Thursday, April 30, 2009
Wednesday, April 29, 2009
From One Of My Favorites Writers
Might as well panic
If you don't know what to do, and you're frightened, might as well panic.
That seems to be the first rule of being a member of the human race. Apparently, panicking is an acceptable substitute for forethought, contingency planning or actually taking productive action. We almost want to blame the thing we're anxious about on the person who isn't panicking. "Don't you care! Can't you see that we're all gonna die! That we're going to go bankrupt? That the world as we know it is going to end?"
More people are killed by deer than sharks, but you don't see park rangers running around like nutcases.
There's huge pressure on our leaders and co-workers and institutions to panic. If for no other reason, we say, they should panic as a sign that they care, that they are taking things seriously.
A while ago, I said that the devil doesn't need an advocate.
Let me add to this: we have enough caution. We don't need an abundance of caution. That's too much.
From Seth Godin want to know more about Seth go to Seth's Blog
FROM Dan:
After giving Seth's short blog I wondered how this fit into real estate and thinking back over the couple of years I see several ways that buyers have panicked and made some costly mistakes.
One common mistake has been to not get pre approved before looking at homes, buyers may feel they cannot get approved and not take the first step of getting pre approved, many lenders will also give advise to help you turn your credit around.
Some buyers got in to big a hurry and got loans that were not in their best interest because, if they had waited 90days the could have saved hundreds of dollars each month.
Saving money by not having a home inspection, this one is a guarantee to costing you money.
If you would like to learn more about the most common mistakes home buyers make, sign up for one of my home buying boots camps, the price is right FREE and there is no obligation to work with any of the presenters.
Just check out:
Home Buyer's Boot Camp
If you don't know what to do, and you're frightened, might as well panic.
That seems to be the first rule of being a member of the human race. Apparently, panicking is an acceptable substitute for forethought, contingency planning or actually taking productive action. We almost want to blame the thing we're anxious about on the person who isn't panicking. "Don't you care! Can't you see that we're all gonna die! That we're going to go bankrupt? That the world as we know it is going to end?"
More people are killed by deer than sharks, but you don't see park rangers running around like nutcases.
There's huge pressure on our leaders and co-workers and institutions to panic. If for no other reason, we say, they should panic as a sign that they care, that they are taking things seriously.
A while ago, I said that the devil doesn't need an advocate.
Let me add to this: we have enough caution. We don't need an abundance of caution. That's too much.
From Seth Godin want to know more about Seth go to Seth's Blog
FROM Dan:
After giving Seth's short blog I wondered how this fit into real estate and thinking back over the couple of years I see several ways that buyers have panicked and made some costly mistakes.
One common mistake has been to not get pre approved before looking at homes, buyers may feel they cannot get approved and not take the first step of getting pre approved, many lenders will also give advise to help you turn your credit around.
Some buyers got in to big a hurry and got loans that were not in their best interest because, if they had waited 90days the could have saved hundreds of dollars each month.
Saving money by not having a home inspection, this one is a guarantee to costing you money.
If you would like to learn more about the most common mistakes home buyers make, sign up for one of my home buying boots camps, the price is right FREE and there is no obligation to work with any of the presenters.
Just check out:
Home Buyer's Boot Camp
Thursday, April 23, 2009
Monday, April 20, 2009
The Indiana Housing and Community Development Authority (IHCDA) announced that Hoosiers may be eligible for up to $25,000 in zero-interest, non-amortizing loans for Hoosiers to purchase foreclosed homes. Hoosiers who buy foreclosed homes to use as their primary residence can qualify for a $15,000 loan from IHCDA’s Market Stabilization Fund. The Federal Home Loan Bank of Indianapolis has committed to supply matching loans of up to $10,000.“When Hoosiers open the door to their new home, they open several windows of opportunity,” Lt. Governor Skillman said. “This is a unique use of federal dollars that will encourage homeownership while revitalizing communities.”The money comes from HUD’s Neighborhood Stabilization Program (NSP), which allocated $84 million to IHCDA. The state will use $33 million of that allocation for the Market Stabilization Fund. Assistance from this fund will be made available to income-qualified individuals and families who choose to purchase foreclosed homes in areas of the state in greatest need of assistance.Areas of greatest need are identified, with the assistance of the Indiana University Center for Urban Policy and the Environment, using a combination of HUD-provided data and proprietary data. Indiana is the only state using NSP money in a statewide program to help people buy foreclosed homes.
How the Market Stabilization Program (MSP) Works: IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist home buyers with the acquisition and/or rehabilitation of a foreclosed residential property located within an area of greatest need.
These funds may be used in conjunction with the IHCDA First Home product, FHA, VA, USDA, or prime fixed rate product. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.
Home buyers may use these funds for closing costs and down payment assistance related to the purchase of a foreclosed home or residential property that will be used as the primary residence. To be eligible for rehab funds a residential structure must not meet local building code and therefore is unable to be purchased in its present condition.
Buyers may use both acquisition and rehabilitation assistance in the purchase of a home, but the combined assistance may not exceed $15,000.
These funds will be in the form of a zero-interest, non-amortizing, second mortgage loan. These funds do not have to be repaid as long as home buyers use the home as a principal residence for at least ten years. If the home buyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the home buyer refinances within the first five years, the entire subsidy is repayable to IHCDA. After year 5 and through year 10, the home buyer will retain 20% in equity of the award amount per year.
This funding will be available to home buyers that are at or below 120% of area median income and who intend to occupy the home themselves. To determine income qualification, compare household income and family size to the income guidelines listed below. To use the current income limits for MSP as a second mortgage only: MSP Stand-Alone Limits.
To use the current income limits for MSP in conjunction with a Municipal Revenue Bond (MRB) or Mortgage Credit Certificate (MCC): MSP Income Limits with Bond or MCC. Home buyers will be required to participate in 8 hours of pre-purchase education provided by an IHCDA certified counselor. IHCDA will be coordinating with lenders/servicers, Fannie Mae, Freddie Mac and HUD to list foreclosed properties on a centralized Web site. Visit http://www.indianahousingnow.org/ and click on the Market Stabilization Program link to determine if a foreclosed property is in an eligible neighborhood. Lenders will be required to sell the properties listed on the site at a discount that meets or exceeds NSP guidelines. Site will be live by the end of April.
MSP Brochure and Detailed Information: The following link is a consumer friendly brochure on the MSP program: Consumer Brochure. To view a PowerPoint with detailed MSP information click here: NSP PowerPoint. If you would like more information on all of IHCDA’s programs, please visit their Web site at www.in.gov/ihcda. Federal Home Loan Bank of Indianapolis's Program: The Federal Home Loan Bank of Indianapolis’s (FHLBI) Neighborhood Stabilization Assistance (NSA) program is offering matching loans of up to $10,000. The main qualification for the NSA program is that the home buyer must have already secured IHCDA funds. Once IHCDA funding is secured, proceed by contacting an FHLBI member financial institution. Find a list of member institutions, program guidelines and other information by clicking here.
How the Market Stabilization Program (MSP) Works: IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist home buyers with the acquisition and/or rehabilitation of a foreclosed residential property located within an area of greatest need.
These funds may be used in conjunction with the IHCDA First Home product, FHA, VA, USDA, or prime fixed rate product. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.
Home buyers may use these funds for closing costs and down payment assistance related to the purchase of a foreclosed home or residential property that will be used as the primary residence. To be eligible for rehab funds a residential structure must not meet local building code and therefore is unable to be purchased in its present condition.
Buyers may use both acquisition and rehabilitation assistance in the purchase of a home, but the combined assistance may not exceed $15,000.
These funds will be in the form of a zero-interest, non-amortizing, second mortgage loan. These funds do not have to be repaid as long as home buyers use the home as a principal residence for at least ten years. If the home buyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the home buyer refinances within the first five years, the entire subsidy is repayable to IHCDA. After year 5 and through year 10, the home buyer will retain 20% in equity of the award amount per year.
This funding will be available to home buyers that are at or below 120% of area median income and who intend to occupy the home themselves. To determine income qualification, compare household income and family size to the income guidelines listed below. To use the current income limits for MSP as a second mortgage only: MSP Stand-Alone Limits.
To use the current income limits for MSP in conjunction with a Municipal Revenue Bond (MRB) or Mortgage Credit Certificate (MCC): MSP Income Limits with Bond or MCC. Home buyers will be required to participate in 8 hours of pre-purchase education provided by an IHCDA certified counselor. IHCDA will be coordinating with lenders/servicers, Fannie Mae, Freddie Mac and HUD to list foreclosed properties on a centralized Web site. Visit http://www.indianahousingnow.org/ and click on the Market Stabilization Program link to determine if a foreclosed property is in an eligible neighborhood. Lenders will be required to sell the properties listed on the site at a discount that meets or exceeds NSP guidelines. Site will be live by the end of April.
MSP Brochure and Detailed Information: The following link is a consumer friendly brochure on the MSP program: Consumer Brochure. To view a PowerPoint with detailed MSP information click here: NSP PowerPoint. If you would like more information on all of IHCDA’s programs, please visit their Web site at www.in.gov/ihcda. Federal Home Loan Bank of Indianapolis's Program: The Federal Home Loan Bank of Indianapolis’s (FHLBI) Neighborhood Stabilization Assistance (NSA) program is offering matching loans of up to $10,000. The main qualification for the NSA program is that the home buyer must have already secured IHCDA funds. Once IHCDA funding is secured, proceed by contacting an FHLBI member financial institution. Find a list of member institutions, program guidelines and other information by clicking here.
Saturday, April 11, 2009
Fannie Mae Foreclosures
First in order to not speak in Realtoreez (spelling?) lets explain what Fannie Mae is. Fannie Mae refers to the federally chartered company, the Federal National Mortgage Association, which is the nation’s largest supplier of home mortgage funds. You probably already know that Fannie Mae purchased a lot of loans that are now called bad paper, in other words the homeowner for a variety of reassons stopped making payment, the house was foreclosed on and Fannie Mae now owns the house and finally after what seems a long time have decided to do something about selling these homes. In Marion county alone there approximately 159 Fannie Mae owned homes for sale ranging from $6500.00 to $259,900 and more on the way, so Fannie Mae has decided to take action. If you are a first time buyer you can purchase one of these homes for 3% down payment, below are the basic guidelines.
HomePath® Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:
The benefits include:
Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
No mortgage insurance*
No appraisal fees
Also eligible for HomePath Renovation Mortgage (see details below)
HomePath Mortgage financing is available from a variety of lenders - both local and national.
HomePath® Renovation Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:
Available only on homes you make your primary residence and offers these benefits:
Financing to fund both your purchase and light renovation
Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
No mortgage insurance*
HomePath Renovation Mortgage financing is available from several lenders.
If you're an investor interested in renovating a property, you may qualify for financing under our HomeStyle® Renovation Mortgage product. Most HomePath Renovation lenders also offer our HomeStyle Renovation product, but there are many other lenders as well. For more information, contact your preferred lender.
* Ask your lender for cost details on loans without mortgage insurance.
I have my lender looking into the precisely what the guidelines for investors are and will post that on Monday.
Have a good weekend,
Dan Baize
HomePath® Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:
The benefits include:
Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
No mortgage insurance*
No appraisal fees
Also eligible for HomePath Renovation Mortgage (see details below)
HomePath Mortgage financing is available from a variety of lenders - both local and national.
HomePath® Renovation Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:
Available only on homes you make your primary residence and offers these benefits:
Financing to fund both your purchase and light renovation
Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
No mortgage insurance*
HomePath Renovation Mortgage financing is available from several lenders.
If you're an investor interested in renovating a property, you may qualify for financing under our HomeStyle® Renovation Mortgage product. Most HomePath Renovation lenders also offer our HomeStyle Renovation product, but there are many other lenders as well. For more information, contact your preferred lender.
* Ask your lender for cost details on loans without mortgage insurance.
I have my lender looking into the precisely what the guidelines for investors are and will post that on Monday.
Have a good weekend,
Dan Baize
Thursday, April 9, 2009
First Time Home Buyer Loans
With so many programs being started by the federal government it is difficult to keep up with all of the changes, new programs and guidelines. Over the last sixteen years as a real estate consultant experience has shown that there is not one size fits all mortgage.
Today lets look a one program that is through a local (not national or international) bank. There more I see of the current dilemas the market has gotten into, the more I appreciate working with a local bank that is vested in your community.
Currently there is a program available for first time home buyers that requires no down payment.
Some of the guidelines are:
Today lets look a one program that is through a local (not national or international) bank. There more I see of the current dilemas the market has gotten into, the more I appreciate working with a local bank that is vested in your community.
Currently there is a program available for first time home buyers that requires no down payment.
Some of the guidelines are:
- No (0%) down payment
- 15, 30 fixed rate mortgage or 7/1 adjustable rate
- 60 day lock standard
- No application fee
- No mortgage insurance
- No payment reserve requirement
- Free pre qualification for loan amount
- Closing cost can be gift, grant of seller contributions
- Free pre-approval
- One or two family owner occupant residence only
- Borrower(s) may own no other property
- Maximum loan price $150,000
- Maximum annual income $54,480
- Maximum debt to income ratio 41%
- Home buyer training completed prior to loan closing
- 12 months on time rental payments
- House to me located in Marion county, Carmel, Fishers and parts of Zionsville
I just spoke with the lender on this and we may be able to tie this into the the $15000 assistance you have probably seen and heard on the news. For more information about that go to
If you would like to begin your house search drop me an email at mailto:dbaize@c21rg.net or sign up for my free HomeFinder program at http://www.saygoodbyetoyourindianapolislandlord.com/.
Tomorrow I will explain a little about home loans for Medical Doctors and Fannie Maes new program for first time buyers. With all of the programs popping up there is to much to post in one blog, it gets a little overwhelming and as I said before, none the programs are one size fits all.
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