Ken "Yes You Can" Cook

I know what you heard on the news ... I heard it, too. Once again, the media uses one source and misrepresents the truth by omission. It may be true that if you go to some of the largest banks in the nation you have to have 20% down to purchase a home. However, many lenders still have plenty of resources available to qualified buyers up to 100% financing. Yes, I did, I wrote 100% - which means no down payment.

But Ken, those loans are dangerous!

Sorry folks, the loan is not dangerous. The borrower may be but the loan is not. These loans are issued through the new, improved, Fannie Mae guidelines with a piggy back 5% to 8% from one of the most reputable PRIME BANKS in the nation. The second is fully disclosed and insured and the first is a prime loan. The borrower really needs to have a 680 middle score (average in the United States), a steady job history, at least 3 months of liquid reserves, and income to support the loan with a 43% DTI (can go a little higher with bigger reserves.)

Property does NOT have to be rural like the USDA loan. This is not FHA or VA. Property DOES have to be in move in condition. Property can be a warrantable condo.

Contrary to popular belief making a huge down payment on a home is not always the smartest decision for every buyer. Small business people, for example - who may be about to come under massive social government onslaught, need to hold on to their reserves as much as possible to fund their increasing costs of doing business. Retired people may need their reserves to offset major medical expenses.

The key is the people who get these loans deserve them.

These loans are currently available for 100% financing in Georgia and Florida through my Novation Mortgage. 866-946-0120 (only Georgia and Florida for these loans)

###

VOTE VOTE VOTE VOTE VOTE - on the ISSUES not skin color or sex.

===

RealNowRadio coming soon to a streaming audio near you! If you are interested in participating please visit the site and contact Ken.

THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.

EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.

Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors

Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender

Today is the day we overthrow fear and the paralysis it has brought to our nation. Today we put aside our differences and face the common threat. Today we make a change that starts right here inside of me - and you. Today we take the offense in this onslaught against our clients. Today we establish a new path to a revived American dream.

You can choose to be a part of the change that begins today or you can choose to remain in paralyzed fear. I don't know about you but my clients - past, present and future - are relying on ME to do the right thing for them. Today I don't have as many active clients as I have in the past because they are terrified and don't know the truth. New clients don't call as often as they did 12 months ago because they don't even realize (a) we still know how to do what we do best and (b) there is a plethora of ready inventory just waiting to be had.

Today we stop waiting on the government to announce the next injection of billions and billions of our dollars to prop up the economy and our industry. Today we are the props to our clients and our partners in the industry.

John and Jane Doe need us. They think they need the government, and in part they do, but without us - you and I - the government is nothing. It is true that some of our industry partners have helped corrupt the nation's economy and if that is true then some of us can help work to put the economy back together. God bless our elected officials but there are very few of them who know our industry like we do. The truly wise ones call on us for our input en mass and listen to what we say as their expert advisers before they make their final decisions. John and Jane Doe can do exactly the same thing.

Today instead of just commenting here, which I certainly want you to do, I ask you to pick up the phone and call me - 678-946-0101 rings straight to my desk. I want to hear what you have to say about making an immediate change of high impact into the industry.

I AM CAMPAIGNING FOR CHANGE! Change that matters - change we can control - change that makes the real estate industry in America stand up straight and support this great nation like it has for many years. It will take time but why do we wait on the government to do it for us?

WE CAN DO IT! There are 116,159 members of Active Rain. I guarantee you we all know at least 10 people who are in the industry who are not part of AR. Folks that is 1,162,000 people. You think we can't make a major change immediately? True we have our lobby organizations like the NAR, NAMB, MBA and others but we can work in addition to those OUTSIDE of the Halls of Congress.

We touch the people. WE TOUCH THE PEOPLE.

Comment then call me - 678-946-0101. If I don't answer it's because I'm speaking with someone else. I don't care if 2 of you call or if 20,000 of you call I will speak with you. I want to hear YOUR words and YOUR emotion and YOUR plans to take back our industry. For too long we have let the fringe element tear down our foundations and destroy what took 300 years to build.

Since the days of the Continental Congress we have become one of the greatest nations, if not THE greatest nation, in the history of the world. THE RIGHT TO OWN REAL ESTATE - perhaps one of the most empowering changes that happened in the last millennium is impeded today. The right is not that we DO own real estate but that we MAY own real estate. How many properties today are REO's? How many HUD properties are there in your neighborhood? (Side note: one day when you have time and after you have committed to take control of our industry with me, read this amazing article from 130 years ago.)

The next move is yours. Like the old saying goes, and I mean this with all respect: Lead, follow or get out of the way. The fear ends today for as many as I can reach. Those few combined with the few you can reach may well be the entire population of north and central America by the end of the year.

Today I want to hear your heart, your wisdom and your plan.

"Let's roll!"

UPDATED - We just got out of one of the best staff meetings we have ever had and I am ON FIRE!!!

Everyone - I tell you if there is an agent in Georgia that wants to work with absolutely the most determined and most capabable mortgage team IN THE BUSINESS - bar NONE - it's Novation Mortgage and my dynamite team. The days of trying to sneak past your gate keeper is done - this model is only for people serious about OVERCOMING this nasty negative market and DOMINATING! If that's you call me - if it's not you then watch the rest of us roll.

There was an article in our local newspaper last week proclaiming it is impossible to purchase a home without 20% down payment. Instead of berating the failed attempt at accurate reporting let me help the readers:

(A) FHA will currently lend up to 97% of the sales price. This requires a down payment of only 3% - which on a $200,000 home is only $6,000

(B) Fannie Mae and Freddie Mac both still have 95% programs

(C) Novation Mortgage and a few select other conforming lenders have a new test product in the My Community format which actually will allow qualified borrowers to finance 100% of the acquisition price and up to 3% of the closing costs using a combination of a Fannie/Freddie program and a 5% to 8% funding from a national bank.

When would it make sense to use a program like (C)?

Let's say Bob and Betty have been living in Detroit where the both worked for the auto industry. They bought a home in Dearborn 3 years ago for $190,000. Bob found work in La Grange, Georgia at the Kia plant. Betty worked in the parts division at one of the Big Three and found a job managing a local parts warehouse in nearby Columbus. Bob and Betty are moving to Georgia. There is a hitch. They owe $164,000 on their home which is now worth only $148,000. They have saved $22,000 over the last few years but the move is going to be expensive and selling their existing home is going to cost them.

Need I finish the story? So for all of you out there who believe people who don't have a down payment don't deserve a new home I submit to you, 42 year old Bob, 39 year old Betty and their 3 children. Bob with his 732 middle score and Betty's 721. I suppose it really doesn't matter what anyone else thinks as long as a legitimate, conforming-conventional lender believes they deserve a new home and proves it by writing the check.

Bob and Betty America, I believe in you and we have a solution for you with affordable, fixed terms. You may be selling your home for less than you paid for it but now you can purchase a new one - also at new lowered cost.

If you are buying in Georgia or Florida call us. 866-946-0120

See you at the polls in November. We only have one chance to get this right - vote for change that matters.

RealNowRadio coming soon to a streaming audio near you! If you are interested in participating please visit the site and contact Ken.

THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.

EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.

Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors

Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender

Unless you are facing or have faced foreclosure you may be astonished at what people go through - and leave behind - when they are facing foreclosure. To get an idea watch this short video then come back here.

If you are facing foreclosure there are so many things you can do. First you can contact Project Hope Now. It's a consulting group which will point you in many directions and even give some very good advice. They are a not-for-profit organization and you can get them at http://hopenow.com or by phoning 888-995-HOPE (4673).

When facing foreclosure people have a tendency to lose pride, lose hope and become depressed. Depression is powerful and can cause you to make some very wrong decision. One thing you NEVER want to do is to quit claim your property to a real estate investor (or anyone for that matter). This is almost always a scam. First of all chances are very high that you are "upside down" in your property which means you owe more than it is worth. Only a foolish investor will pay more than the current market value for most properties unless your property fits into the grander scheme. It's probably a 99.999% chance your property does not.

The scam there, often, is the scammer will get you to quit claim your property to them at which time they will rent it to a tenent. Instead of using the income and paying your payments like they promised they will pocket the funds and let the home go into foreclosure. They lose no skin and no sleep.

There are other scams and techniques you need to be familiar with and need to avoid. They all only just make bad matters worse.

Most importantly foreclosure does not sneak up on you. Reports indicate that as many as half or more of people who wind up foreclosed never even attempt to speak with the servicer or bank. There is no excuse for that. Even if they haven't been what you would consider "co-operative" at least tell them your situation, ask for a work-out, and try and save your credit if not your home.

I will talk to anyone facing foreclosure. I may be able to help. I may just be able to listen. Either way, I'm here. Call me on my dime at 866-946-0120 ext 101 - ask for Ken or email me anytime.

See you at the polls in November. I dare you to vote for inexperience in a time like this.

THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.

EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.

Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors

Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender

Here we go again.

Starting October 1, 2008 (that would be tomorrow if you are a timely subscriber) a major portion of HR3221 and other changes to FHA and other types of lender will go into effect. Now remember, FHA does not actually buy loans as do the GSEs Fannie Mae and Freddie Mac. In fact we have been taught that the FHA is the only government corporation that runs in the black using only funds generated by its own business. In other words it is not funded by tax payer dollars. We haven't heard a lot said about the liquidity, or illiquidity, of FHA during the last several weeks. But I digress.

We just finished a several month period where the FHASecure Refinance was supposed to have been king. FHA, in fact, claims hundreds of thousands of refinances using the FHA Secure yet I have read or heard testimony from not one person whom I know personally who closed one. Again, I digress.

The change on October 1 is the end of FHASecure and the inception of Hope For Homeowners. While I sit here waiting for a clear to close on my final seller funded (Nehemiah) down payment assisted FHA purchase I am answering emails in bunches from readers wanting to have more information about this new Hope For Homeowners. I am not going to pretend to have all the answers nor to presume the answers I have are what is actually going to occur - for many reasons, most of which I do not even yet know. Instead of treating this as an absolute like I did the FHA Secure I will operate under what we have been told and how we have been trained until I gain some actual experience.

What is Hope For Homeowners?

According to the official information Hope For Homeowners "will continue FHA's existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford. Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford". Of course this is also what FHA Secure claimed to "allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing".

While it all sounded good finding an investor to actually purchase the paper was a joke and getting FHA to offer any assistance there a waste of time. Some claimed to do hundreds or dozens and others just laughed. I heard Jim Beavers, one of the architects of the death of seller funded down payment assistance, whining because wholesale lenders and mortgage investors hadn't gotten behind the program. Then he issued sort of a "threat" and said, "If you didn't like FHASecure you're gonna hate Hope For Homeowners".

Well, Jim, they didn't. So it remains to be seen why anyone would want to participate in Hope. I mean from what I understand the value of the property is marked to market and any encumbrance above 90% of market value is expired. Our example for the remainder of this rather lengthy article will use an example of a borrower who owns a property which is currently valued at $185,000 but has a first mortgage of $190,000 and a second mortgage of $30,000 actively liened against it. Write that down somewhere if you need to as we move to answer our next questions.

For Whom is Hope For Homeowners?

Now that you have a basic concept of what Hope is, along with a few dozen questions you did not have prior to reading the first few paragraphs, we can examine that same bit of information provided by HUD, "will continue FHA's existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford. Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford". We will simply take that statement apart and see who we can identify.

"Struggling families" is the first that is mentioned. I already know you do not have to be a family but you do need to be an American citizen or legal resident.

"Trapped in mortgages they currently cannot afford" could be ambiguous but you know there are guidelines. Without getting technical let's hit a couple of bullet points from HUD:

* Their mortgage must have originated on or before January 1, 2008;
* Their mortgage debt-to-income must be at least 31 percent;
* They cannot afford their current loan;
* They did not intentionally miss mortgage payments; and
* They do not own second homes.

When FHASecure first came out HUD wanted the homeowner to have missed a mortgage payment, or more than one, but only after the adjustable rate had increased and they could not have been late on any other payments. Hope has some differences but one similarity is that the borrower must be qualified for the loan with the exception of mortgage troubles. In other words bad credit borrowers because they have a slow payment history will not qualify.

Requiring the MORTGAGE DTI to be above 30% just goes inline with capping MDTI (lower ratio) in the same range as qualifying for an FHA loan to begin with except in this case having an MDTI higher than the normal requirement would be a key indicator that the mortgage is to heavy of a debt load for the homeowner and a signal they really need help.

To answer "for whom" it would be simple to say anyone who could qualify for an FHA insured home loan if their HDTI was less than 31% but who are in a mortgage that breaks the ceiling for their debt load. (If any of this is difficult to understand, confusing or you just have questions you can email me - I'm up most of the night - or phone me at 678-946-0100 during normal business hours EST).

How Can You Take Advantage of Hope For Home Owners?

Do a search for an APPROVED FHA Lender who is local to your area or region. Yes, there are unapproved loan officers making FHA loans and by using one you will almost certainly over pay for their services, you will not have the protection of the Federal Government should they hoodwink you, and they do not have direct access to all of the tools and information companies like my Novation Mortgage in Atlanta, Georgia. Check your state and if we are licensed and approved there I will be more than happy to work for you.

Although there are dozens of national advertisers, email spammers, flashing spinning website buzzy buttons, and even telemarketing calls, I strongly urge you to work with a local lender or broker from your area. Chances are the pricing between Ditech and Corner Mortgage will be equal or slightly different one direction or the other. As an example we normally beat Ditech, Wells Fargo and Countrywide with our overall closing costs and rates. If you do not know how to shop for a mortgage send me an email and I will send you a PDF flier that alerts you to tricks used by everyone but most "the big guys" to get you to participate with them.

Final Word

Don't wait around and see how it goes. This program is scheduled to run into 2011 but with the economy like it is who knows what changes could happen earlier.

THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.

EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.

Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors

NOVATION MORTGAGE 678-946-0100 or 866-946-0120

Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender