Serving all of California Located in the San Jose area     Home Finance in a Changed  Mortgage Market Americans are hopeful that 2009 will bring a turnaround for the real estate and mortgage industries. We have come through some rough times, some in great shape and some forced into the ultimate despair of foreclosure. Loan guidelines have tightened up. Gone are the days of 100% financing, stated income loans, and especially the “no doc” loans in which a borrower had to supply little more than a decent credit score. Down payment assistance programs and first-time homebuyer programs have dried up. In the midst of the turmoil, some positive things that have emerged and good opportunities are available for home financing in 2009: • The high balance conforming loan limit has been raised back to $729,750 as of May 2009. Conforming loans are those that qualify under Fannie Mae and Freddie Mac guidelines and have better rates than loans outside of these guidelines.  Higher conforming loan limits just make sense for the higher home values we have in the Bay Area.   • The increased limits for FHA loans, up to $729,750, allows more borrowers with low credit scores and low down payment funds ( 3.5% in 2009) to qualify for a loan. An FHA loan might be a good option for a refinance if the value of your property has dropped and your equity is slim.   • Lower home values, while a hardship for many current homeowners, have made homes in our area more affordable. An experienced Realtor can help you evaluate the short sales and bank-owned properties on the market.   • Loan modification programs are being encouraged by the government and offered by banks in an effort to prevent more foreclosures on their books. For best results, work with a reputable company who negotiates on your behalf.   • Good credit is more important than ever. With the exception of FHA financing, loan programs are credit-driven. To obtain a loan, especially at the best rate and terms, you must have good credit.     Whether you are trying to buy a home or are struggling to hold onto your current home, I offer a free consultation to help you evaluate where you are, where you want to go, and how to get there. I can refer you to an excellent CPA, Realtor or Financial planner, or will work with your support team. The sooner you take action, the sooner you will find out what it takes to achieve your goal in 2009. Contact me to find out more about home loans, loan modifications and improving your credit.