August 14 2008- FHA Funds to Close Reference Guide, Bonds Persevere And Go For Gold

• FHA Funds to Close Reference Guide, Bonds Persevere And Go For Gold Go USA! If you want to start your day with an amazing "come back", watch the Mens Swimming Relay from last night http://www.nbcolympics.com/video/player.html?assetid=0811_hd_swb_hl_l0194&channelcode=sportsw&GT1=39001. It will take your breath away! Go USA! Important FHA Reference Guide for Funds To Close With DAPS (Down payment Assistance Programs like Nehemiah) going away* and the increased requirement of 3.5% buyer contribution (date pending upon the mortgagee letter), I have created a 5-page list of the FHA guidelines of the multiple ways (did you know that there are 22 ways!) that a buyer can obtain their FUNDS TO CLOSE for FHA loans. I tried to make it an attachment to this email but was having technical difficulty so if you would like a copy, please email us at (ldavidson@servicefirstmtg.com) or call us at 972-278-3400 and we will be glad to send it to you. This knowledge is going to continue to be vital for our buyers so we wanted to make this available to you. *Our sources tell us that there is only a 20% chance that the DAPS discontinuation will be repealed so as far as we know right now they have been discontinued by 10/1/08. Please be aware that some of these FHA guidelines may have additional investor and industry restrictions so it is vital that verification is made up front prior to any action taken. We ARE the FHA Experts..... As we have said before (and will continue to say), don't let others practice on your buyers...... Let us be your FHA/VA and USDA Lender of Choice. We can be reached at 972-278-3400. Market Report Last Week in Review "PERSEVERANCE IS A GREAT ELEMENT OF SUCCESS." Henry Wadsworth Longfellow. Despite strong opposing forces in the early part of the week, Bonds and home loan rates persevered like the greatest Olympian athletes, and were able to end the week in a similar position to where they began. Remembering that inflation is the arch-enemy of Bonds and home loan rates, bad news on the inflation front caused Bonds and home loan rates to worsen Monday as the Personal Consumption Expenditure Index indicated that inflation climbed 0.8% in June, the highest monthly jump in 27 years. Not a huge surprise, given how energy and commodity prices soared in June. Despite these inflationary pressures, the Fed announced on Tuesday that they have decided to keep the Fed Funds Rate at 2%, and released a statement that hinted they may not raise the Fed Funds Rate in the near future. Why did the Fed do this? The Fed is trying to balance a slowing economy and the threat of inflation, and while raising rates could help fight inflation, it could also slow the economy even more than it is now. The Fed is hoping that keeping the Fed Funds Rate unchanged will help boost the economy, without fanning the fires of inflation. Since this decision kept the fears of inflation strong, Bonds and home loan rates worsened as a result. However, Bonds and home loan rates persevered and managed to rally like champions later in the week on the heels of several reports. Causing money to flow from Stocks over to Bonds were a far worse than expected Initial Jobless Claims report and Wal-Mart's announcement that sales are expected to slow in August. Since inflation remains one of the strongest opponents for Bonds and home loan rates, I will continue to monitor this closely. THE LOSS OF A LOVED ONE IS ONE OF THE MOST CHALLENGING EXPERIENCES OF LIFE. CHECK OUT THIS WEEK'S MARKET VIEW FOR IMPORTANT INFORMATION THAT CAN HELP YOU PERSEVERE AND MAKE GOOD DECISIONS DURING A VERY CHALLENGING TIME. Forecast for the Week This week, several reports will show us whether or not inflation is getting hotter. Thursday's Consumer Price Index (CPI) report will show us inflation at the consumer level - that is, how much more expensive goods and services are for consumers this month over last month. If CPI shows that inflation is growing, Bonds and home loan rates may reverse course and worsen quickly. But before the inflation news hit the wires, another market mover will likely be Wednesday's Retail Sales Report, which will show us the total receipts of retail stores. Changes in these numbers are closely followed as a timely indicator of broad consumer spending patterns. This month's report may show us if spending that had been aided by the Economic Stimulus Package has started to wane. Remember: A strong Retail Sales Report would be good for the Stock market - which stands to reason, as it would indicate continued consumer confidence and dollars being poured into the economy. But a strong Retail Sales Report would be bad news for Bonds and home loan rates, as money that pours over into an improving Stock market would be coming out of Bonds, and would in turn cause home loan rates to worsen. Remember when Bond prices move higher, home loan rates move lower...and vice versa. Bonds ended the week on a positive note, but are now facing a "ceiling of resistance" overhead that might shut down any further improvement. Like an Olympian faced with a barrier, Bonds will need a boost to break through a tough ceiling that has halted advances on five occasions in the past few weeks. The nature of the reports will determine whether Bonds and home loan rates can make more improvements, or reverse from the overhead ceiling and worsen. The Mortgage Market View... Avoiding Scams During the Loss of a Loved One I personally lost my beloved "Memaw" two weeks ago. She was 96 and very healthy until the last and I was blessed to be her granddaughter. This information is very important as the loss of a loved one is never an easy experience for a family, and people are often understandably distracted and overwhelmed with things to take care of. Unfortunately, scam artists often use the obituaries in the newspaper as a way to target potential victims. Here are some tips to help you or your loved ones avoid scams during times of loss: Protect Your Home: If funeral service dates and locations are listed in the newspaper obituary, scam artists will be able to tell when you will be away from home. And with friends and relatives visiting to pay their respects, neighbors may assume someone entering your house has permission to do so. To be safe, either ask a friend or neighbor to house sit while you're away, or let your neighbors know your plans so they can look out for suspicious visitors. Know Who's Calling: If you have caller ID on your home phone, make good use of it and don't answer calls from unknown numbers. This will help you avoid calls from companies or individuals who are running cons. Remember: Any companies or people who pressure you during difficult times probably aren't looking out for your best interests. Be Mindful of What You Pay: As you are going through papers, pay all bills that you know are legitimate like the mortgage, utilities, credit cards, and car payments. Do not pay anything from unknown parties or companies, including invoices, investment opportunities, calls for orders placed, or calls for money owed. Get a Second Opinion: Sorting through paperwork can be overwhelming during times of loss. Consider asking a friend, family member, or even a trusted professional like an accountant or attorney to review any invoices or claims before you send a payment. If you ever have any mortgage or financial questions regarding an estate, please let me know how I can help you. Have a blessed week. When we can be of assistance to you and your buyers, please don't hesitate to call us at 972-278-3400. Linda Linda Davidson, Senior Loan Officer, DE Underwriter Service First Mortgage 972-278-3400 office 972-497-6452 fax 1-866-963-3777 Toll Free http://www.davidsongroup.net/ The Davidson Mortgage Group Ranking 6th Nationally in FHA/VA Purchase Units Closed! Ranking 33rd Team in the Nation in Total Purchase Units Closed! Ranking #69th Team in the Industry for Total Units! Voted #1 Area Mortgage Team For The Past 10 Years We ARE The Home Buying Experts! Your Lender for Purchase, Refinances, Reverse Mortgages and Commercial Lending!! P.S. The finest compliment that we can receive is a referral from you . We appreciate your trust! Linda The Home Buying Experts! The Davidson Group Service First MortgageLinda DavidsonOffice: 972-278-3400 Email us at:ldavidson@servicefirstmtg.comVisit our website at:http://www.davidsongroup.net/