Brought to you by Rhonda Porter Your Trusted Advisor at Mortgage Master Service Corporation NMLS Licensed Loan Originator #MLO-121324 eMail: email@example.com Web/Blog: www.mortgageporter.com What’s Inside: Home Buyer’s Tax Those in the military do have some special extensions on the timelines available. Direct: (206) 718-9488 Home Buyer’s Tax Credit 1 Credit Extended Qualified Armed Forces have a deadline of Licensed Loan Originator #510-LO-32047 Creative Cuisine 2 and Expanded April 20, 2011 for being in contract and Rhonda Porter closing by June 30, 2011. Let’s Get Social 2 Effective November 6, What’s New ~ 2009, Congress extended What’s so great about a “tax credit”? Kent, WA 98030 My 10 Year Anniversary! 3 and expanded the first time 24909 104th Avenue S.E., Suite 100 home buyer tax credit (Bill The benefit of a tax credit is that it is a Rates at a Glance 3 dollar-for-dollar benefit, rather than a “tax HR 3548). The new version extends the Rave Reviews 3 tax credit for first time home buyers and deduction” or reduction in a tax liability that includes current home owners who are would only save you $1000 to $1500 when HVCC: How It Impacts You 4 all is said and done. So if a first time home looking to buy. And even if you’re are not FHA Loan Changes 4 looking to buy another home, please buyer who qualified for the entire benefit share this article to anyone who might be were to owe $8,000 in income taxes and considering to do so. This information they qualified for the $8,000 in tax credit, Seahurst Park in Burien might benefit them greatly and I’m happy they would owe nothing. to help them. Better still, the tax credit is refundable, Here’s a brief overview of the Home- which means that the home buyer can re- buyer’s Tax Credit. ceive a check for the credit if he or she has little to no income tax liability. For example, FHA Loans Changing with the Times Tax Credit for First-Time Homebuyers if a repeat homebuyer is eligible for a tax credit of $6,500 and they owe $2,000 on First time home buyers (that is, people their income taxes, they will receive a check HUD is making some big changes to FHA insured mortgage loans due to the current mortgage climate. The first change may back for the remaining $4,500. who have not owned a home within the have taken place by the time you read this newsletter (if you subscribe to my blog at www.mortgageporter.com, you’ll be notified last 36 months) may be eligible for the tax by email whenever I write a new article). credit. The credit for FTHB’s is 10% of High Income Caps the purchase price of the home with a Upfront Mortgage Insurance Premium Increasing. Effective on all FHA case numbers issued on or after April 5, 2010, the up- maximum available credit of $8,000. The amount of income someone can earn front mortgage insurance premium is increasing from 1.75% of the base loan amount to 2.25%. A majority of the time, FHA up- and qualify for the full amount of the tax front mortgage insurance premiums (ufmip) is financed in the FHA loan by adding it to the base loan amount. The difference in Tax Credit for Current Homeowners credit has been increased. payment over a 30 year term may not be as significant as the lump sum appears. The tax credit program for those who all Single tax filers who earn up to $125,000 ready own a residence is up to $6,500 for are eligible for the total credit amount. Reduced allowable seller closing cost credit from 6% to 3%. Most transactions do not have enough closing costs and prepaids qualified purchases who have owned and Those who earn more than this cap can that would justify a 6% contribution from the seller (unless they’re paying for the ufmip and buying additional points). This change occupied a primary residence for a period receive a partial credit. However, single to guidelines is expected to happen this summer. of five consecutive years during the last filers who earn $145,000 and above are eight years. ineligible. Not all of the changes FHA is doing are restrictive...they’ve just loosened up on their “anti-flipping” rule by allowing certain qualified homes to be resold within 90-days of acquisition (aka a “flipped” home). There are restrictions that apply and the trans- What are the deadlines? Joint filers who earn up to $225,000 are eligible for the total credit amount. Those action must meet the “waiver of requirements”. In order to qualify for the tax credit, all who earn more than this cap can receive a contracts (purchase and sales agree- partial credit. However, joint filers who earn This is not new—but I’m surprised how many folks don’t know that FHA insured loans are assumable! The lender needs to ap- $245,000 and above are ineligible. ments) need to be mutually accepted by prove the buyer and the buyer can take over your FHA interest rate. There are certain steps you would want to take as a seller to . the buyer and seller no later than April make sure you are protected. 30, 2010 and close no later than June View more of my photos at 30, 2010. The contract must be signed (Continued on page 2) More information can be found on my blog under the FHA category at www.mortgageporter.com. www.facebook.com/mortgageporter after November 6, 2009. Mortgage News (continued from “What’s New” (Continued from Page 1) The SAFE Act is in the process of being fully implemented. Maximum Purchase Price Some originators, like yours truly, are Licensed with the NMLS which means that we have to go through a very com- Qualifying buyers may purchase a property with a maximum plete background check (including a review of our personal sales price of $800,000. financial stability), pass a national and state exams about mortgages and continue to take hours of education every Age Limit No Foolin’- It’s My 10 Year Anniversary year...all good things for the industry EXCEPT that LO’s Sliders who work for (yep, you guessed it) banks are only One home buyer must be at least 18 years old at the time of It’s hard to believe that ten years has passed since I started origi- “Registered” which means that they’re just registered—a You can find this and other recipes I like to cook at closing. nating mortgages on April 1, 2000 at Mortgage Master. background check is done. Mortgage originators who are www.mortgageporter.com/da_cook registered (work for depository banks) are not held to the Proof of Purchase A lot has changed and a lot has returned (or surpassed) to where same standards per the SAFE Act as those of us who are Metropolitan Market's mini-hamburger buns, or you can things where when I started. Ten years ago, we did not have sub- licensed. I do wish that our Congress would have passed use small dinner rolls. To receive your tax credit you cannot e-file as you need to pro- prime mortgages (for the most part). You had the option of conven- the SAFE Act to have the same standards for anyone who vide a copy of your HUD-1 Settlement Statement along with tional, FHA and VA loans. I’m so thankful that these are the pro- is taking a loan application regardless of what type of insti- Fry pancetta or bacon in a non-stick pans. I used sliced the IRS 5405 “First Time Home Buyer Credit” form. grams that I cut my teeth on as they’re pretty much all we have left. tution they work for. More favoritism for the banks, in my pancetta. view. And I do think it’s an advantage to be licensed vs. Ineligible Home Buyers I can no longer work with my appraiser due to HVCC. We now have registered as we are held to a higher standard to the public. • Non-resident aliens to use a rotation system and I won’t know who the appraiser is until You can verify if a mortgage originator is licensed or regis- In a separate pan, sauté sweet onions in a pan with olive I receive it. I really think that it’s unfortunate NY Attorney General tered by visiting www.nmlsconsumeraccess.org — it’s kind • If property is sold before the end of the tax year. oil until soft and golden. Cuomo was able to create and enforce this code which has had an of cool—you can see our resumes and other information. • If property ceases to be principal residence before the end of the year undeniable impact on home values across the country. Because Ground sirloin (or hamburger) will do...not too lean or it bank have ownership interest in many of the Appraisal Management I do plan on sticking around Mortgage Master as a mort- • If the property is purchased from a person who is related to won't be juicy! I used a small cookie scooper to make Companies (where most lenders have to order an appraisal) and gage originator for at least another 10 years. It’s been my the homebuyer or if the homebuyer’s spouse balls the size of a golf ball and shaped into a hamburger banks take about 50% of the appraisal fee from the appraiser, I goal to be able to retire just as my Father-in-Law, Bob • If the homebuyer’s income exceeds income limits (MAGI can’t see this changing anytime soon....too much profit the banks. Porter did in his late 70s from Mortgage Master. I’m very patty. Seasoned with freshly ground pepper. Because I calculations) fried the burgers in the pancetta/bacon grease left over in And sadly, it’s just re-creating the same conflict of interest the code proud to be a part of our family owned mortgage company • Less than 18 years old or claimed as a dependent by a tax was intended to correct. that’s been around for over 30 years serving home owners the pan, I didn't add any salt. payer. in the great Pacific Northwest. I’m concerned what the next 10 years will be like. Our elected offi- Fry patties for just a few minutes on each side until they Repayment of the Tax Credit cials have not been very active with campaign reform—instead I thank you for your support and referrals which has made start to brown. they’re going after health and finance. I wish they’d start with them- my ten years in the mortgage industry at Mortgage Master If the home is sold within 36 months of acquisition or ceases to selves! The banks really have their attention and it’s no wonder possible. I do love this job and helping people achieve Split buns and add just a light spread of butter. Put under be the buyer’s primary residence, the tax credit must be repaid with campaign contributions and lobbyist at work. Pretty soon, it’s their financial goals—in spite of what the industry is going in its entirety. my opinion that Americans will not have any choices when it comes through during these times with over-regulation (have you broiler until golden. to selecting a mortgage product...or where they’ll go for their mort- seen the new three page good faith estimate???). Remember, the new tax credit program includes a number of gage needs. Spread Dijon mustard on the buns. details and qualifications. Call or email me today if you have a I wouldn’t be writing this newsletter about my 10 year anni- question or would like to see if you can benefit from the tax (continued) versary without you! THANK YOU!! Add a burger with some grilled onions. credit. Top with cheese. I had a nice blue and a manchego as options (I used blue). Let’s Get Social! Mortgage Interest Rates at a Glance Then add a piece of pancetta (or bacon) cut to fit on the Conforming priced w/1 pt & 45 day lock. $400k loan 80%LTV & 740+ credit score Are you on social media sites like Face- mini burger. book or Twitter? Be sure to “friend me”. 30Yr Conf ~ 4.875% (apr 4.906%) Rhonda had made this long distance pur- You can find me at: 15Yr Conf ~ 4.250% (apr 4.511%) chase of our new home painless. Sliced tomato or lettuce are optional...I decided to skip it ~ Liz N. (relocating to Seattle) 10/1 Conf ARM ~ 4.250% (apr 5.656%) with 5/2/5 Caps on these little morsels. Facebook: www.facebook.com/washingtonmortgagepro ` and www.facebook.com/mortgageporter Conf. High Balance priced w/1 pt & 45 day lock. $500k loan 80%LTV & 740+ credit score. We were extremely pleased with how quick, Another variation I’ve made is just doing the burger with a 30Yr Conforming High Balance~ 4.875 (apr 5.024%) Twitter: www.twitter.com/mortgageporter smooth & professional the whole process slice of melted co-jack cheese...some dijion mustard and a Jumbo priced w/1 pt & 45 day lock. $650k loan 80%LTV & 740+ credit score. Jumbo-Non Conforming ~ 5.500% (apr 5.797%) was! tiny slice of pickle. Less is more with these tasty treats! Flickr: www.flickr.com/photos/rhondaporter/ FHA/VA priced w/1 pt & 45 day lock. 3.5% down & 660+ credit score (VA may be 0 down). ~ Chris & Gary S. (refinance) Yelp: www.rhondaporter.yelp.com 30Yr FHA/VA ~ 4.875% (apr 5.551%) It’s a fun appetizer, snack or even a meal! Thanks again for your great service! Click on my “About Rhonda Porter” under my video intro- 30Yr FHA High Balance ~ 4.875% (apr 5.461%) ~ Jules & Emily (refinance) duction at www.mortgageporter.com for more social links. Rates change constantly. These rates are from March 31, 2010 and can be found at While you’re at my blog, please take a moment to sub- www.mortgageporter.com where I post rates every Monday. You can see what rates I’m Check out more at www.budurl.com/reviewrhonda quoting to actual clients by visiting www.twitter.com/mortgageporter. scribe to receive updates (in the upper right corner).