Appleton Wisconsin Mortgage & Real Estate Resources: February 2009

Now that the cat is out of the bag, more questions are popping up since my post titled 21 Top Questions Answered on the First Time Home Buyers $8,000 Tax Credit. 

Over the past several days, the question that keeps popping up is "What TYPE of property is covered under the New First Time Home Buyer Tax Credit?" It appears that the confusion lies in the wording "Main Home" or "Single Family Home". So off I went and here is what I found:

The important point is that the home must be a person's main home." Detailed information on the definition of "a main home" can be found within the contents of the IRS Form 5405 which reads:

Main home. Your main home is the one you live in most of the time. It can be a house, houseboat, house trailer, cooperative apartment, condominium, or other type of residence.

Instructions within the form specifically say that the credit is available for any first time home buyer purchasing their "main home".Furthermore, there really is no specific clause that spells out the answer.  Many tax laws are open to interpretation and from what tax professionals have indicated, a small multi-family residence would qualify. The professionals continue to say this would include single family detached homes, attached homes like townhouses and condominiums, manufactured homes and houseboats. 

I understand that if the new home buyer has a plan to live in a portion of the home and rent a portion out, this would reduce the tax credit basis in the portion of the home that the new buyer is occupying as their "Main Home".

Here is an example:Duplex Purchase - Price = $250,000 and buyer lives in half. $125,000 would count toward the tax credit. The credit is 10% of the 1/2 that they are living in as their "Main Home". So 10% of $125,000 would be $12,500. The Tax Credit is capped at $8,000, so the new buyer would be eligible for the maximum $8,000 credit. 

Now if the same buyer decided to buy a four-plex at a price of $350,000 and live in one unit, their "Main Home" would equate to 1/4 of the purchase price, or $87,500.  Now take 10% of the $87,500 which is $8,750, therefore they would be eligible for the maximum $8,000 credit provided the income limitation did not apply.

In order for the buyer to reap the maximum benefit of the tax credit, they would need to find a duplex with a price of $160,000 or more to qualify for the maximum credit.

From what I understand, there are many great multi-family opportunities through out Wisconsin. Once again, I hope this information have been helpful. If I run across more stuff that will help answer questions, I will most certainly share it.....

As always, please, please be sure to consult with your personal tax professional as each and every transaction is unique to your particular situation.

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

The dust is settling, the ink has dried and the phones are beginning to ring. Yahoooooooooo! Spring is right around the corner and what a great home buying season 2009 will be. The opportunities for first-time home buyers are huge. As long the home purchase is complete by December 1, 2009 and the new buyer meets the criteria of the plan, they will get the EIGHT GRAND!

In the past week, there have been so many questions regarding the tax credit. As the result, I went on a mission to find the best information on the the most commonly asked questions. The results are below and definitely worth the read -

1. Who is eligible to claim the tax credit?
   First-time home buyers purchasing any kind of single family home-new or resale-are eligible for the tax credit. To qualify for the tax credit, the new buyer must purchase the on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
   
2. What is the definition of a first-time home buyer?
   The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the home-ownership history of both the home buyer and his/her spouse.
   
   For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
   
3. How is the amount of the tax credit determined?
   The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
   
4. Are there any income limits for claiming the tax credit?
   The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
   
5. What is "modified adjusted gross income"?
   Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.
   
   To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
   
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
   Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.
   
7. Can you give me an example of how the partial tax credit is determined?
   Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
   
   Here's another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
   
   Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
   
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
   The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.
   
9. How do I claim the tax credit? Do I need to complete a form or application?
   Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.
   
10. What types of homes will qualify for the tax credit?
    Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
    
11. I read that the tax credit is "refundable." What does that mean?
    The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
    
    For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).
    
12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
    Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax adviser to ensure you file this return properly.
    
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
    Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.
    
    In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
    
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
    Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may notclaim the tax credit if they are participating in an MRB program.
    
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
    No. You can claim only one.
    
16. I am not a U.S. citizen. Can I claim the tax credit?
    Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.
17. Is a tax credit the same as a tax deduction?
    No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
    
    A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer's tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.
    
18. I bought a home in 2008. Do I qualify for this credit?
    No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.
    
19. Is there any way for a home buyer to access the money allocatable to the credit sooner than waiting to file their 2009 tax return?
    Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down-payment.
    
    Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.
    
    Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a down-payment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.
    
20. If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
    Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
    
    Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.
    
21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
    Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

2/25/09 UPDATE! - Is a Duplex or Multi-Family Property Eligible for the Credit?

information source - NHBA - Bank Rate - IRS

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

I doesn't take a rocket scientists to realize that real estate across most of the country is not appreciating as fast as it was at one time.  This isn't necessarily a bad thing, unless of course you purchased last year and are selling now. People who have owned a property for several years are still generally well ahead in the game. While we cannot predict what 2009 will bring, most markets have slowed, if not declined. For the majority of established home owners in the prevailing market, prior property appreciation will ensure at least some degree of profit, however today's sales may not be as prosperous as they would have been in 2006. All homeowners want to get the highest possible profits; The questions is . . How does one go about this? There are 10 negotiating steps that a seller can follow to assure that their home gets the best price and is sold quickly.

 Step 1: Use A Local Realtor.When the market is down, so is the number of buyers. That means that you need to expose your property to as many potential buyers as possible. Who do prospective buyers get in touch with when they are house hunting? Real Estate Brokers, National Association of Realtors statistics show that 85% of buyers count on real estate brokers for their home selections, while the Internet accounts for 80%. That being the case; Who creates all of those on-line real estate postings? The Answer, local Realtors right in your neighborhood. .

Step 2: Familiarize Yourself With The Entire Sales Agreement. Nearly all jurisdictions have standardized real estate contracts which have become lengthy and complex over the years. It is important that you read it carefully and be aware of what you are agreeing to and become familiar with every unmodified term and condition. Make sure there is nothing in the agreement that needs to be taken out, rewritten or added. The Realtor will be able to assist you in the process to assure are protected and in compliance with law of your State or local municipality.

Step 3: Become Familiar With The Current Real Estate Market. When it comes time for negotiations, knowing what the recorded sale prices were isn't sufficient because often they don't give the complete detail of the transaction. As an example, two houses might have both sold for $300,000. One home in the area may have sold for $350,000 while the other went for $300,000. One owner negotiated with the buyer and agreed to a 6 percent seller credit for a new roof and appliances. In this example, the 6% would equal $18,000. Local Realtors who are familiar with the details of recent sales are able to provide the best negotiation advice.

Step 4: Understand All Of The Terms You Are Willing To Offer. You are confident that your home is going to sell at some satisfactory price, but instead of starting out with an inflexible amount, consider the property sale as a combination of price and terms. For example, it might make more sense in a slow market to help reduce the buyer's closing costs by offering a "seller contribution "instead of lowering the price of the property. Often the seller contribution could be significantly less than a reduction in price, and buyers who require cash to close the sale could find it more attractive as well. Another popular strategy is to offer the buyer an incentive in the form of a credit to buy down their interest rate, therefore making it more affordable on a monthly basis.

Step 5: Request A Smaller Deposit.In order to bind a legal contract, the buyer needs to make a deposit. In an ideal marketplace, a seller will receive a large deposit, but in a down or "off" market, a much smaller deposit may have to be accepted. The buyers prefer to make the lowest possible deposit because a huge deposit indicates a big financial and psychological commitment. You can ask for a lower deposit if the buyer has a mortgage pre-approval or if the buyer shows a strong interest in the property and you have no other offers.

Step 6: Sweeten The Pot. Are you really planning to take large items like a swing set or washing machine? In certain cases it may be better to leave such items if a buyer makes an offer.

Step 7: MLS Photos Must Be Up To Date. If your MLS photo shows snow around your home in the middle of the summer, potential buyers will know your house has been on the market a while.  They may interpret this as meaning that you might be desperate to sell and will expect to lower your initial offer. Make sure your Realtor posts recent photographs.

Step 8: Fully Understand The Marketing Plan. The realtor's marketing plan should be reviewed quite often to see that it is being followed and is changed whenever it is needed.

Step 9: Check Out Open Houses. Going to open houses, also known as your competition is a great idea. It isn't always easy to be objective.  However, do other owners have selling ideas that might work in regards to your home? Is there something you can use to bargain with? You could consider offering to do some painting or other cosmetic repairs.

Step 10: Keep Everything In Context. Don't worry about nickels and dimes when your main goal is to get the house sold.

As an example, we were just about 1 week away from settlement when I was advised by the Realtor that the buyer (my client) was requesting an extra $600 to resolve last minute concerns. That gesture seemed like nothing more than a case of buyer's remorse, so rather than loose the deal, the seller agreed to it, received an otherwise ideal price, and closed the sale. It wasn't long before the prices softened in the local market. The seller thought it was better to lose $600 than to find another buyer later when the market was harsher and the final sale price might have been less by several thousands of dollars. Of course the seller would have preferred to save that $600; However, six hundred dollars was a small price to pay considering that the delays could have meant a big reduction in price and worse no sale at all.

Finally, as you work with your Realtor, make sure you set a fair and realistic price.  Even a 2-3 month delay in selling your home could cost you $10-20,000.  They know the market and what is selling.  Don't get attached to a set sales price and remember, you will be getting a great deal on the new home you are purchasing.

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

In the past few days, I have had the opportunity to speak to several local Realtors in the Appleton market about their feeling on the Presidents new tax credit for first-time home buyers;  More specifically, how they viewed this new home buying incentive and  their ability to attract more buyers, make offers and get to the settlement table.

The response was mixed. Some were very enthusiastic and optimistic, while others were guarded and concerned.  Regardless of the reaction to the questions, one thing was constant. How is the new buyer going to come up with the down payment and closing costs? The Realtors I spoke with are working with an average purchase price of $135k - $150k - This would put the down payment on a FHA loan (3.5%) at $4725 and 5250 respectfully.

This got my head working overtime to come up with a strategy  to utilize with first-time buyers.

I am ready to rock and roll . . . are you?

Here is the strategy - PLEASE USE IT AND ABUSE IT!

1.The Tax Credit allows prospective home buyers to adjust their income tax tax withholding up to the qualified tax credit. Oh Yes - By reducing their tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.

Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

On another note - here is more interesting news from the plan:  

Additional rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a down payment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

I have been upable to confirm anything here in the state of Wisconsin. I would suggest that you keep an eye on your state and local news for any updates on tax-exempt bonds - If I run acroos anything, I will be sure to provide you with an update. note: tax law detail was provided by NHBA

Also, be sure the take a peak at this post . . .it is quite insightful.

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

Housing and Mortgage Industries Benefit from the 2009 Economic Stimulus Plan 

Signed . . . Sealed . . . Delivered . . .Tax cuts and spending programs are the target to revive the US Economy. Yes the $787 Billion Economic Stimulus Plan is signed sealed and delivered to the American people. Scaled down from nearly $1 Trillion (with a BIG T), the plan will stand as the largest anti-recession effort in the U.S. since the great World War II.

Key provisions in the plan are Tax Credits for first-time home buyers, tax incentives to jump start energy savings, repair public housing and expand housing assistance to promote neighborhood stabilization.

Keep your eye open in the coming weeks for an expanded plan to assist struggling homeowners before they are faced with foreclosure. Birds flying around Washington are reporting that the Obama Administration is looking to spend an additional $50 billion in direct assistance to homeowners struggling to keep afloat.  

Below are more details of the plan in simple terms. It is my intent to help you understand the plan and provide assistance in any way.

Tax Credit for Home Buyers

First-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.  Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.  Buyers will have to repay the credit if they sell their homes within three years.

For a really great comparison and more information, please visit Larry Bettag's  post.

Home Buyer Credit is Passed By Congress!!! All you need to know!!!

Additional Housing-Related Provisions

Tax Incentives to Spur Energy Savings and Green Jobs - This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings - This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization.  According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing-This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance-This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future

Another thing to keep an eye on in the coming weeks is President Obama's plan to help struggling borrowers before they are faced with a default on their mortgage.

According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That's because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

The Economic Stimulus Plan is huge, and impacts a number of industries. I've highlighted some of the major provisions that may impact you now and in the future.

I truly hope that this information has been of benefit -

As always, if you have any questions or would like to discuss how this may specifically impact you, I'd be happy to sit down with you. Just call or email me to set up an appointment.

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

Happy Friday! I just love this thought and I hear it more and more these days from both sides. A day does not go by with out hearing the jingle from that well known radio station WFMW or WIIFM (What's in it For Me).

"Successful people are always looking for opportunities
to help others. Unsuccessful people are always
asking, 'What's in it for me?'"

by Brian Tracy, author, speaker, consultant

All of the money you'll ever make in your entire life currently belongs to someone else. You can ask for it; you can beg for it, you can even trick someone into giving it to you. But you'll never get it UNLESS you give them something of value that they want or something they need. The second you help them, they'll gladly open their wallets and give freely.

Make it a Fabulous Friday!

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

This story, RANTshould bring it right home for the good people of Wisconsin - I am quite sure that this is happening all over this great land. This is a personal opinion from a professional mortgage planner who is tired of the snide comments and back lashing we have endured over the course of the past 12 months. I am a professional and have practiced ethically and with my client's best interest in mind. No one is throwing a party for me and my colleagues. And by the way . . . where is my reward for being good and showing a profit? - wheeeew - now I feel better:)

Oh Not So Fast - More RANT- We have been thrown in the pit to defend our industry and our livelihoods as the result of the bad loans originated in the minds of the greedy sitting in Ivory Towers. I did not dream that our local trusted Bank (so highly respected with in the Community) would act so foolishly. After all this is the conservative Mid-West, or is it simply a case of monkey see, monkey do?

Now perhaps the trips were planned prior to this hitting the air waves, but what concerns me is that they took the money even though they do not need it with no plan to stimulate the local economy that supports them. How about extending a line of credit to Mr. Local Business. After all they have been a loyal customer who has always paid their bills for many years now. 

OK - I am done RANTING now - Here are the links to the story - They are asking for comments, so please endulge - I am done....

Hot Off The Press Are Two Local Articles

"Associated Bank plans its own fiesta after bailout party" - Posted: Feb. 11, 2009 by Daniel Bice - Milwaukee Journal Sentinel

Associated Bank is moving from the welfare line to the conga line.

Just three months ago, the state's second-largest bank joined scores of other troubled lenders when it cashed a check for $525 million from the federal government to prop up its bottom line.

Today, Associated is preparing to drop tens of thousands of dollars - and maybe more - to send about 100 employees to a posh Puerto Rican resort as a reward for a job well done.

Making the trip will be everyone from backroom workers to the CEO, Paul Beideman.

CLICK HERE for the rest of the story!!

Associated Bank takes $525M in bailout money, plans Caribbean trip for 100 by reporter Nathan Phelps - Green Bay Press Gazette  .

Wisconsin's second-largest bank is sending about 100 employees to a Puerto Rican resort, nearly three months after its parent company accepted more than half a billion dollars in taxpayer bailout money.

Top employees at Associated Bank have earned the trip, chief executive Paul Beideman said, particularly because the bank is profitable and accepted bailout funds only as a precaution, not as a result of mismanagement.

"How are our associates going to react to it if we willy-nilly cancel the trip because of some issues people are having with other companies," he told the Milwaukee Journal Sentinel on Wednesday. "Given the set of facts that we have, canceling the trip and disappointing these high performers really just wasn't warranted."

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Thanks for letting me ramble! Wow I went from fun to furry!

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

Less than 30 days into the new administration, Fannie Mae released information on their new change to roll back a very unpopular guideline change that occurred less than 12 months ago.

Information from the revision to the Selling Guide says" Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fied investors. Experienced investors play a key role in the housing recovery and Fannie Mae's continued support for investor borrowers is consistent with its mission to provide stability, liquidity, and affordability to the nation's housing system".

On the onset of Spring, Investors will once again have the opportunity to own and finance up to 10 individual properties. The change is in effect on March 1, 2009 but it is important for Investors to be aware of the restrictions that are attached to this change:

Investors who are purchasing their 5^th through 10^th home will be required to meet the following minimum requirements: For a complete illustration of the changes, see Fannie Mae's Announcement 09-02.

Okay, here is a snapshot of the credit restrictions:

• 720 credit score
• 25% down payment for 1 unit properties and 30% for 2 to 4 unit properties
• Cannot have any late payment on a Mortgage in the past 12 months
• Will require 6 months of reserves for each property (Principal, Interest, Taxes and Insurance + any Association Dues, etc).

This is a good sign for Investors who can meet the above criteria - It would appear that Fannie Mae is seeing the light. There are experienced investors who meet the limitation, and can play a "key role" in housing recovery.

There is one more important point to make . . . Investors that had been stymied by the previous restrictions can now take advantage of the refinance opportunities that had limited them over the past 12 months.

Let's hope that this change will promote foreclosure liquidation which will provide support to the housing market as a whole. . 

Fannie Mae 2009 Changes can be viewed here:  

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

Closing on your new home is an exciting time. You have just received word from your Realtor that your offer has been accepted, the closing date is set and you are pulling together all the final details. The final step is the settlement or closing.   

If not prepared, the settlement statement (ie: good faith estimate), breakdown of the loan cost from the lender can be a real eye opener. You ask yourself, where on earth did all these closing costs come from; and do you really have to pay all these fees?

Regardless of how you negotiated your purchase contract and the structure of your loan with your mortgage professional, it is important to understand the fees associated with your new loan. Some fees represent actual costs to the lender imposed on them by third parties, and are NOT negotiable. As with anything in the home buying process, ask about any fee whose purpose you don't understand. Here are some examples of common non-negotiable fees: 

• Credit check fee. The lender has to pay this to verify your credit history.
• Appraisal fee. A lender must make sure your house is worth the price you're paying.
• Underwriting and Processing: These are fees charged to the borrower to underwrite the loan and process and prepare the loan for closing.
• Title insurance fee. Title Insurance is required on all mortgage loans and is a requirement by the lender. This fee purchases an insurance policy protecting the lender in case legal problems crop up with the title to your new home. The insurance doesn't protect you, the buyer, in anyway if you want such an insurance policy, you have to purchase it yourself at or within a stipulated time period of closing. Most title insurance companies recommend you do this. Problems with title are very uncommon, Keep in mind that legal fees can be costly, so make some inquiries and decide whether or not you want to assume the risk.
• Courier fees and document preparation fees for the title insurance company.
• Fees for determining whether you live in a flood-prone area.
• Government fees for tax stamps affixed to the deed and for recording the transfer of the deed. 

Finally, expect your closing costs to include what is referred to as "pre-paid items". Pre-paid items would include portions of your homeowners insurance and property taxes to put into your escrow account, in addition to pre-paid interest on the new loan. Mortgage interest is always paid in arrears or backwards. In simple terms, your mortgage interest is paid after it is earned. Example: Payment due on March 1st is paying for the interest earned on the loan for the previous month, in this example, February. So if you close your loan on the 15th of the month, you can expect to see 15 days of interest as a pre-paid item on your settlement statement. 

If you are interested in more information or would like a personal "No Obligation" consultation, please feel free to contact my office at 920-560-5606 x 103 and ask for Gwenn Tanvas. We are here to help you through the mortgage planning process and assure that you have all the facts into front of you to make an informed decision.

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

Have you ever been so afraid and pushed yourself right through it? Felt that sinking feeling and forced yourself forward? It is said that F.E.A.R. is an acronym for "False Emotions Appearing Real". I have heard that statement on numerous occasions, but it wasn't until I was faced head on with it that I truly understood.

I like to think of myself as an adventurous gal, so climbing up a pole and jumping off appeared to be a piece of cake... right? Well I climbed that pole like a little monkey and then I got to the top. Everything changed! That 20" pole appearedto be all of 50' and my legs began to shake. Oh my goodness, now what. I had to some how get my feet ON TOP of this tiny wobbly disk, LET GO, stand up, turn around and jump - NOT WITHOUT A NET!!!!!

The F.E.A.R. set in and I was shaking like a leaf. While trying to regain my composure, I heard the crowd below yelling "The Pole Doesn't Shake, You Do" - I some how mustered up enough will to get both feet on top of that pole, stand up, turn around and jump for the bar.

It was an amazing experience. Sure I have been in situations that I was fearful of and made it through, but this was different. In a matter of seconds, I had to decide to believe in myself and move. Not hours or days, . . . seconds.

This was a really cool experience. I hope that you too get an opportunity to experience your true abilities.  

"With greater confidence in yourself and your abilities, you will set bigger goals, make bigger plans, and commit yourself to achieving objectives that today you only dream about."

- Brian Tracy: author and speaker.

 This was previously inappropriately posted in Wordless Wednesday - Sorry for the error....

Photo taken at High Valley Ranch - Clearlake Oaks, CA - photo by Phyllis Frates, Big Lens Photography, San Rafael, CA -

http://www.biglenses.com