20 • June 2014 • UPBEAT
TIMES.com
Walking the Guidelines
SANTA ROSA, CA. ~ 2008 was the year the money froze. The financial market came to a standstill, Wall Street in- vestors fell into a panic and the housing market started a tail spin that left many happy home- owners questioning their last move. Home equity evaporated and stock val- ues dissolved and many saw their 401ks become 401 not OK! The frailty of the financial markets was apparent. Humpty Dumpty had fallen off the Wall Street and Congress come together to bail them out and try to put it back together again. The Federal National Mortgage Association, nicked named Fan- nie Mae, was originally created in 1938 under Roosevelt’s “New Deal” to help provide federal money to banks for home loans. It wasn’t until 1968, under John- son’s administration, that they were privatized and therefore removed it from the national budget.
At that point, Fannie Mae became the first Govern-
ment Sponsored Enter- prise (GSE), generating profits to share holders with implied government backing. To prevent any further mo- nopolization of the mar- ket a second GSE, Fred- die Mac was created in 1970. Cur-
rently, Fannie and Fred- die own or guarantee over half the home mortgages. With pressure to show a profit for share holders, Fannie and Freddie ex- panded their buying to in- clude Alt-A loans in 2006. Ironically “Alt-A” stands for Alternative to Agency (Fannie and Freddie). As their portfolios grew with Alterna- tive Loans and property values started declining, Fannie and Freddie had equity issues with increasing defaults, they were in trouble. The housing debacle
The Mortgage Coach by Barry O'Meara •
barryo@stearns.com
depending on your par- ticular profile will de- termine which program will serve you best. Your credit
profile will have the most impact on which lender guidelines is the best fit for you. Low credit score and a low down payment, your options will be pretty slim. Depend- ing on what brought down your credit score you may find yourself having to use FHA or USDA as your only lending options.
If
took its toll and the government stepped in on September 7, 2008 to take over the two giants in conservatorship. Ever since their bailout Fan-
nie and Freddie’s underwriting guidelines have been tightened so tight, almost no one could qualify for a loan. As a result of the Financial Crisis the Dodd- Frank Wall Street Reform and Consumer Protection Act were hammered out the details and passed by Congress.
The Act
was signed into law in 2010. This Act laid down the founda- tion that created the Consumer Financial Protection Bureau (CFPB), which oversees home mortgage loans. If you are look- ing for a home loan now, you have very few options. Fannie and Freddie provide your Con- ventional loans while FHA, USDA and VA provide your Government loans.
Each has their own set of guidelines and
Healing Readings & Astrology
you have experienced a bankruptcy, foreclosure or a short sale, under FHA, VA or USDA’s guidelines, you only need to wait 3 years. If you can document an economic hardship; FHA has a special “Back to Work” program after just one year. Under the Conventional guide- lines, a foreclosure is bad news. You will be looking at a seven year waiting period. A short sale or deed-in-lieu there are more options with a good down payment. With 20% down pay- ment, you only need to wait just two years.
After four years you can buy using conventional
financing
with just 10% down payment. Deed-in-lieu is where you sur- render the property to the lender without the lender having to formally foreclose. So, if the lender is bearing down and you have no other options, a deed- in-lieu is a better choice than a foreclosure.
Owning a home has tradition- ally been the cornerstone for building wealth and a stabile place to raise our families. No matter what life’s circum- stances’ has dealt you, there are still options and opportunities awaiting you.
JOKES & Humor # 8
A woman was having a medical problem - her husband’s snoring. So she called the doctor
one morning and asked him if there was anything he could do to relieve her “suffering.” “Well, there is one operation I can perform that will cure your husband, but it is really rather expensive. It will cost $2000 down and payments of $650 for 24 months, plus payments for extras.” “My goodness!” the woman exclaimed, “it sounds like leasing a new sports car!” “Humm,” the doctor murmured, “too obvious, huh?”
Windows XP ... continued from page 16
is not something used by most users. The third and last effect that the end of support could have on anyone using a windows XP computer is that as a part of the end of support Microsoft has discontinued their free anti virus program Microsoft security es- sentials for Windows XP. If you are a Security Essentials users you have most likely noticed a few pop up messages saying that your computer is no lon- ger supported. This means you will need to switch do a more modern anti virus program. On a Windows XP computer I rec- ommend upgrading to Avast free anti virus or a more comprehen- sive paid program like Norton Internet security. If you have a windows XP computer and are using a good security pro- gram you are safe and there is no immediate need to upgrade; however keep in mind that you computer might be nearing its last legs and its time to start thinking about something new. Although Microsoft suggests it upgrading a windows XP com- puter to windows 8.1 is usually not possible and when it is often cost as much or more then a new computer, so I normally recom- mend purchasing something new over attempting an upgrade.
Gabriel A. Fraire Writer - Editor - Graphic Designer
Yerevan
707-775-5600 ~
www.ReadingsByYerevan.com Clairvoyant reader, life coach, flower
essence practitioner. 20 • June 2014 • UPBEAT TIMES
Want to Self Publish a Book? I can help, edit, design, produce
email:
gafraire@comcast.net cell: 336-681-7227
Web site:
gabrielfraire.com Talent is that which is in a man’s power; genius is that in whose power a man is. ~James Russell Lowell
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