MAKING SENSE OF THE STORY FOR CONSUMERS·

Early projections indicate that only 20,000 troubled homeowners will apply for the “Hope for Homeowners” program, a considerable reduction from the previously estimated 400,000 homeowners who were expected to apply. The $300 billion program was launched Oct. 1 and is designed to help troubled homeowners rewrite a “risky” mortgage loan into a 30-year, fixed-rate loan with a lower interest rate. During the first two weeks of the program, the Federal Housing Administration, which oversees Hope for Homeowners, reported receiving only 42 applications. Some housing experts believe the low application rate is due to the program being voluntary for lenders and provisions requiring homeowners to agree to an equity share with the government.

'203K' – FHA LOAN Product 3.5% down

203ks – Allows $35k in safety and code repairs
203k – Allows $35k for any repairs or structural improvement

Work done within 6 months
Must live there one year before selling
Maximum is FHA limit, currently $500k in Riv County
Little higher interest rate, but on 3% down until end of year (then 3.5%)
580 FICO needed
No investment properties

FED CUTS KEY INTEREST RATE TO 1 PERCENT
The Federal Reserve continued to shave points off the federal funds rate, reducing it by 50 basis points to 1 percent today, the lowest rate in half a century. Analysts characterized the move as another effort to stave off a prolonged downturn in the nation's economy."The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures," the Fed said in a prepared statement. "Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit."In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability."Recent policy actions, including today's rate reduction, coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth," the Fed said. "Nevertheless, downside risks to growth remain. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability."

Lender Foreclosure Home Auction! 1000+ homes. Sunday, August 17th . Call Kelly for details 951-304-3695.