Reverse Purchase Mortgages begin Jan 1, Market Report, Last Chance for 2.25 Downpayment for FHA, Happy New Year!

I hope that your Christmas was blessed and that you had a joyous day. The new year of 2009 is upon us this week. The year of 2008 held for us a lot of changes, uncertainity, challenges, and determination. But I have a decided heart that we will continue to challenge ourselves in 2009 to be the best that we can be, to persevere through a tough economy and come out stronger than ever. In 2009, we will have 31,536,000 seconds of opportunity. Don’t miss “teachable moments” professionally and personally. Make it a habit to intentionally be a habitual learner this next year. Here’s to learning and growing together. Linda Last Chance!!!!! FHA Case Numbers- Reminder that we will need to order case numbers by 5:00 PM on Wednesday in order for your buyers to get the 2.25% down payment on FHA loans (verse the 3.5% down payment as of 1/1/09)- See below for more information. Also, beginning 1/1/09, seniors (62+) can purchase a home using a Reverse Purchase Mortgage. We will be talking about this program over the course of the next few weeks- I really think that it will be a big part of our market’s book of business so it is important that you understand it for your senior clients. We also have the update on the market report- see below. Important FHA Reminder- Last Chance!!!!!!! FHA down payment increases as of 1/1/09 from 2.25% to 3.5%. This is a 55% increase! IF you have a buyer that has a contract written before the end of this month but will be closing in 2009, call our office and let us order a case number. As long as the case number is ordered by 12/31/09, then we can still close with a 2.25 down payment verses 3.5%! Call us today at 972-278-3400 for more information. We will need to know address, full legal names and social security numbers in order to secure the case number. Reverse Purchase Mortgages According to AARP, there are over 250,000 people over the age of 62 in Dallas County. As of 1/1/09, seniors (62+) can purchase a home using an FHA HECM mortgage. This opens up a whole new market to realtors to market. Let’s discuss some examples: • An 86 year old widow in Monroe, Louisiana wants to relocate to Lancaster, Texas to be near her sister. She plans to sell her home in Louisiana and purchase a home in Texas using a Reverse Mortgage. She will net about $75,000 from the sale, and is looking for something in the $200,000 range. Based on her age, she will need to put about $65,000 down on the purchase, plus closing costs. It will be close, and she may have to scale back to something in the $180-190,000 range, but it is a workable deal, and she can accomplish her goal without dipping into savings, and she will never have a payment as long as she lives in her new home. • Rosie is 62 and needing to downsize from her $300,000 home in which she will net $150,000. She does not want a payment as she is now alone and does not want to have that monthly expense and also wants reserves. She began to look at $100,000 homes and had almost decided to not purchase as she cannot find anything in that price range that she is comfortable living in. After finding out about the new Purchase Reverse Mortgages, she has decided to purchase a $200,000 home, put $100,000 down, saving $50,000 for her emergencies and taxes and insurance and never make a payment as long as she lives in the home as her primary residence. What is your story? What is your senior client’s story? This is an unexplored market ready to explode! What you need to know on Purchase Reverse Mortgages:  NO INCOME VERIFICATION! NO Ratios of Income vs Expenses!  NO CREDIT CHECK- NO Minimum Credit Score!  Seller cannot pay any closing costs  All persons on loan (and warranty deed*) must be 62+  Downpayment required will depend on age of buyer (see below).  LTV is based on the youngest age of those on the loan (and warranty deed*)  Loan limit is based off a max of $417,000 (!)  Highly recommend a 45 day closing (at least for the first six months)  Use Standard TREC contract  FHA loan (FHA property condition apply) Age Approx LTV Approx Down Payment 62 51% 49% 70 56% 44% 80 66% 34% 90 76% 24% 100 81% 19% We will continue to explore this hot new market over the next few weeks. Do you have a senior client that could benefit from purchasing a home and NEVER having a monthly payment? Call us at 972-278-3400 and ask for our Reverse Mortgage Director, David White. Market Report The material contained below is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors. The following is from the mortgage industry training company in which I train with/for in the last 10 years. A lot of my market knowledge has come from this company and it is now a pleasure to be able to reciprocate and teach for them. Below you will find a link for a 10 minute video for a little talked about “Mark To Market”- thought by many economic specialists as the real reason behind the economic crisis. If you would rather read it than listen to the link, visit my blog at http://lindadavidsonmortgage.blogspot.com and click on “Mark To Market Accounting”. The knowledge will be huge and I think you will find it amazing! The Real Reason Behind the Economic Crisis The current economic crisis is the top news story for nearly every media outlet. But, somehow, one of the most important factors that led to this challenging market is also one of the least discussed. The crisis in the financial markets seems to be the top story on every news channel. But many of the reporters and so-called pundits don't understand what really happened...and what may happen next. I'm pleased to share with you a short video and article that were created to put an end to the confusion once and for all! In these easy-to-understand resources, Barry Habib, Founder of the Mortgage Market Guide and Chairman of the Board for Mortgage Success Source, explains in layman's terms exactly what caused the current financial crisis - and what to be watching for in the near future. Please take a moment to access these resources here...the few minutes you spend will open your eyes to what very few "experts" truly understand. If you would rather read it than listen to the link, visit my blog at http://lindadavidsonmortgage.blogspot.com and click on “Mark To Market And as your trusted advisor, I'm committed to doing whatever I can to help you understand what the current economic situation means for you going forward in 2009. Wishing You And Yours A Happy New Year and A Blessed 2009! We are here when you need us- simply call us at 972-278-3400. Happy New Year! Linda