Ready...Set...WAIT! No, DON'T Wait!

Have you ever played "On your mark...Get Set....Wait!" with your kids? Or, "Red Light, Green Light"? I know my husband and I have done this, and are learning as time goes by that this isn't a bad lesson for our kids to get in the world we live in today. I'm thinking I wish someone had played "ready set wait!" with me a bit more when I was a kid, so I might be a bit more tolerant of the world I live in today - especially when it comes to the real estate/mortgage industry!

Ready...Set...WAIT!

Monetizing the $8,000 tax credit
HUD Secretary Donovan opened mouth and insert foot at the National Association of Realtors convention in Washington, D.C., announcing a wee bit early that the guidelines had been changed so that eligible FHA home buyers could have their participating lenders "monetize" tax credit funds they are eligible for so that these buyers may use these funds to meet the minimum 3.5% down payment requirements on FHA home loans. I'm glad Secretary Donovan did this, because although this announcement and its associated Mortgage Letter were retracted until the fine nuances were ironed out, Friday May 29th a new letter was issued. So, eligible first time home buyers, call your lenders and see if they are participating with this program to make the funds available to you.

Ready...Set...WAIT!

Neighborhood Stabilization Program
Well, finally, the waiting is coming to an end for some of these programs to be up and running for today's eligible Oregon home buyers to take advantage of. The Neighborhood Stabilization Program is just awaiting its final stamp of approval which should be coming through any day now. One segment of this program will be made available to home buyers who are looking to purchase bank-owned or privately financed properties that have been taken back through foreclosure proceeds. Matching down payment funds, closing costs and reasonable/eligible repair costs may be funded through the Neighborhood Stabilization Program funds - up to $50,000 per home!

Ready...Set...GO!
Yes, you heard that right...GO! The Neighborhood Stabilization Program for Oregon is about ready to accept reservations. If you are a buyer who has gotten all your ducks in a row and are prepared to jump on this opportunity, DO IT NOW! Not many lenders and realtors have familiarized themselves with these program requirements, so you may be a bit frustrated when calling around about it. If you are looking to buy in Southern Oregon, call me and I can help you with your financing, and recommend you to Realtors who are knowledgeable about the program guidelines. Why the sense of urgency you may ask? Very limited funding allocation is available, and it's first come, first served, so the early birds will be catching this particular worm. I've been on the phone with all my eligible buyers and Realtor referral partners spreading the word, and would love to play a part in the successful outcome of the Neighborhood Stabilization Program, which is to help eligible home buyers while getting foreclosed homes off the market.

Oregon is trying to get the $8000 "monetized" for non-FHA or non-participating lender programs by June 30, 2009, so get ready now!

See you at the closing table!
Karen Cooper - OR/CA Mortgage Consultant - http://www.quality4loans.com/

Know a Southern Oregon First Time Home Buyer who could use up to $50,000 for their home purchase?

Oregon is onboard the Neighborhood Stabilization train, and has submitted proposals to HUD on how they plan to allocate funds from the Neighborhood Stabilization Program that was approved under the 2008 Housing and Economic Recovery Act. The number of foreclosed homes in Jackson County has led to allocation of funds from the Neighborhood Stabilization Program to Jackson County home buyers willing to purchase and rehabilitate these bank owned homes. The last update I received from Oregon Housing and Community Services was they are awaiting the final stamp of approval from their legal department before releasing the final guidelines, but here are some you may expect:

• Maximum NSP investment per home buyer will be $50,000 or the difference between the total cost (acquisition and modest rehabilitation) and amount of mortgage eligible buyers can obtain (which ever is less). This means down payment assistance, folks!


• Funds will be in the form of a "soft second" loan, bearing no interest with payments deferred until the homeowner refinances or transfers title.


• A share of the appreciation will be due at transfer of title, and may potentially be waived if OHCS grants an exception.


• Income limits for Medford Area $18,200-83,800 depending on family size (2008).


• Work to be done by a licensed contractor, and cannot be done by the homeowner. Work will be paid for upon close of escrow.

Sound like something that might be a solution to your becoming a homeowner? Call for more details, or go online and apply to be preapproved for your home loan today at http://www.quality4loans.com/.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - http://www.quality4loans.com/

American Pacific Mortgage, 301 B Crater Lake Avenue, Medford OR 97504 OR License ML-2338; 3000 Lava Ridge Court #200, Roseville, CA 95661 CA DRE Broker License 01180222

Ready...Set...GO! Get Your $8000 Tax Credit for Your Down Payment!

There is some good news on the horizon for home buyers who are ready, willing and able to enter the world of homeownership!

There are several provisions in the overall stimulus package that President Obama's approved Tuesday. One of the most beneficial provision for home buyers is an $8,000 home buyer tax credit for new home buyers - buyers who have not owned a home in the past three years. For qualified home purchases in 2009, the legislation:

· Stipulates that the $8,000 tax credit does not have to be repaid, unlike the tax credit passed last summer (has a recapture provision if the home is sold in the first 36 months, though);
· Keeps the tax credit refundable, or claimable regardless of tax liability;
· Extends the "sunset" date from July 1, 2009 until Dec. 1, 2009 so that consumers can utilize it during the critical summer and fall buying months;
· Allows tax credit home buyers to participate in the mortgage revenue bond programs, such as Oregon Bond's RateAdvantage program; and
· Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds - this is even better than the Oregon Bond CashAdvantage program, as you may still take the really great rate on the RateAdvantage program.

While much of the focus has been on the home buyer tax credit, there are several other important components in the legislation that will help small businesses and bolster the housing market. Additional provisions that relate to housing in H.R. 1, the American Recovery and Reinvestment Act of 2009, will:

· Help home borrowers wanting to purchase or refinance homes in the high-cost markets by extending the 2008 FHA, Fannie Mae and Freddie Mac loan limits of $729,750 through the end of 2009;
· Temporarily allow exchange of Low-Income Housing Tax Credit allocating authority for tax-exempt grants and appropriates $2 billion in HOME funding for affordable housing projects (this should make housing developers trying to keep their construction crews busy happy!)

Think $8,000 would help you get the home you want to buy? Want to find out if you meet the criteria? Call me at (541)608-6003 or e-mail me for your free consultation, and I'll gladly share my 25 years of experience with you.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Don’t Forget The Taxes and Insurance And Maintenance Expense!

Something I’ve always made a point of emphasizing with first time home buyers – and with long time homeowners and move up buyers as well - are the “other costs” associated with homeownership. Many first time homebuyers are focused on the principal and interest part of the mortgage payment, and when they use an online loan calculator (or often times when speaking to their loan officer), the attention remains on the principal and interest portion of the payment only. And it recently came to my attention that homeowners seeking note modification may also be focused only on the mortgage portion of their monthly payment.

But, what about the other expenses that will be used when a buyer or homeowner is being qualified for their home loan:

Property Taxes
Homeowner’s Insurance
Mortgage Insurance
Homeowners Association Dues

And how about utility expenses - electricity, natural gas, heating oil, wood/pellets, water, sewer, trash pickup- are these expenses being included in your budget? Or maintenance costs, landscape maintenance, roof repair, paint/stain, septic system maintenance…have you seen the movie “The Money Pit”? This can be a lengthy list! Have you incorporated these other expenses associated with the home you are purchasing in to your budget?

So, my tips for today…

First time homebuyers – make sure you are budgeting for all the costs associated with homeownership AND that you have the cash available to make the repairs and/or do the updating you plan to do to your new-to-you home. One of the tools you may use to accomplish this goal is a loan program that will assist you with meeting your objective to purchase a home AND do repairs/updating, like the USDA Guaranteed Rural Housing loan or a Remodel/Renovation loan.

Existing Homeowners seeking Note Modification – consider all your monthly housing expenses when looking at the terms your lender is offering you. Don’t you want to turn the majority in favor of the homeowners who successfully accomplished their goal of remaining in their home through note modification?

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Southern Oregon ABC’s of Homebuying Class this Saturday December 13th at Rogue Community College

The next "ABC's of Homebuying" HUD approved course for first time homebuyers is coming up this Saturday December 13, 2008 from 9 a.m. - 4 p.m. at Rogue Community College in Downtown Medford. Not only is this is the required course for several first time homebuyer programs, but it is a great source of information for the first time homebuyer AND buyers who are re-entering the market after being on the sidelines of the real estate market for several years.

For information on registration and directions, follow this link, or contact the Southern Oregon Housing Resource Center at ACCESS, Inc. (541)774-4329.

If you are planning to attend and saw this notification here, look for me as your Instructor for Section 2 on Financial Preparation and possibly Section 3 on Mortgages.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com