Special Update:

New guidelines were issued today for the monetizing of the $8,000 first-time homebuyer tax credit that was announced by HUD and then delayed by HUD. The primary change is that the money cannot be applied toward the 3.5% down payment. It can be used for a larger down payment or applied toward closing costs. We'll provide more details soon.

Here's a link to the HUD site. Click on Mortgage Letter 09-15 http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm

Again, it appears that it can be used as "a" downpayment, but the borrower still needs to come to the table with 3.5% on FHA loans.

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Larry Morris 503-476-3854 Fax:    888-649-6625 Email Me View My Website Forward Newsletter Newsletter April 2009 Larry Morris View My Website RESOURCE CENTER Today's Rates Receive a FREE custom rate quote! Purchasing a Home? Turn the home of your dreams into reality. Need to Refinance? Save money by taking advantage of the lowest rates available. Consolidating Debt? Use your home to help eliminate bad debt and bundle your bills into one easy monthly payment. Apply Now! Your loan approval is only minutes away when you apply online using one of our easy loan applications. REAL ESTATE MARKETPLACE Featured Property: Sherwood, OR 3 Bed, 2.5 Bath $399,900 View More • Home Search • View Featured Homes • Dream Home Request • Home Value Wizard   CONTACT American Nationwide Mortgage Company, INC. Larry Morris 503-476-3854 Fax:    888-649-6625 • Email Me • View My Website   The Real Estate Market Minute:    Millions of Borrowers Eligible for Quick Refinance – Up to 105% Borrowers whose loans are owned or guaranteed by Fannie Mae or Freddie Mac could be able to get quick refinances for up to 105% of a home's value.   So you want to refinance your house, but it's not worth enough for you to get a good loan in the current market? A new Obama administration program is designed to fix that problem for millions of homeowners. Click Here to Read the Full Article by LATimes.com If you're considering a home purchase or refinance, now is the time to take action! Check out the "Resource Center" in the left-hand column of this newsletter for an interactive online tool that can help answer just about any mortgage or real estate related question. _________________________________________________   Brian Tracy Inspirational Article of the Month:   The Continuous Improvement Formula Brian Tracy is a World-renowned personal and professional development coach that has helped millions of people achieve their goals and develop a positive mindset. Brian will be contributing to our newsletter every month by providing us with an article to help inspire you, our clients, to reach higher and achieve more than ever before.   Click Here to Read this Article by Brian Tracy _________________________________________________    Interesting Articles of the Month:   Woman Divorces Man for Cleaning Too Much Alright fellas, here’s the perfect excuse to weasel your way out of household chores. Women: please don’t get any ideas - this article is meant for amusement, not inspiration! Click Here to Read the Full Article by Reuters.com _________________________________________________ Overboard Dog Survives Four Months on Deserted Island A pet dog that fell overboard in rough seas off Australia has been reunited with its owners after surviving alone on an island for four months.   Click Here to Read the Full Article by AFP.com _________________________________________________ Bringing Home the Bacon! A Taiwanese farmer has adopted 12 wild pigs as pets, training them to trot behind his motor scooter for miles and also to stop at traffic lights! Click Here to Read the Full Article by Reuters.com _________________________________________________ Undertaker Chops Corpse to Fit Into Coffin James Hines was a giant, a 6-foot-7, 300-pound preacher and funk musician so big that after he died in 2004, a gruesome rumor began circulating in this small town that the undertaker had to cut off his legs to fit him in the coffin… Click Here to Read the Full Article by ABCNews.com _________________________________________________   YouTube.com Videos of the Month:   3 Funny Videos of “Idiots” and “Failures” That Will Make You Laugh AND Cringe! Ok, so calling someone an “idiot” or a “failure” may seem pretty harsh, but there’s just no other way to describe the people and scenarios you’re about to see. Be sure to forward this piece to family, friends, and co-workers for a great laugh!   Click Here to Watch the Video Clips by YouTube.com _________________________________________________   Delicious Recipe of the Month:   Molly’s Chicken – Garlic, Brown Sugar, Soy Sauce… You Just Can’t Go Wrong! A sweet, tender, and delicious chicken recipe that’s easy to make, and sure to create quite a buzz with friends and family. Treat yourself and those you love to some good cookin’ tonight! Click Here for the Full Recipe by AllRecipes.com _________________________________________________   Dumb Criminal Story of the Month: 'Dumbest Criminal' Nabbed in Cop Convention Holdup A retired police chief said he was robbed by "probably the dumbest criminal in Pennsylvania," at a police officers' convention on Friday morning. John Comparetto said as he came out of a stall in the men's room, a man pointed a gun in his face and demanded money… Click Here for the Full Story by YahooNews.com     Click to view our Privacy policy To stop receiving this newsletter, Unsubscribe here

I just received an email from the USDA Rural Development that funds have been released again this year for the USDA Guaranteed Rural Home Loan Program. This means that we are again able to provide funding for financing up to 100% of the purchase price for Oregon and Washington loans in qualified areas.

Small towns such as Sherwood, Newberg, Sheridan, Dallas, Canby and Forest Grove qualify in my neck of the woods.

The USDA Guaranteed Rural Home Loan program is unique in that it is one of the few loans left that will allow a qualified home buyer, in a qualified area, to purchase a home with $0 down. Of course, the purchase does have to be structured correctly, but it is fairly easy to set up.

Rates today are incredibly low due to recent action by Congress and the Fed. This is a GREAT loan for a 1st time home buyer and a GREAT time to take advantage of low rates and reduced home prices.

Call me today, or visit my website to learn more.!!

Larry Morris

503-421-0096

One of my primary lenders just issued new guidelines on how a property being converted from Primary Residence to Pending Sale, 2nd Home or Investment Property should be treated. These are quite a bit stricter then I've seen in the past and are probably indicative of things to come.

If you are a Realtor and are suggesting to a Seller to retain a property as an Investment Property, or your Seller would like to keep their property as for that purpose, you had better do some digging and make sure that they will still qualify for a new loan. If they are trying to close on their new home prior to selling their current home you also could run into some problems.

If you are a Lender and are trying to prequalify a Borrower who is retaining, or hasn't sold their current Primary Residence, you had better check with you lender to make sure that you are meeting credit guidelines.

If you are a Buyer or Seller you need to understand what you options are given your income, assets and credit. Your plans just might not work.

In today's credit climate, it is imperative that you are confident that your clients are truly in the position to accomplish their goals if it includes the purchase of another property.

As always, I cannot stress the importance of working with a Certified Mortgage Planning Specialist who can help walk you and your clients through the new mortgage maze.

Here are the Guidelines.

"Conversion of Primary Residence Policy

When qualifying borrowers who are purchasing a new Primary Residence and retaining their existing primary residence:

Pending Sale

If the current principal residence is a pending sale, but the transaction will not be closed (with title transfer to a new owner) prior to the new transaction:

• Both the current and proposed mortgage payments must be used to qualify the borrower

Conversion to Second Home

If the current principal residence is being retained as a Second Home:

• Must meet qualifications as a Second Home as defined in the Credit Policy Manual
• Both the current and the proposed mortgage payments must be used to qualify the borrower for the new transaction
• Property has not been listed for sale in the past 90 days (unless evidence of job transfer is provided)
• Property has been owned at least 12 months (unless evidence of job transfer is provided)
• Reserves equivalent to:

            1) 6 months PITI for both properties is required; OR
            2)2 months PITI if there is documented equity of at least 30% in the existing principal residence (as determined by an appraisal or AVM).

Conversion to Investment Property

If the current principal residence is being retained as an Investment property

• Both the current and the proposed mortgage payments must be used to qualify the borrower for the new transaction
• Property has not been listed for sale in the past 90 days (unless evidence of job transfer is provided)
• Property has been owned at least 12 months (unless evidence of job transfer is provided)
• Reserves equivalent to 6 months PITI for both properties is required.
• Up to 75% of Rental Income may be used to offset the mortgage payment if:

            1)There is documented equity of at least 30% in the existing principal residence (as determined by an appraisal or AVM); AND
            2) Provide a copy of the fully executed lease agreement; AND
            3)Provide evidence of receipt of a security deposit from the tenant and evidence that it has been deposited into the borrower's account.

Feel free to contact me should you have any questions.

Larry Morris, CMPS
503-421-0096