delete)

You can refinance your conventional mortgage into a FHA mortgage.

FHA will allow you to refinance to 96.5% loan to value but there can be no cash out. Loan to value means the amount of your loan as a percentage to the value: example value of home is $200K with a loan of $193K gives you a loan to value of 96.5%.

If you are trying to refinance an into an FHA loan and taking cash out than there are limitations. Most banks will not allow you to take out cash beyond 85% loan to value. What does that mean: If your home is worth $200K you cannot have an FHA loan with cash out beyond $170K.

This is for loans that are $417K and under. The guidelines for loan amounts > $417K to $729,750 maybe different.

FHA has max loan amountsallowed that are based by state and than by county. These limits are set by HUD. The max loan limits are set by HUD and are 120% of the median home price for the county to a max loan amount of $729,750. Example: Calaveras County, CA max loan amount is $462,500 for a single family home versus in San Francisco County, CA the max loan amount for a single family home is $729,750 which is the max amount HUD will allow for FHA.

Here is a great cause. Local Pleasanton Realtors and Affilates give back to the community. Realtors and Afflilates are donating up to $2K to the local charities of Pleasanton/Tri-Valley. These Tri-Valley organizations are in need as many are in these challeneging times. T

These Pleasanton and Tri-Valley Real Estate community have so far donated to date $50K+ in funds that will be matched by a local Holiday Fund. These funds will go to help local community charties such as:

Open Heart Kitchen: http://www.openheartkitchen.org/

Axis Community Center: http://www.axishealth.org/

Tri-Valley Haven - a world without violence: http://www.trivalleyhaven.org/

Funds go to support these Pleasanton/Tri-Valley such as:

Ways you can help.

1. Donate: http://www.vmamakingadifferencefund.org/text/2009/HOW-CAN-YOU-HELP.pdf
2. Come to the party: call Wendy @ 925.251.2500

Last year the Valley Real Estate Network transformed their annual yearend Holiday Party into a fundraising event for the 2^nd year and raised $25,000. In the two years of this event, VREN has raised $67,000 for local Tri-Valley Community Organizations such as Tri-Valley Haven, Open Heart Kitchen, Hope Hospice and Axis Community Health. The party is a great event, but the best part is raising these funds to help so many needy families and individuals.

This year the Holiday Event will be held December 9, 2009 from 6-9 PM at the Marriott Pleasanton Hotel. Tickets are $15 and will include a fabulous array of hot and cold appetizers, a live auction, prize drawings, entertainment and dancing!

I'm excited to share with you our financial goal to reach $56,000. Here is how you can help; Any contribution you make will be matched 4 to 1 For example, a contribution of $10 will turn into $40, a $100 will turn into $ 400 and $250 will turn into $1,000.

I hope you will join us this year in contributing directly to the fund and or attending the event. Thank you for helping us, help those in need!

http://www.vmamakingadifferencefund.org/default.html

Sincerely,

Roy Dronkers

President,VREN

925.872.8671

VALLY REAL ESTATE NETWORK

The 2009 VREN "Making A Difference" Fund

What goes up does come down... The Bond market has lost about 21 base points this morning. I suspect this will put lenders to reprice for the worst. However.....

Rates are still very very good in the upper 4% to low to mid 5% depending on your circumstances.

http://www.mortgagenewsdaily.com/consumer_rates/121570.aspx

The stock market regained some growth as reports on construction spending and pending home sales were better than expected and concerns about the Dubai World debt crisis eased with talks going on with lenders to restructure the debt on their books.

Here is a great recording on the First Time Home Buyer tax credit and move up credit:

Click Here For First Time Homebuyer & Move-Up/Repeat Buyer Tax Credits

The big move in bonds on Friday held steady today. The new of Dubai pushed many into the safe haven of bonds on Friday thus giving us the great rates we are seeing.

Cautiously float. There is some economic news that will come out this week that could have effective on mortgage rates as well as the Federal Reserves annouement that will come on Thursday of the next auction.

• Tuesday: Pending Home Sales
• Wed: National Employment Report
• Thurs; Jobless Claims
• Friday: Unemployment Rate

There are other reports due out that could have an impact such as the Manufacturing Index which is a measure of expansion; Beige Book giving current economic conditions by District.

Obama is pushing on banks to do loan modification to keep people in their homes and to help stabilize the housing market.

We all know the that the predictions for 2010 is that Foreclosures will peak in 2010:

• People are losing their jobs; unemployment will grow
• Arms and Options ARMS will be resetting
• Increase in Strategic defaults; those that feel that it's in their best interest to walk away
• Loan Modifications will continue to not be productive or succesful

There is a massive "shadow inventory" that will slow down the housing market recovery;

• 900,000 REOs - over 500,000 not listed for sale
• 1.1 million homes currently in foreclosure
• 5.5 million loans in some stage of delinquency

Just some food for thought. What you should be doing is evaluting your mortgage position either if you are ready to buy or if you already own. Talk with someone and just ask questions about getting the facts and how all of this impacts you, your database, clients, friends, etc.

Now more than ever you need to be educated.

Not much movement in rates today. The bond market opened up strong with big gains but those were quickly lost.

Even with all the uptick in bonds not many banks are passing on these gains with even lower rates.

However we are still seeing a "

• 30 year fixed High Balance conforming FHA loan 3.6% down (>$417K - $729,750 loan amount) with 620 FICO at 4.75%;
• Conforming FHA 3.5% down 620 FICO 4.5% 30 year fixed
• Conforming with 20% down 720 FICO 4.625% 30 year fixed
• High Balance loan with 20% down 720 FICO 4.75% 30 year fixed

Many are looking for safe havens right now due to news that Dubai has asked for a 6 month reprive or payment of their debts. Safe haven usually means bonds.

Dubai which has funded projects all over the world and holds billions of dollars of debt on their books. Many of these debts are are held by financial institutions that could be significantly impacted by this.

• Dubai Jitters Infect Debt of Sovereign Spendthrifts http://online.wsj.com/article/SB125936720204567249.html?mod=WSJ_hpp_LEFTTopStories
• Nervous Money Seeks Safe Have http://www.mortgagenewsdaily.com/consumer_rates/121079.aspx

Don't know how long this ride will last!

Now is your time to Refinance or Buy. Get off the fence...