In yesterdays email from ActiveRain the post Survey Says...Realtors Suck caught my interest. It is about a survey done in California of Buyers and Sellers. I found much of the data in the report interesting and would suggest that any Real Estate Professional look at the entire report. I suspect that Buyers and Sellers in the Midwest are different in a number of ways than California Buyers and Sellers, however reviewing the report might assist everyone in understanding what our clients think and expect.

This is one of the pages that caught my attention. "Would Use The Same Agent Again" Dropped from 79% in 2004 to 24% in 2008. Unbelievable in my mind.

Share your comments and thoughts on any of the pages that you see and if you will consider altering what you are doing based upon what you see in the survey.

Any buyers or sellers that happen to read this posting, I also welcome your comments about Realtors, Lender or other Real Estate Professions.

The Ohio Housing Finance Agency (OHFA) announced on 4/6/09 that the rate on their program would be lowered to 5.50%. Using this rate based program, buyers can use one of two add on programs to assist with the down payment on the home purchase. Call me for information regarding the 2.5% Grant or 3% loan. If you can purchase the property without down payment assistance, you may want to consider the OHFA Mortgage Credit Certificate Program, because it could have a better rate than the 5.50% and also give you up to $2,000 in Federal Income Tax Credits for as long as you own and occupy the property.

This is the third part of series, that was schedules for last sunday but rescheduled for tomorrow (4/5/09).

The short into to this segment says

"The final part of our financial series, originally scheduled to air on Sunday, March 29 but postponed due to live sports coverage, will be on NBC this Sunday. Here's what the last part of the series focuses on:

For months now, Americans have sat back and watched helplessly as their jobs and nest eggs have vanished. And many are falling prey to scam artists who promise easy money. Now NBC's Chris Hansen continues his series on the American economy with two hidden camera investigations that might help you steer clear of the dangers that could trigger even MORE financial disaster - including a work-at-home scam that could end up emptying your bank account."

From this page you can read and view more about the series. http://insidedateline.msnbc.msn.com/archive/2009/03/29/1870117.aspx I have seen the first two segments and do plan on seeing this last one. I may not agree 100% with the media's reporting, however it does provide some good information and debate.

Below is and excert from the Mortgagee Letter that was issed March 27, 2009 as guidance for the purchase of a home using a Reverse Mortgage. To qualify for a reverse mortgage in the United States, the borrower must be at least 62 years of age.

MORTGAGEE LETTER 2009-11

On October 20, 2008, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2008-33, announcing the Home Equity Conversion Mortgage (HECM) for Purchase program which allows qualifying seniors to use HECM proceeds for the purchase of a new principal residence. Since its publication, the reverse mortgage industry has sought additional guidance concerning HECM purchase transactions. This ML contains a compilation of guidance issued under ML 2008-33 and new guidance for the HECM for Purchase program and, therefore, supersedes ML 2008-33.

The Housing and Economic Recovery Act of 2008 (HERA) provides HECM mortgagors the opportunity to purchase a new principal residence with HECM loan proceeds. Section 2122(a)(9) of HERA amends section 255 of the National Housing Act to authorize the Department of Housing and Urban Development (HUD) to insure HECMs used for the purchase of a 1 to 4 family dwelling unit. Accordingly, eligible mortgagors now have the opportunity to purchase a principal residence with HECM loan proceeds. HECM for Purchase transactions, for which the FHA case number is assigned on or after the date of this ML, must satisfy existing HECM program requirements and the provisions of this ML.

The Federal Housing Administration (FHA) defines "HECM for Purchase" as a real estate purchase where: title to the property is transferred to the HECM mortgagor; the mortgagor will occupy the property as a principal residence; and, at the time of closing, the HECM first and second liens will be the only liens against the property. HECM mortgagors must occupy the property within 60 days from the date of closing. Lenders are required to ensure all outstanding or unpaid obligations incurred by the prospective mortgagor, in connection with the HECM transaction, are satisfied at closing.

This is a pre announcement about a program that OHFA will have available effective March 30, 2009. The short and sweet is that OHFA will be lend Qualified Buyers up to 3% of the Sales price in anticipation of the buyer recieving the Federal Tax Credit Stimulus as part of the Recovery Program. This could create a Zero interest loan if the loan is paid in Full by July 1, 2010.

If the program is like the Prior Secondary loan that OHFA has offerred in the past, the buyer must use the Rate Based OHFA Program and would not be allowed to that the 2.50% DPA program that was associated with it.

Added March 19, 2009 10:45AM So far this morning OHFA has been swamped with phone calls about this program. They are asking that Lenders, Realtors and Consumers be patient and wait at least a week for details, remember the program does not start until 3/30/09. Any Realtors of buyers wishing to recieve updates, please drop me an email and I will forward any information I recieve as soon as it is recieved.

Additional Details to follow.

Homebuyer Tax Credit Advantage Program

Effective Date: March 30, 2009

The Homebuyer Tax Credit Advantage Program offers a second mortgage to borrowers who obtain a first mortgage through the OHFA First-Time Homebuyer Program. In order to encourage first-time homebuyers to enter the market in 2009, the program will allow OHFA first-time homebuyers to leverage the benefit of the federal first-time homebuyer tax credit for down payment and/or closing costs. The American Recoveryand Reinvestment Act of 2009 amended and extended the first-time homebuyer credit to include purchases closing between January 1 through November 30, 2009. For qualified first-time homebuyers who purchase a home in 2009, the maximum credit is $8,000 and can be claimed on a buyer's 2008 or 2009 federal tax return.

The loan may be up to three percent of the purchase price. No cash back may be issued to the borrower.

• Principle and interest payments are deferred until July 1, 2010 after which, loans will amortize over 15 years at an interest rate 1% above the first mortgage rate.
• The OHFA application fee will be $300 and can be paid by the buyer, seller or financed in the loan.
• There is an incentive for early repayment of the loan. If the loan is paid in full prior to July 1, 2010, OHFA will forgive $300 of principal.
• Lenders may charge a special processing fee of $75.
• All loans must be recorded as second mortgages using OHFA note and mortgage documents.
• Borrowers must have a minimum 600 credit score.
• Borrowers must complete homebuyer education through a HUD approved counseling agency or through OHFA's streamlined program.