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NOVEMBER 2009 - Page 2

BETTER YET Government Refi Program Expands To Help More Homeowners One feature of the Homeowner Affordability and Stability Plan, announced by the Obama Administration in early 2009, was designed to help qualified homeowners who have conforming mortgages refinance to lower-rate loans. (Conforming mortgages are those owned or backed by Fannie Mae or Freddie Mac.) The initiative was first conceived to address the problem of falling home values, which left many homeowners with loans in good standing unable to refinance because they lacked the 20% equity required for a new conforming loan. As first announced, the initiative waived the 20% requirement -- a loan-to-value (LTV) limit of 80% -- allowing (LTV) up to 105%. The recent change, however, increases that LTV limit to 125%, so more homeowners can take advantage of the program. Homeowners must meet other criteria to use the program, such as being in good standing on their current loan and having sufficient income to afford the new payment on the refinanced loan. The program allows refinancing of qualified principal residences, second homes and small rental properties. To find out more or whether you qualify, go online to www.MakingHomeAffordable.gov or contact your current mortgage lender/servicer.

SURVEY SAYS...

Now Could Be Perfect Time To Buy A Second Home

If you're interested in buying a vacation home or investment property, now could be the ideal time. According to the 2009 National Association of REALTORS® Investment and Vacation Home Buyers Survey, 2008 saw a 30.8% drop in sales of vacation homes and a 17.2% decline in sales of investment homes compared with 2007. Less demand has made prices more affordable. By comparison, sales of primary residences dropped 13.2% in 2008 from 2007. In addition, second-home sales comprised just 30% of all home sales in 2008, down from 33% the previous year.Call us to find out how affordable a second home in today's buyer's market could be for you -- or for a referral to a top-notch real estate professional in the area that interests you.

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