Great news for first-time home buyers. Last week, Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development stated that the Federal Housing Administration (FHA) is now going to permit it's lenders to allow home buyers to use the $8000 tax credit as a down payment. Previously, buyers had to wait to file their taxes to take advantage of the tax credit, which did not allow home buyers to use the $8,000 tax credit when they needed it most – for the down payment.
By allowing buyers to utilize the tax credit as a down payment, money will now be freed up for the buyer that would otherwise be needed at closing. This will allow the first-time home buyer to save their money for a rainy day or for home improvements. Or it will allow the first time home buyer who does not have enough money for the down payment to access the $8,000 for the down payment.
This new development has the ability to bring thousands of new buyers into the market that would have otherwise has to wait to purchase a home.
This new program has the potential to stimulate the real estate market more than all of the other programs that are out there by attracting almost any first time home buyer that would like to buy a home.
If you are a first time home buyer you could not pick a better time to buy than right now. All of the stars are aligned for you. Interest rates are low, home prices are low and tax rebates are high. I wish I were a first time homebuyer right now! Sellers would have to give the home away for free for there to be a better deal. This is the absolute best time to be a first-time home buyer.
If you are a first-time home buyer, get out there and find your home before this tax credit is gone in November. The tax credit will expire on November 30th. BUY A HOME BEFORE THEN!
Check out www.thebriteway.com for your mortgage needs.
Have a great Tuesday!
Tuesday, May 26, 2009
Thursday, May 7, 2009
105% Mortgage Refinance
Lenders are now announcing if they will offer the new Refi Plus program that was structured by FNMA to assist some homeowners who are faced with declining property values. The program details are now being announced, but some rules are clear.
First, the Refi Plus program targets those homeowners who have made their payments on time, are good risks, but simply cannot refinance to a lower rate because their appraised property value has declined. You can refinance your home up to 105% if its current value. Here are some highlights of the program:
Second mortgages cannot be paid off with this refinance. They must be subordinated, meaning that the holder of those 2nd liens must accept the fact that they will remain in the second position in regards to the prioritization on liens for payoff considerations.
These are credit qualifying loans. While details are still being announced, it appears that the minimum middle credit score must be 660.
Mortgage payment history must show no payments in excess of 30 days late in the past twelve months.
Debt-to-income Ratios – will be considered, so the total monthly credit debt for a borrower cannot exceed 45% of their gross monthly income.
Interest rates are considerably higher than the best rates offered, which makes sense when one realizes the excessive risk of a lender giving someone more money than the home is currently worth.
The existing mortgage must be owned now by FNMA. Curious if your loan may qualify? Visit www.fanniemae.com and click on the window that says “Does Fannie Mae Own Your Mortgage?”
More information will follow over the next several days as program guidelines are interpreted, and interested homeowners should contact their current mortgage servicer to learn if they will offer this program.
Visit www.thebriteway.com is you would like to apply for any type of mortgage.
Happy Thursday!
First, the Refi Plus program targets those homeowners who have made their payments on time, are good risks, but simply cannot refinance to a lower rate because their appraised property value has declined. You can refinance your home up to 105% if its current value. Here are some highlights of the program:
Second mortgages cannot be paid off with this refinance. They must be subordinated, meaning that the holder of those 2nd liens must accept the fact that they will remain in the second position in regards to the prioritization on liens for payoff considerations.
These are credit qualifying loans. While details are still being announced, it appears that the minimum middle credit score must be 660.
Mortgage payment history must show no payments in excess of 30 days late in the past twelve months.
Debt-to-income Ratios – will be considered, so the total monthly credit debt for a borrower cannot exceed 45% of their gross monthly income.
Interest rates are considerably higher than the best rates offered, which makes sense when one realizes the excessive risk of a lender giving someone more money than the home is currently worth.
The existing mortgage must be owned now by FNMA. Curious if your loan may qualify? Visit www.fanniemae.com and click on the window that says “Does Fannie Mae Own Your Mortgage?”
More information will follow over the next several days as program guidelines are interpreted, and interested homeowners should contact their current mortgage servicer to learn if they will offer this program.
Visit www.thebriteway.com is you would like to apply for any type of mortgage.
Happy Thursday!
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