The Real Folsom Blog

Tax Credit for First -Time Home Buyers AND Repeat Buyers

I love getting good news like this from guest blogger Barbara Van Duyn. Read on! Barbara is a certified mortgage planner with First Priority Financial. If you have any mortgage questions, you can reach Barbara through her Web site, www.BarbaraVanDuyn.com.

It’s official. The home-buyer tax credit has been extended. Breathe in … breathe out … you now have until April 30, 2010, to get a purchase contract executed and qualify for the $8,000 first-time home buyer tax credit. If you’re already a homeowner (with some equity) and planning to buy up or downsize, you may qualify for the new $6,500 tax credit. In either case, your escrow must close no later than June 30, 2010. Since Congress didn’t stretch this out for all of 2010, I wouldn’t plan on another extension. One more thing … the qualifying income limits have been raised significantly.

No need for me to reinvent the wheel. For all the details about both programs you have to check out this Web site. It has an awesome Q & A section. Until the next time, take care. Barbara

Interesting News From HUD Re: First-Time Home Buyer Tax Credit

This morning, I got word from Barbara Van Duyn of First Priority Financial that HUD has just announced that they will allow the $8,000 First-Time Home Buyers tax credit to be used towards a buyer’s purchase. Here’s a summary of uses that HUD outlines for the tax credit:

• Cannot be used for the 3.5% down payment
• Can be used for additional down payment
• Can be used towards closing costs
• Can be used to buy down the rate

In the May 29th announcement, HUD outlines the do’s and don’ts for any agency/non-profit who participates in this program.  It also sets a maximum fee that can be charged to the borrower of 2.5% for purchasing their tax credit and its repayment.

However, Barbara cautions, “We have NO idea who will provide this service yet or lenders who will allow it to be done. There are more questions than answers. All we have at this time is HUD allowing it to be done and now we wait to see who steps up to the plate to buy these silent loans.”

Potentially exciting news if it comes to fruition. If you have any questions about the tax credit, feel free to contact Barbara directly. You can reach her through her Web site at

www.BarbaraVanDuyn.com

CA Soon To Offer a Registry of Foreclosure Consultants

Good news in the Sac Bee this morning for anyone who is struggling with their mortgage payment and thinking of seeking the help of a foreclosure consultant. As I have blogged in the past, there is something about a bad economy that brings out the scam worms out of the woodwork. Now comes word the state is stepping up by creating a registry of foreclosure consultants. Starting on July 1, homeowners will be able to verify the credentials of foreclosure consultants by checking a registry maintained by the state attorney general's office. To check the registry, you will be able to call (800) 952-5225. And for a referal to a federally approved housing counselor, you can call (800) 569-4287 or go to www.hud.gov.

Be Careful When Approached by Companies Offering To Help You Modify a Loan

Sad thing that when times get hard, the low-lifes come out with a vengeance to prey on those in distress. An article in yesterday's Bee brought that point home. Seems there are questionable people out there now promising to help homeowners stop foreclosures or modify their loans for an upfront fee. They then don't deliver on promises they can't keep. What triggers the calls from these people are the notices of default. They offer help for services that consumers can do themselves or at least get for free from any number of non-profit loan counselors. Here is what the California Department of Real Estate says borrowers should know: if you have received a notice of default, a loan modification company cannot collect an advance fee; and lawyers are exempt from this rule if they are rendering a legal service and operating under the scope of their licenses. Also, if you have not yet received a notice of default, a loan modification company can charge you an advance fee but it must first provide you an agreement to sign that explains what services you will receive and, before you sign the agreement, it must have been sent to the DRE for review. Then the fees collected are kept in a trust account and only disbursed for agreed-upon services. So please be careful if you start getting those kinds of calls. And don't be afraid to say no as many times as is necessary.

Vets Get Temporary Higher Loan Limits

Some good news for Veterans in the latest issue of California Real Estate Magazine:The Department of Veterans Affairs is raising the caps for no-down-payment home loans to the same levels as the Housing and Economic Recovery Act of 2008 limits--this through December 31. The temporary limits are equal to 125 percent of the local area median home price. On January 1, the loan limit will go back to 115 percent of the median home price, with a cap of $625,500. These days the VA is currently one of the few available sources of zero-down loans. My how things have changed in just a few years...

Green Tuesday: FHA's Energy Efficient Program Can Help You Save $$$

FHA programs are making a comeback with a vengeance these days. After almost dissapearing during the super hot market of the early 2000s, lenders are now touting the virtues of several FHA programs. The one of particular interest to me today (seeing as it's Green Tuesday on the Real Folsom Blog) is FHA's Energy Efficient Program. I had the opportunity to hear more about this program from Bobbi Glassel at this morning's Folsom Broker tour. Bobbi, an FHA programs coordinator and documentation specialist, knows the ins and outs of this program well. Here are some of the highlights of the program: When you buy, sell, refinance, or remodel your home, you can save money by using the Energy Efficient Mortgage (EEM) to make improvements that will increase the home's energy efficiency. Some examples of these improvements: replacing a central heating/cooling system, installing a whole house fan, replacing the water heater, installing dual pane low E windows, adding attic and wall insulation, etc., etc. The EEM can be used with most FHA loan products; the borrower is automatically qualified; and the appraisal automatically increases in the amount of energy improvements.There are too many details to this program to go into here (drop me a line if you want to find out more). But basically, after an energy audit of the home has been done and you get the EEM, the repairs are completed after close of escrow. Then just sit back and figure out how you will invest the dollars you saved on your monthly heating, cooling, and utility bills.

Help for Mortgage Woes in Sacramento Area

Another depressing story in today's SacBee about scam artists preying on homeowners struggling to keep up with their mortgage payments. I hate to read these stories but on the other hand it helps get the word out so other homeowners aren't victimized by these sleazeballs. At the end of the article, "Home scam suspected," there is some information about some legitimate groups that may be able to help you in the greater Sacramento area if you are having trouble with your mortgage. Here are the groups:

• NeighborWorks Homeownership Center, (916) 452-5356, www.nwsac.org
• Home Loan Counseling Center of Sacramento, (916) 646-2005, www.hlcc.net
• NeighborWorks America and Home Ownership Preservation Foundation national hotline, (888) 995-4673.
• ByDesign Financial Solutions, Sacramento, (800) 750-2227, www.bydesignsolutions.org.
• Sacramento Mutual Housing Association, (916) 453-8400, ext. 43. They can accommodate Russian, Hmong, Vietnamese, and Mien speakers.

New Hotline Help for Homeowners Facing Foreclosure

We've been fortunate in Folsom regarding foreclosure as we have a much lower percentage of foreclosed homes than in other Sacramento areas. But that said, some Folsom homeowners are struggling as their ARM loans reset. Now they can get some help thanks to a new hotline set up especially for them. The HOPE NOW Alliance announced earlier this week the establishment of a consumer hotline for homeowners facing foreclosure. The HOPE Homeowner's hotline is being managed by the Homeownership Preservation Foundation, and provides free, independent, bilingual, HUD-approved counseling and advice 24 hours a day for homeowners who have questions about their mortgage loans, and may be in danger of losing their homes. According to their Web site, HOPE NOW is a cooperative effort between counselors, investors, and lenders to maximize outreach efforts to homeowners in distress.

New Way To Tap in Your Home Equity

You may want to check out the interesting article in today's Business Section of the Sac Bee entitled Slicing up home equity pie, which takes a look at a new real estate investment group that is offering homeowners cash in exchange for a percentage of their home's future value. Rex & Co. basically offers qualifying homeowners cash based on the home's value today in exchange for sharing a percentage of the home's value when it's sold.It's sort of like a home equity loan but without the monthly payments. As with all deals involving money and your house (and home), you should always read the fine print very carefully and not sign anything unless you truly understand how the deal would play out under different scenarios. You can find more information on Rex & Co.online.

Wachovia Offering a New Down Payment Assistance Program

This one sounds like it's worth checking out if you are planning to purchase a home. Wachovia Mortgage Corporation has a new down payment assistance program offering up to $25,000 down payment assistance--and this money does not have to be repaid and can be used for closing costs or a down payment. Here are the guidelines:

• A 65% debt to income ratio
• A FICO score of at least 600
• Maximum income limits between $53,750 and $70,950
• No distressed properties
• Full documentation and a 30-year fixed loan

So if you are planning to purchase a home in the near future, it may be worth your while to check out this down payment assistance program.

Make it a great day!