http://www.milamax.com

110 degrees magazine - Index

110 degrees magazine - magazine - Index

Advertorial
GUEST EDITORIAL I FINANCING HOME PURCHASE
Are you a first-time home buyer that has been
sitting on the fence just salivating for this
kind of “buying” opportunity- one that doesn’t
occur that often. Or perhaps this is your
chance to “move up” to a nicer, BIGGER home
that you couldn’t afford just a couple of years
ago for $700k but now has a “Foreclosure”
sign on it, is thirsting for some water and can
be had to the tune of just $350k? You may also
be thinking this is your chance to be a Donald
Trump or Robert Kiyosaki in-the-making – and
turn your current home into your first “investment”
property. Now is a great time for all of
the above.
Perhaps the light went on (or was it the radiance
of that little devil that’s hovering around
you) and you said to yourself, “Heck, I’m so far
under with my current home, I’ll just buy that
nicer home around the corner for $300,000 less
than what I owe here, and then short-sale or
foreclose this house! What’s that called…, “Buy
and Bail! ” Not so fast!
Our notorious friends in the lending community,
Fannie Mae and Freddie Mac, implemented
some new guidelines that went into
effect on August 1 st that you MUST be aware
of. Fannie and Freddie state that if you’re
converting your current residence to a rental
and need the rental income to qualify (most
do, in order to offset the total housing payment
on their current home) for the new
home, you must have at least 30% equity in
your current home. (I hear a chuckle in the
background. Or was it a grunt?) If not, rental
income is NOT allowed and BOTH payments
will be counted against you for qualifying
purposes. You see, if you have a decent
chunk of equity in your home, the banks
believe that you’re not going to leave the
10 www.110mag.com September/October 2008
WHAT YOU NEED TO KNOW
ABOUT FINANCING A HOME
PURCHASE IN THIS MARKET!
keys in the mail box. Further more, many
lenders have implemented their own guidelines
and will automatically decline your
loan for a new home if they deem that your
current home lacks any equity.
Perhaps you were planning on utilizing one
of those popular Down Payment Assistance
Programs, like Nehemiah or Ameridream?
Take heed, as part of the new Housing and
Economic Recovery Act (HR 3221) that was just
ratified by President Bush - these programs
will no longer be allowed by HUD as of
October 1 st . Additionally, HUD will be requiring
borrowers applying for FHA loans to invest
a 3.5% down payment, an increase from the
previous 3% requirement.
In the long-term, this was much needed to
assist with the current housing and lending
market’s recovery. In the short-term, it will
certainly reduce the number of qualified buyers
out there. (Not necessarily what Listing
Agents want to hear.) At least now, you’re a
bit more prepared. Regardless, if you are an
interested Buyer, it’s more important to partner
yourself with a mortgage consultant that
stays on top of current lending guidelines -
something that we, at MilaMax excel in.
Questions about any of this? Give me a shout
or just drop me a line!
James A. Cappello
Mortgage Master and Buyer’s Advocate
MilaMax, Inc.
160-B Guthrie Lane, Ste. 8, Brentwood
925-240-2201
www.milamax.com
james@milamax.com
110°
EAST COUNTY LIVING
PRODUCTION
Publisher
Tricia Piquero tricia@110mag.com
Editorial Director
Dr. Donald Huntington don@110mag.com
Creative Director
Paul David Hewson paul@110mag.com
Art Director
Adam S. Huntington adam@110mag.com
Associate Editor
Andrea P. Stuart andrea@110mag.com
Contributing Photographers
Russell Byrne russell@110mag.com
Jennifer Fink jennifer@110mag.com
Teralind George teralind@110mag.com
Contributing Editor
Cindy Ehling cindy@110mag.com
Copy Editor
Rae Huntington rae@110mag.com
Proofreaders
Donna Haraguchi, Ben Lyles,
Karen Lyles, Andrea Stuart
ADVERTISING
Sales Manager
Caroline Robertson caroline@110mag.com
Inside Sales Executive
Donna Haraguchi donna@110mag.com
Account Managers
Tom Menasco tom@110mag.com
Dino Piquero dino@110mag.com
HOW TO REACH US
1210 Central Boulevard, Suite 111
Brentwood, CA 94513
www.110mag.com 925-634-7927
Article Submissions email proposal to
editors@110mag.com
110° Magazine is published bi-monthly. Subscription rate:
$39, payable in advance. Single copies $2.99.
Back issues if available, $20 (includes shipping and handling).
POSTMASTER send address changes to 110° magazine
1210 Central Avenue, Suite 111, Brentwood, CA 94513.
Entire contents © 2003 - 2008 by 110° Magazine
unless otherwise noted on specific articles. All rights reserved.
Printed in the USA.