In 2009, Fannie Mae raised the maximum number of financed properties from 4 to 10. However, most lenders are not offering the 5-10 properties program, even though Fannie Mae says it will buy the loans. Here is why:

The underwriting of a 5-property-owning is hard work. Paperwork submissions with complex tax returns, rental properties, and other more detail to verify make it rather unattractive. It is no surprise that most banks don’t do it, but a few of the nation’s banks will. You just have to know where to find them.

In order to purchase and finance a home through Fannie Mae with more than 4 existing financed properties, investors must meet all of the following criteria:

•Own between 5-10 residential properties with financing attached
•Make a 25 percent downpayment on the property; 30 percent for 2-4 unit
•Minimum credit score of 720
•No mortgage lates within the last 12 months on any mortgage
•No bankruptcies or foreclosures in the last 7 years
•2 years of tax returns showing rental income from all rental properties
•6 months of PITI reserves on each of the financed properties

Call me at (408)-835-7743 if you have questions about mortgages with 5 or more properties financed.

Signed by Gov. Arnold Schwarzenegger this week, the new law provides $200 million for homes purchased between May 1 and Dec. 31 and between Dec. 31 and Aug. 1, 2011.

The funds will be allocated on a first-come-first-served basis. The credit is not a refund — like a federal incentive program for first-time home buyers that ends next month — but will result in a reduction or elimination of state taxes over a three-year period. There are no income limitations and buyers must reside in the home for at least two years.

There’s no hard-and-fast rule; it depends also on your balance. A 1 point drop on a $50,000 balance wouldn’t be as good as a half-point drop on $500,000.

What you really need to look at is how long it will take you to recoup your refinancing costs. These costs vary by lender and by the amount of your loan. Let’s say you got a $157,000 loan three years ago at 6.25 percent for 30 years. Your payment would be $967, and you’d have a balance of about $150,000.

If you refinanced that at 5 percent, your new payment would be $805. That would be a savings of $162 a month. If your closing costs were $3000, it would take you 15 months to recover your costs. Assuming you planned to be in the house for at least a little more than a year, the refinancing would be worth it.

The store is operated by the owner and his wife, with no employees. The owner has health issues and wants to sell. Purchase price includes all of inventory. It’s a cash business. This business is a great opportunity for energetic person with desire to grow and expand.

Please contact Broker Alan Nguyen for more information on this business opportunity at (408) 835-7743 or email alan@i2realty.com.

“As expected, the large year-to-year sales gains have diminished substantially compared with earlier in the year,” said C.A.R. President Steve Goddard. “However, home sales in December were strong, and were comparable to sales of late 2008. Activity in December can be attributed in part to the extension and expansion of the home buyer tax credit, as well as near-historic highs in affordability due to current price levels and low interest rates

The tax credit could be combined with the recently extended and expanded federal tax credit for home buyers.

When you short sale your San Jose home, your lender will ask you to sign an Arms-Length Affidavid.  An arms-length affidavit is a document  to prevent sellers from selling to a relative and thus curb mortgage fraud.

The reason the bank does not want a seller to transfer title to a relative in a short sale is because they are taking a loss so they don’t want sellers to profit from the sale of their property period.

When you sign an arms-length affidavit on your short sale and then violate it, you could be held liable for mortgage fraud.  Mortgage fraud falls under jurisdiction of the F.B.I.

Please contact Broker Alan Nguyen, San Jose Short Sale Specialist for more information on this topic at (408) 835-7743 or email alan@i2realty.com.

So, how did you live in 2009? In whom or what did you invest your time and money – your life? What did you experience? Do you think that you grew as a person? Do you think that you made a real difference in someone’s life or in the world? As I reflect upon the last 525,600 minutes of my life, I am not really sure how to answer those questions myself.

One of the special initiatives is Neighbor Next Door Sales Program. Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD provides a substantial incentive in the form of a 50% discount off the list price of eligible properties.

Please contact Broker Alan Nguyen for more information at (408) 835-7743 or email alan@i2realty.com