Purchase Loans

Refinance

Hard Money

Construction

Equity Lines of Credit

VA, CalVet & FHA Approved

2009 - An Emerging Year

Home sales throughout California during February were already 83 percent ahead of year ago totals, so what will happen when the government's efforts to spur sales takes hold?

For some, these are the worst of times. Yet for others, these just happen to be the best of times, a singular opportunity to purchase a home that was out reach just a short while ago.

While no one is quite sure what to expect as the government rolls out its stimulus options, the confluence of pent up demand for housing, low interest rates, the federal housing stimulus package, and, more importantly, continued favorable resale prices are sure to lure growing numbers of buyers into the market.

It may be partly a statistical aberration - what with higher sales coming on the heals of record low totals - but some think that California tomorrow may see a miniboom after yesterday's massive financial bust.

At this juncture, two points seem clear: sales of distressed properties - foreclosures, short sales - will dominate the market through 2009; and, the most favorable terms for buyers won't be around much longer than that either what with most of the stimulus package benefits set to expire at the end of November or December.

For example, the $8,000 tax credit for first-time home buyers is available for purchases completed between Jan. 1 and Nov. 30.

The loan need not be repaid if the buyer lives in the home for three years. The income limit is $75,000 for singles and $150,000 for married couples filing jointly.

Likewise, the $75 billion set aside for the loan modification program includes loan rewrites completed during the same time frame: Jan. 1 through Nov. 30. The loan modification program gives servicers incentives to modify loans of owners who are underwater so they can stay in the home.

It could reduce rates, extend the term of the loan, or even forgive part of the principal. The goal is to bring monthly mortgage payments down to 31 percent of household income.

The loan modification program is available on loans up to $729,750.

Qualified owners could receive $1,000 toward principal reduction for up to five years. Similarly, loan servicers could receive $1,000 per year for each year the loan modification sticks.

There's also a time imperative when it comes to landing what is the most popular and readily available loan today - an FHA loan.

The American Recovery and Reinvestment Act reinstated the 2008 loan limits for FHA, Fannie Mae and Freddie Mac loans through Dec. 31.

Limits were equal to the greater of 125 percent of the 2008 local area median home price or $271,050 for FHA and $41 7,000 for Fannie and Freddie. The overall maximum cap, which applies to Los Angeles and other high-cost regions, is $729,750.

There also are options for people with Freddie/Fannie loans who are not under water, but do not have 20 percent equity needed to re-fi without mortgage insurance. Bottom line - contact your Mortgage Broker to see if there's a program available to you! The window of opportunity will close very quickly.