Probably the biggest question I get these days is "Has the $8,000 tax credit been extended??"
The short answer is NO. There are bills in the Senate right now that are anticipated to be approved in the coming days, but nothing is concrete at this point.
A few points about the proposed extension:
The tax credit would still be $8,000 for first-time home buyers, but would allow $6,500 for move-up buyers.
The new tax credits will be available from December 1, 2009 to April 30, 2010.
The tax credit will end on April 30, 2010, but as long as you have a binding contract by that date, you will still qualify as long as you complete the transaction within 60 days.
Move-up buyers are eligible, as long as the home they’re leaving has been used as their principal residence for 5 years or more.
Income limits for both first-time home buyers and move-up buyers would be $125,000 for individuals and $225,000 for married couples.
The maximum price of the home being purchased is $800,000.
For purchases made in 2010, taxpayers can claim the tax credit on their 2009 income tax return.
Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.
The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty.
In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011 to claim the home buyer tax credit.
The amendment also includes anti-fraud language that gives authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 years of age or older (no more 4-year olds filing for the tax credit), as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.
This would be a good bill & would continue to stimulate the housing sector - I hope they pass this soon.
Please call me if you are in the market for a home loan. I can get it done!!
I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housingloans inside & out and would love to answer any questions you might have.
I can be reached at the following: *Phone: 386-754-8500 *Email: dan@meridianFL.net
Many people are talking about repealing HVCC...the law stating that mortgage brokers cannot be involved in choosing the appraiser or ordering an appraisal on a conventional loan.
I truly hope they do repeal this, however the real news of the day is that FHA is now following in Fannie & Freddie's footsteps - As of Jan 1 2010 all FHA appraisals are required to be ordered through an independent third party with no loan officer involvement.
A couple notable points:
FHA is saying that AMC's must pay appraisers normal market rates for their appraisals, which is good for appraisers, however the buyer will end up paying a higher price when the AMC adds in their fee.
Appraisal reports will only be good for 4 months rather than 6 months.
The only way another appraisal can be done if there is a value issue is the original report will have to be proven to be flawed in some way.
Many brokers were sending their loans FHA vs conventional because they could still choose the appraiser, so it was inevitable that FHA would also change over - They don't want any additional layers of risk than they already have.
There's never a dull day in this industry!!
Please call me if you are in the market for a home loan. I can get it done!!
I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housingloans inside & out and would love to answer any questions you might have.
I can be reached at the following: *Phone: 386-754-8500 *Email: dan@meridianFL.net
Lake City, Florida's top plumber is Plumbing Now!!
I recently needed a plumber to handle a plumbing emergency in the Lake City, FL area, and called Plumbing Now - I was thouroughly impressed with the experience.
The name Plumbing Now describes their service perfectly. Their friendly office manager was a delight to work with & answered all my inital questions while scheduling the service call. They lived up to their name, Plumbing NOW, & sent a plumber out within minutes, not days.
The plumber that came out, Jake was extremely knowledgable, and fixed numerous other issues while he was there. Their prices were extremely reasonable & their professionalism far surpassed any other plumbing company I've dealt with in the past.
I've used other plumbers from Lake City Florida before, and was sorely disapointed - From plumbers not showing up on time, leaving a huge mess, or charging outrageous prices, the plumbing industry has not been at the top of my list of favorite service professionals. I'm very happy I came upon Ken Roche & the team at Plumbing Now.
Ken Roche has been in the plumbing business for 30 years, and the level of experience along with their commitment to their customers shows. They consistently get voted Best of the Best by the local community. Click here for an map of their coverage area.
I was very impressed to find out that all service repairs are warranted for one year - I don't know of another plumber that offers that kind of commitment to quality work. They also offer an unconditional 100% money back satisfaction guarantee. You know a company is commited to customer service when they are willing to say that they will give you your money back if you're not completely satisfied.
They also have a new construction division that handles much of the plumbing for new custom & spec homes built in the Lake City and Gainesville area.
Plumbing Now can also handle the following plumbing issues in the Lake City, FL & surrounding areas:
I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housingloans inside & out and would love to answer any questions you might have.
I can be reached at the following: *Phone: 386-754-8500 *Email: dan@meridianFL.net
Gainesville, Florida's top plumber is Plumbing Now!!
I recently needed a plumber to handle a plumbing emergency in the Gainesville, FL area, and called Plumbing Now - I was thouroughly impressed with the experience.
The name Plumbing Now describes their service perfectly. Their friendly office manager was a delight to work with & answered all my inital questions while scheduling the service call. They lived up to their name, Plumbing NOW, & sent a plumber out within minutes, not days.
The plumber that came out, Jake was extremely knowledgable, and fixed numerous other issues while he was there. Their prices were extremely reasonable & their professionalism far surpassed any other plumbing company I've dealt with in the past.
I've used other plumbers from Gainesville Florida before, and was sorely disapointed - From plumbers not showing up on time, leaving a huge mess, or charging outrageous prices, the plumbing industry has not been at the top of my list of favorite service professionals. I'm very happy I came upon Ken Roche & the team at Plumbing Now.
Ken Roche has been in the plumbing business for 30 years, and the level of experience along with their commitment to their customers shows. They consistently get voted Best of the Best by the local community. Click here for an map of their coverage area.
I was very impressed to find out that all service repairs are warranted for one year - I don't know of another plumber that offers that kind of commitment to quality work. They also offer an unconditional 100% money back satisfaction guarantee. You know a company is commited to customer service when they are willing to say that they will give you your money back if you're not completely satisfied.
They also have a new construction division that handles much of the plumbing for new custom & spec homes built in the Lake City and Gainesville area.
Plumbing Now can also handle the following plumbing issues in the Gainesville, FL & surrounding areas:
I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housingloans inside & out and would love to answer any questions you might have.
I can be reached at the following: *Phone: 386-754-8500 *Email: dan@meridianFL.net
In-Depth information on the Mortgage Disclosure Improvement Act of 2008 - MDIA
This is a lot of reading, but it's all important information!!
Well, the government's done it again! They're trying to streamline & improve mortgage disclosure for borrower's and in the process they've made life a lot more difficult for everyone (Think HVCC).
The federal government has recently issued final guidelines & enacted MDIA which regulates how & when mortgage brokers & lender disclose the APR on a loan. In theory, it is a good thing to require brokers to properly and accurately disclose, however as usual, they've taken this way too far.
The biggest impact the general real estate industry will realize from MDIA is below:
No one (creditor, broker or third party) can collect a fee for anything associated with the loan application and transaction other than for the credit report until after the borrower receives the initial TIL disclosures.
This means that the broker can not collect the appraisal fee until MDIA guidelines have been met.
Post-dated checks are not permitted.
Appraiser's will typically not perform the appraisal until the fee has been paid, so this will add significant time delays to the transaction.
The regulation states that fees may be collected once the borrowers have received the initial TIL. Many lenders are requiring that they mail out the disclosure - MDIA assumes borrower receipt on the third business day (not counting the mail date).
So basically, best case scenario, you can order the appraisal on the 5th day after taking the application.
If the APR has increased more than .125% points from the most recently issued TIL, a new TIL must be issued and the borrowers must receive it at least 3 business days before signing closing documents.
Including mail time this adds seven days to the transaction
Borrowers cannot sign closing documents until the later of: - The 7thbusinessday after the initial TIL was provided <OR> - The 3rdbusiness day after the borrower received the most recent/the last amended TIL.
Business days are the same as for rescission: Monday-Saturday except for federal public holidays
In the instance of the initial TIL, a business day is Monday-Friday, and Saturday is not included
Several other notes:
Without proof of other means of receipt (signed and dated TIL, or paper acknowledgment) it is assumed the TIL is received 3 business days after mailing.
Loans submitted to underwriting that are not documented or the documentation indicates that fees were collected prior to borrower receipt of the TIL will be rejected by the lender.
None of the waiting periods may be waived by the borrower.
Summary of the changes which take effect July 30, 2009:
New regulations are effective with loan application dates on or after 7/30/09.
The lender must issue initial TILs on purchase, refinance and equity loans on primary residences and second/vacation homes.
The clender, mortgage broker, or any other party to the transaction may not collect any fee other than the credit report fee until the fourth business day (rescission definition) after the initial TIL was issued, or until after receipt of the initial TIL has been documented, if received earlier.
Post-dated checks may not be used.
The borrowers may not close until at least the 7th business day after the initial TIL is issued, or the 6th business day after an updated TIL is issued when the APR changes more than .125% fixed or .25% ARM, whichever is later (6 days assumes 3 days from mailing to receipt, and 3 days from receipt to signing).
A TIL reissued solely because of an increase in a finance charge, a change in loan program, etc., does not impose the new three-day waiting period before closing PROVIDED the new APR is not more than .125% points greater than the most recently disclosed APR.
Frequently asked questions:
How do the new requirements impact applications taken prior to the effective date? -As long as the initial application is dated before July 30, there will be no impact.
Do the timing requirements for the issuance of the initial disclosures and re-disclosure, and fee collection apply to investment property?-No. These requirements only apply to primary residence and second home transactions.
The final TIL must be received 3 business days prior to closing. Is that 3 full days?-You must allow 3 business days for mailing, then the homebuyers have 3 business day review period required to determine if they are comfortable with their loan choice. Closing can occur on the 3rd business day AFTER receipt PROVIDED this is also at least 4 business days after the borrower received the initial TIL (if it is mailed, we can assume it was received on the 3rd business day after it was mailed).
Does the broker have to get the Lender TIL to the borrower within 3 days of application? -No. The lender is responsible for sending out the TIL to conform with MDIA. The broker must disclose the GFE and TIL within 3 days of application to meet RESPA requirements.
Can credit report fees be collected at time of pre-qualified applications?-Yes. The credit report is the only fee that can be collected before the applicant receives the initial TIL.
When a phone application is taken, can a post dated check, credit card or other payment information be collected and held until upfront fee payment is collected?-No. Fees or payment information cannot be collected prior to the allowed fee collection date, which is a minimum of 4 business days after the initial disclosures are mailed (if mailed) or before the applicant receives the initial TIL disclosure if it is not mailed.
If a broker orders an appraisal prior to collecting fees---can this appraisal order continue, appraisal delivered and used to evaluate the loan?-Yes, if the broker pays for the appraisal upfront and does so at their own risk. If the borrower decides not to proceed with the transaction once they get the TIL, they can be under no obligation to reimburse the broker for the cost of the appraisal.
If two borrowers are applying for a loan, and only one person is present at the application, can upfront fees be collected at the time that the one borrower is present?-YES. If there is more than one consumer, the initial disclosures may be made to any consumer who is primarily liable on the obligation.
Does this regulation only impact purchase transactions, or are refinances subject to the same guidelines?-Both purchases and refinances are impacted.
Is the 3 Day Right to Cancel still in effect?-Yes, the right of recision is still in effect for refinance transactions.
Can Lender accept an appraisal that was performed for another lender? Yes, lenders can accept a transferred appraisal and loan as long as no other fees are collected or imposed until the borrower receives the new lenders TIL disclosure. File will need to be adequately documented that the initial TILA process was complied with original lender.
What happens if it is apparent to lender that broker collected fees prior to borrower receiving a copy of the Initial TIL?-If this is apparent, the loan will be rejected and not able to close with this Lender. Lenders cannot close a loan that is not in compliance with this regulation as well as all other federal, state and local laws and regulations.
Please call me if you are in the market for a home loan. I can get it done!!
I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housingloans inside & out and would love to answer any questions you might have.
I can be reached at the following: *Phone: 386-754-8500 *Email: dan@meridianFL.net
More FHA loans were originated in June than ever before.
FHA guaranteed almost 186,000 mortgages in June, a monthly record for the agency in its 75-year history. The total number of FHA loans originated last month surpasses the previous record of 157,000 set last October. Having never crossed the $40 billion threshold in a month’s span, the mortgage association issued $43.5 billion in mortgage-backed securities in June.
Currently nearly 36% of all mortgage applications are FHA loans and are guaranteed by Ginnie Mae, a government backed agency.
With conventional loans becoming ever more difficult to obtain (They now require a 720 credit score & minimum of 10% down payment), and alternative loan products having disapeared in recent months many borrowers have turned to FHA.
FHA is not strictly a first-time homebuyer program, but with low down payment requirements (3.5%), and flexible credit & qualifying factors, it has definitely become the program of choice for first-time homebuyers as well as seasoned homeowners looking to make a move.
One cause for concern is that the percentage of seriously delinquent loans has risen in May to 7.42% from 6.47% just one year ago. Taxpayers are ultimately responsible for the bad loans & could end up footing the bill in the long run.
Please call me if you are in the market for a home loan. I can get it done!!
I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housingloans inside & out and would love to answer any questions you might have.
I can be reached at the following: *Phone: 386-754-8500 *Email: dan@meridianFL.net
The true market value of your home is….what a Buyer is willing to pay for the property TODAY:
• Based on today’s market
• Based on today’s competition
• Based on today’s financing
• Based on today’s economic conditions
• Based on the Buyer’s perception of property condition
• Based on location
• Based on normal marketing time
As a seller, you control:
• The price you ask
• The condition of the property
• Access to the property
As a seller, you do not control:
• Market conditions
• The motivation of your competition
• Value
Warning Signs:
AGENT Elimination – If agents are not previewing or if they preview but do not show your home, they are eliminating your property
BUYER Elimination – If your home is being shown repeatedly with no results, buyers are finding better properties in your price range. In either case, this is an indication that your home is not priced at current market values.
Mortgage rates fell to the lowest level since May as home-loan refinances surged. Rates had reached record lows of 4.5% for a 30yr fixed rate loan in April until the end of May where they spiked over 1½% in two days time.
Since then they've slowly edged back down - Today the average 30-year rate fell to 5.14 percent, down from 5.20 percent. The 15-year rate was 4.63 percent.
Some more technical data: - Overall home loan applications rose 4.3 percent this week: * Purchase applications fell 9.4 percent * Refinance applications rose 18 percent - The global mortgage crisis has cost the world's financial firms almost $1.5 trillion in losses so far. - The Federal Reserve kept the federal funds rate at between zero and 0.25 percent last month. * Their statement at the time was "The rate will stay at "exceptionally low levels" for an "extended period".
At this point the Fed is pleased with how their programs have positively affected the financial system and economy as a whole, so the general concensus is that we're going to see "more of the same" out of the Fed.
I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housingloans inside & out and would love to answer any questions you might have.
I can be reached at the following: *Phone: 386-754-8500 *Email: dan@meridianFL.net
The rush is on. The deadline for purchasing a home using the $8000 tax credit is November 30, 2009. You might be surprised to find out how quickly the remaining days left to take advantage of the "free" money from the government will click away.
Let's take a look at how you might use up your time remaining.
Before you even head out the door to look at houses you need to have made contact with a lender and start the pre-approval process. The further you get along in this process before you get in a car to look at a home the better. For timing we will say that this process will take you a week because you are super organized and have all of the documents on hand that your lender needs. (7 Days Gone)
Now you are ready to actually head out and look. With lower inventory (below $250,000) than a year ago, it would be realistic to think that it will take you 30 days to find a house. Then there is the contract ratification process. If you are lucky and you have focused on seller owned properties you may be able to get a ratified within 7 days. (37 Days Gone)
With the new appraisal rules (HVCC) and the new lender rules (HERA) going into effect you can expect that getting your final loan approval will be 30-45 days. For our calendar we will take the longest number just to be safe. (45 days Gone).
How are we doing so far? Looks like we have knocked 89 days off the calendar leaving 49 days left until the deadline. Whew looks like you have plenty of time to get this done.
Wait we forgot to add in the days that FHA is going to require for a second appraisal (it is happening more and more) or the processing time at the settlement company. So let's pad those 89 days with an extra 7 to be on the safe side. Now we have taken a total 96 days off the calendar. Leaving you 42 days to move in and enjoy your new home.
If you take longer to find a home, if the lender takes longer to approve your loan or you think you want to buy a short sale....then you may have waited to long!
Are you still thinking about whether the market might decline a bit more making your dream home just a bit more affordable? Or are you waiting for the interest rates to come down to 4.5% again? If you are then every day you wait is one less day that you have to deal with any issues in your schedule. If you are serious about buying a new home this year and are eligible for the $8000 tax credit then time is of the essence. Don't sit on the fence much longer or you may find yourself looking at the calendar on December 1st and wondering what you were waiting for.
Below are May's Florida home sales numbers. You can see that sales are up pretty significantly over 2008's numbers.
This is due to the large number of bank owned & foreclosure/pre-foreclosure properties out there - Investors & homebuyers looking for a good deal are snatching the properties up.
I've had numerous situations in the last 4-6 weeks where a buyer was looking for a house in the $125,000-$175,000 price range. After putting offers on 5-10 properties over the course of a month they got beat out of every one of them, many times the home selling for tens of thousands of dollars above the list price.
Many times the homes have only been on the market for a day or two & get 10-20 offers.
This is a great thing though...it's clearing out the inventory & will help get the housing market back to normal.
Rates are still in the low 5's, and with prices at this level, there's never been a better time to buy a home.
Mortgage blog written by Dan Magstadt to help give some insight into the mortgage market as well as let everyone know what's going on at Meridian Financial & my personal life!
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
The plumber that came out, Jake was extremely knowledgable, and fixed numerous other issues while he was there. Their prices were extremely reasonable & their professionalism far surpassed any other plumbing company I've dealt with in the past.
October. Having never crossed the $40 billion threshold in a month’s span, the mortgage association issued $43.5 billion in mortgage-backed securities in June. 
The rush is on. The deadline for purchasing a home using the $8000 tax credit is November 30, 2009. You might be surprised to find out how quickly the remaining days left to take advantage of the "free" money from the government will click away.
;)
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