Susan Templeton

Condominiums seem to be suffering a lack of investor interest to say the least these days! I know several of owner/developers who have done the right thing by their prospective buyers by building new or sensitively converting older buildings into very solid investments for first time owners and investors.

Meanwhile: Lenders who will fund 'unwarrantable condos' are scarce as hen's teeth. I have several who are OK with Jumbo loans on condos for excellent borrowers (high net worth individuals). I am talking about our local emerging market: teeming with first time buyers, people scaling down, retirees and college students who would really benefit from kiddie condo loans (essentially loans to parents for 4-6 years). Presently, we are stuck with the 'Spot FHA Approval' as the baseline. If the project does not have HUD or FNMA approval ie 51% sold, an HOA in place and tenancy is largely investors, we are stuck with hard money loans, which defeats the purpose of 'affordable' housing. 95% financing would be a real boon or this audience is otherwise doomed to seek single family residences which may not meet their needs and budget. Believe it or not we DO have rural condo loans on offer... but the bulk of our condos are within the city limits of Bellingham and do not qualify for USRDA.

I would dearly love to speak with individuals or investors interested in funding pirvate loans for very deserving folks in the $150-250K range.

We have many great projects in our Pacific NW Region including some mixed use urban and rural condos that are slightly left of center and so timely for the needs of today's buyers.

Thanks for your support!

Give your buyers this Credit Link and we will discuss their tri-merge lender report with them. Our firm is licensed in WA, Oregon and Idaho.

Washington Licenses: 510-LO-31434 510-MB-24707-50145

VETS: Coming home to our economy in such a state --they deserve all the help we can offer! Considering so many veterans are re-entering the workforce at once, they may need help settling back into life at home. In many cases, their former jobs may no longer exist! Hopefully the VA centers are able to kick in with job training and transition assistance. Many vets may be asking if their homes or mortgages serve their current needs. I know members of the Active Rain community are on the lookout for ways to be of assistance. Having some basic information about VA loans could come in handy.

100% PURCHASE FINANCING Veterans, surviving spouses or active duty military persons can secure a VA loan at very attractive terms. Not all banks can fund VA Loans so if you know a vet you can help by researching mortgage brokers in your area who are experienced with VA loans. Your broker must be fully registered with the Veteran's Administration which is different from FHA although they price their loans using Freddie Mac funding. Today's VA rates compare favorably to FHA because the VA does not require monthly Mortgage Insurance (just an upfront MI fee funded into the loan) VA Loans are usually .25% higher than FHA and brokers charge accordingly for absorbing a good number of your upfront closing costs.

95% RE-FINANCING Veterans who have conventional mortgages or ARMS should definitely check out the VA loan offering. If you have owned your home for a year --refinancing may still be very worthwhile because last year VA rates were about 1% higher than today. VA does not charge a premium for taking cash out (as long as the value supports this) so using your mortgage to consolidate debt is a very good option these days.

ENTITLEMENT: Your entitlement depends on your level of active service: not less than 90 days (WWII, Korean War, Vietnam or active duty during wartime) or up to 2 years. If there is a shortfall in the loan amount allowed, the VA will require the Veteran to come up with the difference but not usually more than 25%. Loan limits have been raised to conventional $417,000 in 2008 as per the conventional guidelines in your state. The loan limits have changed recently so be sure and get qualified before you go house shopping in your area!

GETTING STARTED: With your DD-214 Discharge papers in hand, we can register and print out your entitlement papers on-line in about 15 minutes. Thankfully some of the paperwork and processes have become less onerous in recent years.

VA APPRAISERS: VA appraisers are sent out by the VA and their valuations are gospel. Saying that we have had very good results locally. They are NOT looking for excuses to devalue the property. Their main concern is that the property you are buying or refinancing is going to serve your long term needs. Naturally we all prefer homes in good repair that will not cost you a mint to make livable or maintain.

VA LENDING Our VA underwriters are very good at making sure the loan terms 'serve the veteran'. The guidelines are sufficiently vague on some points to allow them to exercise their judgment on certain details. In one case, a Veteran was purchasing a property with a second building that suited his business to a 'T'. My underwriter allowed us to credit rent of that building from his business (actual and document-able) as income because he could support the 'net tangible benefit' to his own bottom line. Neat, huh!

PRACTICE CREDIT WELLNESS! www.netcredit.blogspot.com Factoid: Many veterans who have been away from home may have experienced family financial pressures. Every citizen can order one free report per year at: www.annualcreditreport.com I recently checked mine and the good news is that the average human can not only retrieve their report (one per year, per bureau, per client) but actually understand it!

I recommend you check one Bureau (Experian, TransUnion or Equifax) box, get that bureau report and get another bureau in a few months if you have made any corrections, saving one for the end of the process.

Click this Credit Link to order your tri-merge lender report on our secure site. We will call to discuss your report with you.

Washington Licenses: 510-LO-31434 510-MB-24707-50145

As of March 1^st, Fannie Mae is changing the maximum number of mortgaged properties allowed per borrower from four properties (reduced in 2008) back UP to ten properties Obviously this will help restore the ability of investors to get conventional mortgages in this market.

Many local investors in NW Washington who have been salivating over the selection of great home buys today will be much relieved by this news. Perhaps our local stimulus effort is to be the bearers of good news! With the Stimulus Bill getting a boost today, mortgage rates actually jumped up .25%. We expect things to settle again next week. Now is not the time to dither.

Pass it on. Susan susan templeton www.loannetter.com 360.220.2997

Multiple Mortgages to the Same Borrower and Reserve Requirements Changes

susan templeton washington license 510-LO-31434 branch 10-MB-24707-50145

www.loannetter.com copyright 2009 susan templeton loannetter

DON'T FALL FOR THE FED PR: Strike While The Rates are HOT!

Last week, the Fed kept the Fed Funds Rate steady at 0 - .25%, the lowest range ever and this was no surprise. However, they did offer some interesting thoughts, with their statement indicating that they anticipate "economic conditions are likely to warrant exceptionally low levels of the Federal Funds Rate for some time" and that "inflation pressures will remain subdued in coming quarters".

It does appear that the Federal Reserve will continue to purchase large quantities of Mortgage Backed Securities to provide support to the mortgage and housing markets, and "it stands ready to expand the quantity of such purchases and the duration of the purchase program as conditions warrant".

Unfortunately, the media has already started spinning these comments to read "this means rates will continue to drop and remain there into the Summer"... thereby creating another round of fence-sitters. We have seen this strategy to be very costly to borrowers and we are warning you not to fall for more Federal Public Relations efforts. The Fed does not control private bank rates. Banks borrow at cheap rates from the Fed and they resell the money to you and I to make money.

Many of you are asking me "Will we get 4.5% if we wait?" While it is true that the Fed has been buying Mortgage Bonds--look at what they are purchasing: a lot of FNMA 30-yr 5.5% and 5.0% Bonds. Hmmmm.

Why is the Fed buying these Bonds? Well if you think about it, it's very smart of the Fed... perhaps a little sneaky to buy these bonds, because 5.5% Bonds actually represent outstanding mortgages with rates of 6 - 6.50%, which are precisely the loans being refinanced today.

So many of the mortgages in the FNMA 5.5% pools will be refinanced and paid BACK! this means the Fed will quickly recoup on some of their investment when the 6.5% crowd refiance. And this is likely a big reason why the Fed said they could continue this purchasing program beyond June, if necessary. So the Fed buying higher rate coupons will not necessarily get YOUR rates to 4.5%, but it should put a ceiling on how high rates can go during the near term.

Today's Scenario: Let's say we quoted your refinance and we could save you $300 per month. So right now, you asking yourself if you should wait for 4% and save another $30 a month. You might miss the boat! 5.0 - 5.25% is currently being offered to better borrowers -- but this changes hourly.

Also, bear in mind that as time goes on, loans are getting harder to fund! Fannie Mae and Freddie Mac are controlling loan pricing to such a degree that only excellent credit borrowers are getting these rates. Clearly, things can turn and this window of opportunity could pass you by. But even if you are correct and are able to grab that lower rate and save another $30 per month --consider that for every month you wait, that savings of $250-300 per month is being lost. So even if you do get the rate you want, it could take years to make up what you lost by waiting for 6 months or more. Example: $300 savings x 6 months = $1,800. That's a lot of $30 tickets!

Shape Up your FICO Score To Save Thousands!

The new risk-based fee charges to banks for conventional mortgages means if your FICO is below 680 you will pay more for your loan. These pricing hits apply to all conventional loans. Even FHA and VA are becoming 'score sensitive' and setting their baselines higher. Our customers taken aback by the additional fees to either upfront points or rate. To avoid surprises, it's more important than ever to get your credit in shape! A strong FICO score could save you thousands of dollars per year in lower interest rates. Read more about credit issues on my blog http://www.netcredit.blogspot.com

Fence Sitters: Get Thee To a Sale! The word is out that now is the time to negotiate and buy a home at pre-spring pricing . I have heard sales are starting to pick up...one house had an offer after only 2 days on the market --but that reflects, as a local Realtor noted, that it was well priced!

PRACTICE CREDIT WELLNESS! www.netcredit.blogspot.com Factoid: 70% of people have incorrect items on their credit report so it's best to check a few months ahead of financing in case you need to make corrections. Your report and FICO score will help us place your loan with the best lender for you: higher scores = better terms.

Click this Credit Link to order your tri-merge lender report on our secure site. We will call to discuss your report with you. Loannetter

Washington Licenses: 510-LO-31434 510-MB-24707-50145

WASHINGTON STATE has many many veterans returning home and several military installations with active duty officers and staff living in our area. I stumbled into the VA program a couple of years back when a borrower who had some credit issues happened to mention he was a veteran.

100% PURCHASE FINANCING/ 95% REFINANCING: I happen to enjoy working with Veterans. They are very organized and get their paperwork in with military precision! Many older Vets have never used their entitilement and it's the first thing I ask these days because if they are entitled, they deserve a VA loan. They put their lives on the line for us so it's great payback. Naturally, your broker has to be fully registered with the Veteran's Administration which is different from FHA although they source the funds similarly. In recent years the terms were less attractive but right now the smoking hot rates compare favorably to FHA because the VA does not require monthly Mortgage Insurance (just an upfront MI fee funded into the loan)

ENTITLEMENT: Most Veterans don't realize is they can re-use their entitlement. Another good point is that credit issues that other lenders totally balk at (IRS liens for example) can still be funded via the Veterans's Administration. I've had one Veteran couple (both vets) use their VA entitlement several times. We can also Refinance a VA loan as long as their current loan is in good standing up to 95% LTV including cash back....a great way to find funds for renovations! Compare that to the fact that conventional cash back loans are currently limited to 85% LTV and only for great credit.

ARE YOU ENTITLED? Bring or fax us your DD-214 Discharge papers and we can register and print out your entitlement papers on-line in about 15 minutes. Since I started doing VA Loans, things have vastly improved in the VA systems. I have attended a number of training programs and the VA trainers are very thorough and clear that their mission is to assist veterans first and foremost. They have improved their response and turn times for appraisals. I recently closed a foreclosure purchase through the VA . The listing Realtor and REO Seller pricked up their ears when they heard it was a VA loan is disbelief, poo pooing the idea because the home was older and needed some work...but we funded it on time and it turned out the seller was the one dragging their feet in the end.

VA MYTHS: VA appraisers will low-ball your property. Not true! I had one VA appraiser improve the value by 20% over what a local bank had offered. VA inspectors will kill the deal. Not true! Lenders don't require an inspection unless an appraiser notes obvious deficiencies. They want to be sure the home will not be a financial burden and if there are 'costs to cure' those items must be satisfied before funding. Veteran's spouses don't qualify. Not true! An unmarried surviving spouse of a military person may be eligible for a VA loan. Disabled Vets won't qualify: Not true! In fact, there are Veterans Benefits Grants for Disabled Vets and help toward ADA access renovations and energy improvements to a home.

DOCUMENT HEAVY Some mortgage brokers steer away from government programs because they are document heavy and we are limited in how we charge our fees. VA in particular makes the broker pay for many of the veteran's costs out of our fee so we have to manage that by pricing the loan very accurately up front. Our VA underwriters are very good at making sure the loan terms 'serve the veteran'.

PRACTICE CREDIT WELLNESS! www.netcredit.blogspot.com Factoid: Many veterans have been away from home for a year or more and may have experienced family financial pressures as a result so its always a good idea to get mortgage ready well in advance of a purchase or refinance. Your report and FICO score will help us place your loan with the best lender for you: higher scores = better terms.

Washington Licenses: 510-LO-31434 510-MB-24707-50145