The Mortgage Environment and upcoming changes...

Given the recent changes in the lending landscape it is important to know what the new rules are and how they may impact your next home purchase or refinance. Despite the ongoing strains in the credit markets, banks are still lending. Although underwriting standards have increased making it more difficult for marginal borrowers to get qualified, borrowers with good credit scores, stable income, and strong liquid assets will still find approvals easy to obtain and rates near historical lows. Below are some notable changes:

Conforming Mortgages - (Mortgages which are sold to, and guaranteed by, Fannie Mae and Freddie Mac.)

• Fannie Mae's new conforming loan limits are being adjusted up to $625,500 in high-cost areas, which covers most of the Washington DC Metropolitan Area, effective January 1, 2009
  
• 90% financing is the highest currently available in most areas due to problems obtaining Private Mortgage Insurance (PMI) and revisions to Fannie guidelines.
  
• 95% financing is available on single family detached primary residences only.
  
• Lower credit scores are now being penalized with risk adjustment premiums, increasing interest rates and resulting in larger down payment requirements.
  
• Investment properties are also facing risk-adjusted, higher interest rates and larger down payment requirements.
  
• New Construction Condos now face greater scrutiny and are fully vetted just as the borrower's are.
  

FHA Mortgages – (Mortgages which are insured by the Federal Housing Administration, which is part of HUD.)

• Low down payments – as little as 3.5% starting January 1, 2009
  
• Easy credit qualifying – lower credit scores accepted
  
• Lending limits vary based on property type and county
  
• FHA loans require mortgage insurance (to protect lenders against losses that result from defaults on home mortgages)
  
• FHA Secure – Helps current homeowners who have sub-prime mortgages, high interest rates and/or “upside-down” on their current primary residence
  

Jumbo Mortgages - (Mortgages that exceed the $625,500 conforming limit. They are sold on the secondary market or retained by the lender.)

• Down payment requirements for most jumbo mortgages have been increased to 20-30%, depending on the purchase price.
  
• Loan documentation requirements have increased and underwriting standards have become much more thorough.
  
• Loans in some declining markets are requiring even larger down payments and increased appraisal scrutiny. (CA, AZ, UT, FL, NV)
  

Please let us know if you have any questions.

Please feel free to forward the information and my contact information to any friends or colleagues that would be interested or in need of mortgage financing.

Best Regards,

Ray P. Cruz
Vice President


Bank of America
1801 K Street, NW, Suite 440
Washington, DC 20006
Office: 202-624-3794
Mobile: 202-438-9700
Fax: 202.350.9500
Apply Online: www.raypcruz.com

First-Time Home Buyer Tax Credit

DID YOU KNOW?

First-Time Home Buyer Tax Credit at a Glance

• The tax credit is available for first-time home buyers only.
• The maximum credit amount is $7,500.
• The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• The tax credit works like an interest-free loan and must be repaid over a 15-year period.

This credit is really a 15 year interest free loan that is repaid at $500 per year over 15 years OR when the house is sold, retitled, or refinanced. You are not required to claim the credit on your taxes, but if you choose to, this credit can be used to pay for new furniture, upgrades or repairs to the house, or anything that you want to spend it on.

This credit is good for any first-time buyer, on any house, in any state as long as you purchase before July 1, 2009. So, if you could benefit from this credit, now would be a good time to make an appointment with me.

If you would like more information about the First-Time Home Buyer Tax Credit or other provisions in the Housing and Economic Recovery Act of 2008 please give me a call.

That re-usable water bottle is your best friend

Thanks to Jennifer Sass for alerting me to this article...

REPORT OUT TODAY: That re-usable water bottle is your best friend
Americans paid $12 billion to drink 9 billion gallons of bottled water last year alone. Yet, as EWG tests show, several bottled waters bore the chemical signature of standard municipal water treatment -- a cocktail of fluoride, chlorine and other disinfectants whose proportions vary only slightly from plant to plant. In other words, some bottled water was chemically almost indistinguishable from tap water. The only striking difference: the price tag. The typical cost of a gallon of bottled water is $3.79 – 1,900 times the cost of a gallon of public tap water.

The bottle water industry has also contributed to one of the biggest environmental problems facing the world today. Only one-fifth of the bottles produced by the industry are recycled. The remaining four-fifths pile up at landfills, litter our neighborhoods and foul our oceans. About halfway between Hawaii and California, an area twice the size of Texas is awash in millions of plastic water bottles and other indestructible garbage.

Full report at: http://www.ewg.org/reports/bottledwater

Halloween is going to suck this year!

Valley Mill's Spooky Hollow and The Haunted Trail

This is an event that I look forward to every year. The folks at Valley Mill spare nothing to make this a great event! Whether you are 6 or 16 or 60 there will be someting fun for you here!


Maryland's Premier Halloween Event

Haunted Trail:
As the sun sets and darkness invades the forest, our hardier guests can venture out onto the Haunted Trail. They will wander through about 20- 25 minutes of ghoulish frights and terrifying delights. Nighttime at the Haunted Trail is guaranteed to be screaming fun!

Spooky Hollow:
Spooky Hollow is an exciting time designed for all ages. Spooky Hollow features food vendors, carnival games, fortune tellers, contests, nightly entertainment, and more. Our guests can embark on a fun filled hayride to a pumpkin patch or be transformed into a Halloween creature at our face painting booth.

Hollow Hayride:
Locked in a slow moving trailer, filled with hay and fright. This dimmly light ride through the oldest part of the Valley Mill forest, has ghouls and ghost come at you from all directions. Be prepared!

For dates and directions visit the Valley Mill website: http://valleymill.com/halloween/
Or join the Facebook Group: http://www.facebook.com/group.php?gid=5315977722

Someone please help this woman!

http://view.break.com/580075 - Watch more free videos

Silver Spring Foreclosure

September home buyers need to watch the inventory of lender owned homes. The lenders have a surplus inventory of foreclosed homes and are highly motivated to sell them before the winter season. Prices are reduced until the homes are under contract. It is a good time to make offers. Let me show you how to be the successful purchaser of a REO property.

Many families are using FHA financing for the low cash requirement and easier underwriting requirements. Recent changes by the White House made FHA even more attractive for use when purchasing lender owned homes. Buyers need to be pre-qualified for financing. Ask me for the name of a loan officer.

4320 Ivy Glen Road, Silver Spring, MD 20906

4 Bedroom, 2 Bath, Backs to woods and creek, Large shed for boat storage

$254,900

Reduced from $284,900

Tax Fiscal Year 2008 Estimated property tax and non-tax charges in first full fiscal year of ownership.

TOTAL EST. CHARGES: $3,895

City Tax:

Tax Year: 2008

State/County Tax: $2,534

Refuse: 344.96