Shawn Kaplan: Clean Up Your Credit Score!

Proportions of balances to credit limits are one of the most important factors when your credit score is graded. Listen to the talk show link for valauble information on this topic and how it can improve your score!

WS Talk Radio Nashville Segment : David Carroll and Shawn Kaplan - Click Here

THDA Now offering 3.5% down Payment Assistance to Homebuyers

Nashville Talk Radio Segment On THDA Stimulus Down Payment Assistance Program with guest Shawn Kaplan from Kensington Financial Group LLC. - Click here to listen

New THDA Stimulus Second Mortgage Program Details
Earlier this year, Congress passed the American Recovery and Reinvestment Tax Act of 2009 (“2009 Tax Act”). In division B, Title I, Section 1006, there is a provision for a First Time Homebuyer Tax Credit (Form 5405) up to $8,000 or 10% of the purchase price. This act provides for an exception for principal residences purchased between January 1, 2009, and November 30, 2009, which enables a first time homebuyer to receive the tax credit with no repayment required if the homebuyer occupies the property for 3 years. The 2009 Tax Act also provides for use of this credit with loans purchased with proceeds of tax-exempt mortgage revenue bonds. Therefore, this credit can now be used with THDA’s mortgage programs.

THDA is implementing a new second mortgage program, THDA Stimulus Loan Program, for downpayment and closing cost assistance. This program will complement THDA’s existing Homeownership Choices incorporating the tax credit. In order to be eligible for the second mortgage program, THDA MUST be providing funding for the first mortgage through the Great Rate or Great Advantage programs for the borrower(s) to purchase the home. Both the first and second mortgage must close on or before November 30, 2009. The November 30, 2009, date also applies to new construction. The new home must be complete and the loan closed on or before November 30, 2009.

PROGRAM TERMS
Eligible Borrower: Homebuyer obtaining THDA first mortgage Great Rate or Great Advantage loans and who is otherwise eligible for the First Time Homebuyer Credit.
Maximum Household Income: THDA Homeownership Choices limits apply.
Maximum Loan Amount: 3.5% of Purchase Price
Interest Rate: 0% deferred until June 1, 2010, 1% above corresponding first mortgage rate if amortized.
Loan Term: After initial deferral period, the loan will fully amortize over 10 years, beginning July 1, 2010.
The Stimulus Loan Program is only available on FHA loans.
Underwriting Criteria: Borrowers must have 620 minimum credit score. Must include amortizing second mortgage payment in total housing expense ratio and back end ratio cannot exceed 45%. Manual underwriting is not permitted.
Pre-Payment: The second mortgage loan is due in full upon first mortgage payoff, assumption, or refinance. No pre-payment penalty.
Allowable Fees: Normal and customary second mortgage fees.
Closing Documents: Second Mortgage Note and Deed of Trust must close in the name of THDA. Title Policy must insure first and second mortgage.
Homebuyer Education: Required prior to closing on first mortgage loan.
Servicing: Servicer will service combined payments. Under this program, both the first and second mortgage must be serviced by U.S. Bank.

Call 615-907-2043 and ask for Shawn or Bill for more questions.

Proportions of Balances to Credit Limits

Real Estate Talk Radio Segment on $8,000 Tax Credit

Click Here for Podcast Audio:

03. Shawn Kaplan: Top Area Mortgage Consultant with Info On The 2009 New Home Buyer Tax Incentive
Source: www.wsradio.com
How does the tax credit work, who's eligible, do you have to repay it and exactly how would you get it?? Answers to these questions and more from this Kensington Financial Group .

Movie Night in The Park June 18th

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AmeriDream: U.S. housing market needs downpayment assistance

FOR IMMEDIATE RELEASE:Tuesday, May 26, 2009
CONTACT: Henry Fawell(410) 545-5830
AmeriDream: U.S. housing market needs downpayment assistance
GAITHERSBURG , MD – With home prices falling nearly 20% in the 1st quarter of 2009, Ann Ashburn, President of AmeriDream, today outlined four reasons why the U.S. economy and the next generation of homeowners would benefit from downpayment assistance funded in part by sellers (DPA). Congress is currently considering H.R. 600, bipartisan legislation that would make DPA an allowable gift source for creditworthy borrowers of Federal Housing Administration loans.
“AmeriDream continues to provide full support to H.R. 600, which will stabilize home values, protect taxpayers, encourage responsible homeownership, and create jobs,” said Ashburn. “These are four compelling reasons to make DPA an important part of our national economic recovery strategy. AmeriDream will continue with the critical outreach and education efforts necessary to make a responsible DPA program available to qualified homebuyers.”
Stabilize home values: DPA can help stop the downward spiral in home values across the country by encouraging qualified homebuyers with FHA loans to enter the housing market. An estimated 300,000 homebuyers are eliminated from the housing market every year without DPA programs in place.
Protect taxpayers: H.R. 600 allows private partnerships between sellers and non-profits to provide downpayment gifts to qualified homebuyers at no cost to the taxpayer. That makes H.R. 600 a fiscally responsible alternative to government-subsidized downpayment assistance programs being considered by the U.S. Department of Housing & Urban Development.
Encourage responsible homeownership: H.R. 600 will enable 300,000 additional families and individuals – all qualified and approved for FHA loans – to become homeowners each year. The bill also requires that DPA recipients be offered homebuyer education courses to help them understand the financial responsibilities of homeownership. Lastly, H.R. 600 implements tougher credit requirements for DPA recipients, strict FHA underwriting guidelines, and stiff penalties for improper home appraisals.
Create jobs: DPA will create 235,000 jobs, generate over $4 billion annually in local and state revenues, and provide $2 billion annually in private capital for sustainable homeownership. DPA’s absence prompts fewer home sales, lower home values, more foreclosures, job losses, and lower revenues for cash-strapped local governments. H.R. 600 is a vital mechanism to stabilizing the U.S. housing market.
H.R. 600 is sponsored by Reps. Al Green, Maxine Waters, and Gary Miller. The program would use no tax dollars. A broad coalition of organizations H.R. 600, including the National Association of Homebuilders, the U.S. Conference of Mayors, the Congressional Black Caucus, the Congressional Hispanic Caucus, and the Labor Council for Latin American Advancement. Learn more about H.R. 600 at www.ameridream.org.
BACKGROUND: AmeriDream, a 501(c)(3) charity, was established in 1999 to provide housing-related programs to low and moderate income individuals and families. AmeriDream provides a wide range of programs, including homebuyer education, loss mitigation counseling, community development, and privately-funded down payment assistance. These programs are provided at no cost to the taxpayer. AmeriDream not only seeks to help families purchase homes, but also provide them with the education and other resources needed to be responsible homeowners.
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HUD Secretary Announces Monetization of Tax Credit at NAR Real Estate Summit

WASHINGTON, May 12, 2009
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that theFederal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.
Donovan’s remarks came in an address to several thousand Realtors® gathered this morning at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the Realtors® Midyear Legislative Meetings & Trade Expo here.
Secretary Donovan said that important changes, which the National Association of Realtors® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Donovan said the Obama administration plans to further stabilize the housing market. “I do think we have some early signs hat the market overall is stabilizing,” said Donovan. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said, “As the leading advocate for housing issues and homeownership, NAR continues to take a leadership role in promoting ideas for improving our economy by stabilizing the housing and real estate markets. Today we have the best of the best to begin a dialogue, develop solutions and initiate action toward real estate and economic recovery.”
The morning session included a panel discussion that was moderated by CNBC’s Ron Insana. The 13 panelists and Realtors® in attendance examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation’s taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.
The list of distinguished panelists include Dr. Martin Feldstein, professor of Economics from Harvard University; Dr. Barry Bluestone, professor of Political Economy from Northeastern University; John Taylor, CEO of the National Community Reinvestment Coalition; Maria Kong, president of the National Association of Real Estate Brokers; and Sarah Rosen Wartell, executive vice president for the Center for American Progress.
“Right now the Federal Reserve is the market,” said Jay Brinkman, chief economist for the Mortgage Bankers Association. “What will be the effect when the Fed stops buying?” Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.
“We must make sure FHA and the GSEs are supported,” added the Wharton School’s Susan Wachter.
“We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy,” McMillan said. “We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond.”
The real estate summit is part of the Realtors® Midyear Legislative Meetings & Trade Expo here through Saturday. During the week, more than 8,500 Realtors® will attend meetings, visit lawmakers and inspire action on Capitol Hill.

BBB Branch Office adapts to become, The BBB Neighborhood Assistance Office...

"When the BBB serving Middle Tennessee and Southern Kentucky made a commitment to open 5 branch offices throughout our service area,” says BBB President & CEO Kathleen Calligan, “we knew we would be able to be more of a part in the individual lives of the people and businesses in those communities.” This is a story of how true that statement has proven itself to be.

MURFREESBORO, Tenn. - The National Weather Service has determined the tornado that struck Murfreesboro on Good Friday, April 10, 2009, reached EF-4 intensity and was on the ground for more than 23 miles. Friday's tornado reached wind speeds near 170 miles-per-hour in the Highland Park Drive neighborhood as well as the Tomahawk Trace area, two of the hardest hit areas. BBB Central Tennessee Branch Manager, Beth Furbush and her husband Jim, live on Tomahawk Trace – just within feet of the deadly path of destruction.In total, 794 homes and 23 commercial buildings were damaged, 98 of them destroyed, 227 severely damaged and 156 with minor but significant damage. A mother and her nine-week-old daughter were killed when the tornado struck their home on Sulpher Springs Road (just two blocks from the Furbush’s home) and more than 40 people were injured across the city.In the first three days after the storm, the city of Murfreesboro said crews collected over three million pounds of debris and over 1,000 tons of trees and brush.When the tornado struck, Beth was not home, however Jim was - he watched it come down the street. “After the rumbling and shaking had stopped,” Jim reports, “I was quite surprised that our home was not directly affected.” Within 4 hours of the storm, using cell phone and Blackberry communications, Beth, Jim and the Nashville staff were able to send a press release out to their media contacts for storm victims. Without power and other utilities, the Furbush’s were evacuated and would not be allowed to return to their neighborhood until mid-day Sunday – Easter Sunday. Neither Beth nor Jim realized the devastation in their area until they were allowed to return to their home and walk through what used to be their neighborhood.Monday morning was busy in the Branch Office with phone calls from consumers and contractors, radio interviews and more. By Thursday afternoon, 3 radio shows had aired warnings of storm chasers and advising a still stunned community of what to look for in a contractor. The decision was made to open a temporary office at the Furbush's home for the next week. A visit to two local newspapers, the Daily News Journal and the Murfreesboro Post, as well as the local radio station, WGNS, was scheduled to get the word out. A local BBB Accredited Business, SignPro, generously donated a 4' x 4' sandwich sign for their front yard telling of the "Neighborhood Assistance Office" and posting for all who needs to talk with the BBB – her cell phone number. Another Accredited Business, Azzo Computers, loaned the temporary office a laptop computer with wireless capabilities to assist neighbors and contractors that come by. To make things a little easier, they were loaned a personal golf cart allowing Beth to visit within the disaster area and to get information out.Friday is when the hard work really began.

During a regular radio show with Ralph Bristol – WTN 99.7 on Friday mornings, Kathleen Calligan talked about the temporary office, the importance of licensed contractors registering with the BBB and Beth's cell phone number for assistance. One of the staff from the Nashville Office, Kimberly Lynn, headed to Murfreesboro to stuff BBB Bags with information for consumers that included an up to date roster of BBB Accredited Businesses in the General Contractor, Roofing Contractor and Remodeling Contractor categories, the Press Release for Storm Victims, an information sheet that included contact information for various agencies including the Tennessee Board of Licensing Contractors, TN Dept. of Commerce and Insurance, Credit Reporting agencies and more, along with the BBB’s eQuote Program Brochure. While Kimberly stuffed bags, Beth fielded phone calls – non-stop.

Beth was contacted by one of their Accredited Businesses, Greenvale Homes - Gary Middleton. Gary's son's home was destroyed by the tornado, just down the street from the Furbush's. They asked if they could help. With a small army of volunteers, about 160 BBB Bags were given to Gary who had them distributed in areas Beth could not get to. Beth and Kimberly, in their BBB Golf Cart, were able to distribute about 40 bags that afternoon. By the end of the day, around 200 bags in all, had been delivered to a community who expressed deep gratitude!Monday morning, the Neighborhood Assistance Office opened with Fox News arriving at 4:45 am. They did 5 live spots every half hour followed by 2 tapings for their evening news program. Once they were gone, the office opened and it was a huge success. Beth talked with around 30 consumers and 15-20 contractors that morning. The BBB Neighborhood Assistance Office on Tomahawk Trace in Murfreesboro Tennessee has been a buzz – providing BBB Reliability Reports to consumers along with other general information and entering contractor information directly into the BBB database which included licensure. “By the end of the week,” states Beth Furbush, “an additional 200 bags will be distributed in the affected areas thanks to the folks at Greenvale Homes.” Monday afternoon he picked up an additional 80 stuffed bags, At Greenvale Homes’ expense, they are copying all the materials to stuff an additional 100 -120 bags.We at the BBB are hopeful that you won’t mind us naming the extraordinary people and businesses who have put themselves out to help their neighbors. It’s not so much to promote them, but to tell you of their contribution and selflessness. The BBB is a uniquely local organization – Champions of Ethics and Integrity, 100% funded by its Accredited Members who provide these services to our communities without taxpayer support.

USDA / Rural Development has raised the income limits for Tennessee!

USDA GUARANTEED HOUNSING LOAN INCOME LIMITS – TENNESSEE

(Updated 4/20/2009)

MSA: Nashville, TN
(Cannon, Cheatham,
Davidson, Dickson, 1-4 Family : $74,600 5-8 Person: $98,450
Robertson, Rutherford,
Sumner, Trousdale,
Williamson, Wilson)

Helpful Hints for Storm Repair or Rebuilding

We are saddened by the recent destruction that occurred in our community last Friday. So many homes were damaged and destroyed. Kensignton Financial Group wants to provide some helpful information to those families affected by the tornadoes.

Helpful Hints & Information - Do's and don'ts you should follow during the rebuilding process

A list of Do's

1) Use only local contractors.

2) Do research; take time before you make this important decision.

3) Ask for a list of references and check them.

4)Call the Better Business Bureau, Rutherford County Chamber of Commerce, Rutherford County Homebuilders Association and the Middle Tennessee Association of Realtors.

5) Make sure they are licensed & insured in the state of Tennessee.

6) Confirm they have workman’s compensation.

7) Ask about warranties.

8) Ask friends, family and church members for recommendations.

9) Don't be afraid to ask questions, if you don't understand, ask more questions.

10) Always get a receipt.

A few Don'ts

1) Do not use out of state contractors.

2) Never give money up front.

3) Do not use unlicensed general contractors.

Using local businesses puts money back into our economy which in turn goes directly to emergency services, schools and other services.

We highly recommend and endorse the services provided by local builder Greenvale Homes. There superiior service and knowlwedge has made them one of the largest pricvatley owned homebuilders i the state for many years. For more info or questions please visit there website at http://www.greenvalehomes.net/ or contact Gary Middleton at 615-310-6475