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A Message From Dan

Welcome to Waterfront Mortgage. Waterfront Mortgage is a division of TMBG, Inc. Based in Kirkland WA, and serving the greater Seattle area, including Bothell, Kenmore, Mill Creek, Snohomish, Monroe, Bellevue, Redmond, Renton, Kent, Lynnwood, Everett, and Tacoma.

We're working hard to provide you with the very best loan programs in the industry. Every resource we pursue is with the mindset of how it will benefit you, our clients.

Waterfront Mortgage understands the importance of navigating the Government Sponsored programs such as FHA, VA, and USDA Rural Development loan programs, as well as various Fannie Mae and Freddie Mac programs such as My Community and Home Possible.

Whether you're purchasing your first home, or refinancing your fifth home, we're here to help you achieve your goals.

H.R. 3221

The Housing and Economic Recovery Act of 2008 contains provisions that will transform major aspects of the mortgage industry. Here is a summary of the key points:

FHA Changes:   

• To use Seller Funded Down Payment Assistant (DPA, Nehemiah), final underwriting must be completed by September 30, 2008.  This type of DPA will not be available after September 30.   

• FHA minimum cash investment requirements are increasing to 3.5%, from 3%.    
• MIP will increase after October 1, 2008. 
• HR 3221 increased the cap on MIP from 2.25% to 3%.  Per FHA policy, FHA has filed the amount they want the cap to be with the Office of Management and Budget (reported to be between 2.25% and 3%, but closer to 3%). 

Visit www.Hud.gov for FHA loan amounts in your area. 

Tax Credits:   First-time buyers and people who have not owned a home in the past three years will get a $7,500 tax credit if they purchased a home on or after April 9, 2008 or if they purchase one before July 1, 2009.   Income limitations are:

• Married couples with incomes less than $150,000 qualify for the entire tax credit.  The tax credit phases out for married couples with incomes between $150,000 and $170,000.  Couples with incomes exceeding $170,000 do not qualify for the tax credit. 

• Singles with an income less than $75,000 qualify for the entire tax credit.  The tax credit phases out for singles with incomes between $75,000 and $95,000.  Singles with incomes exceeding $95,000 do not qualify for the tax credit. 

The tax credit is really an interest-free loan from the government that must be paid back over fifteen years, in increments of $500 a year.   

• If you die, your heirs do not have to pay back the remaining balance.
• If you sell your home before fifteen years have passed and your home’s appreciation is less than the amount you have to pay back, the loan is forgiven.
• If you turn your home into a rental or investment property, you must pay back the balance due.

Conforming Jumbo Loan Limits:   The floor for Jumbo Loans will remain at $417,000, despite the depreciation in home prices. 

The ceiling for Jumbo Loans will decrease from $729,750 to $625,500 as of January 1, 2009.

 

Hope For Homeowners:

The bill helps homeowners who are currently upside down on their homes and owe more than their homes are now worth.  Mortgages must have been originated prior to January 1, 2008. Borrowers must:

1. Certify that they did not default intentionally (there is penalty of jail if they are found to lie here).
2. Have had a DTI ratio over 31% as of March 2008. The lien holder will work with the borrower to write down the mortgage to no more than 90% of the appraised value.  For example, if a borrower owes $300,000 but the home is worth $250,000, the borrower will receive a new loan for 90% of $250,000, which equals $225,000.  The $75,000 difference is forgiven.   

The lender shares equity in the property going forward, on a sliding scale:

1. If the home is sold within one year, the lender receives 90% of the appreciation and the home owner receives 10%.
2. If the home is sold within two years, the lender receives 80% of the appreciation and the home owner receives 20%.
3. If the home is sold within three years, the lender receives 70% of the appreciation and the home owner receives 30%.
4. If the home is sold within four years, the lender receives 60% of the appreciation and the home owner receives 40%.
5. If the home is sold after five years, the lender receives 50% of the appreciation and the home owner receives 50%.

Licensing:  

SAFE Mortgage Licensing Act was created to “encourage” a nationwide licensing and registry system.  In the next few years, individual states will: 

1. Establish a minimum net worth for recovery fund requirements.
2. Require originators to register with the National Registry and obtain a unique identifier number.This will help regulators track individuals and prevent originators who receive complaints in one state from starting a new origination practice in another state.
3. Develop a state license program.
4. Require pre-licensure education.
5. Require eight hours of continuing education every year.