The $8,000 firs time homebuyer tax credit won’t last forever.
It’s set to expire by the end of the year.
Made me think of this video:
Now read this overview on why you need to get moving to take advantage of this money.
Zero Down Payment Mortgage Available
September 10, 2009, 7:04, pm By 3 Comments
In an era of the credit crunch a common belief among borrowers is that they can no longer get zero down payment loans. While the free wheeling days of yesterday is certainly past us, there is still one loan program available that has a zero down feature. This zero down mortgage is available with a USDA Guarantee Rural Housing Mortgage.
This loan is not available to everyone and there are restrictions, but there are plenty of borrowers out there for whom this can be a great fit. The USDA Guarantee Rural Housing program is available to homebuyers purchasing a home in a rural area. The area must be defined as rural by USDA Rural Development and eligible properties cannot produce income (so no investment properties allowed). To determine if a property is within an approved area the USDA website has tools to help you identify them. So, if you have a property in mind, go ahead and enter it in and see if the property is located in an eligible area.
There are many advantages to the program. Such as:
- 100% financing for first-time and repeating homebuyers.
- No limit on seller contributions of gift funds from acceptable family, friends or non-profit organization.
- No Maximum loan amount.
- 30 year Fixed Rate.
- No monthly mortgage insurance.
- No reserve requirement (you do not need to show you have sufficient money to cover a mortgage payment for 2-3 months)
Keep in mind that even if you do meet the property requirement there are other requirements specific to your situation. So for borrowers to qualify they must be purchasing a primary residence, not own any other real estate and must meet income limitation requirements. Additionally, income from all household members over the age of 18 must be counted in household income. This household income may not exceed the moderate income levels set by the USDA for the area. Again the USDA website has the details to see if you meet this income limitation.
The USDA Guarantee Rural Housing program has become to mortgage of choice for most borrowers who qualify for the program and want to put a minimal amount down. Arizona homebuyers purchasing a home in the towns of Maricopa, Buckeye, Queen Creek and many other communities will find this mortgage to be a very attractive option.
FHA 203(k) Financing/Rehabilitation Loans
September 5, 2009, 3:17, pm By 1 Comment
With so many REO’s (bank owned properties) there is no telling what state some of these homes might be in. You may fall in love with the neighbourhood, the location or some other attribute of the home and even properties in distress. You don’t have to give up on the property just because you may not have the means to fix up the place. The FHA offers a program which allows you to wrap in the cost of fixing up a place all within one loan. It’s called the FHA 203(k) program.
Under the 203k you are allowed to purchase or refinance a property and finance the construction costs for home improvements at the same time. The loan amount is based on the projected value of the property with the work completed. The 203k program is excellent for properties that need home repairs to be liveable or for home buyers that want to give a home a makeover.
Many listing agents who represent properties in need of repair have used the 203K program to market these distressed properties. This program allows borrowers that otherwise could not purchase the property to buy it and do the necessary rehabilitation. Some contractors who are familiar with the requirements of the 203k program will put together a proposal for necessary repairs on the property listed for sale. The agent can then market the property similar to a new build. The buyer can pick the paint color, cabinets, flooring, etc.
Many buyers agents use the program to find homes for their clients at bargain prices or to make a potential home work when it needs a little help.
Many lenders have stayed away from this program because on the additional layers of risk involved and some have added additional requirements to those of FHA. From our experience the key to a smooth transaction is to have an experienced, reliable 203k consultant and contractor. Surety companies can be very helpful in this type of transaction. This program will take longer and will be more stressful than a regular FHA loan even with the most competent team. The process can be a nightmare if your team is lacking. However, if you work with the right group of professionals who are experienced then you don’t have to pass up on a REO just because it needs a little bit of love.
