Starting immediately, Fannie Mae — the mortgage giant with an estimated 18 million home loans in its portfolio or in mortgage bond pools it guarantees — will allow borrowers who face imminent financial difficulties to request “early workout” loan alterations, even if they’ve never been late.

The Treasury released an announcement to reduce mortgage rates to 4.5%. That put a smile on everyones face, homeowners and potential buyers. Right now the rumor is for new home purchases only because buyers have the power to spark the current housing market. A tax credit was given for 2008 but stay tuned for the rate, tax credit, first time home buyer bonus, or all for 2009.

Despite the credit crunch or financial pain in the markets, there is plenty of money to lend in real estate. Qualifying is still easy, 3% down government FHA loans are very popular.

FHA promotion for special and preferred clients!