How is 2014 home appreciation shaping?

Veterans, now is the time to refinance.

FHA's Streamlined 203(k) Loan Program

FHA's Streamlined 203(k) Loan Program

FHA Limits Increased

What This Means to You

Great news from FHA for just about every county across the country!

With the passing of H.R. 2112 (The Consolidated and Further Continuing Appropriations Act of 2012), FHA has confirmed its commitment to keeping FHA loan limits as high as possible to stimulate the housing market.

This means that FHA has reestablished the previous higher FHA loan limits that were in place before they were decreased during the period of October 1, 2011 through November 17, 2011.

The FHA loan is one of the best options for homebuyers in today's market. Buyer agents need to know the FHA loan limits so they can properly advise their buyer’s, and listing agents need to know the FHA loan limits to know whether to accept FHA financing terms on their listings.

If you have any questions about the FHA loan limits in the counties you service or what this development could mean for your clients, contact me anytime. And if there's anything else I can do for you or your clients, just let me know. I'm always happy to help.

Sincerely,

Jim Marcinkowski
Inlanta Mortgage

It's hard to believe that Thanksgiving has come and gone, and the holidays are fast approaching. The new year will be here before we know it, and as you are enjoying this season with your family and friends, it's important to keep an eye on the following stories. They could have a big impact on home loan rates in the year to come.

First, a Trip Overseas
Greece has certainly been a big word throughout 2011, as the country has experienced riots and protests due to their escalating budget crisis. The good news is that last month a deal was reached to keep the country from going into default. Greece's Prime Minister George Papandreou announced his resignation while Lucas Papademos was named as interim Prime Minister. During his eight years with Greece's Central Bank, Papademos helped the country achieve very strong economic growth rates.

And while that's good news for Greece, the European crisis that has been lingering for 18 months is not over yet. There is concern that Italy, whose Bonds yields have spiked, is the next Greece. It's important to note that Italy is not in the same dire situation as Greece. But, and this is an important but, their economy is far larger–the world's 7th largest, in fact–and a debt crisis in that region will be much more difficult to contain.

Last month, German leader Angela Merkel said that Europe is going through its toughest times since World War II. Her comments were in part a response to reports showing that a slowdown in manufacturing has reached the point where recession fears have now gripped that region.

The bottom line is that more pessimistic or uncertain news out of Europe could continue to benefit home loan rates here in the United States, as investors see our Bonds (including Mortgage Bonds, on which home loan rates are based) as a safe haven for their money. That's why this story is definitely one to keep watching.

Inflation, All We Never Wanted
Another important story to watch as we head into 2012 is inflation. Remember, inflation is the arch enemy of Bonds and home loan rates, like Kryptonite to Superman. The concept is very simple: If inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment. And as home loan rates are tied to Mortgage Bonds, this would mean home loan rates move higher.

Last month, Fed Chairman Ben Bernanke said that the Fed has "considerable latitude" to choose its long-term inflation goal. Although Bernanke didn't elaborate on specifics, the gist of his comment is that the Fed may tolerate higher inflation for a period of time in an attempt to help the economy recover and improve the employment sector.

Remember, the Fed is charged with a dual mandate of (1) controlling inflation as well as (2) supporting job creation. While inflation remains close to the Fed's target range, unemployment is nowhere near where the Fed would want to see it, which is between 5% and 6%. So it appears the Fed may make decisions in the future to improve employment, possibly at the slight expense to inflation.

The good news is that wholesale inflation in the form of the Producer Price Index (PPI) was tamer than expected in October. Meanwhile, the year-over-year headline Consumer Price Index (CPI) was down from the previous reading, which is good news for people concerned about inflation. However, the closely watched Core CPI rose by 0.1%, and though this was inline with estimates, it did push the year-over-year rate to 2.1% from 2%...a touch above the Fed's comfort zone.

The most important thing to remember is that whatever the news brings in the new year, now remains a wonderful time to purchase or refinance a home and take advantage of historically low rates. If you have any questions at all about your personal situation, contact Inlanta Mortgage at 239-936-4232 or visit www.teaminlanta.com.

Life After Bankruptcy

Bankruptcy is an uncomfortable subject for a variety of reasons. The most obvious is the potential havoc it can wreak on your finances. Running a close second is the negative stigma which is often attached to the process. This negativity is important to mention because strong emotions can sometimes lead to unsound financial decisions with devastating results.

Bankruptcy becomes a viable option for someone who is “upside down” in terms of cash flow. In other words, when a person has more money going out each month than coming in, bankruptcy should be considered if no reversal of this negative cash flow is within sight. The longer someone waits to explore the various options available, the more serious his or her situation may become.

One of the worst things people can do in this situation is to borrow more money to try and pay off their debts. On paper, this is clearly an unwise financial decision. In the real world, however, it is very common for individuals to pursue this strategy in an attempt to buy time and hold off on filing for bankruptcy. On the surface, this is certainly a noble notion; however it can often compound the problem and serves only to delay the inevitable.

For many homeowners in the midst of this upside down cash flow, speaking to a qualified mortgage professional is a much better option. An experienced loan officer can objectively look at your finances and help you determine if restructuring your mortgage would not only help, but possibly even alleviate any need for bankruptcy.

If bankruptcy is the only option, seek out a reputable bankruptcy attorney and credit counselor. A qualified mortgage specialist can provide references for you as well, as he or she works with these professionals on a regular basis. Reliable references are essential in this case because experienced professionals greatly increase the odds of a successful bankruptcy experience. It’s that simple.

When filing for bankruptcy, be completely honest and accurate regarding every aspect of your financial situation. This includes any changes to your income which may occur throughout the process. Bankruptcy is a federal procedure, adjudicated by real judges, and scrutinized by representatives who coordinate with the Department of Justice, the FBI, and the IRS.

Here are some additional steps you can take to make the bankruptcy process as painless as possible:

• Save all paperwork regarding your bankruptcy, and keep it organized. This will prove beneficial after your bankruptcy as you now have all of the pertinent information in one place. Also, be sure to write down your discharge date. It’s surprising how many people forget to do this.
• Establish a household budget. This can be accomplished in many ways, but there are several inexpensive computer programs available which do an excellent job.
• Throughout the bankruptcy, do your best to not only live below your means, but to save as much cash as possible. You never know what you may need it for once the process is completed.
• Be prepared for a barrage of junk mail. There will be sharks on the loose who are hoping to capitalize on your need for credit.

Tips for Rebuilding Credit:

• If you must buy a car, focus on transportation as opposed to style. Buy an inexpensive, used car, and try to get a loan for it. It’s a good idea to figure out what your budget allows in terms of a dollar amount first. This means obtaining financing prior to looking for a car.
• Get a secured credit card. Secured credit cards allow for the cardholder to deposit a said amount of money into an account, thus establishing the spending limit of the card. Missed payments result in deductions from the account. Some of these cards will reward responsible borrowers by upping the limit without an additional deposit. Some will even convert the account into a traditional credit card. (Be wary of offers of “easy credit” or any card which asks you to call a 900 number. You will be charged for the call.)
• Meet with a credit repair specialist. Not only can they help you clean up the damage to your credit report, they can advise you on specific ways to rebuild the credit you lost as well.

While it does take time, there is definitely life (and credit) after bankruptcy. Some mortgage lenders will even lend to you within a year or so after a bankruptcy. If you’re in serious financial trouble, the trick is to get the help and advice you need from professionals you trust.

Jim Marcinkowski is affiliated with Inlanta Mortgage, a Licensed Mortgage Loan Originator, Florida Office of Financial Regulation. For a free copy of our Consumer Credit Scoring Booklet, contact Jim Marcinkowski at 239-936-4232. FL LO# 12

FHA 203k Streamline

I wanted to make sure you knew about a wonderful loan program that lets homebuyers finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. FHA's Streamlined 203(k) Loan Program helps homebuyers tap into cash to pay for property repairs or improvements, like those identified by a home inspector or FHA appraiser. Here are some of the eligible repairs and improvements for the 203(k) loan program: Repair or replacement of roofs, downspouts, and gutters Repair, replacement, or upgrade of existing HVAC systems Repair or replacement of flooring Minor remodeling (i.e. kitchen) not involving structural repairs Painting of the interior and exterior Weatherization, including storm windows and doors, insulation, weather stripping, etc Purchase and installation of appliances, including washers and dryers, refrigerators, dishwashers, microwave ovens, and free-standing ranges Accessibility improvements for people with disabilities Repair, replace, or add exterior decks, patios, or porches Basement finishing and remodeling not involving structural repairs Window and door replacements and exterior wall re-siding Septic system or well repair or replacement Lead-based paint stabilization or abatement of lead-based paint hazards (engineer's report required upon completion)

FHA 203(k) loans can be used for purchasing a primary residence or refinancing the rate and term. Cash-out refinances are not allowed.

If you have any clients who you think may benefit from this program, let me know and I'll be happy to review their situation anytime.
Inlanta Mortgage
239-936-4232
www.teaminlanta.com
NMLS 1016