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Broadview Mortgage is proud to offer FNMA’s HomePath Program. HomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance.  Who do you know that has been able to take advantage of the program?

FHA loans are a very popular loan option for many 1st time home buyers, because it allows for a low fixed interest rate loan, and only a 3.50% down payment from the perspective buyer.  However, because the lender is taking on a "high risk" loan due to the low investment from the buyer, mortgage insurance is required to help protect their interest. 

Although many people use the term "FHA loan", in actuality, FHA only provide "affordable" mortgage insurance on loans that may otherwise never be approved for purchase by an investor.  FHA will provide mortgage insurance, at the expense of the buyer, upon close of escrow.  Currently, FHA requires a 1.0% "up front" mortgage insurance fee (which is typically added to the base loan amount, then financed).  However, they also require that the home buyer pay a "monthly" mortgage insurance premium calulated at 0.90% of the loan amount.  Due to several defaults over recent years, FHA has announced that the monthly mortgage insurance premium will increase to 1.15% on all FHA case #'s issued on or after April 18, 2011.

If you are considering purchasing or refinancing a home utilizing an FHA insured mortgage, you will want to be aware of this date.

The violence in the Middle East reached a much greater level this week, as Libyan leader Gadhafi fought to retain control. Uncertainty about whether the violence will spread to other nations produced a "flight to safety", which means that investors shifted funds from risky assets such as stocks to relatively safer assets such as bonds. Higher demand for bonds, including mortgage-backed securities (MBS) helped mortgage rates improve.

Mortgage Rates Improve

After rising for several weeks, mortgage rates improved a little this week. The news on inflation was not as negative as investors may have feared, and the economic growth data was mixed. The most significant reports on growth, Retail Sales and Industrial Production, both fell short of expectations, which helped mortgage rates.

One of the most-hated times of year is Tax Season. We dislike letting go of money, yes, but we also dread tracking down the necessary documents and scraps of paper. If you are like many Americans, who start to think about filing taxes sometime between ”in like a lion” and “out like a lamb,” perhaps you could use some advice on getting your house in order.

You’ll want to organize your documents into three “buckets.” Depending on your circumstance and organization style, you can get as detailed as you need. These can be three boxes with more specific files inside, three accordion files holding various categories or months within, or three roomy file folders. (You can use actual buckets if you like, but we don’t recommend it).

Label your “buckets,” putting related documents within.

1) Income

• W-2s
• Pay-stubs
• Bonus documentation
• 1099 forms for freelance work

2) Expenses/ Deductions

• Medical receipts
• Charitable giving acknowledgment
• Business expense documentation
• Childcare receipts
• Interest paid forms

3) Investments

• Bank statements
• Investment reports
• Tax documents
• Dividend notices

If you are considering software or online tax preparation services, you have many options of varying cost. Depending on your income, you may be able to file free online with programs like TurboTax or TaxAct. Most people with simple returns will pay a small fee to file with these services. They may offer a free federal return and require payment to file the state return. Be sure to do your research on these programs, keeping in mind security, accuracy, and the features you prefer.

As you sort through your documents, filing them in their respective “buckets,” you’ll want to keep last year’s tax return handy. It will help you compile a check-list of important deductions or investment documents you will need for the current year.

The $100 million allocated for California's first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to C.A.R.'s Economics team. California's Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied. However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis.

C.A.R.'s forecast of 10 to 20 days to deplete the $100 million allocation for first-time home buyers is based on estimated May sales figures and other parameters. It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to take advantage of the tax credit. If a shift in closings from April to May occurs, the first-time homebuyer tax credits may be depleted even more quickly than indicated above.

Applications for the California tax credit must be faxed to the FTB after escrow closes. The FTB will update its website when the 2010 application form and other information become available.