FHA guidelines we’ve been told to look forward to in the Spring are
- The requirement for higher credit scores to qualify for the low down payment option. In fact, scores under 600 may knock you out of the running immediately; and it isn’t just FHA loans, it is also conventional mortgage loans.
- Higher mortgage insurance premiums. The upfront mortgage insurance premium will go from 1.75% to 2.25%.
- Fewer seller concession. Historically six percent seller concessions were acceptable across the board, FHA and conventional. Now the FHA is expected to allow only a three percent contribution from the seller.
So, in order to get a mortgage, you’re going to need more cash (higher down payment and covering the closing costs with reduced assist from the seller) and, maybe even more importantly, a higher credit score. Look for articles on upping your score here in the next few weeks. We’re doing a ten part newsletter called “Credit Score Survival for the American Consumer”.
As for having more money . . . Well, we’re all working on that one, aren’t we!
Today a law goes into effect that could actually help your financial profile. The credit card reform laws are designed to protect consumers, and they may in fact do so.
- A newly opened account must keep the opening interest rate for 12 months; if it changes after the first 12 months, it is only for future purchases, not the balance you may be carrying for your first year’s purchases. Delinquencies on the account, hardship arrangements on past dues may be exceptions, so pay those bills on time.
- College kids will find it harder to get credit (HOORAY). You’ll probably need a co-signer or a job that will pay enough to support your bill.
- Over-limit fees are out of the ballgame unless you opted to have the protection and consent to pay for it.
- If you don’t like the new terms on your credit card, opt out of the contract. They can close your account, but you will be given options regarding paying off the debt.
- Changes to the terms of your agreement must be given to you 45 days in advance, instead of the previous 15.
- Your bill is now due on the same date every month. No more calculating billing period from month to month!
- Universal default, raising your interest rate on one card because you were late on other bills, is out the door.
- Statements must be mailed 21 days ahead of the due date.
These are very positive changes to the way the American Consumer has been treated in the past. Use the assist wisely!
If the coffee you drink could change the world, would you change the coffee you drink?
I’ve just met some people that I’m really happy to know, the folks at LaEsperanza Farms, a coffee grower in Venezuela.
They have several things going for them . . . one of which is they have fresher coffee than you’ve ever tasted, unless you visit coffee plantations!
Whether you call it coffee, cafe, Kaffe, or a cup of joe; whether you prefer brewed, french press, cappucino, expresso, turkish, or any of the many ways it is prepared; whether you get your coffee from Starbucks™, Dunkin Donuts™, your local roaster, or the Internet, Harvest fresh coffee will give you a whole new appreciation for a fine cup of coffee.
The other thing going for them is that ALL their profits go to support African relief. that’s the reason this is their logo
It is their goal to change the world. Want to help? Shop for coffees . . . delivered to your door. Fresher coffee than you’ve ever tasted.
Buy for your home, for your office, for gifts.
Buy it to change the face of the world.
Read “Dirty Little Secrets of Buzz: How to Attract Massive Attention for Your Business, Your Product, or Yourself ” by David Seaman and then, when you realize that doing everything in that book will be a full time job, come back and get professional help here.
Ten years web design, graphic, authoring experience. We will design your website start to finish. We will design your WordPress site with the Thesis theme framework and you won’t believe your eyes.
Dirty Little Secrets of Buzz: How to Attract Massive Attention for Your Business, Your Product, or Yourself
I recently read that the apture plugin is a great boon to word press bloggers.
You are able to insert media, like so: Slick, easy, and pretty, to boot.
Read in the The Wall Street Journal reports that commercial-real-estate may be ready to deliver “a roundhouse punch to the U.S. economy just as it struggles to get up off the mat.” Mortgage-backed securities failing due to foreclosures brought us the 2008 financial crisis, and now $700 billion in commercial-mortgage-backed securities appear to be about to fail. The delinquency rate in was July six times the rate at the same time last year, and these loans are hard to refinance. At the close of 2012, $153 billion in loans in commercial mortgage backed securities will be due, and nearly $100 billion worth will have problems getting refinanced. Read it at The Wall Street Journal
So Queen Elizabeth is less influential than Michelle Obama, who is less important than Hillary Clinton . . .
German Chancellor Angela Merkel, for the fourth time, is the world’s most powerful woman.
According to Forbes, they factor economic impact, media reach, sundry career accomplishments.
I was shocked when Lehman Brothers was allowed to fail, and other (in my opinion lesser) Banks were saved.
From Larry McDonald’s email to me about his book:
I am exposing the few that HURT so many. Over 2 million jobs lost since Lehman failed. This NEVER should have happened!
The product description on Amazon.Com says:
One of the biggest questions of the financial crisis has not been answered until now. What happened at Lehman Brothers and why was it allowed to fail, with aftershocks that rocked the global economy? In this news-making, often astonishing book, a former Lehman Brothers Vice President gives us the straight answers—right from the belly of the beast.
In A Colossal Failure of Common Sense, Larry McDonald, a Wall Street insider, reveals the culture and unspoken rules of the game like no book has ever done. The book is couched in the very human story of Larry McDonald’s Horatio Alger-like rise from a Massachusetts “gateway to nowhere” housing project to the New York headquarters of Lehman Brothers, home of one of the world’s toughest trading floors.
We get a close-up view of the participants in the Lehman collapse, especially those who saw it coming with a helpless, angry certainty. We meet the Brahmins at the top, whose reckless, pedal-to-the-floor addiction to growth finally demolished the nation’s oldest investment bank. The Wall Street we encounter here is a ruthless place, where brilliance, arrogance, ambition, greed, capacity for relentless toil, and other human traits combine in a potent mix that sometimes fuels prosperity but occasionally destroys it.
The full significance of the dissolution of Lehman Brothers remains to be measured. But this much is certain: it was a devastating blow to America’s—and the world’s—financial system. And it need not have happened. This is the story of why it did.
Can’t wait to read this one!
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