Heather Morris Realtor Expert for Cedar Rapids, Marion, Hiawatha & Robins

 Summary for Home Owners

            We have all heard the buzz about economic recovery and would like to know, how does it affect me?  A brief summary of this new legislation regulating Fannie Mae, Freddie Mac, and the Federal Home Loan Banks may answer a few of your questions.

            A new regulator for these three government sponsored entities has been established to ensure safe and sound lending practices. The mission of the new police force is to enhance affordable housing, raise loan limits on FHA mortgage loans in high cost areas creating more buyers, and tighten qualifying guidelines for safer financial decisions.  Eligible candidates must be home owners, not investors.  FHA borrowers will need 3.5% down payment and all mortgages will be a fixed rate for 30 years. Enhanced mortgage disclosures provide buyers the maximum monthly payment possible with their loan and all cost associated, the Truth in Lending Act. 

            First time home buyers benefit from this legislation with a tax credit of 10% of the cost of the home, not to exceed $7,500.  The maximum income for the buyer would be $75,000 or $150,000 for a joint tax return.  Home purchases must be after April9, 2008 and prior to July 1, 2009.

            Military veterans benefit from the new legislations.  For returning soldiers, the bill lengthens the pre-foreclosure process to nine months.  Counseling programs for veterans are available for financial assistance; VA loan limits have been increased; and financial improvement and structural alterations for homes of veterans with service related disabilities have been created. 

            Relating to foreclosure properties, legislation “Hope for Homeowners Act of 2008” was created to help FHA insurance mortgages from default.  Lenders that volunteer to help distressed buyers can refinance their loans at a significant discount if an owner is at risk of losing their home.  Financial and legal services are available for distressed borrowers that qualify. 

            This brief summary of the “Housing and Economic Recovery Act of 2008” only answers a few concerns facing our Cedar Rapids, Marion, Robins, and national real estate markets.  Email or call for a copy of the legislation or any concerns affecting your personal real estate needs. 

Heather Morris CRS, ABR, GRI, CLHMS

Broker Associate/ Skogman Realty

A Message from Tim Lamb, Mortgage Consultant

The current conventional conforming mortgage limit will remain at $417,000.  This is not change from 2008.  Any mortgage balances above $417,000 is considered a jumbo mortgage and falls into a different group.  Just so you know there are NO investors currently buying Jumbo mortgages.  So Jumbo loans are being held by large banks such as Wells Fargo and your borrowers will pay an increased interest rate for these jumbo products. 

The temporary FHA limits announced last year will be come permanent in 2009.  The maximum FHA mortgage is $271,050.  This again is not a change from the temporary limits announced last year.

The VA limits are a little different.  In most cases a borrower can borrow $417,000 with no down payment as long as he or she has $36,000 worth of VA Eligibility and qualify under the VA guidelines.. 

The most significant of these is the FHA limit becoming permanent.  The FHA mortgage product is projected to be 40% of our market in 2009 and currently has the best underwriting guidelines and lowest PMI rates available.  We will be doing more and more of these FHA loans. 

I hope you find this information useful!

Timothy A. Lamb
Mortgage Consultant
Skogman Mortgage Company
MAC M2623-011
341 8th Avenue
Marion, IA 52302
(319)368-1240 Tel
(866) 867-7183 Fax
timothy.a.lamb@skogmanmortgage.com