Realtors and borrowers still regularly ask me about using the Federal FTHB tax credit for their down payment or closing costs. When potential home buyers are searching the internet on this topic, they are usually finding this info on the Fannie Mae website. I had one of my pre-approved clients come to my office with a bunch of printed out information on how they can get the tax credit money upfront and use it for closing costs and/or down payment. All of the printouts I reviewed came from other states but NOT California. It appears that 15 states are offering the credit upfront through HUD approved organizations that charge an affordable fee for doing so but California is not one of the states offering this.

Here is a link to the Fannie Mae website

 http://www.fanniemae.com/homepath/incentive/index.jhtml

 When I asked Fannie where one could get this money to use as their down payment, they gave me this website

 http://www.ncsha.org/section.cfm/3/34/2920 (not sure why they don't put it on their website).

 I hope that you find this information helpful and if you have any questions just give me a call.

I thought this would be an excellent topic for my first blog post...

We got word today that a new mortgagee letter was issued by FHA. FHA will be ringing in the new year with a new down payment requirement. The current minimum down payment is 3% and that will increase to 3.5% as of January 1st.

I know this may not seem like much, but to some this will make or break their deal. Since the first word of "Seller Contributed" down payment assistance going away I have been advising my clients to save their pennies for their down payment and a half of a percent increase could mean a lot more pennies.

If you have buyers that have been sitting on the fence, this information may be just enough to help them take action.  Not to mention that mortgage rates are great right now.

I hope that you find this information helpful and are happy to hear about it in advance, not on January 2nd.

Hilary