First-Time Homebuyer Tax Credit 

How does a tax credit work?

• Reduces income tax liability
• Credits are claimed on an individual's income tax return
• Maximum credit amount is $7500

Who can use the new tax credit?

• First-time homebuyers or individual who has not had an ownership interest in a principal residence in the previous three years.

What if my taxes due on my return are less than $7500

• The difference would be treated as an overpayment and the purchaser(s) would receive a tax refund.

Is there an income restriction?

• Based on tax filing status
• Single or head of household < $75,000
• Joint filing < $150,000

Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?

• No, individuals making up to $95,000 and joint filers making up to $190,000 are eligible for a partial tax credit

Is the amount of the credit tied to the price of the home?

• Yes, credit is 10% of the cost of the home, maximum credit of $7,500
• Amount of credit is same for all taxpayers, married or single

Are there property location restrictions?

• Property must be located within the United States

How do I apply for the credit?

• Claim the credit on the appropriate IRS form 1040, or any special forms the IRS requires.
• No pre-purchase authorization, application or similar approval process

Can I use the credit amount as part of my downpayment?

• Cannot claim the credit any earlier than the 2008 tax return that will be filed in 2009.

What is the repayment feature of the credit?

• There is no precedent for repayment of a tax credit created for individuals at this time.

Terms for repayment?

• Repaid in increments of 6.67% of the amount over 15 years

When do I make a repayment?

• Credits taken in 2008 will not be repaid until 2010

Can the IRS put alien on my property for the amount of the credit repayment?

• The statue does not grant the IRS that authority

What if I sell my home before the 15-year repayment period?

• Any amount of the unpaid credit will be reduced from any proceeds
• If there is a loss or the gain from the sale is less than the amount of the repayment then the liability is forgiven.

Any other exceptions to repayment?

• If the person dies before credit is repaid the amount is disregarded
• There are special adjustments to people who sell as part of a divorce and/or homes that are part of an involuntarily conversion.

If I received a refund of a portion of the tax credit because my total tax liability was less than the amount of my tax credit, do I have to repay the amount of the refund?

Yes

Statewide Fixed NO DPA – (FHA, VA, Conventional & RD) – Fixed Rate – 30-year term

            6.000% - No Discount Points – Amortization Factor – 5.99551

      Statewide Fixed WITH DPA – (FHA, RD & Conventional 97%) – Fixed Rate - 30-year term

            6.375% - No Discount Points – Amortization Factor – 6.23870

      Statewide Step NO DPA – (FHA & Conventional 95% ONLY) – 30-year term

            5.500% - No Discount Points – Years 1-3 – Amortization Factor – 5.67789

            6.500% - No Discount Points – Years 4-30 – Amortization Factor – 6.27540

If you have any clients looking to use MSHDA and making offers this weekend make sure they lock by Sunday. If you have any clients using MSHDA and you aren't sure if the loan officer has locked them in ....well it might be a good time to check.

Pricing effective 7/28 Source ( MSHDA)

Statewide Fixed NO DPA – (FHA, VA, Conventional & RD) – Fixed Rate – 30-year term 5.875% - No Discount Points – Amortization Factor – 5.91538

Statewide Fixed WITH DPA – (FHA, RD & Conventional 97%) – Fixed Rate - 30-year term 6.250% - No Discount Points – Amortization Factor – 6.15717

Statewide Step NO DPA – (FHA & Conventional 95% ONLY) – 30-year term 5.375% - No Discount Points – Years 1-3 – Amortization Factor – 5.59971 6.375% - No Discount Points – Years 4-30 – Amortization Factor – 6.19317

As Always the no DPA means no MSHDA DPA third party DPA's do not effect the rate.

I am sure we are all getting more familiar with the MSHDA product line, but here are a few misconceptions that I have been helipng my clients break.

For example.

I just had a client who had sold their previous home and was moving to a new area and had 20% to put down on the purchase of a new home. Both the borrowers worked. They thought there was now way that MSHDA would help them. Well if you take a closer look if you buy in a targeted area prior home ownership doesn't matter. Even though both clients worked they also had 1 child and in that area that meant the income limit was $84k a year. Again a nice solid middle class couple with money to put down that without my attention would be paying way too much for the loan. They are now able to obtain fixed rate financing for nearly 1% below the market rate.

MSHDA reminders

• allows a purchase price up to $224,500
• in most areas if you have children you can make up to $85,000 a year
• you can use outside downpayment assistance companies to get into a home with 0 money out of pocket
• You can be putting a substantial amount of money down
• There are credit score adjusters so the savings are even more substantial for credit scores under 720

Want to find a list of the targeted area and income limts well try this link http://www.myfavoritebanker.com/MSHDAHomeLoans

You will be suprised at how many clients can fit into this program and dramatically reduce their house payments and interest rate.

Why don't more people know well I think a lot of lenders shy away from the additional paperwork or aren't approved to do MSHDA loan.

I also think many Realtors have far more concern than is necesary about MSHDA running out of funds and the additional time alotment for the MSHDA process.

Currently MSHDA rates are at 5.625% yes there is a 1% origination fee with MSHDA loans, but the interest savings pays for that in about 2 years.

30 year fixed Michigan mortgage rates

Take advantage of the recent drop in rates to refinance and lock in your ARM!!!

I would offer 6 %/6.162% apr 

Assumes 30 year fixed mortgage with a $200k loan amount and a $250k home value, 1% origination fee with a 30 day rate lock. Based on a rate and term refinance with escrows, and that you meet conforming mortgage guidelines. Rates may vary based on loan size and credit score.

To obtain more information and a to receive a quote specific to your needs and situation email alacey@principlemtg.com and we can schedule a time to talk

To apply: https://principlemtg.mortgagexsites.com/mercury/loanappweb/LoanAppNew.aspx?AWSAccountsID=438866&LanguageID=1

Make sure to select Alan Lacey as your loan officer.

Rates are subject to change based on variations in the market. This is not a commitment to lend and shouldn’t be construed as such. Only valid offers if Alan Lacey is your loan officer. Minor fluctuations can occur in APR based on closing date and any changes to the costs my lenders charge.

To see what competing lenders can offer just check the links to the right and you will be able to check the rates of the nation’s largest lenders for yourself and compare what they can offer vs. what I can do.

A few such as Countrywide make it nearly impossible to get a quote without talking to a loan officer, and others such as Quicken Loans require you to put in a payment trying to make payment the basis of your decision rather than the actual loan terms.

Michigan jumbo mortgage rates for 5 year and 7 year fixed ARMS

Stated income no hit for borrowers with scores over 700!!!

I am not currently recommending jumbo fixed rate products in all but a very few cases going to the conforming limit of $417k and taking a second for the difference will give you a lower blended rate.

5 Year ARM:

I would offer 6.125%/6.551% apr

7 year ARM:

I would offer 6.25%/6.542% apr

Assumes a $650k loan amount and an $813k home value, and a $2000 origination fee.  Rates may vary based on loan size.

Special features:

Free 60 day rate lock

Free float down to the best rate of any day between lock in and 3 days prior to closing.

No escrow required

Scores as low as 650 for full documented income

Stated income over 700 score no charge

Loan amounts up to 1.5 million at the quoted rate

<!--[if !supportLists]-->·         <!--[endif]-->NO pmi for loans above 80% ( loan amounts maybe restricted)

Simply the best jumbo loan product I have ever been able to offer

To obtain more information and a to receive a quote specific to your needs and situation email alacey@principlemtg.com and we can schedule a time to talk

 To apply: https://principlemtg.mortgagexsites.com/mercury/loanappweb/LoanAppNew.aspx?AWSAccountsID=438866&LanguageID=1

 Make sure to select Alan Lacey as your loan officer.

 Rates are subject to change based on variations in the market. This is not a commitment to lend and shouldn’t be construed as such. Only valid offers if Alan Lacey is your loan officer. Minor fluctuations can occur in APR based on closing date and any changes to the costs my lenders charge.

 To see what competing lenders can offer just check the links to the right and you will be able to check the rates of the nation’s largest lenders for yourself and compare what they can offer vs. what I can do.

 A few such as Countrywide make it nearly impossible to get a quote without talking to a loan officer, and others such as Quicken Loans require you to put in a payment trying to make payment the basis of your decision rather than the actual loan terms.

Michigan no cost mortgage, Michigan no fee mortgage, Michigan no closing cost mortgage

Assumes 30 year fixed mortgage with a $200k loan amount, rate and term refinance with escrows, and that you meet conforming mortgage guidelines. Rates may vary based on loan size and credit score.

I would offer 6.75%/6.75% apr 

Remember a no cost loan still has costs the lender, bank or broker, just pays for them out of the proceeds from the rate. (Since proceeds are paid based on a percentage of your loan amount you can see why there is a higher no cost rate for lower loan amounts, and perhaps a lower rate for larger loan amounts).

To obtain more information and a to receive a quote specific to your needs and situation email alacey@principlemtg.com and we can schedule a time to talk

To apply: https://principlemtg.mortgagexsites.com/mercury/loanappweb/LoanAppNew.aspx?AWSAccountsID=438866&LanguageID=1

Make sure to select Alan Lacey as your loan officer.

Rates are subject to change based on variations in the market. This is not a commitment to lend and shouldn’t be construed as such. Only valid offers if Alan Lacey is your loan officer. Minor fluctuations can occur in APR based on closing date and any changes to the costs my lenders charge

To see what competing lenders can offer just check the links to the right and you will be able to check the rates of the nation’s largest lenders for yourself and compare what they can offer vs. what I can do.

A few such as Countrywide make it nearly impossible to get a quote without talking to a loan officer, and others such as Quicken Loans require you to put in a payment trying to make payment the basis of your decision rather than the actual loan terms.

30 year fixed Michigan mortgage rates

Take advantage of the recent drop in rates to refinance and lock in your ARM!!!

I would offer 6.125%/6.287% apr 

Assumes 30 year fixed mortgage with a $200k loan amount and a $250k home value, 1% origination fee with a 30 day rate lock. Based on a rate and term refinance with escrows, and that you meet conforming mortgage guidelines. Rates may vary based on loan size and credit score.

To obtain more information and a to receive a quote specific to your needs and situation email alacey@principlemtg.com and we can schedule a time to talk

To apply: https://principlemtg.mortgagexsites.com/mercury/loanappweb/LoanAppNew.aspx?AWSAccountsID=438866&LanguageID=1

Make sure to select Alan Lacey as your loan officer.

Rates are subject to change based on variations in the market. This is not a commitment to lend and shouldn’t be construed as such. Only valid offers if Alan Lacey is your loan officer. Minor fluctuations can occur in APR based on closing date and any changes to the costs my lenders charge.

To see what competing lenders can offer just check the links to the right and you will be able to check the rates of the nation’s largest lenders for yourself and compare what they can offer vs. what I can do.

A few such as Countrywide make it nearly impossible to get a quote without talking to a loan officer, and others such as Quicken Loans require you to put in a payment trying to make payment the basis of your decision rather than the actual loan terms.

Hudson and Marshall has over 700 for auction mainly SE side of the states

http://www.hudsonandmarshall.com/auctionInfo.asp?auctionName=Michigan+%2D+700%2B+Properties&auctionID=367

 Williams and Williams has a bunch as well

Michigan jumbo mortgage rates for 5 year and 7 year fixed ARMS

Stated income no hit for borrowers with scores over 700!!!

I am not currently recommending jumbo fixed rate products in all but a very few cases going to the conforming limit of $417k and taking a second for the difference will give you a lower blended rate.

5 Year ARM:

I would offer 6.125%/6.551% apr

7 year ARM:

I would offer 6.25%/6.542% apr

Assumes a $650k loan amount and an $813k home value, and a $2000 origination fee.  Rates may vary based on loan size.

Special features:

Free 60 day rate lock

Free float down to the best rate of any day between lock in and 3 days prior to closing.

No escrow required

Scores as low as 650 for full documented income

Stated income over 700 score no charge

Loan amounts up to 1.5 million at the quoted rate

NO pmi for loans above 80% ( loan amounts maybe restricted)

Simply the best jumbo loan product I have ever been able to offer

To obtain more information and a to receive a quote specific to your needs and situation email alacey@principlemtg.com and we can schedule a time to talk

 To apply: https://principlemtg.mortgagexsites.com/mercury/loanappweb/LoanAppNew.aspx?AWSAccountsID=438866&LanguageID=1

 Make sure to select Alan Lacey as your loan officer.

 Rates are subject to change based on variations in the market. This is not a commitment to lend and shouldn’t be construed as such. Only valid offers if Alan Lacey is your loan officer. Minor fluctuations can occur in APR based on closing date and any changes to the costs my lenders charge.

 To see what competing lenders can offer just check the links to the right and you will be able to check the rates of the nation’s largest lenders for yourself and compare what they can offer vs. what I can do.

 A few such as Countrywide make it nearly impossible to get a quote without talking to a loan officer, and others such as Quicken Loans require you to put in a payment trying to make payment the basis of your decision rather than the actual loan terms.