In the News

I'm taking a break from the busyness of loans to update our blog. It's been a whirlwind month with mortgage bailouts, Fannie, Freddie, the list goes on.

So, I'm taking a moment to let you know that in the midst of all the craziness, there's good stuff happening. From first time homebuyers to the experienced investor, many are finding a silver lining in what is going on in the housing market. How exciting to step back from the bigger picture and realize that right now, someone is becoming a homeowner for the first time, putting the keys in their own front door, picking out paint colors and furniture!

For those who already have a home and have equity (yes, it still exists!), we're helping people gain control of their finances by consolidating debt or helping with home improvement projects.

I could go on, but I simply wanted to step back for a moment and reflect on the good that's happening.

For those in a challenging season, please remember that there is always Hope. There's a light at the end of the tunnel, no matter what CNN or your 401k statement says :)

Holding Steady

Rates continue to hold steady - so don't miss out before they start to go up later this year. There has been some good news about the housing market recently - with certain areas seeing a spike in home sales and other areas beginning to stabilize.

The 15 year mortgage rates continue to be the best deal in town if you can handle the higher payment of a 15 year mortgage.

Down Payment Assistance Programs

OK - so the FHA does not like down payment programs like Nehemiah or Ameridream because the default rates on these loans is higher than a homebuyer who makes a down payment. But, they do serve a purpose in helping folks with their dreams of home ownership. Let's not forget that with a FHA loan you must qualify full documentation under pretty rigid guidelines - so with that being said - the DAP's are going away as of October 1.

So if you have been on the sidelines regarding a purchase and you need down payment assistance from the seller -then you need to act now. Because after Oct 1 - you will need 3.5% as a down payment and on a 200K purchase, that would be $7000.

There is some pending legislation to allow the DAP's, but as of right now - the deadline is Oct 1.

Also, don't forget when purchasing a home to use this formula - you can normally purchase 3-4 times your total household income - your other debt influences that number.

Rich

Down Payment Assistance

On a Break

Here's the good news. Rich and I will both be utilizing this blog a lot more to keep you up-to-date on the happenings at Covenant Mortgage and in the mortgage industry. The not as good news...we're taking a little break from the radio show.

We love interacting with ya'll every Saturday, but right now, other commitments make the time we have to dedicate to the show impossible. So, we'll still take all of your questions; you'll just have to call us at the office. (1-888-780-8781 or info@covenantfinancial.com).

Regarding the current market - now really is a great time to buy a home, especially for first timers! We're seeing amazing deals from sellers and rates are still very low. We're helping customers structure their purchases in a lot of different ways, so if you've been sitting on the sidelines, now may be a great time to get in the game.

So, keep checking this blog for updates, and if you have a mortgage need, please give us a call or send us an email. We love serving you!

Blessings,
Karen

Exciting Day

In case you are wondering, it's never good to have your office building surrounded by fire trucks. But, all told, this ended up not being as serious as this picture looks. We walked into our offices yesterday to the overwhelming smell of gasoline. After we called 911, we grabbed essentials (usb backups, cell phones & coffee :) and evacuated the building and watched as rescue teams from all over the area came to our rescue. Thankfully, it ended up not being anything too serious - just a gas spill in a unit directly below ours. Thank you to all who do a great job of protecting us - fire, police, emts, etc.

The other exciting part of the day was the news that the Fed is not increasing rates at this time. It was what was mostly expected at this meeting, but right now, there is so much uncertainty that it was somewhat of a relief for the meeting to be over and the markets seem to be reacting favorably to the decision.

Karen

Staycations

A new word that has entered our vernacular is the "staycation". Google doesn't even have this word in spell check yet, but if you do a google search for the word, you'll find about 480 results. Apparantly, the first siting for the word being used was in 2003. The urban dictionary definition: A vacation that is spent at one's home enjoying all that home and one's home environs have to offer.

We've helped a lot of customers get money for home improvements recently. For their staycation, they'll be either doing the home improvements, or enjoying the fruit of their labor. Now is a great time to consider adding the pool, finishing the basement, updating the kitchen, or whatever task your home is in need of. And when it's done, stay around and enjoy your updated home.

We are here to help if you need access to the equity in your home to fulfill your "staycation dreams".