Makes Sense for Home Buyers to ACT Now!

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Makes Sense for Home Buyers to ACT Now!

• The Housing and Economic Recovery Act of 2008
• and how it impacts YOUR clients and YOUR bottom
  line!

Joe LO XYZ Mortgage Company
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Why this new law?

• To help a sluggish housing market recover
• To strengthen an also sluggish US economy
• To provide additional benefits to current
  homeowners, and encourage home purchases
• To help prevent more foreclosures, which weaken
  home prices nationwide
• To prevent bad actors from participating in the
  professional business of home loan lending

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Lets Break it Down

• FHA Modernization several changes
• New Tax Credits and Incentives
• Conforming Jumbo loan changes
• Hope for Homeowners in trouble
• New Quality Standards for Mortgage Lenders

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Seller Paid Down Payment Assistance

• Going, going not gone yet, but slated to be
  eliminated October 1, 2008
• Why? These loans have triple the chance of
  default and foreclosure over traditional FHA
  loans
• Bills already in progress to resuscitate, but all
  guarantees are off
• OPPORTUNITY If prospective homebuyers want
  seller paid DPA they must get it now!

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More Cash Needed Ahead

• For FHA financing, minimum cash investment is
  increasing from 3 to 3.5
• Mortgage Insurance costs will likely be
  increasing too
• HUD in process of clarifying details and when
  this will take effect
• OPPORTUNITYProspective home buyers must act now
  to get best benefits before changes take place!

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Good NewsDid Someone Say Tax Credits?

• Calling All First Time Home Buyers
• Or Any Non-Homeowner in the Past Three Years
• Good for Buyers From April 9, 2008 Through July
  1, 2009
• Tax Credit Up to 7,500
• 10 of Sales Price up to a Maximum of 7,500
• Must be Primary Residence
• Income Limits 75K for Singles or 150K for
  Couples
• Phases Out at 95K and 170K Respectively

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The Fine Print

• The Tax Credit is generous but is actually an
  interest-free loan, must be paid back over 15
  years at 500 per year
• If home sold early, repayment of loan is limited
  to amount of appreciation
• If homeowner dies the good news is that the loan
  is forgiven. The bad news is they are dead.
• OPPORTUNITY Better benefits than ever before
  for First Time Home Buyers to get off the
  fence, and into their first home but limited
  time program, its time to act!

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As an FYITax Benefits for Current Homeowners

• For whom? Those who own a home but currently file
  the EZ form, or do not itemize their tax
  deductions
• Most homeowners itemize deductions but this
  will help some individuals
• May be able to deduct real estate property taxes,
  up to a maximum of 500 for a single person,
  1000 for married
• OPPORTUNITY Mention this fact to past clients
  youve helped get into a home. If they are in the
  group of non-itemizing homeowners, they will
  thank you for the valuable information.

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Who You Calling JUMBO?

• In recent times, Fannie and Freddie have
  temporarily allowed more favorable interest rates
  on loan amounts normally considered to be Jumbo
• This benefit was set to expire, but has been
  extended
• However, the maximum limits have decreased
• First Capped at 417,000 No Change
• Maximum Caps Pulled back to 625,500 Few
  Markets Hit Here
• Capped for Others at 115 of Local Area Median
• OPPORTUNITY Extended benefits for homebuyers in
  certain Jumbo markets to finance more affordably!

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Hope for Homeowners

• Who will this impact? Homeowners who are
  upside-down in their homes, ie they owe more
  than the property is currently worth and are
  headed for trouble
• Very detailed eligibility guidelines
• Must agree to split all future equity built up in
  the home with the government, 50/50
• Foreclosed homes drag down property values for
  everyone so this is good news for all homeowners
• OPPORTUNITY If you know homeowners in serious
  trouble, make them aware of the program you will
  likely win a raving fan client for life, and help
  to keep Americas neighborhoods stronger.

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The Heat is On Originators

• Federal Licensing Requirements are Coming, and
  Will Improve the State of the Mortgage Industry
  Overall
• No Crooks Allowed
• Smarter Mortgage Professionals Ahead
• Have to Be in Good Shape Financially That Is
• Working With a True Professional is Always Key
• OPPORTUNITY Partner with a true professional,
  who not only has experience, knowledge and ethics
  and will always make YOU look good to your
  referrals but also has the tools that will help
  make a partnership truly successful.

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Lets get the word out together, that home buyers
must ACT NOW!

• Home prices are low and most experts believe a
  bottom in real estate is here
• Remember you cant see a bottom, until it is
  already in the rear view mirror
• Home loan rates still exceptionally low
• Benefits of this legislation will not last
  forever why let clients miss this opportunity?
• Get prospects pre-approved buyers and sellers
• Work that database
• Nurture leads to deals
• Work with a real professional

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Lets get the word out together, that home buyers
must ACT NOW!

• Like you, I am a true professional, and I am
  devoted to making homeownership a reality that
  makes sense.
• I have the tools needed to operate successfully
  in todays challenging climate, and to partner
  successfully with you.
• Lets discuss how to advance our partnership,
  and work together to make our clients dreams of
  homeownership come true.