I got some big news coming soon. In the meantime, here is a funny video that I nicked from Steve Dalton over at First Financial in Portage. If you are looking for a good Northwest Indiana first time home buyer rep in the Mortgage industry he is one of the best. Well, next to me, but that is horse is already out of the barn.

Go enjoy your day

I am

Dave

There is a lot going on this week when it comes to the Fed and which way mortgage rates could go.  Watch this quick video to better explain it.

you got any questions just let me know

Dave

This week Dave discusses the FHA Home Loan regulations, new seller concessions, FHA and Flipping, Higher Down Payment, and the Biz Booster of the week is ID Theft.

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Dave Woodson

The Mad Mortgage Machine

- Waiting Could Cost You $1000’s

This is no April Fool’s joke, but if you wait to buy an Indiana home you will be the fool. On April 5th, the required up-front mortgage insurance premium (MIP) will increase to 2.25%. So, buying a $150,000 home in Indiana with 3.5% down payment of $5250, the up-front MIP will be increased by $732.76. Granted, the up-front MIP is financed as a part of the loan, by why pay extra when you don’t have to.

Also, later on this Spring, Indiana Home sellers will no longer be allowed to give more than 3% in sellers concessions for closing costs and pre-paids. So, if the taxes or closing costs are more than previously thought the difference will be pushed upon the shoulders of the buyer.

The only way to avoid these forthcoming short falls in FHA financing is to buy a house early in 2010. Really, why would you wait to buy a new home. The first time home buyer tax credit expires on April 30th. Well, you need to be in Indiana home contract by then, and close by the end of June 2010, the same goes for “Move-up Buyer” tax credit as well.

I think you would be safe from these Indiana FHA increases if you have your mortgage application in by the end of March.

If you have any Indiana FHA or Indiana USDA home loan questions please let me know. I appreciate your business.

Dave Woodson – The Mad Mortgage Machine

Indiana FHA Expert

Stay tuned for the Mad Mortgage Machine Podcast coming out tomorrow

As foreclosures increase across the United States and that includes Indiana, banks are looking for ways to sell their overloaded REO inventory.

FHA has devised a plan that should be able to help many of those that buy homes, do some fixing up of the home and put it back on the market.  In the hopes of turning a profit.  FHA has waived the 90 day seasoning rule for sellers.  Here are the guidelines broke down.

1. The waiver takes effect February 1st, 2010 for a period of at least 1 year unless extended. (we will see if it gets abused)
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must me arms-length. (no relation amongst the seller & buyer)
4. No identity of interest can exist between buyer and seller. (ie. land contract)
5. If sale price is 20% or greater than the seller’s acquisition cost, the lender must:

a. provide supporting documentation and/or a second appraisal and
b. order an inspection of the property and provide it to the buyer.

6. The waiver is limited to forward mortgages only. (you cannot use a reverse mortgage)

I have uploaded for your convenience the Indiana FHA mortgagee letter that further explains the “90 day waiver”

any questions feel fee to give me a call

Dave

- Where do mortgage rates come from?

• Certainly, not the Mortgage Rate Fairy and certainly not the 10 year T-bill, but from mortgage backed bonds.
• My “shopping around” tool is not quite ready for prime time it will be uploaded very soon
• How a little change in rates have an affect on your monthly principle & interest (very little)
  

  Monthly Payment

• Short Sale Business Booster please leave your name and email and I will get it emailed to you ASAP.

(I will never spam you)

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This week HUD updated the FHA Loan Limits for Indiana.  The good news they remain unchanged from 2009.

Porter and Lake Counties FHA Loan Limits will remain with:

• 1 unit – $410,000
• 2 unit – $524,850
• 3 unit – $634, 450
• 4 unit – $788, 450

The rest of Indiana including LaPorte, St. Joseph and beyond

• 1-unit : $271,050
• 2-unit : $347,000
• 3-unit : $419,400
• 4-unit : $521,250

Id you ha eany questions or would like to be pre-approved please give me a call or download one of my two mortgage applications.

Dave

I was thinking just the other day, “who needs me”.  No, I was not feeling sorry for myself ready to drive into the oncoming traffic and end it all, but who out there needs my services.  Who NEEDS me! Who can use my services?

This is what I came up with (in no particular order), and would love any additions……

1) Young couple talking about moving in together.
2) Young couple talking about getting married.
3) Someone expecting a new baby.
4) Someone who’s last child is in college.
5) Someone who is always talking about “investing in real estate”.
6) Someone who is looking to buy a bigger home in state of Indiana.
7) Someone who just got a job promotion in Indiana.
8 ) Someone who has an Indiana house for sale now.
9) Someone who seems to spend, spend, spend and might need to consolidate.
10) Someone who is moving into the state of Indiana.
11) Someone who recently lost a spouse.
12) Someone talking about doing renovations or additions to their current home.
13) Someone talking about ARMs in the media (if they pay attention, they usually have one)
14) Someone who hasn’t started saving for retirement or is unhappy with their current retirement savings strategy.
15) Someone whose FIRST child hasn’t even started college yet.
16) Someone who just bought a brand new house and got their financing through the builder’s lender.

There are more than that, but that is a nice kicking off point.

Dave Woodson

From the Mad Mortgage Machine and the Girl

Looking forward to great and prosperous 2010

Just when you thought it was safe to go back into the water….

I am not just angry…I am MAD