Sunset Mortgage Company

Tax Credit Time is Slipping Away...

2010-03-15T13:05:00.000-07:00

Time is slipping away home buyers… but it isn’t too late to take advantage of tax credit.

I have had many buyers stressed because they have not found that perfect home, and they fear they will lose out on the Tax Credit. (Remember… that is an $8,000 tax credit for first time home buyers, and a $6,500 tax credit for ‘move-up’ home buyers.)

Fear not home buyers. You still have time, but not a lot. Don’t stress you will lose out on this opportunity, but start looking and do so now.

The tax credits for both types of buyers is worded that you need to “be in contract” by April 30th, and close by June 30th to qualify for the credit. This is 45 days away! Only 6 more weekends to get out and look. Be proactive and keep looking.

Worst case scenario may be you get an accepted offer at the last minute. Let’s say on April 30th. You will be ok to close this loan on time, as most transactions are not taking a full 60 days to close.

Beware though of the short sales and bank owned homes. The timelines on these transactions may be troublesome.

If you have any questions regarding this, please feel free to shoot me an email. I am always available to answer any questions you may have.

Thanks for reading … Bryan

Email to: Bhusen@susnetmortgageco.com

The Tax Credit Extension is here. Save the date: April 30th, 2010.

2009-11-09T16:26:00.001-08:00

The most common question over the past few weeks has been, "Do you know if they (the government) is going to be extending the 'homebuyers tax credit' soon?" Many of my buyers that have been looking have known they were running out of time with the current incentive we had.

Well good news is here! On Friday November 6th, President Obama signed the Worker, Homeownership, and Business Assistance Act into law. This legislation includes language that significantly expands the popular first-time home buyer tax credit that was enacted this past February. This new law also has a great new add to the existing law, but adding a repeat home buyer tax credit.

Allow me to provide an update to the new law with a breakdown of the two new incentives of this law:

$8,000 First-time Home Buyer Tax Credit Update

• The $8,000 tax credit is for first-time homebuyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit applies to sales occurring before April 30th, 2010. However, in cases where a binding sales contract is signed by April 30th,2010, a home purchase completed by June 30th, 2010 will qualify.
• Income limits have also increased for single taxpayers and married couples filing jointly. Contact me for more information.

$6,500 Move-Up / Repeat Home Buyer Tax Credit Update

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five of the consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10% of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit applies to sales occurring before April 30th, 2010. However, in cases where a binding sales contract is signed by April 30th,2010, a home purchase completed by June 30th, 2010 will qualify.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Time will pass faster than you know it. If you have any further question regarding the changes to the tax credit, please feel free to call.

If you are thinking of buying or ‘Moving-up” and wonder what your buying power may be, please contact me today at BHusen@Sunsetmortgageco.com

Thanks for visiting.

Bryan

203(k) Rehab loans are great for this buyers market

2009-08-15T14:00:00.000-07:00

I wanted to give this loan a mention because I happen to have three different buyers looking at homes with this program in mind for their financing needs.

What exactly is a FHA 203(k) Rehab loan?

FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraisers.

This program is great if you are looking for a home, and the price range you are in is not yielding the properties you were wishing for. Perhaps the homes you are looking at need some work? New roof? Kitchen needs remodeling? Carpet needs replacing? Maybe you simply need some free standing appliances? Washer/Dryer? Stove/Refrigerator/Microwave? This loan will allow for those items also.

The buyers I am working with today have found a home that was in the process of being remodeled. The original owners ran out of money, and left the home with lots of unfinished, but necessary work to be done. Kitchen remodel not finished. Flooring removed but not replaced yet. Light fixtures missing and not replaced. A few other items as well.

The bank took back possession of this home and now has it listed. This work needs to be done to secure traditional financing. The bank isn’t going to pay to finish the job. Thus the 203(k) rehab loan is a perfect option for them to get this home at a great price, and have a professional finish the needed work.

How does it work?

First you need to go through traditional pre-qualifying steps for an FHA loan.
Once this is done, you find a home that “needs some work” similar to the above mentioned stories. The work that needs done to the home needs to be bid by a professional contractor for the job. He/she must be licensed, bonded, 2 letters of reference, etc.

A bid for the work to be completed, with a break down of parts, materials, and labor is submitted and subject to approval by the FHA underwriters. There is more steps involved, including appraising the homes value in the beginning, and determining the expected value after the improvements. (This is just brief description of the process.)

Once the loan funds, the work must be started within 30 days, and completed with 6 months. The 203(k) files I am currently working on will have a draw for 50% of the funds to do the work immediately, and the final 50% disbursement once the work is completed. Honestly this a great program for buying a fixer-upper or for the person wanting to refinance their home to do that much wanted remodeling.

I think many loan officers are hesitant to work on this type of program due to the extra paperwork and time involved, but don’t let that sway you from finding that “diamond in the rough” home in today’s buyers market! The 203(k) is not as challenging as many think. It just takes a little patience and the ability to see that finished product in your mind.

Call or email me today for more details and thanks for reading.

Bryan Husen

Email: Bhusen@Sunsetmortgageco.com
Direct 503-594-1131 or Toll Free 800-921-2636

New MDIA rules will protect borrowers in many ways

2009-07-30T13:00:00.000-07:00

I have heard some real horror stories from buyers over the years in this business. One of the most common stories is a home buyer or a person refinancing getting to the signing table, and the loan and fees are not what they expected them to be. Home owners have felt pushed into a corner. I have heard of adjustable rate loans being given instead of fixed rate loans. These are horrible and unethical practices by some very unscrupulous loan officers.

Fortunately I can say I have never put a buyer or homeowner in this position with my practices. I am in this business to earn your repeat business and hopefully referrals.

On July 30th the new Mortgage Disclosure Improvement Act (MDIA) goes into effect. There are some good points to protect the borrower. The new changes to the “Truth In Lending” (TIL) are best described in these 6 points below.

1. The 3/7/3 Rule requires a seven business day waiting period once the initial disclosure is provided before closing a home loan (business days are everyday except Sundays and Holidays). This means that before a borrower can close on a transaction the borrower must receive the initial Good Faith Estimate (GFE) and initial TIL statement disclosing the final Annual Percentage Rate (APR) seven days prior to closing.

2. If the final annual percentage rate APR is off by more than .125% from the initial GFE disclosure then the lender must re-disclose and wait yet another three business days before closing on the transaction.

3. The consumer has the right to cancel and not proceed with the transaction if they so choose.

4. Lenders are forbidden from collecting money for appraisals, loan applications, etc. prior to the delivery of the Truth In Lending (TIL). Lenders can only collect from the borrower the credit report fee at the time of prior to delivery of the final TIL. No other fees are permitted to be collected at the time of application. If the TIL is sent by mail, additional charges can occur after the 3rd business day after the borrower receives the TIL in the mail.

5. The following language must be clearly written on the initial and final TIL: "You are not required to complete this agreement merely because you have received these disclosures or signed a loan application."

6. Buyers, sellers, and real estate professionals should not schedule a closing until the borrower has completed the seven day waiting period as required in the initial TIL.

In my opinion, this is a good set of rules to protect the borrower, but it is a bit over board in some respects. The details of the loans these days can change as far as fees and costs are concerned. Mainly because many fees are directly associated to the loan amount. Where I see some frustration happening is in regards to the loan interest rate lock. This creates a timeline we need to get our file closed. If a sale price changes, or an appraisal comes in at a different value with a limited time left to react, we could have some challenges.

I do however think we will learn to accommodate and prepare for such obstacles. At least the nightmare stories I have heard of at the signing tables will become a thing of the past.

Feel free to contact me if you have any questions regarding this or other financing related topics.

Thanks. email: Bhusen@Sunsetmortgageco.com

HARP Loan-to-Value Ceiling Raised To 125%

2009-07-02T13:13:00.000-07:00

Yesterday was a great day for homeowner with higher than current interest rates, that want to refinance, but the value of their home has suffered from current market conditions.

The Federal Housing Finance Agency (FHFA) has authorized Fannie Mae and Freddie Mac to expand the Home Affordable Refinance Program (HARP) to homeowners who are current on their mortgage payments from the present loan-to-value ratio (LTV) ceiling of 105% to 125%.

"This decision is part of our ongoing efforts to maximize the effectiveness of the Making Home Affordable program and adapt to an ever-changing housing market," says Treasury Secretary Tim Geithner.

With these expanded refinance opportunities, qualified borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac will be allowed to refinance those loans according to the terms of HARP established earlier this year.

“The higher LTV refinancings will allow more homeowners to strengthen their finances by taking advantage of lower mortgage rates,” says FHFA Director James Lockhart. “The enterprises are also incenting these borrowers to combine a lower mortgage rate with a faster amortization schedule, which will enable them to get ‘above water’ on their mortgages more quickly.”

The program provides borrowers with an incentive to reduce the term of their loan from 30 years to a shorter-term, fixed-rate mortgage and therefore pay down the principal more quickly and reduce lifetime interest payments.

Some guidline conditions do apply, so please give me a call to see if this program is a good option for you.

Email me : Bhusen@sunsetmortgageco.com

SOURCE: FHFA

Homepath and USDA Rural Loans

2009-06-02T14:46:00.000-07:00

This past week on my my real estate video Blog, I discussed the advantges of the HomePath and USDA Rural Housing programs. I want to add this video to explain in more detail to home buyers how these programs work.

Be sure to check out property availability for the HomePath Loan by visiting http://reosearch.fanniemae.com/reosearch/

Also, be sure to check out the income and property eligibility for the USDA Rural Housing loan by visiting http://tinyurl.com/6s73ko

Feel free to contact me anytime with any questions at bhusen@sunsetmortgageco.com

Thanks for visiting.

-Bryan

USDA Rural Housing Income Limits have gone up!

2009-05-13T15:12:00.000-07:00

I have been utilizing the USDA Rural Housing program for some time now. It’s been a great resource for families with little or no down payment, and wants to live on the outskirts of town.

Another great feature of this loan is that it provides financing up to 102% of the homes value yet there is no Mortgage Insurance. It is just a great loan!

Just when I thought this loan couldn’t get any better, the guidelines changed and made it even more appealing to my borrowers. Two of the main guidelines that will make or break this program are The Location of the property and the Income Limits for the family.

Well good news! Last year the income limits were based PER PERSON living in household. The limits would increase for each individual. Example being that a working family of 3, in Clackamas County, would have only qualified for a USDA Loan if they made LESS than $48,900/year. This made it very hard for a family with 2 incomes to qualify if they had well paying jobs.

Well the new income limits have gone up for the better. Instead of having a PER PERSON income limitation, there is a tier now. Tier 1-4 persons in the household now may earn up to $80,500. If your family falls within the 5-8 person tier, you may now qualify if you make up to $106,250.

This has been a great change to the program. I have had several married buyers who's 2 person, combined income put them out of reach of this program. Today, with a limit of $80,500, they now can look for their first home in the outskirts of town.

Lastly, I have recently been informed that in July 09' the areas of Wilsonville and McMinnville will become eligible for this great program. Please be sure to check in regularly as I will let you know when this change has happened.

Contact Me today for more information on this program.

Thanks for reading.

Bryan

Tax Credit for Downpayment? Maybe in the future

2009-05-13T15:00:00.000-07:00

We have recently received several inquiries as to how a First Time Homebuyer might utilize the $8,000 Tax Credit at the time of loan closing on an FHA purchase transaction. At this time, HUD/FHA has not announced any instruction/direction regarding this issue. The Director of HUD did make the following comment in a speech yesterday (May 12th) at the National Association of Realtors (NAR) Real Estate Summit:

“… we are taking action to further help the housing market recover. I'm excited to announce here at NAR that FHA's policy on the "monetization" of the first-time homebuyer tax credit will soon be published.”

“We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly.”

A full copy of his speech can be found at: http://www.hud.gov/news/speeches/2009-05-12.cfm

Several outside sources have taken this comment and promoted it as a “done deal”. We at Sunset have contacted HUD and they have confirmed that they are aware of the comment, but they have not yet received any direction from Washington on how this will all play out and as such they cannot offer any direction at this time.

This possiblity could be a great way to get first time home buyers limited on their downpayment into a home. Patience is necessary to see how this will work out.

I will keep my eyes and ears open for any news and updates, and keep you apprised of the situation.

Contact Me for any further information and be sure to check back often.

Thanks for reading.

Bryan

USDA Rural Housing loan is a great 100% option

2009-03-11T11:12:00.000-07:00

I am a big fan of the USDA Guaranteed Rural Housing Loan.

If you are not familiar with this loan, it is a program that requires neither a down payment nor mortgage insurance. These loans are backed by the USDA (US Department of Agriculture). This loan is currently one of only two government backed, 100% financed loans, with the other being VA.

There are two requirements in qualifying for the USDA Loan. One is income and the other is the location of the home.

Income is based on the number of household members. The most recent USDA Rural Housing Loan I closed was for a family of four in Sandy OR. The income limitation for this family of 4 in Sandy was $78,050 a year. This first time homebuyer was below that limitation.

The second limitation to qualify for this loan is the location of the home. What is the definition of Rural? Rural by the USDA’s definition is areas that have a community with fewer than 25,000 people. This would include Sandy, Newburg, Estacada and many parts of Clark County in Washington.

Finding out if you may qualify for this program is easy. There is a website which is useful for both determining your income limitations, and if the home you are interested falls into the geographic limits. This website is located at http://tinyurl.com/5mbwg8.

Remember that credit and income limitations apply to qualify for this loan. I would be more than willing to discuss this with you in further detail. Please contact me at Bhusen@sunsetmortgageco.com or call my office direct at 503-594-1131.

My 15 Minutes of Fame...

2009-03-10T13:31:00.001-07:00

Marketing is key in any industry if you want your business to grow and
have continued success. I am a believer in Web 2.0 concepts and social marketing, as well as being a sponge when ever something new online comes along.

This week I was fortunate enough to have success in the old time marketing tactics: Magazine Advertising!

Okay, I didn’t actually advertise in this magazine, but I am in it, and I am on almost every kitchen counter in Portland!

The recent PCC non-Credit course catalog just came out and to my surprise, I am on pg.18 holding my guitar. I took the Beginner Guitar class about a year ago. Great class and I’d recommend instructor Steve Adams to anyone wanting to learn how to play.

I remember the PCC photographers took a few pictures for future advertising. I just didn’t know when or how they might use them.

Well its been a year and my 15 minutes of fame is here! Thought I’d bring this to your attention because I think its pretty cool.

There is one lesson I learned with my new found fame… I need to wear a Sunset Mortgage T-shirt more often in case this happens again.

Send all your copies to my office if you want an autograph (just kidding).

Congress Enacts Bigger and Better Home Buyer Tax Credit

2009-03-09T15:57:00.000-07:00

I have received many calls regarding the new tax credit of 2009.

In doing my own research and found a great website devoted to just this topic. The site is located at Federalhousingtaxcredit.com.

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid.

The website has 20 great frequently asked questions and answers listed. I am going to recreate the top 10 here.

I hope you find this as useful as I have in understanding the new Tax Credit for 2009.

1. Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

2. What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

4. Are there any income limits for claiming the tax credit?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

5. What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.

7. Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

9. How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

10. What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

If you have any further questions about your possible tax credit, or if have any questions regarding mortgages, please dont hesitate to contact me today at bhusen@sunsetmortgageco.com.

"Part of Your Profits, Not Your Costs"

2009-03-02T11:24:00.000-08:00

We believe you should choose your Mortgage Banking Company like you would your friends. Many people have depended on us for their home mortgages, but our greatest source of pride is the customers who now call us friends.

Sunset Mortgage, founded in 1992, prides itself on building lasting relationships with clients and with the community. We enjoy working together with our clients and are committed to honest, up front relations. Our goal is to make the home buying process as pleasant and stress-free as possible.

We believe in the talent of our staff and the strength of teamwork. The hallmark of our business is finding creative financial solutions for clients seeking home loans, helping their dreams to become reality.

Sunset Mortgage is a privately owned Oregon Mortgage Banking Corporation with multiple offices conveniently located throughout the Pacific Northwest. Sunset Mortgage is a Direct Agency Lender. We work directly with Fannie Mae, Freddie Mac and Ginnie Mae (HUD) providing a full range of mortgage products/services. Since we deal direct with the various agencies we cut out the “middle man” thus providing expeditious service as well as the lowest rates/fees.

Contact Information for Sunset Mortgage Company

2009-01-02T11:42:00.000-08:00

Bryan Husen - Mortgage Consultant
Sunset Mortgage
10365 SE Sunnyside Road, Suite 340
Clackamas, OR 97015
Email: BHusen@SunsetMortgageCo.com

Direct: 503-594-1131
Cell: 503-849-7782
Fax: 503-594-1122
Toll Free: 1-800-921-2636

WA License # 510-LO-36567
OR License #ML-137

Jodi White - Mortgage Consultant
Sunset Mortgage
10365 SE Sunnyside Road, Suite 340
Clackamas, OR 97015
OR License #ML-137

Direct: 503-594-1134
Cell: 971-235-1917
Fax: 503-594-1122

Email: JWhite@SunsetMortgageCo.com

Recommended Realtors

2009-01-01T12:00:00.000-08:00

I have had the privilege working with several Realtors over the years. Below is a few of these Realtors in case you are in need of a good buying or selling agent, or feel free to use them as a reference to my services:

Richard Canifax
Licensed in Oregon and Washington

Direct/Cell: 503-347-8144
Office: 503-239-7400
Fax: 1+888-270-0716
email: Canifax@gmail.com

web: agent4oregon.com

EXIT Realty, Your Next Move in Oregon
2737 SE 21st Ave, Portland, OR 97202

Gary Morris

Licensed in Oregon

Direct 503-268-2508
Office 503-239-7400

email: gary.hdrider@gmail.com
web: www.garymorrispdxhomes.com

EXIT Realty, Your Next Move In Oregon
2737 SE 21st Ave, Portland OR 97202

Cherie Ward
Licensed in Oregon

Direct: 503-752-7770
email: cherieward@oregonrealty.com
web: www.oregonrealty.com/cherieward

Oregon Realty
12901 SE 97th Ave, Ste. 220 Clackamas, OR.