What is HARP 2.0?    

Everyone is talking about HARP 2.0 and so let’s define it. First of all, since it is 2.0 that means that the program was already around and we are talking about changes so let’s show you what it looks like now and then discuss changes that are sort of in effect now and really in effect after March 19th 2012 when the new changes will be coded into the automated underwriting systems so we can actually approve these loans.

The first thing that you need to know is that this is only for people who have a mortgage already owned by Freddie Mac or Fannie Mae. People tell me all the time that their mortgage is owned by a big bank but if you have a 30 year fixed rate mortgage and it is not interest only, it is probably owned by Freddie or Fannie and I will show you how to find out a little later. Currently you can refinance your home even up to 125% Loan To Value (LTV) and there are different rules and pricing at different levels (95%, 105% etc.). Currently it is a little more difficult if you have a 2nd mortgage or MI. This is what HARP 2.0 is looking to fix.

The first part is easy, they have removed the LTV issue altogether. There will definitely be approvals where we do not need an appraisal but there will also be instances where appraisals will be required but in all instances, any LTV can be approved. Next, it is getting easier to keep a 2nd mortgage or HELOC in place while refinancing the first mortgage and we will be able to accommodate many loans with MI. There is another enhancement that limits the fees on these loans and the qualifying ratios will most likely be relaxed. My suggestion is to look online and see if your loan fits and if it does, gest started with your favorite lender. Start by going to  www.FreddieMac.com/mymortgage/ and/or www.FannieMae.com/loanlookup/  to see. Loan applications can be taken in mid February 2012 but may not be able to be fully approved until March 19th if you need the new rules. This program makes sense because they already own these loans and so giving people lower payments makes them more stable so everyone wins.

What if I don’t have a Freddie or Fannie Loan?

On the flip side, you can see why if Fannie or Freddie does not own your loan currently they may not be too excited to take on a new loan of $250,000 on a home that is worth only $200,000 but there may be hope for these people as well. There is talk of using FHA to help these folks even if they do not have a current FHA loan. I think this will probably come true but I do not know how long it will take or what the rules will look like so stay tuned.

Anything special if I have an FHA or VA or USDA loan?

One more note is that if you currently have an FHA, USDA or VA loan, you can get a streamline loan without an appraisal and with relaxed qualifying guidelines. We do not use debt ratios at all and we weigh heavily on whether the house payment has been made on time in the last 12 months. This program has been around for the entire 22 years I have been in business so the model is strong.

Please send me your real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.

Hans Bruhner is a branch manager for First Priority Financial. Hans is licensed by the CA DRE # 01085398 and NMLS #243484 and First priority is licensed by the CA DRE # 00652852 and NMLS #3257. If you have a question, please contact him at (707) 347-9250 or hans@hansblog.com

I absolutely loved it and my friend and I took turns reading the catchy jingles with the punch line always being…. Burma Shave! This was the brain child of Allen Odell in 1926 and was an immediate hit well into the 60′s. Here is how it worked:

HIS FACE WAS SMOOTH

   AND COOL AS ICE

   AND OH LOUISE!

   HE SMELLED

   SO NICE

   BURMA SHAVE

Watch below as my friends and I demonstrate how these work.

The whole idea is to have a little fun and to get people to stop in the cute little town of Guerneville and do a little shopping or get a sandwich and an ice cream….. basically not to just cruise right through.

We can thank Wendell Joost for coming up with this idea and executing it so well. I am not going to spoil anymore of the jingles or the story. You should go and live it for yourself. I will tell you this, you can go and read the catchy jingles on the roadway and then the last one lets you know that you can buy the jingle book in town at different merchants.

have fun this summer and take a drive! I know gas is expensive but it is cheaper than flying. In fact, you will have plenty of time to read the signs if you bike into town. You can get more information at www.burmashavesign.com

What did he say? What is Financial Spring cleaning?

As a mortgage banker and broker, we have a shredding service that comes by and destrys documents and copies of our clients sensitive information when we are done with it. This is a service we pay for and they come periodically in a super cool truck and we can actually see the documents shredded and carted off. I am happy to report that Integrity Shred  in Santa Rosa is our shredding vendor and they recycle the paper and their name truly represents who they are.

Several friends of mine know that I have this service and over the years have asked to drop off their own sensitive documents that they have saved and wish to get rid of in a safe way. This got me thinking that it might be a really good idea to offer this service to the community that we serve so that they too can purge their garage or shed or home office of unwanted and sensitive documents.

Last year we had a woman stop by with 17 years worth of patient records from her husband’s medical practice. he had passed away years earlier and she felt she had hung onto them long enough. Please be considerate of others and bring no more than 10 boxes to shred.  Any more than that will simply take too long and hold up the process for others.

Talk to your friends and family and tax advisors and lawyers about how long to keep certain documents. Some things you may be advised to hang onto for 7 years and other items could possibly be tossed after 3 years.

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• Get real advice from someone you will see in your community.
• Get the same rates and fees or less for that good advice.
• Have a resource that you can drop in on and call well after the transaction has closed.

I have been helping people for 2 decades and most of that has been right here in Sonoma County. I am proud of the work that I do and proud to have helped so many of my neighbors get into homes or save money on their mortgage payments or help work with financial planners to make a comprehensive plan for people. Most of my clients are referred to me, give me a call and find out why.

To watch the trailer for these scenes, click here.
To watch the Hunny Bunny & Pumpkin scene, click here.
To watch the Royale with cheese scene, click here.
To see the Butch Scenes, click here.

I used to joke that if you needed to get a home loan, I had an App for that! Get it? I have a loan APPlication for that……. Yeah, nobody else thought it was that funny either.

Now I actually do have my own App at the apple store and I have a Blackberry App as well and it will soon be made into an Android app so I have all the bases covered.

It is pretty simple really. It is free and I can share it with anyone I like and they can use the mortgage calculator or the prequal tool or simply check my rates if I decide to post them (yes, it is interactive and the rates can be changed as often as I like). Right now I have it set to simply contact me for rates since it is a volatile market.

I am excited at the prospect of sharing this with Realtors who can do a quick basic prequal and email it to a client right from the app or simply calculate a payment right there. Of course the goal here is to have Realtors running around with ME in their pocket all the time and hopefully that drives some business my way.

My clients can also use the tool to calculate payments and that will be helpful as they are out looking at homes or considering refinancing. The app can be shared right from the app itself by hitting the “tell a friend” button.

Have you heard of QR codes? They are kind of like bar codes and when you scan them, they can give you messages in text or send you directly to a web site. They are pretty cool and the QR code to the right when scanned with your smart phone will determine what type of phone you have and send you to the right download spot.

You can also download at Working business card or simply search in your apps for LoanApps and download

You need a code to enable the app and my code is 7075299951 Try it if you like.

Loan Professionals: I did not create this app myself, I licensed it from a great company out of Canada and they have a US and a Canadian version and you can get it by clicking the banner below.

HAVE FUN OUT THERE!

Hans Bruhner

www.AskTheLoanMan.com

To watch the trailer for these scenes, click here.

To watch the Hunny Bunny & Pumpkin scene, click here.

To watch the Royale with cheese scene, click here.

To See the trailer for these scenes, click here.

To See the Hunny Bunny and Pumpkin scene, click here

To see the Butch Scenes, click here.

Watch as Pumpkin and Hunny Bunny discuss options in this market.

to see the trailer for these scenes, click here

To see the Royale with Cheese scene, click here.

To see the Butch scenes, click here.