Central Ohio Real Estate Cafe'

Those of us who work with short sales only need to mention "Countrywide" and instantly delays and slow processes are understood.  Often the mere mention of "Countrywide" will harness sympathy and compassion.   The name has sparked frustration from sellers, buyers and agents across the country.  So it should come as no surprise that many of us are anxiously waiting to see if the Bank of America (BofA) acquisition and name change will bring about real change.

When I recently read that Countrywide President David Sambol was given a 20 Million dollar retention bonus, by  BofA I was more than a little disappointed and far less optimistic about the company's commitment to real change. 

To convince folks like me that the new Bank of America Home Loans is open for business and has shed the tarnish of Countrywide Home Loans, the company has launched a huge marketing campaign.  I, for one, sincerely hope that the unrevealed dollar amount, being spent on the rebranding campaign, includes some substantive change and not just in name only...

The following information was obtained from a Countrywide Loan Officer.  I have confirmed this with several lenders.  This is One of Two New OHFA Programs that offers Columbus, Central Ohio and the rest of Ohio options for down payment assistance and incentives to help folks get excited about home ownership in 2009....

Homebuyer Tax Credit Advantage Program

Effective Date: March 30, 2009

The Homebuyer Tax Credit Advantage Program offers a second mortgage to borrowers who obtain a first mortgage through the OHFA First-Time Homebuyer Program. In order to encourage first-time homebuyers to enter the market in 2009, the program will allow OHFA first-time homebuyers to leverage the benefit of the federal first-time homebuyer tax credit for down payment and/or closing costs. The American Recovery and Reinvestment Act of 2009 amended and extended the first-time homebuyer credit to include purchases closing between January 1 through November 30, 2009. For qualified first-time homebuyers who purchase a home in 2009, the maximum credit is $8,000 and can be claimed on a buyer's 2008 or 2009 federal tax return.

The loan may be up to three percent of the purchase price. No cash back may be issued to the borrower.

Principal and interest payments are deferred until July 1, 2010 after which, loans will amortize over 15 years at an interest rate 1% above the first mortgage rate.

The OHFA application fee will be $300 and can be paid by the buyer, seller or financed in the loan.

There is an incentive for early repayment of the loan. If the loan is paid in full prior to July 1, 2010, OHFA will forgive $300 of principal.

Lenders may charge a special processing fee of $75.

All loans must be recorded as second mortgages using OHFA note and mortgage documents.

Borrowers must have a minimum 600 credit score.

Borrowers must complete homebuyer education through a HUD approved counseling agency or through OHFA's streamlined program.

Program will run until 11/2009 or until funds are exhausted.

OHFA website:  http://www.ohiohome.org/

Call me for more details or if you are ready to take advantage of this exciting NEW program for Columbus and Central Ohio Buyers. (614)273-6406 or email vanessa.simmons@realliving.com

Everyone knows that Foreclosures, Short Sales and HUDs hurt neighborhood property values.  As a real estate professional I applaud any efforts that can help stabilize the flood of distressed properties.  If you need help and would like to see if you qualify for any government housing rescue programs please check out the new site, Making Home Affordable.

Have additional questions or need other Central Ohio real estate help, please call me at 614-273-6406 or email me at Vanessa.simmons@realliving.com

I have had quite a few calls asking how to buy a HUD home, so in an effort to address those questions I have do decided to do a series on HUD homes. ...

The best place to start the series is at the beginning with:   How To Purchase A HUD Home. 

Step 1.  Work with your lender to find out how much house you can afford.

Step 2.  Find an agent approved to place bids on HUD properties.

Step 3.  Shop for your Home:   Ohio, FL, NJ and NY CLICK HERE....All Others States Click HERE

Step 4.  Work with your agent to submit your offer

Step 5.  Get An Inspection

Step 6.  Shop For Home Owner Insurance

Step 7.  Close on Your New Home

With so many homes going into foreclosure HUD offers tremendous variety for first time buyers and move up buyers alike.

Please check back for the next installment offering a detailed explanation of how HUD's $100 dollar down program works.

I am experienced in successfully selling HUD properties so if you need assistance to purchase or have additional questions about HUD or other real estate concerns, please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com

The information below was obtained by a loan officer with Countrywide Bank FSB.  It is a list of the major changes that they are making on Conventional Loans both conforming and non-conforming in the Central Ohio Area.  The source was unable to say whether or not Countrywide will be implementing these new guidelines throughout all their service areas but since our market has been tagged as "restricted" and or "soft" these changes will go into effect for all loans locked after March 19^th, 2009

1)        Minimum credit scores now with loans over 80% loan to value will be 700 and no              longer 620

2)        2nd homes  will now require 20% down on conforming loans

3)        Debt Ratio's - MAXIMUM is 41% for loans over 80%, regardless of Automated Underwriting system and MI companies will NOT insure them so they have to be at 41% even or below

4)        Reserves -  minimum 2 months of reserves are now required and can be more based on the Automated Underwriting System

5)        Cash out refinances - MAXIMUM is 80% cash out and loans that were done originally as 80-15-5 or 80-10-10 where the borrower wants to refinance both loans into 1, that is considered  'CASH OUT' and maximum is 80% loan to value

6)        CONDO'S -  MINIMUM 15% DOWN WITH SCORES OVER 700 & CONDO HAS TO BE FNMA ELIGIBLE

7)        Interest Only Loans- Maximum financing is 80%

For awhile treated like the ugly duckling this is going to make FHA EVEN MORE ATTRACTIVE AND ELIGIBLE FOR BORROWERS OVER 80% LTV WITH SCORES UNDER 700..

It will be interesting to keep watch to see if others follow suit with Countrywide..

For more information on Central Ohio Market Conditions see:  Should I Stay or Should I GO?

If you are looking to purchase or sell a home in the Central Ohio Area please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com

We all know the toll that the foreclosure crisis has played on the economy and the housing market.  There has even been much reported on foreclosures impact on pets, but what about the children?

In a recent report conducted and published by First Focus , it is estimated that 1.95 million children will be affected by foreclosure over the next two years.  The report reveals some startling revelations about the impact foreclosure has on the success of school aged children:

•1.       Each time a child moves to a new school it takes an average of 6 weeks for them to adjust.

•2.       Children who move 2 times in a year are half as likely as their peers to read proficiently.

•3.       Children of foreclosure have a higher chance of being held back a grade.

•4.       Excessive Mobility reduces the chances of graduation by 50%.

Also affecting the class room, this study finds that children, who are forced from their homes, are more likely to display behavior problems and aggressive behavior.  Children are just one more compelling reason to get a handle on the escalating problem of foreclosure.  The long term societal implications are staggering.

To see the full report of how foreclosures impact children in Ohio and other states CLICK HERE

For foreclosure options please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com.