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You always hear abou that "no cost loan" however the old addage is true there is no such thing as a free lunch. Ask your professional about what the true cost is of the "no cost loan" or call us at 925-954-7082 anytime and we would be happy to explain the differnces, benifits and pitfalls of the several various ways to structure a mortage. If you are buying property in the Conta Costa Bay area and you need a Mortgage Loan then we are absolutley top notch in customer service and consulting. We will find the right solutions for your sit your situation.

No fees but a higher interest.
In this option the lender offers to cover all the expenses related with the mortgage with the condition that the borrower accepts a higher rate of interest. The higher rate of interest will be charged during the whole lifetime of the mortgage. It is important that you ask for detailed estimates of the real costs of this no-cost alternative. This estimate should show the cost of the mortgage fees and how much extra interest you will be paying with the higher rate of interest.

Taking a loan to pay the loan fees.
This option of no-cost loan modification actually involves taking on a loan to pay for a loan, or at least the loan fees. With this option the lender covers the mortgage modification fees but includes the fees as part of the loan. This will mean the borrower will have to pay for the fees with interest as part of their modified mortgage. Again it is important to understand what the real costs of your no-cost mortgage modification will be. Ask for an estimate that details the real cost of your mortgage fees after paying interest on them for the length of the loan.

Lenders will often try to include a prepayment penalty clause in the mortgage or loan contract to discourage borrowers from changing loans in the early years of the modified loan. As far as you can you should try to avoid or reduce this penalty as they will reduce flexibility when trying to find a better deal in the future.

Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Are Event |

Consumer Confidence Continues to Plunge.

July 24 (Bloomberg) -- Confidence among U.S. consumers fell in July for the first time in five months as mounting unemployment and depressed wages shook households. The Reuters/University of Michigan final index of consumer sentiment decreased to 66, better than forecast, from 70.8 in June. A preliminary reading was 64.6. The biggest employment slump of any recession in the last eight decades may be making more Americans feel their jobs are in jeopardy. The growing insecurity, together with falling home values, is prompting households to limit spending and save more, meaning an economic recovery will take time to gain speed.

Consumers remain very cautious,| David Semmens, an economist at Standard
Chartered Bank in New York said before the report. They’re concerned about the outlook for jobs. Consumer spending will be fairly flat at best.

The confidence index was forecast to fall to 65, according to the median of 57

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FHA loans are back as good business. The Federal Housing Administration guaranteed almost 186,000 mortgages in June, a record tally for the agency, which has insured more than 34 million properties since its establishment in 1934. First-time homebuyers are in part driving the record push. Since late May, prospective purchasers have been able to use the $8,000 first-time homebuyer’s tax credit on FHA-backed loans. Part of the American Recovery and Reinstatement Act of 2009, the tax credit allows first-timers to pay for closing costs or even defray the 3.5 percent minimum down payment on FHA loans.

These long-standing loans continue to grow in popularity given the slumping economy and tight credit market. The FHA’s record performance in June smashed the agency’s old record of about 157,000 loans in October 2008. Before that, the record dated back to March 1994. “A primary reason government-insured loans have retained a high share of the purchase market is that these loans typically require lower down payments than conventional loans,” Orawin Velz, associate vice president of economic forecasting for the Mortgage Bankers Association, said in a news release. “In addition, lending standards tend to be tighter for conventional loans, especially for loans that require private mortgage insurance.”

FHA loans represent an affordable avenue for many first-time buyers. Anyone who has not purchased a home in three years gets that “first-time” status. But there are some strings attached for buyers looking to capitalize on the new $8,000 tax credit.

Prospective borrowers hoping to offset their down payment costs must utilize a proper FHA-approved lender. Otherwise, that $8,000 can be put toward closing costs or shaving down interest rates. First-time homebuyers also must meet a handful of other criteria. There are income thresholds that exclude individuals who make more than $75,000 or joint filers who clear $150,000. At present, first-time buyers can also decide when to claim the tax credit – either for 2009 or by filing an amended 2008 return. About a dozen states have started offering bridge loans to help spark home buying. These low- and zero-interest loans have to be repaid when the tax credit is applied. The FHA has also begun offering tax credit advance for prospective homebuyers who do not want to wait.

Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Are Event |

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Good morning everyone and thanks for reading. We are in the office throughout the day today working on various real estate deals and fundings this Wednesday 7/22 so just call anytime at 925-954-7082. We would also like to invite you to our event this evening in Fremont if you would like to meet successful professional real estate investors and learn how you can get involved too. You can learn more about our event right here!

If you would like to learn more about some of the most popular inovative real estate financing programs available today check this out or give us a call and just ask. Rates are up a bit from yesterday so if you had the chance to lock great!

Check out our market commentary for the day below. Have a great day!

Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Are Event |

Market Commentary 7/22/2009

U.S. MBA Mortgage Applications Index Rose 2.8 Percent Last Week
2009-07-22 11:00:02.0 GMT
By Shobhana Chandra

July 22 (Bloomberg) -- Mortgage applications in the U.S. rose for the third consecutive week as refinancing and purchases advanced.
The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan increased 2.8 percent to
528.9 in the week ended July 17, from 514.4 in the prior week.
The group’s refinancing gauge climbed 4 percent, while the purchase index rose 1.3 percent. The worst housing slump since the Great Depression is steadying as falling prices make properties more affordable to buyers able to get financing. At the same time, record foreclosures and surging unemployment are hurting consumers, indicating any recovery in construction or economic growth will be slow to develop.

Home buying has stabilized albeit at a very low level.

Steven Wood, president of Insight Economics LLC in Danville, California, said before the report. Recent activity has been suggestive of a broad bottoming pattern in home sales. The mortgage bankers’ purchase index rose to 262.1 last week from 258.8 the previous week, today’s report showed. The refinancing gauge increased to 2,089.7, the third straight gain, from 2,009.4.
The share of applicants seeking to refinance loans climbed to 55.5 percent of total applications last week from 54.9 percent. Construction Gain
The report reinforces other signs the real-estate market is steadying. Housing starts jumped in June to the highest level since November, and building permits, an indicator of future construction, also climbed, the Commerce Department reported last week.
Applications rose even as mortgage rates rebounded. The average rate on a
30-year fixed loan rose to 5.31 percent last week from 5.05 percent the prior week. The rate reached 4.61 percent at the end of March, the lowest level since the group’s records began in 1990.
At the current 30-year rate, monthly borrowing costs for each $100,000 of a loan would be $556, or about $81 less than a year earlier when the rate was 6.58 percent. The average rate on a 15-year fixed mortgage rose to 4.80 percent, and the rate on a one-year adjustable loan climbed to 6.50 percent.  Economist’s project prices will keep sliding as sales of distressed properties mount. Foreclosure filings reached a record in the first half of 2009, according to RealtyTrac Inc., an Irvine, California-based seller of default data. More than 1.5 million properties got a default or auction notice or were seized by banks.

Fewer Losses

Bank of America Corp., the biggest U.S. lender, reported a drop in
Second-quarter profit because of higher losses on credit cards and home loans, in part related to expenses to help homeowners modify loans. Chief Executive Officer Kenneth Lewis said the Charlotte, North Carolina-based bank sees signs that some loan losses may abate.
The Washington-based Mortgage Bankers Association’s loan survey, compiled
Every week, covers about half of all U.S retail residential mortgage originations.

Success in a networking group comes when the rest of the group members trust you enough to open up their best referrals to you. Until they’ve seen your work, you have to earn that trust by demonstrating your professionalism to them. Since BNI was founded almost 25 years ago, we've discovered many ways NOT to spend you time in the group.

Here are the top 10 ways to waste your time in a networking group (avoid all of them):

• No. 10. Go ahead, air your grievances among your fellow networkers and guests; after all, they really want to hear about your complaints.
• No. 9. Wing it in your 60-second presentations; you’ve got plenty more chances anyway.
• No. 8. Use one-to-one meetings to talk about your networking group’s issues instead of learning a lot more about each other.
• No. 7. Focus your efforts on selling your services primarily to the members of the group.
• No. 6. Don’t rush following up on a member’s referral. They know where you are.
• No. 5. Use others’ 60-second presentation time to think about what referrals you can give that week.
• No. 4. Why invite your own guests? Just focus on those who show up.
• No. 3. Don’t worry if you get to the meeting late. No one will notice.
• No. 2. Be absent; it’s no big deal. You can just call in your referrals . . . right?
• And the No. 1 way to waste your time in networking groups . . .
• No. 1. It’s OK, take that phone call or text message during a meeting. It won’t bother anyone, and it’s a real sign of professionalism that everyone admires.

So there it is–The Top 10 Ways to Waste Your Time in a Networking Group! Print this out. Memorize it. Share it with your fellow networking members. Above all–avoid these mistakes! You’ll get a lot more out of your group and so will your fellow members.

I’d love to hear some more ways that are big time wasters in a networking group. Please leave your comments below. Let’s add to this list.

Oh, and to visit a good networking group in your area, feel free to Click here.

Until Next time Here is to your success! Jason Wheeler 866-833-7413 | Come to a FREE Bay Are Seminar |

Get FREE MP3 of Think and Grow Rich and download the ebook by Napoleon Hill!

Public Finance

Mortgage Credit Certificates

MCC funds now are available.

Program Summary

The Mortgage Credit Certificate Program, authorized by Congress in the Tax Reform Act of 1984, provides financial assistance to "First time homebuyers" for the purchase of new or existing single-family home. In 1985, the State adopted legislation authorizing local agencies, such as Contra Costa County, to make Mortgage Credit Certificates (MCCs) available in California. Contra Costa County MCC authority can be used in all cities as well as the unincorporated areas of the County. The Contra Costa County Community Development Department will administer the program.

What is an MCC?

The MCC Program is a homebuyer assistance program. The MCC provides qualified first time homebuyers with a federal income tax credit. Income tax credits reduce an individual's tax payment(s) by an amount equal to the credit. Under the MCC program, the maximum tax credit available is equal to 20 percent of the annual interest paid on the borrower's mortgage. By reducing the borrower's federal tax liability, the tax credit essentially provides additional income which can be used for mortgage payments.

How does the MCC reduce your taxes?

In the example given in Table 1, a borrower with a 7.5 percent fixed rate 30-year mortgage of $150,000 would make $11,203 in interest payments during the first year of the mortgage.1 Under normal circumstances, the borrower deducts 80 percent of that interest ($8,962 in our example)-along with other allowable deductions-from his total gross income in order to figure the "adjusted gross income" used to calculate his/her total tax liability. After the borrower has calculated the total tax liability, under the MCC program the remaining 20 percent of the interest ($2,241 in our example) is also deducted from his/her total tax liability. If this subtraction results in a negative number-in other words, if the borrower is unable to use the entire MCC tax credit in this particular tax year-the credit may be carried forward and used, up to three calendar years in the future. The borrower may consider adjusting his/her federal income tax withholding (W-4) so as to benefit on a monthly basis for the MCC. By taking this action, the borrower will have more disposable income to make mortgage payments.

Note that the MCC program applies only to the borrower's federal tax liability. State taxes are not affected.

What are the purchase price and income limitations for MCC Participation?

Mortgage Credit Certificates are available to first-time homebuyers in Contra Costa County. Table 2 shows the purchase price and income limitations for MCC Program participants.

How does a borrower obtain an MCC?

To obtain an MCC, a purchaser of a new or existing single-family home works with any mortgage lender participating in the MCC program and applies for an MCC and a mortgage loan at the same time. Lenders process the underlying mortgage using standard procedures, with adjustments to those procedures as needed to satisfy the MCC requirements. The lender is responsible for underwriting and execution of required State and federal certifications and affidavits. The County reviews executed certifications and affidavits from the lender in order to determine qualification and eligibility of the MCC applicant.

May an MCC be used with a re-financed loan or to assume an existing mortgage?

An MCC cannot be issued to a homeowner who is refinancing an existing mortgage or to an applicant desiring to assume an existing mortgage unless (1) the mortgage is held by a current MCC holder and (2) the sales price of the house being sold falls under the sales price maximum for the program. In all other cases, only new, first mortgages are eligible for MCC participation.

Loans with an MCC attached to them can be refinanced once and the MCC can be reissued. If the refinance loan is then refinanced, the homeowner loses the MCC. The RMCC can be done directly with the homeowner without involving the lender. There are no restrictions regarding the amount that can be refinanced. The fee for an RMCC is non-refundable $200. RMCC Letter, RMCC Application, RMCC Certifications, RMCC Application Checklist

How many MCCs will be available under the program?

The number of MCCs available depends on the amount of issuing authority for which the jurisdiction applies.

Potential for recapture of portion of the tax credit if home is sold within the first nine years after purchase.

In order to discourage individuals from buying a home primarily to benefit from the tax credit and short term appreciation potential, the federal government has initiated a recapture of a portion of the tax credit if a home is sold within the first nine years after purchase. Certain conditions must exist for the recapture to take effect. The County MCC staff and your lender can outline the specifics of this recapture program at the time of your application.

APPLICATION AND ELIGIBILITY REQUIREMENTS FOR MCC PROGRAM

The Contra Costa County MCC Program eligibility requirements are as follows:

• MCCs will be available only to "first-time homebuyers", (i.e. not owning a home within the past three years).
• As first-time homebuyers complete their normal loan application process with a participating lending institution, their mortgage lenders will prepare MCC applications and forward them to the County. The County will then issue MCCs on a first-come, first-served basis according to when the initial application is received by the County. County staff requires 5-7 days for application review and processing.
• Applicants may buy a residence only for their own occupancy, not for rental or reinvestment. Occupancy as "principal residence" must be within 60 days of the close of escrow.
• Applicants must pay a non-refundable application fee of $200 at the time the lender applies to the County on their behalf.
• The MCC can be used when buying a new home with a maximum purchase price of $629,005, ($768,784 in Target Areas) or an existing home with a purchase price that does not exceed $619,381 ($757,021 in Target Areas).
• MCCs can only be transferred in cases where the home is being sold to another eligible MCC applicant. In such a case, all MCC requirements must be met and the mortgage must be assumed for the transfer to occur.
  

Until Next time Here is to your success! Jason Wheeler 866-833-7413 | Come to a FREE Bay Are Seminar |

Get FREE MP3 of Think and Grow Rich and download the ebook by Napoleon Hill!

This little known program is available in Pleasant Hill CA. The information below is from The Pleasant Hill City Website.

ELIGIBLE HOUSEHOLDS

The house must be within the city limits of Pleasant Hill and owner-occupied.  The current, combined monthly income of the entire household must be less than the amount listed on the bottom of the next page – based upon family size.  It is important to note that this program is designed for Pleasant Hill homeowners who are not able to qualify for conventional loans.

ELIGIBLE PROPERTIES

• The dwelling must be located in residential districts and areas designated for residential use within the City of Pleasant Hill.
• The dwelling must be the primary residence of the owner.
• The dwelling is in a condition such that rehabilitation within the scope of this program will bring the unit into a safe and habitable condition.
• The dwelling must have sufficient equity to secure the amount of the loan.  The rehabilitation loan must be a first or second loan against the property and may not be a “third” or lower, even though there may be sufficient equity to cover such positions.

FINANCIAL ASSISTANCE

• Maximum loan amount is $60,000.  Minimum loan amount is $5,000.
• Loan interest rate is 3% fixed, simple interest with an initial 15-year term.  The loan terms may be extended in 5-year increments, after the initial 15-year term, provided the homeowner still meets the income qualifications.
• Loan repayments may be amortized, deferred, or interest only.  The loan committee has the ultimate decision with regard to loan repayment.

TYPES OF REHABILITATION

• Health and safety hazards will be given top priority for consideration in the program.  Common repairs associated with a rehabilitation project include but are not limited to:
  • New roof, gutters and downspouts
  • Attic and wall insulation
  • Kitchen and/or bathroom upgrades
  • Repair/replace concrete driveways, walkways or porches that present a “trip and fall” hazard
  • Drainage work
  • New interior and/or exterior paint
  • Sewer work
  • Replacement of worn flooring
  • Replacement of single pane windows with new, dual pane, energy efficient windows
  • Fences are allowed to be replaced but under very limited circumstances, such as a safety item due to a backyard swimming pool
• Work will be performed by pre-certified contractors participating in a competitive bid process.  In special circumstances, contractors are not on the pre-approved list may be allowed to perform the work, if they meet program guidelines.

2008 MONTHLY INCOME LEVELS

Number of Persons Living in House             1              2              3              4              5              6              7

Total maximum income                                    $5,025   5,742      6,458      7,175      7,750      8,325      8.900

Until Next time Here is to your success! Jason Wheeler 866-833-7413 | Come to a FREE Bay Are Seminar |

Get FREE MP3 of Think and Grow Rich and download the ebook by Napoleon Hill!