Realtors® are the face of the housing market, the focal point of information, involvement and inventory, and the Federal Housing Administration is committed to help them be successful, FHA Housing Commissioner Dave Stevens told more than 1,000 Realtors® at a gathering here today.
“You help to stabilize the community, and without homeownership, there can be no stability in communities,” Stevens said. “Together, we must never let overexuberance overtake the housing market again, and interrupt the housing market and the lives of untold millions of Americans. Our goal must be nothing less than to craft a solid, sustainable housing market, a market with a secure foundation for the future.”
Stevens said he and Shaun Donovan, secretary of the Housing and Urban Development, recognize that the National Association of Realtors has been at the forefront of efforts to address the housing crisis, and he has met with NAR on several occasions to consider their concerns. FHA has taken direct action on a number of those concerns.
Stevens announced that effective Monday, Nov. 16, FHA will no longer require a second appraisal on high-balance loans for properties in declining markets. “We did not find our previous policy to be particularly helpful and were very concerned about the additional burden on lenders and consumers,” Stevens said. He noted the policy change will bring industry alignment, streamline loan processing and reduce costs to consumers.

Find me:  (Home)

Article here at Townhall.com. (H/T ECM)

Excerpt:

After the cascade of economic disasters that began in the housing markets in 2006 and spread into the financial markets in Wall Street and even overseas, people in the private sector pulled back. Banks stopped making so many risky loans. Home buyers began buying homes they could afford, instead of going out on a limb with “creative”– and risky– financing schemes to buy homes that were beyond their means.

But politicians went directly in the opposite direction. In the name of “rescuing” the housing market, Congress passed laws enabling the Federal Housing Administration to insure more and bigger risky loans– loans where there is less than a 4 percent down payment.

A recent news story told of three young men who chipped in a total of $33,000 to buy a home in San Francisco that cost nearly a million dollars. Why would a bank lend that kind of money to them on such a small down payment? Because the loan was insured by the Federal Housing Administration.

The bank wasn’t taking any risk. If the three guys defaulted, the bank could always collect the money from the Federal Housing Administration. The only risk was to the taxpayers.

Does the Federal Housing Administration have unlimited money to bail out bad loans? Actually there have been so many defaults that the FHA’s own reserves have dropped below where they are supposed to be. But not to worry. There will always be taxpayers, not to mention future generations to pay off the national debt.

Very few people are likely to connect the dots back to those members of Congress who voted for bigger mortgage guarantees and bailouts by the FHA. So the Congressmen’s and the bureaucrats’ jobs are safe, even if millions of other people’s jobs are not.

Congressman Barney Frank is not about to cut back on risky mortgage loan guarantees by the FHA. He recently announced that he plans to introduce legislation to raise the limit on FHA loan guarantees even more.

Congressman Frank will make himself popular with people who get those loans and with banks that make these high-risk loans where they can pocket the profits and pass the risk on to the FHA.

So long as the taxpayers don’t understand that all this political generosity and compassion are at their expense, Barney Frank is an odds-on favorite to get re-elected. The man is not stupid.

Can you guess which political party Barney Frank represents?

Nothing seems as contradictory as buying your first home.  On the upside, you feel very excited at the prospect of finally owning your own house and are eager to call yourself a home owner.  On the downside, buying your first home can be a little frightening and even overwhelming.  Let’s be honest, you haven’t done this before, and the first time doing anything is always the scariest. 

At Catalyst Direct Funding, we understand your feelings of excitement and also intimidation which is why we have created this helpful list of questions and answers.

Should I buy instead of renting?
Honestly, the answer to this question will vary person-to-person.  Both renting and buying have several key advantages.  For example, if your water heater breaks and you rent, you can call your landlord and have him fix it.  However, when you own your home, you are responsible for making repairs and taking on the additional responsibility.  Still, by owning your home you have the freedom and flexibility renters do not have.  You also get tax credits and the satisfaction of knowing you’re investing in yourself and your home, not just writing another rent check.

What is the first-time home buyer tax credit?
Congress passed the Worker, Homeownership and Business Act of 2009 on November 6^, 2009.  The new legislation extends and expands previous credits for first-time home buyers.  In order to claim the new credit, first-time home buyers must buy their homes by April 30, 2010 and close by June 30, 2010.  They will have the option of claiming the credit on their 2009 or 2010 tax return.   Under this Act, first-time home buyers qualify for an $8,000.000 tax credit and repeat home buyers qualify for a $6,500 credit.  More information can be found on the IRS website.

How much will my down payment be?
Usually, home loan lenders will require that you pay 10 – 20% of the principal balance as a down payment.  However, if you obtain an FHA (Federal Housing Administration) loan, you will be responsible for around 3%. 

What if I have bad credit?
If you have bad credit, you aren’t alone!  According to myfico.com, 45% of Americans have bad credit or are making late payments on their bills.  That is a substantial amount of people.  If you have bad credit but still want to buy your first home, there may be local home buying programs you can take advantage of.   You may also qualify for some of the FHA programs offered by the U.S. Department of Housing and Urban Development.  

Do I need help from a real estate professional?
Many first-time home buyers find it advantageous to work with a real estate professional for numerous reasons.  First, real estate professional know the ins-and-outs of the business and real estate in your area.  Second, they can help people acquire home loans.  Finally, a real estate professional can guide you through the entire process.  This will save you a lot of time, money and stress!

If you are looking to buy your first home in San Diego, contact the real estate and mortgage professionals at Catalyst Direct Funding for assistance!

• Department Of Justice (Fraud Division)
• Federal Housing Administration (Avoid Foreclosure Info)
• File A Complaint With The FTC
• Freddie Mac’s Anti-Predatory Lending Website
• FTC Credit And Loans Info
• FTC Foreclosure Rescue Scams
• FTC Know Your Mortgage
• Housing & Urban Development Website
• IRS Foreclosure Tax Relief Info
• IRS Q&A – Foreclosure / Loan Modification Tax Consequences
• Mortgage Servicing Complaints
• State Senator Contact Info

Studying mortgage refinancing is not really your ordinary person’s idea of fun. Most of us would rather just go for the best solution provided without having to understand the complexities of the solution itself. This way, we can just go on and start the process of preparing our new mortgage and eliminate the old one. After all, this is what FHA refinance mortgages do. FHA Refinance Home Loans, in particular, devises the most suitable solution to meet your particular needs for that home loan.

The FHA (Federal Housing Administration) offers people in the Winter Park Florida mortgage market assistance in refinancing their present home mortgage, offering them several other benefits on the side as well. The FHA actually acts as their guarantor so that lenders would feel more secure and confident about lending them the funds that they need.

FHA Refinance Mortgages has had a lot of experience in this field and can guarantee foolproof assistance. What the FHA does is insure their ability to pay off your loan. This way, lenders can then offer people a far better mortgage plan and rate while feeling confident that the borrowers are capable of repayment.

Most of the time, FHA loans are given out to borrowers that have good, long-standing credit scores. However, there are still some people who are still approved for these loans despite not having a spotless credit score. Some of these people have credit ratings that are far from impressive, but as long as they have no bankruptcy record for the past five years, then they still have a chance of getting their loans approved. Single parents whose income comes from only one source are also qualified for these loans. As long as people qualify, FHA can certainly be of much assistance to them.

What then is the difference between the conventional mortgage and the FHA Streamline Refinance Mortgage? FHA Refinance Mortgage benefits should be outlined to answer this question. Firstly, more exclusive mortgage options are offered by FHA Refinance Home Loans. Secondly, a down payment of just 3% is needed on the part of borrowers. Closing costs can then be financed via the mortgage. Thirdly, FHA is willing to assist you in finding homes and lending scenarios that do not require borrowers to make down payments. Fourthly, FHA loans also cover mobile housing as well as manufactured housing. Moreover, you are allowed to use the money you borrowed through your second mortgage to deal with the repairs of your own home.

By educating yourself on the basics of FHA loans and what FHA Refinance Mortgage can do for you, you can better equip yourself towards getting the best available mortgage in the Winter Park Florida mortgage market.