Another “green” aspect is that the sludge generated by human waste, and with it the chemicals we put into our bodies, would be contained in the tank as the liquids actually “leach” into the field for dispersion. However, in Sonoma County, Greatest State of California, we have some archaic thinking regarding leading edge systems. The County folks rely either on large expansion fields, at least 100′ from an existing well head (this could get problematic if you’re on a smallish lot and your well is close by as is your neighbors!), and/or an “at-grade” septic system called a “Mound”. This system is sand based and actually will evaporate rather than “leach” down. Waste is “metered” into the system to allow proper evaporation. The county would have an easement for the life of the system to make sure your not “metering” too much. Yes, they install what else, a Meter to determine this. You also may have to have future expansion of the system. You may also install a “grey” water line which extends the usage of your system substantially. The “grey” water system is very simple and takes your sink, dishwasher, washing machine, shower water into a box with gravel where it leaches also. Any “waste” lines get routed to the septic system tank.
  I think those who say “run” from septic systems come from ignorance of the systems and how they function. In our County some areas “perc” like crazy and the systems last 30-50 years before installation of new lines. Other areas we KNOW you’ll be hard pressed to get a “perc” which will allow a septic system. Your only recourse is to wait for sewer. Our County also allows emergency repairs for those who have no alternative for sewer hookup or big expansion fields. But every County is different. Some of the systems spoken here would NOT work in my County. A qualified “Country property specialist” will have on his approved vendor list a septic inspector who knows his/her stuff. I’ve used a retired “Sanitarian” who worked for the County for my inspections. He was fun, extremely knowledgeable about perc areas, expansion, type of systems, etc and gave a very good report. Also, best practices as a Realtor, requires you to ask your client at the time of sale if they have any desire to expand their home. If they do you’ll need to direct them to the County to see if the existing system needs updating and if it CAN be done! 
  But if you wish to be “Green” and not load our sewer systems with more waste and the bi-product of our waster, toxic sludge, stay “Green” and keep the septic!

We regularly see homes coming on at very low list “hyped” pricing to generate multiple offers. How many? 10-15, one had in excess of 25 offers! Problem is-we have many buyers who qualify at the original “list” price and then are told, after the Realtor/Licensee has extolled what a super “Buyer’s” market we have, they now need to overbid for $50,000!! We see these go over list price by $100,000! But that’s were they SHOULD HAVE BEEN when listed. The assett managers ain’t dummies!! They stall you folks to get  buyers to raise the price. Sound familiar? Sounds like our tactics for our Sellers a few years back. Your highest and best offer please!
 

   FHA loans  6.0% at 1 pt  . . . .  up to 97% of the value of the home

   Appraisal fees refunded in escrow, for Mike Kelly’s Keller Williams Real Estate referrals 

 Pete Phillippe your lending advisor, at 707-535-1263 and cell at 707-481-2737

WASHINGTON, DC — Fannie Mae (FNM/NYSE) today announced a new, national policy on down payment requirements for conventional, conforming mortgages the company will purchase or guarantee. Starting June 1, 2008, Fannie Mae will accept up to 97 percent loan-to-value ratios for conventional, conforming mortgages processed through its Desktop Underwriter® (DU®) automated underwriting system, and 95 percent loan-to-value ratios for loans underwritten outside of DU, in all geographic locations in the United States. The new national down payment policy will supersede the policy the company adopted in December 2007 that required higher down payments in markets where home prices are declining.

 
“As another part of our ‘Keys to RecoveryTM’ initiative, we are today announcing that we will be equalizing the down payment requirements for borrowers in all parts of the country, regardless of local market conditions,” Marianne Sullivan, Senior Vice President, Single-Family Credit Policy and Risk Management, said. “This new down payment policy reinforces our goal to support successful home-owning, not just home-buying, as we seek to bring liquidity to all communities and help the housing market recover.”

 
The new national down payment requirements of 3 or 5 percent will apply to loans for purchase of single-family, primary residences. Down payment requirements will vary for other occupancy, property and transaction types. The company will implement systems and operational changes over the summer to accommodate the new national policy.

 
“We are able to adopt this new, national down payment requirement, even in markets where home prices are declining, because our new automated underwriting risk assessment model DU Version 7.0 will limit risk layering and assess each loan more precisely,” Sullivan added. “At the same time, we believe that equity matters, especially in this market. Down payments are a critical success factor in homeownership — and responsible lending is good business.”

 
Since the housing correction began, Fannie Mae has expanded its mortgage guaranty business to serve the market’s urgent need for stability, liquidity and affordability. The company also undertook steps to help protect borrowers, manage the increased credit risk in the market, and fortify the company’s capital position. Among these steps, the company has continued to assess and establish new pricing, eligibility and underwriting criteria for its business that more accurately reflect the current risks in the housing market and guard against the potential for foreclosure. These changes have been incorporated into DU and have included adjustments to credit risk assessment, loan-to-value ratios and down payment requirements, among other factors.

 
Among the changes in response to market conditions, in December 2007 Fannie Mae adopted a “Maximum Financing in Declining Markets Policy” that restricted the loan-to-value ratios on properties in markets where home prices are declining, essentially requiring higher down payments in these markets. The new single national down payment policy announced today will supersede that policy.

 
Fannie Mae Senior Vice President Jeff Hayward stressed the company’s commitment to special affordable lending programs to support homeownership for families of modest means. “We are stepping up to provide more liquidity and affordability to some of the most distressed communities while also seeking at least a 3 percent down payment investment through our Desktop Underwriter system from borrowers to help ensure their success.”

 
Fannie Mae will continue to provide support for homebuyers that need down payment assistance, and will continue to allow loans with Community Seconds® up to a maximum 105 percent combined loan-to-value ratio. Community Seconds allow a borrower to obtain a second-lien mortgage to help cover down payment and closing costs, with funding typically provided by a state or local housing agency; an employer; or a nonprofit organization. Fannie Mae also offers MyCommunityMortgage® and Flex mortgage products, which permit down payment assistance programs in the form of gifts and grants.

 
“We recognize that down payment assistance programs remain a viable tool for borrowers who can afford a mortgage long term, but might need a little help getting started,” Sullivan said.

 
As part of its “Keys to Recovery” initiative, Fannie Mae is expanding its partnership with the National Council of State Housing Agencies. The company will provide up to $10 billion in financing to help Housing Finance Authorities (HFA) serve first-time homebuyers of modest means. In some cases, Fannie Mae will purchase HFA mortgages that have greater than 97 percent loan-to-value ratios.

 
The first “Keys to Recovery” initiative that Fannie Mae announced on May 6, 2008 also includes: streamlined refinancing for Fannie Mae borrowers whose mortgage balances exceed the value of their homes; improved pricing for jumbo-conforming mortgages to help borrowers in high-cost areas; and a neighborhood stabilization initiative with the Center for Community Self-Help for targeted areas with high home foreclosures.

In 2007, seniors took out 107,000 reverse mortgages compared to just 7,000 in 2000, according to AARP. Applicants must be 62 or older.

A reverse mortgage may be a good choice for some of your clients or family members. Let them know that:

A reverse mortgage converts home equity into cash that can be distributed as a lump sum, line of credit, life payments or any combination of payments.
 
If they continue to live in their home, they will never have to repay their reverse mortgage. In fact, they will retain title to their home and cannot be forced to leave as long as they pay their property taxes and insurance and maintain their home in reasonable condition.
 
Their loan amount will depend on the applicant’s age, available home equity, house condition and current interest rates.
 
As part of the application process, they must speak with an independent HUD-approved counselor. Although their mortgage proceeds are tax-free, they should consult a financial advisor before proceeding to ensure that a reverse mortgage will not affect medical or other public assistance benefits.
* Ensure your applicants understand that they should consult their financial advisor on the consolidation of short-term debt into long-term debt.
 
 
    Click here to visit my website and apply online:
 www.pphillippe.imbhomelending.com

The legislation combines a number of bipartisan bills including measures to modernize the FHA and reform the GSEs, which will provide crucial liquidity to our mortgage markets now, and also strengthen regulation and oversight for the future. In addition, the housing package will help families facing foreclosure keep their homes, help other families avoid foreclosures in the future, and help the recovery of communities harmed by empty homes caught in the foreclosure process. For more detailed information about H.R. 5830, the FHA Housing and Homeowner Retention Act, please visit: http://financialservices.house.gov/FHA.html Summary of H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act: Amendment 1:FHA Housing Stabilization and Homeownership Retention Act (H.R. 5830) Provides mortgage refinancing assistance to keep families from losing their homes, protect neighboring home values, and help stabilize the housing market. Expands the FHA program so many borrowers in danger of losing their home can refinance into lower-cost government -insured mortgages they can afford to repay. This legislation will help troubled borrowers avoid foreclosure while minimizing taxpayer exposure. Only primary residences are eligible: NO speculators, investment properties, second or third homes will be refinanced. Protects taxpayers by requiring lenders and homeowners to take responsibility. This is not a bailout; in order to participate, lenders and mortgage investors must take significant losses by reducing the loan principal. In exchange for an FHA guarantee on the mortgage, borrowers must share any profit from the resale of a refinanced home with the government. Contains important protections for taxpayers’ dollars, including higher refinancing fees that establish a new FHA reserve to cover possible losses from defaults on these government-backed mortgages. Provides $230 million for financial counseling to help families stay in their homes. FHA Modernization (H.R. 1852) Expands affordable mortgage loan opportunities for families (many of whom would otherwise turn to subprime lenders) and for seniors through expanded access to reverse mortgages through Federal Housing Administration reform This measure passed the House in September. (Expanding American Homeownership Act of 2007, H.R.1852) GSE Reform (H.R. 1427) Strengthens regulation of Fannie Mae and Freddie Mac, and the Federal Home Loan Bank system. Raises the GSE loan limits for single family homes in high cost areas, so that these entities can purchase more loans in higher cost areas (thereby lowering interest rates for new homes and refinancings in those areas). Expands liquidity in the mortgage markets by buying loans already made, freeing up money for new mortgages and refinances. Creates a new Fund to boost the nation’s stock of affordable rental housing. Encouraging Mortgage Modifications/Castle Bill (H.R. 5579) Mortgage servicers are concerned about the threat of investor lawsuits if they help families in danger of losing their homes with loan modifications that reduce monthly mortgage payments through lower interest rates, reduced principal amounts or other changes in loan terms. To speed loan modifications and keep more families in their homes, this package includes HR 5579 to provide mortgage servicers with clarity and certainty for their actions, and protection from such lawsuits for specified loan modifications. Preserving the American Dream for Our Nation’s Veterans Increases VA Home Loan limit, as was done in the stimulus package, for high-cost housing areas so that veterans have more homeownership opportunities. Amendment 2– Tax Provisions to Expand Refinancing Opportunities and Spur Home Buying (H.R. 5720): This amendment provides $11 billion in tax benefits, including tax credits to first-time homebuyers, a real property tax deduction for non-itemizers, an additional $10 billion in mortgage revenue bonds for states, and improves access to low-income housing. Gives first-time homebuyers a refundable tax credit that works like an interest-free loan of up to $7,500 (to be paid back over 15 years) to spur home buying and stabilize the market. The credit will begin to phase out for taxpayers with adjusted gross income in excess of $70,000 ($140,000 in the case of a joint return). Provides taxpayers that claim the standard deduction with up to an additional $350 ($700for a joint return) standard deduction for property taxes in 2008. Temporary increase in mortgage revenue bond authority to allow for the issuance of an additional $10 billion of tax-exempt bonds to refinance subprime loans, provide loans to first-time homebuyers and to finance the construction of low-income rental housing. Temporary increase in low-income housing tax credit and simplification of the credit to help put builders to work to create new options for families seeking affordable housing alternatives. Helps returning soldiers avoid foreclosure by lengthening the time a lender must wait before starting foreclosure, from three months to one year after a soldier returns from service. Would not add to the national debt. The cost of this bill is offset with a tax compliance provision included in the President’s Budget and by delaying the effective date of a tax benefit for multinational companies that has not yet taken effect. Amendment 3– Miller/LaTourette This amendment protects the right of states and cities to regulate the foreclosure process and the treatment of foreclosed property — by clarifying that this act, the National Bank Act, and the Home Owner’s Loan Act do not preempt State foreclosure laws for national banks or federally chartered thrifts. Exempting national banks and thrifts from foreclosure law would deprive the states and cities of the right to require that foreclosures must follow certain procedures, including notice to the people foreclosed, and that foreclosed property be safely maintained. Many in the industry and in the Bush administration argue that national banks should be exempted from these rules. There is no reason that national banks and federal thrifts should be treated differently from all other mortgage holders when it comes to how to foreclose and how to maintain foreclosed property.

Up to $417,000  30 yr fixed  5.75% At 1 pt cost   

7/1 program  5.5% at1 pt              FHA up to $362,790    6% at 1 pt    $417,000 to $662,500  30 yr fixed  6.25% at 1 pt
$662,500 to $1,000,000   30 yr fixed 6.875 % at 1 pt
Pete Phillippe your lending advisor, at 707-535-1263 and cell at 707-481-2737

Further economic stimulus came from the Federal Reserve, which announced on April 30 that it was pushing down the federal funds rate — the rate at which banks lend money to one another — to 2%, the lowest level since late 2004. The reduction marked the seventh rate cut by the central bank since it began easing credit conditions last September. On the heels of the Fed’s action, many commercial banks announced they were cutting their prime lending rate to 5%.

The Commerce Department also reported on April 30 that the gross domestic product — the sum of all goods and services produced in the United States — expanded at a 0.6% annual pace in the first quarter. The gain, which matched the rate of the previous three months, was better than forecast.

Job losses slowed in April, with the Labor Department reporting May 2 that employers shed 20,000 jobs from their payrolls, far fewer than the 75,000 cuts that economists were anticipating. The unemployment rate also fell from 5.1% in March to 5% in April, again surprising economists who had expected unemployment to climb to 5.2%.

Also on Friday, the Commerce Department reported that factory orders in March rose 1.4%, far better than the 0.2% rise analysts had forecast. The rebound followed a 0.9% dip in February and a 2.3% drop in January.

Economic news due out this week includes reports on workforce productivity on May 7 and the U.S. trade balance on May 9.

Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.
 
 
   Click here to visit my website and apply online:
 www.pphillippe.imbhomelending.com