Makes Sense to ACT Now!

1
Makes Sense to ACT Now!

• The Housing and Economic Recovery Act of 2008
• and how it impacts YOU!

Joe LO XYZ Mortgage Company
Disclosure All loans subject to credit approval
and property appraisal. Programs, rates, and
terms subject to change without notice. For ARM
loans, rate may increase after settlement.
Prequalification is not a commitment to lend, a
condition of loan approval, or an application for
credit. Pre-approvals will result in a loan
decision subject to conditions. Consult a tax
advisor regarding the deductibility of
interest.-- a Division of National City Bank
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Why this new law?

• To help a sluggish housing market recover
• To strengthen an also sluggish US economy
• To provide additional benefits to current
  homeowners, and encourage home purchases
• To help prevent more foreclosures, which weaken
  home prices nationwide
• To prevent bad actors from participating in the
  professional business of home loan lending

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Lets Break it Down

• FHA Modernization several changes
• New Tax Credits and Incentives
• Conforming Jumbo loan changes
• Hope for Homeowners in trouble
• New Quality Standards for Mortgage Lenders

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Seller Paid Down Payment Assistance

• Going, going not gone yet, but slated to be
  eliminated October 1, 2008
• Why? These loans have triple the chance of
  default and foreclosure over traditional FHA
  loans
• Bills already in progress to resuscitate, but all
  guarantees are off
• If You Want It Get It Now!

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More Cash Needed Ahead

• For FHA financing, minimum cash investment is
  increasing from 3 to 3.5
• Mortgage Insurance costs will likely be
  increasing too
• HUD in process of clarifying details and when
  this will take effect
• Bottom line Act now to get best benefits before
  changes take place!

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Good NewsDid Someone Say Tax Credits?

• Calling All First Time Home Buyers
• Or Any Non-Homeowner in the Past Three Years
• Good for Buyers From April 9, 2008 Through July
  1, 2009
• Tax Credit Up to 7,500
• 10 of Sales Price up to a Maximum of 7,500
• Must be Primary Residence
• Income Limits 75K for Singles or 150K for
  Couples
• Phases Out at 95K and 170K Respectively

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The Fine Print

• The Tax Credit is generousbut is actually an
  interest-free loan, must be Paid Back Over 15
  Years at 500 per year
• If home sold early, repayment of loan is limited
  to amount of appreciation
• If you diethe good news is that your loan is
  forgiven. The bad news isthat you are dead.

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Tax Benefits for Current Homeowners

• For whom? Those who own a home but currently
  file the EZ form, or do not itemize their tax
  deductions
• Most homeowners itemize deductions but this
  will help some individuals
• May be able to deduct real estate property taxes,
  up to a maximum of 500 for a single person,
  1000 for married

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Who You Calling JUMBO?

• JUMBO loans are those larger loan amounts,
  above a preset limit set by Fannie Mae and
  Freddie Mac, presently at 417K
• In recent times, Fannie and Freddie have
  temporarily allowed more favorable interest rates
  on loan amounts normally considered to be Jumbo
• This benefit was set to expire, but has been
  extended
• However, the maximum limits have decreased
• First Capped at 417,000 No Change
• Maximum Caps Pulled back to 625,500 Few
  Markets Hit Here
• Capped for Others at 115 of Local Area Median

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Hope for Homeowners

• Who will this impact? Homeowners who are
  upside-down in their homes, ie they owe more
  than the property is currently worth and are
  headed for trouble
• Very detailed eligibility guidelines
• Must agree to split all future equity built up in
  the home with the government, 50/50
• Foreclosed homes drag down property values for
  everyone so this is good news for all homeowners

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The Heat is OnOriginators

• Federal Licensing Requirements are Coming, and
  Will Improve the State of the Mortgage Industry
  Overall
• No Crooks Allowed
• Smarter Mortgage Professionals Ahead
• Have to Be in Good Shape Financially That Is
• Working With a True Professional is Always Key

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ACT NOW. WHY?

• Home prices are low and most experts believe a
  bottom in real estate is here
• Remember you cant see a bottom, until it is
  already in the rear view mirror
• Home loan rates still exceptionally low
• Benefits of this legislation will not last
  forever why miss this opportunity?
• I am a professional that is on your side.
• Lets make your dream of homeownership come true!