Michelle Braet

18516 Joseph Campau, Detroit, MI 48234

Exterior:
This house is a cream color with white trim. The front yard is small however, the back is huge. The roof has asphalt shingles that are in fairly good condition. This house has a brick foundation that’s in good condition. This house has a wood framed porch that’s in good shape. There is no driveway or garage but it dose have a detached shed outback.

Interior:
The living room is 13x11.5 with a hardwood floor, and a high ceiling. The dining room 13x11.5 is carpeted it also, has a high ceiling. The kitchen is 13x13 with a vinyl tiled floor and wood cabinets. The base cabinet for the sink is new and has not yet been installed. Both bedroom are 14x9 and have wood floors. They can use being repainted. The bathroom is 9x5 is in fairly good condition it has a vinyl tile floor and of its fixtures are in tact. There is some minor damage to the wall in the bathroom. The basement is unfinished.

For more information and pictures, call 512-696-1997 Ext 518.

1017 Mildred, Kansas City, KS 66104

Single Story - 2 Bed / 1 Bath Home

Exterior: This is a grey wood siding house with red brick around the bottom and grey trim. There is a small single car driveway in the front but no garage. Lots of shrubs and bushes line the front and large trees shade the entire property. The roof is a three tab and will need extensive work. There is a chain link fence along either side in the front and the back is completely fenced in.

Interior: The living room is carpeted and has a large window facing the front of the property. The kitchen has a small area that could be used as a breakfast room and may need minor repairs. The dining room and den both have drywall damage to the ceiling but otherwise are in good condition. The master bed room is carpeted and has drywall with no cracks. In the bath room the shower, sink, and toilet are all intact. There is debris throughout the house that will need to be removed.

Mechanical: The water heater has been removed and will need the be replaced. The furnace is intact along with the ductwork and appears to be in working condition. Some of the copper pipe has been removed along with some electrical so this will need a little work as well.

For more information and pictures, call 512-696-1997 Ext. 518.

309 W 3rd St., Blue Rapids, KS 66411

Exterior:
Two story home with Blue and White aluminum siding that’s is fair condition, house sits on a corner lot and has nice curb appeal. This home looks great form the outside, home may need some landscaping. The roof is shingle based and leaks were found inside the home. The foundation is stone and mortar; there is some shifting in this home.

Interior:
Living room has older carpet and wood paneled walls, or wallpaper. The dining are has the same walls and carpeting. The kitchen has vinyl floors and includes cabinets and a sink. The bedrooms and bathroom are upstairs; the bathroom includes a sink, tub and toilet. It appears that some of the water damage may be due to a leak in the bathroom. The master bedroom is large with red carpet and blue colored walls. The second bedroom has hardwood floors and a small closet. The third bedroom carpet and vaulted ceilings. A Hot Water Tank was found as well as a furnace.

Mechanics:
Furnace and hot Water Tank

For more information or pictures, call 512-696-1997 ext 518 or email michelle.braet@econohomes.com.

Agreement on appraisal reform to be delayed up to 3 months, regulator says

WASHINGTON (AP) -- An agreement to reshape the appraisal industry is being delayed up to three months, a federal regulator said Thursday.

James Lockhart, director of the Federal Housing Finance Agency, told the House Financial Service Committee that the agreement with New York Attorney General Andrew Cuomo is still being worked out

Lockhart said the agreement will be delayed by one to three months from it's original Jan. 1 start date. While the agreement should be finalized in the coming weeks, "it's taken us longer than we expected to do it," he said.

Widespread complaints of problems with the appraisal process and its impact on the nation's housing market led Cuomo to reach a deal in March with Fannie Mae and Freddie Mac, which are regulated by Lockhart.

The agreement will create a watchdog -- the Independent Valuation Protection Institute -- to monitor the appraisal business. Fannie Mae and Freddie Mac will spend $24 million to create the institute, which will accept complaints from consumers and appraisers. It will also monitor the enforcement and report to Cuomo's office.

Earlier this year, federal bank regulators and mortgage industry interests protested the agreement, saying it violates federal law and could have an unintended negative impact on the mortgage industry.

Let's be honest! USDA loans can't really save the market; however, they do have a place in today's mortgage market. My office has been abuzz about USDA loans for the past couple of months-a program that has become, as of October 1, the only affordable zero-down loan program available (other than VA loans, for which only veterans qualify). USDA loans are filling the void created by the elimination of FHA seller-funded DPA (down-payment assistance) and no-down- payment conventional loans. The strange effect that we are seeing is that demand for homes outside Austin's city limits has been affected by this loan program.

A USDA loan is geographically restrictive, and inside Austin's city limits does not qualify. However, bedroom communities like Leander, Hutto, Kyle, Buda, and Wimberley do qualify; and borrowers who have little or no down payment are refocusing their searches in these areas.

So, what is USDA, and what makes this program better than other programs that offer a low down payment? Over the last 12-14 months we have seen a fundamental change in (1) the way that mortgage loans are underwritten, (2) how their interest rates are set, and (3) how mortgage insurance (MI) premiums are determined.

In the past, the rate the bank set was the same regardless of the borrower's score-580 or 800. Over the last few months Fannie Mae and Freddie Mac have instituted a credit score and LTV (loan-to-value) tier system for setting interest rates. Having a 680 score rather than a 770 score will now net a higher interest rate. Fannie and Freddie have also put into effect an LTV tier system; 90 percent LTV rates are higher than 80 percent LTV rates.

Fannie Mae, Freddie Mac, and FHA have drastically scaled back their liberal underwriting standards; and we have seen an increase in the rate of loan denials. As previously noted, Fannie and Freddie have eliminated their zero-down payment loans and instituted a minimum requirement of 3 percent down. FHA has eliminated the seller-funded DPA, which allowed the seller to pay for the buyer's down payment. They have also raised the buyer minimum from 3 percent to 3.5 percent starting January 1, 2009.

Mortgage insurance has always been that dirty little phrase in mortgage lending. MI is insurance for the lender in case the borrower defaults on the mortgage, with the insurance covering losses based upon the coverage amount. In the past, if you were putting down 3 percent on a $225,000 home, the monthly mortgage insurance payment would be $174.60, regardless of your credit score. Since MI companies have started using a tiered premium model, that same monthly payment is now $254.25 per month.
So, what about USDA? What makes this loan better than the ones I have just discussed, and what is the downside? First of all, and probably most importantly, USDA loans are FIXED-rate mortgages with 30-year amortizations. Most of the problems that we are seeing in the financial markets today have been caused by ARMs (adjustable-rate mortgages) and hybrid loans (loans with negative amortization). USDA loans are fully amortized FIXED-rate mortgages, which provides for a stable payment over the life of the loan, thus giving the borrower security.

USDA loans DO NOT have a monthly MI payment! As pointed out earlier in this article, MI payments can be a burden on the borrower in making his monthly payments; therefore, this is a huge advantage for him. The following examples compare conventional , USDA, and FHA loans with a minimum allowed down payment, a credit score of 640, and $175,000 purchase price :

As you can see, USDA loans provide the most affordable option in financing- low payments, fixed rates, NO mortgage insurance, and little or no money out of pocket.

What is the downside of a USDA loan? USDA loans are geographically restrictive, meaning that in certain areas properties are not eligible for USDA financing. To find out which homes in Central Texas qualify, go to www.usdanow.com. Typically, towns with a population above 25,000 do not qualify for USDA financing; however, the best place to check is this website. USDA loans are also income restrictive. Income limits are based on the total projected income for ALL adults living in the household and varies by the number of persons who will reside in the household and the location of the property. Applicants may have an income of up to 115 percent of the median income for the area. Area income limits can be found here, and I have listed the Austin/Round Rock MSA below.

As you can readily see, the income limits are fairly liberal; and a majority of borrowers can and do qualify for this program.

In the opening paragraph I mentioned that borrowers are starting to focus their attention on the bedroom communities that surround Austin. These buyers are choosing this loan program over others, and in doing so they are adding to the demand for these communities. Not many lenders carry this program, and even fewer real estate professionals and buyers are aware of the USDA loan. I believe that this loan program will continue to gain traction and that we will see a move towards more of these. As lending guidelines tighten and borrowers look for alternative options, this program will be in ever greater demand. LOW PAYMENTS, FIXED RATES, NO DOWN PAYMENT, and NO MONTHLY MORTGAGE INSURANCE-this may not save the market; but it is a viable, affordable option for many borrowers

John McClellan, Branch Manager, Supreme Lending