Hello real estate searchers.
I was just sent this information that I thought might possibly benefit you or someone that you know. It is fantastic news for first time buyers. Please take a look and let me know how I can be of assistance to you or your friends and family in real estate purchase of homes or condominiums or residential income unit apartment buildings!
Thanks.... Chun Liu
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FHA plans to allow use of tax credit for down payments
By AUBREY COHEN
SEATTLEPI.COM STAFF
According to a release, HUD Secretary Donovan is going to allow an advance of the $8000 tax credit for first time home buyers to be used for the down payment on FHA loans. Rather than waiting for refunds after the closing, funds will be available at the closing. A second mortgage will be filed and repayment terms will vary. It is important to keep the home as a primary residence for at least 3 years.
Updates to the HUD handbook are as follows [although lenders who implement the program will have clearer instructions]:
II. FHA Guidance
The Tax Credit: Secondary Financing:
Entities that can offer tax credit advances with second liens.
• Federal, state, and local governmental agencies and nonprofit instrumentalities of government.
• FHA-approved nonprofits.
Additional information about these entities:
• Government agencies and instrumentalities of government are described in handbook HUD-4155.1 REV-5, paragraphs 1-13 A and B.
• FHA-approved nonprofits can be found, per each Homeownership Center jurisdiction, at: http://www.hud.gov/offices/hsg/sfh/np/np_hoc.cfm
How the secondary financing works:
• The tax credit advance, when combined with the FHA-insured first mortgage may not result in cash back to the borrower. The second lien may not exceed the total needed for the downpayment, closing costs and prepaid expenses.
• The tax credit advance must provide that if the borrower does not repay the amount borrowed by the designated deadline, that principal and interest payments begin automatically.
• If payments on the tax credit advance are required, they must be included in qualifying the borrower and, when combined with the first mortgage, cannot exceed the borrower's reasonable ability to pay.
• If payments on the tax credit are deferred, the deferment must be for a minimum of 36 months in order for the payment to not be included in the qualifying ratios.
• The tax credit advance second mortgage must not provide for a balloon payment before ten years.
The Tax Credit: Short-Term Loan:
Entities that can offer the tax credit advance with short-term loans:
• Federal, state, and local governmental agencies and nonprofit instrumentalities of government, FHA-approved nonprofits, and FHA-approved mortgagees may provide short-term or "bridge loans" secured only by the anticipated tax credit due the homebuyer as collateral.
How the short-term tax credit advance loan works:
• The amount that may be borrowed in this manner may not exceed the anticipated tax credit due the homebuyer based on the computations of form IRS 5405.
• Fees and charges for the tax credit advance loan are not to exceed a nominal amount necessary for preparing and administering the loan.
The Down Payment Assistance Program has come back in another form.
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Best regards,
Chun Liu, Real Estate Consultant for life!
Team WOWWHEE.com at Keller Williams Coastal Properties
(562)961-1409 direct (562)889-8898 cell
aka Chun@WOWWHEE.com www.WOWWHEE.com
Bank Foreclosed (REOs) Single Family Homes and Condos
Bank Foreclosures as of 5/4/09
Hello everyone,
Still looking for that great deal on a bank owned (REO) property? Just check the list below, current as of May 4, 2009, for the newest condominiums and single family homes that are bank foreclosures (REOs).
Labels: Cerritos Banked Owned, Cerritos Condos, Cerritos financing, Cerritos Homes, Cerritos mortgage rate, Cerritos real estate, Cerritos REOs, Cerritos unit buildings
Current REOs (Bank Foreclosures ) in Your Neighborhood
