More info on Stimulus Package

More Exciting Information on Obama's Stimulus Package

Tax Credit Versus Tax Deduction
It’s important to remember that the $8,000 tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing. Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!
Phaseout Examples
According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.To break down what this phaseout means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:Example 1: 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 homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Example 2: Assume that an individual homebuyer 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.Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.

Remember to visit my site: http://www.southernoaksmortgage.com/, http://www.somloans.com/, and http://www.loanmanjeff.com/ for a copy of my newly published book

Obama's Stimulus Plan 2009

Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.
According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.
While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.
The Economic Stimulus Plan is huge, and impacts a number of industries. I’ve highlighted some of the major provisions that may impact you now and in the future.
As always, if you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.

And Remember to visit my site at: http://www.somloans.com/, http://www.southernoaksmortgage.com/, or http://www.loanmanjeff.com/

Why are loans taking longer than 30 days?

Good question! The answer to this question is the result of lower mortgage interest rates.
A few months ago, many lenders were laying off their underwriters, processors and customer service positions due to the slow refinance market. Then the Fed decided to purchase $600 billion worth of mortgage backed securities, which put confidence into the mortgage bond market. Rates dropped considerably and everyone was racing to their broker or bank to refinance. They just weren’t prepared for this influx of new loan applications, so what happened was a slow down in underwriting files. The lenders now had to re-hire new employees and train them in order to get back up to speed. This in turn is why it was taking so long to process loans. As we speak, they are still ramping up for this mini-refinance boom we are experiencing. Good news is that I have a lender who can close a loan from start to finish in 12 business days. Call Jeff Eisenberg - President, Southern Oaks Mortgage, Inc. in Valencia at 661.964.2600

Remember to visit my website at: http://www.somloans.com/ or http://www.southernoaksmortgage.com/ and stop by my website http://www.loanmanjeff.com/ to get a copy of my new book.

Interest rates climbed a bit today!

Today, the mortgage bond market was off by as much as 51 basis points. This in turn, caused mortgage rates to go up. Since investors aren't paying much for purchasing closed loans these days, the spread between rates is much lower than it has been over the last 5-7 years. So a large decrease in movement like we saw today could change interest rates roughly .375% in rate. So today probably wasn't the best day to lock in a rate.

On another note, did you know that when applying for an FHA loan, both spouses have to have their credit run even if one of them isn't going to be on the loan? The purpose of this is to add the non-applying spouse's monthly debts against the actual applying spouse's debts since they are married and will be living there together. So if your spouse has lots of debt and you are thinking that by applying as a married man/woman as your sole and separate property, you could avoid the other persons debt, that will not be the case on an FHA loan.

And remember to visit my website: http://www.somloans.com/, http://www.southernoaksmortgage.com/ and my new site for my book: http://www.loanmanjeff.com/

Happy New Year to All!

This year should be a great year to buy and to refinance! Rates hopefully will stay at all time lows and if you are in the market to purchase, home prices should stay relatively low. I do, however believe that sometime in July 2009, we will start to see a turnaround in the real estate market. I feel that housing prices will start to stabalize and possibly even appreciate 1-3% and interest rates will stay low and consistent. There you have it, my prediction!

Remember to visit my website: http://www.somloans.com/ or http://www.southernoaksmortgage.com/. Also, my new website is up for my new book: http://www.loanmanjeff.com/

Jeff's new book is here! Get one today!

My book is now published and available. If you'd like a copy, email loanmanjeff@gmail.com. The cost is $14.95 plus tax, but shipping is free. This book is loaded with tips and tricks that will help you get the best loan possible.

Remember to visit my site: http://www.southernoaksmortgage.com/ or http://www.somloans.com/

Rates are at all-time lows!

The Fed announced that they will lower the Fed Funds rate down to a target range from 0 to .25%. This sparked a rally in the stock market and in the mortgage bond market. Mortgage interest rates went down to their lowest levels in years. Rates are hovering around the high 4's to low 5's. Is it possible to see rates drop even further? Only time will tell. Now is the time to refinance or purchase, so don't let this amazing opportunity slip by. Call 661.964.2600

Remember to visit our website at: www.southernoaksmortgage.com or www.somloans.com

Hope for Homeowner Program is a Big Flop!

The Federal Governments stimulus package that was supposed to help homeowners who are facing foreclosure and who are upside down on their homes turned out to be a big flop. The Hope for Homeowner program which is all over the governments website: http://www.fha.gov/ is having it issues. The main issue is that this program is voluntary. Lenders do not have to participate and they aren't. I've heard that one lender, Flagstar Bank is one of the few that is utilizing this program. Only problem is that they are only refinancing loans that they are servicing, so if your mortgage isn't with Flagstar, then you are out of luck. I will do my best to keep you informed of the latest developments with this program as it unveils.

Remember to visit my site: http://www.southernoaksmortgage.com/ or www.somloans.com

Fed to buy Mortgage Backed Securities!

Great news, the Fed decided to purchase $600 Billion worth of mortgage backed securities today which sparked a fantastic boost to mortgage bonds. Rates went down approximately .5% today, reaching roughly 5.25% on a conforming 30 year fixed. (APR 5.373) We could be in for a short term refinance boom in the coming days. Enjoy it while it lasts.

And please visit my site: http://www.southernoaksmortgage.com/ or http://www.somloans.com/

New 2009 Limits for Home Loan with Fannie/Freddie

The Federal Housing Finance Agency (FHFA) announced today that the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009 will remain at $417,000 for most areas in the US. As in previous years, the 2009 limits are higher in Alaska, Hawaii, Guam, the US Virgin Islands, and other high price areas such as parts of California. In those areas, loan limits vary from $625,500 to $721,050 for one-unit properties.

Looks like Los Angeles & Orange County will be $625,500. Ventura County will be at $598,000. If you are interested in knowing your county, please call. And remember to visit our website: http://www.southernoaksmortgage.com/ or http://www.somloans.com/

A New President!

Wow, what a crazy election this was. As Obama says, "We can change". Well, once he is sworn in and begins his term, we will see if he can change this country for the better. Interesting news on the mortgage side, rates improved a bit today. This is a good sign because that means that the investors are confident and are investing in mortgage backed securities. Let's hope this continues. Visit my site: www.somloans.com

This is Not Your Father's FHA Seminar

Tuesday, 28th of October, Southern Oaks Mortgage will be hosting a seminar for Real Estate Agents called, "The New FHA, This is Not Your Father's FHA". It will be at 10 - 11:30 am at the Marriott Courtyard near the 126 and Newhall Ranch Rd. For more information, call 661.964.2600 or email sheila@somloans.com

and remember to visit our site at http://www.somloans.com/

My Book is almost Complete!

If you didn't know already, I'm in the process of writing a book on home loans. It will be tips and tricks that will make or break your home loan. It will be about 96 pages long and will sell for approx. $12.95. Trust me, it will be well worth it! Visit my website at:

http://www.somloans.com/

Richard Alascano Memorial

My wonderful and loving uncle passed on Friday 17, 2008. He was loved by many and as my cousin says, "he was a Good Man". Please say a pray for my Aunt Fran. He was 69 years old and if you are so inclined to, you can donate in his memory to www.pacificwildlife.org and click on the DONATE button on the left, then underneath that, the memorial button. He loved animals and would always rescue them and nurse them back to health.


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Market Turmoil!

What a week it has been. The stock market took one of the largest hits in years, the mortgage bond market has deteriorated and the overall economy is looking pitiful. Friday the 10th of October, the Fannie Mae 30 yr. bond took a dramatic 109 basis point drop, which sent mortgage interest rates higher. Now that the bond has fallen far below the 200 day moving average, we are in store for some short term increases in interest rates. Ouch!

visit my site at: www.somloans.com

The Changes Just Keep Coming!

Well, guess what? Another road block. FHA just came out with a new guideline regarding the rent of your current residence. The Buy & Bail policy. If you currently own your home and want to rent it out to buy another one, in the past, you'd be able to use 90% of the rent to offset the payment so you could qualify for more. The new rule basically says, you cannot do this unless you have 75% equity in your current home, proven by an appraisal within the last 6 months or you are relocating jobs or residences out of the area. So if you are in a situation where you don't have any of these conditions met, you will have to qualify for the new home provided you can qualify with both debts against you.

visit my site at www.somloans.com

The Time Has Finally Come!

Southern Oaks Mortgage, Inc. is officially approved to originate FHA loans.

visit my site at www.somloans.com

Rates!!!

Wow! The fun never stops. Rates again got better today. Now is the best time to consider a refinance or purchase! Call me for a Free quote!

visit my site at www.somloans.com

New Conforming Loan Limits for 2009!

Finally, someone has heard our prayers. The new conforming loan limit will be $625,500 in high cost areas like, Los Angeles, Orange & Ventura Counties. This is an increases from the old conforming limit of $417,000.

visit my site at www.somloans.com

FHA Approval is on the Way!!!

Looks like Southern Oaks Mortgage, Inc. will be FHA approved by the end of this week. We will offer FHA and Reverse Mortgages. Very exciting times.

visit my site at www.somloans.com