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The big news this week is HARP.

THE Home Affordable Refinance Program has been “re stringed”

HARP was designed to assist distressed borrowers who are current on their mortgages but “underwater” meaning they owe more than their home is worth.

It’s no surprise several studies identified these borrowers as being likely to strategically default on or walk away from their homes and foreclose.

While regulations won’t be finalized until November 15^th the changes to “Harp 2” include -

•Removing the 125 percent loan-to-value.

•Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.

•Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs

•Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines

•Extending availability of the program through the end of 2013

These changes may allow double the homw owners the opportunity to refinance but still will help only borrowers who are current on their payment and who have loans guaranteed by one of the GSE’s, Fannie or Freddie prior to July 2009.  Thus it will impact only a small percentage of underwater borrowers.

Credit Suisse estimates 720k borrowers will be able to refinance which translates to between $2 and $3 billion in interest savings; so HARP 2 will not have a huge effect on the economy or on the real estate market.  

To find out if your home is owned by Fannie or Freddie you can contact my team at info@garrick.biz .

The program is set to come out November 15^th  2011.

Related Links…

The New Government Refinance Program Alameda

http://the-buzzz.com/2011/08/31/the-new-government-refinance-program-alameda-mortgage-minute-real-estate/

Don’t Stop Believing – Camille and Kennerly -

http://www.youtube.com/watch?v=XkINiWyyfyI&feature=related

I searched “2 harps” and now my wife and I are huge fans!!!!

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Having trouble viewing:
http://www.youtube.com/watch?v=Db_JxgC2xu4

SUMMARY:

President Barack Obama signed legislation Tuesday to raise the U.S. debt ceiling, avoiding a potential government default only hours before the deadline. 

“It is an important first step to insuring that, as a nation, we live within our means,” Obama said.

The new law immediately allowed the Treasury to borrow an additional $400 billion, with more borrowing allowed later.  It is also intended to reduce the nation’s $14.3 trillion deficit by at least $2.1 trillion over 10 years.  The House of Representatives passed the bill on Monday by a vote of 269 to 161, after weeks of intense debate.

Failing to raise the federal debt ceiling, which is the maximum amount that the federal government can borrow without additional congressional action, would cause interest rates to climb, perhaps sharply, and they would remain higher than they otherwise would. Mortgage rates, among other interest rates, would rise alongside interest rates on U.S. Treasury bonds, making homes less affordable and depressing house sales and prices.

The last time the 10-year Treasury yield — a key benchmark for mortgage rates — fell this far was in the fall of 2010, when it dropped to 2.5%. Yields plummeted to around 2% at the end of 2008.

So for the time being rates are once again at all-time lows, so if you are a real estate agent it’s time to call your buyers and if you haven’t taken advantage of the refinance market call me today…ESPECIALLY IF YOU HAVE A LOAN BETWEEN $625,500 AND $729,750- WE HAVE UNTIL SEPTEMBER 30^TH TO FUND THOSE.

Thanks for watching Mortgage Minute!

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Alameda, CA is a town with many beautiful Victorian and Craftsman style homes. Often an older home will come onto the market that has great potential but could use a little TLC. How can a homebuyer purchase one of these Alameda homes and afford the repairs? A 203K rehabilitation mortgage is just the thing!

Many clients and Realtors we know have questions about this type of loan, for example what is the difference between a 203K Streamline and Full 203k? Well in a nutshell, here are a few key points:

Key points of 203K Mortgages:

• Not just for repairs
• Dated homes
• Remodel kitchen or bathrooms
• Razed homes
• Foundation repairs
• Pool repairs up to $1500
• Mold or Lead based paint
• Termite damage (cannot include the inspection)

Streamline K

• Maximum repair amount of $35,000
• Streamline is for small projects that involve 1 or 2 specialized contractors
• Any HUD, bank owned or vacant home is not eligible regardless of dollar amount
• Would not have a HUD consultant

Full K

• No maximum repair amount
• HUD approved consultant is brought in to do the inspection
• Consultant prepares write up for project after meeting with borrower and discussing borrower’s wish list and the items that need to be done to bring the home to HUD’s minimum property standards
• Borrower uses write up from consultant to find general contractor’s to bid the project. 
• Accept bid from general contractor

This loan will take a little longer to close, depending on the scope of the work to be done. But what a reward to purchase a beautiful older Alameda home, get the repairs done and move into the home of your dreams!!

For more information on 203K Rehabilitation loans (Streamline K or Full K) contact the Werdmuller group! We are in contact with a local 203K consultant and contractor with experience doing these types of transactions, successfully!

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Here in Alameda, much of the higher priced real estate on Harbor Bay Island, or Bayfarm Island, has been hit hard recently by the market. Many pockets of the Bay Area are stable now, however, this higher priced area is losing equity.  We were able to help many of the Veteran Homeowners refinance and save their homes with a niche VA refinance product. We can go to 95% of the current appraised value and the best part is there is no Mortgage Insurance!

Now is an incredible time to refinance your home with a VA mortgage loan! You can take advantage of lower interest rates that can ultimately save you money in both the long-run and the short-run by lowering your monthly payment.

If you currently have a conventional loan, you can refinance into a VA loan if you are an eligible veteran or member of the armed services. Transferring from a conventional mortgage to a VA mortgage is known as a “Conventional to VA Refinance Loan” and is a very straightforward process.

In 2008 a law titled the “Veteran Benefits Improvement Act” was passed to assist veterans who were upside down on their mortgage. This law created the opportunity for eligible veterans to get a VA refinance and improve their financial circumstances.

Of course, you are also allowed to refinance your home if you currently have a VA mortgage. An Interest Rate Reduction Refinancing Loan (IRRRL) is considered a VA Streamline Refinance. This is a quick and easy way to either lower your monthly mortgage payment or take money out of your home with minimal work, at no cost to you!

There is a great opportunity in the market to refinance a VA loan you or someone you know may have! To learn more feel free to contact us, we are here to help you and we love serving those who serve.

Other VA Posts You May be Interested in:

VA Interest Rate Reduction Loan

VA Mortgage Loans in Alameda, CA- a Piece of Island History

VA Loan Requirements and Eligibility in Alameda, CA

Approved Property Types and Loan Limits for VA Loans

Is a VA Loan Better than a Conventional Mortgage

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