If your seller has an FHA loan and needs a short sale to obtain clear title, the max the seller can contribute towards closing costs for the new buyer is 1% of the purchase price.
Normally, the seller can pay up to 6% towards closing/prepaids.
Again, be sure you know as much about the seller and their situation as possible when making an offer. It's getting tricky out there and you don't need to find out about this rule 1 week prior to closing!
Feel free to refer me to your buyers, as there won't be any surprises at my settlements when I handle your buyers.
More and more, lenders will be asking very specific questions up front questions about the seller of a property. Particularly, how long has the seller been on title. Here are the newest rules:
Rural & Conventional Financing - Seller must have owned property for 6 months.
FHA Financing - Seller must have owned property for 90 days.
There are some exceptions, but lenders are getting very picky. FHA is getting picker due to early payment defaults rising as the shear number of borrowers choose FHA loans.
If you or your buyer is looking for homes anywhere on the Eastern Shore of Maryland, a Rural Housing Loan is a great option. There are some metropolitian areas, for example, within the city limits of Salisbury that are not eligible. This is a 100% loan. There are strict income, housing and debt to income ratios to keep in mind. The housing ratio cannot exceed 29% of gross income. Total debt to income cannot exceed 41%. On this program, I can structure a loan so that the seller pays closing costs and buy is out of pocket $500 in earnest money.
Call me at 443-523-5599 to review your situation for other specifics or check .
No Down Payment for Military Families using their VA Entitlement!
For military families that would like to obtain off-base housing, consider using your VA entitlement! If you have the years of service required to obtain your entitlement. I can show you how to save money on your closing costs too! I can literally structure your loan so that you are out of pocket as little as $500. Plus, VA loans cost less monthly, the interest rate is fixed and lower than Conventional loans.
Attention all potential homebuyers that want to buy their primary residence in Gulfport, MS!!
Beginning October 1st, you can pick up your HOMELINE application at Trailer E-2 near City Hall. Part of the application process will be to obtain your homeloan financing.
Call Molly Lionberger, Assistant Vice President at First Bank & Trust of MS today to get pre-approved. 228-257-9000. Email: mlionberger@fbtonline.com
Be prepared with the following documents: 30 days of paystubs, 2 months bank statements, Last 2 years W-2s and tax returns, picture ID & Social security card.
Below is the press release from the City of Gulfport, briefly explaining the program.
CITY OF GULFPORT ANNOUNCES "HOMELINE"
A HOMEOWNERSHIP ASSISTANCE OPPORTUNITY PROGRAM
Gulfport, MS -- The City of Gulfport is very pleased to announce that it has been awarded $9 million in Katrina CDBG Workforce Housing Funds, which are being used to fund "HOMELINE," a homeownership assistance program providing $50,000 in down payment assistance for the purchase of affordable homes in the City of Gulfport.
HOMELINE funds may be used to purchase an existing home constructed in 1980 or later and in good condition, and newly constructed affordable housing located within the city limits of Gulfport.
To qualify for HOMELINE assistance, applicants must meet the household income qualifications, have the ability to secure a first mortgage, and complete a Homebuyer Education Class.
"The CDBG funds will provide long-awaited and greatly-deserved workforce housing opportunities for low and moderate income citizens. I encourage residents to take advantage of this program and fill out an application. The process is simple, and we are here to help," said Mayor Brent Warr.
October 1st, "HOMELINE" applications will be available for pick-up at the City of Gulfport Community Development Department, 2309 15th Street, Gulfport. For more information, call (228) 868-5736 or (228) 868-5862, or email communitydevelopment@gulfport-ms.gov.
Remember, you need to get preapproved for your home loan. For more information and to get preapproved, call Molly Lionberger, Assistant VP at First Bank & Trust of MS, today to set up your appointment. 228-257-9000.
Since I work for a bank, we seem to have more loan options available to borrowers than typical broker shops or internet lenders. Below is a list of ways to get to 100% financing.
1) State Mortgage Revenue Bond Program
2) Employer Assisted Housing Gift - this is allowable by FHA
3) Community Development Block Grant Program - in our area, the cities have them, probably more...
- Pascagoula, MS
- Gautier, MS
- Ocean Springs,MS
- Biloxi, MS
- Gulfport, MS
4) Home of Your Own Program - offers up to $20,000 for a family that has a disabled person living in the home.
5) VA Loan
6) Surviving Spouse of Veteran (if Veteran died while on active duty)
7) Obtain a 3% Gift from a blood relative
8) Build a home on land you already own. I can do 90% of the appraised value of total Project.
Below is more information from the Governor's Office of Mississippi. I have heard recently that the Mississippi Development Authority will release to the individual cities and non-profits amounts to be allocated by the end of August. We still have over 4000 families in Fema trailers and desperately need people back in permanent housing.
Press Release from Governor Haley Barbour
FOR IMMEDIATE RELEASE
July 7, 2008
HUD APPROVES $200 MILLION "GROUND ZERO" ACTION PLAN
Local project proposals due by August 8
(JACKSON, Mississippi) - The U.S. Department of Housing and Urban Development (HUD) has formally approved the State of Mississippi's "Ground Zero" action plan, which directs about $200 million of federally awarded Hurricane Katrina recovery funding exclusively to Hancock County.
"When Senator Roger Wicker and Congressman Gene Taylor joined me in March to announce our intentions to implement a plan specifically for Katrina's ‘Ground Zero' impact area, Mississippians had no doubt about the tremendous recovery needs in Hancock County, where damage was most severe," Governor Barbour said. "We appreciate HUD officials understanding the plight of Hancock County's people and supporting our action plan."
The funding is sourced from a $5.4 billion Community Development Block Grant (CDBG) recovery package that Congress appropriated for Mississippi's hurricane recovery needs. All CDBG funding is administered through HUD.
With HUD's approval of the Ground Zero Action Plan, local governments in Hancock County may now submit proposals for specific projects. Specific proposals, due by August 8, will be reviewed by the Mississippi Development Authority (MDA) on how well they contribute to the overall Hurricane Katrina recovery effort.
From there, communities with proposals that meet Ground Zero's Katrina recovery mission will be invited to submit more detailed project applications. Each project must be approved based on HUD regulations.
For all Mississippians or those that would like to invest in our great state. There is $2.7 billion of Community Development Block Grant Money allocated to help rebuild 20,000 - 25,000 units in the southern most 3 counties of MS: Harrison, Hancock and Jackson. See the press release below. Check my blog for more info to come.
FOR IMMEDIATE RELEASE
June 25, 2008
STATEMENT OF GOVERNOR HALEY BARBOUR
"Without question HUD's final approval of the Long Term Workforce Housing Action plan is a major milestone is Mississippi's Katrina recovery effort. This program, teamed with our public housing and small rental initiatives, is one part of a $2.7 billion CDBG -sourced housing recovery budget that will directly help build 20,000 to 25,000 low and moderate income housing units for both renters and new homeowners. This is in addition to the direct compensation provided to the more than 20,000 homeowners who have received checks from the CDBG homeowners assistance grants program.
"I've been working with HUD to obtain this final long term workforce housing approval, and frankly a lot of credit goes to Mississippi's Congressional delegation for providing invaluable assistance in that effort, specifically Senators Cochran, Wicker and Representative Taylor. As far as I am concerned, on August 29, 2005, we checked party labels at the door, and since Katrina's final deadly winds subsided, our state's recovery has been a bipartisan effort by the overwhelming majority of Mississippi's elected officials, and I know Mississippi's people expect us to continue our recovery in a spirit of cooperation that puts Mississippi's recovery needs above political agendas."
To receive more information on the growth and development of south MS, please email me and I will put you on my email newsletter blast list.
Now is the time to buy, if you are a 1st time homebuyer or if you haven't owned a home in the last 3 yrs...
"Cliff Notes" recap on the new housing bill
•· The tax credit is available for first-time home buyers only.
•· The maximum credit amount is $7,500.
•· The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
•· Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
The Law's Other Provisions
In addition to providing a $7,500 tax credit for qualified first-time home buyers, the Housing and Economic Recovery Act of 2008 includes a number of other provisions that will help prevent foreclosures, reinvigorate the housing market and strengthen the nation's economy.
FHA Modernization
The maximum FHA-insured loan will be increased to 115 percent of an area's median home price, up to a maximum of $625,500, with a minimum downpayment of 3.5 percent, up from 3.0 percent currently. The legislation will give the agency greater flexibility to respond to the needs of borrowers, enable more working families to become home owners, provide a viable alternative to the volatile subprime market and allow the FHA to play an important role in stabilizing the mortgage markets.
Foreclosure Relief The legislation will allow the Federal Housing Administration to guarantee up to $300 billion in refinance mortgages where current mortgage holders agree to accept partial payment so the outstanding principal on the new loan is more affordable for borrowers. This could help as many as 400,000 struggling home owners to stay in their homes, according to Congressional Budget Office estimates.
Mortgage Revenue Bonds States will be provided new authority to issue an additional $11 billion in bonds to be used to refinance subprime loans, mortgages for first-time home buyers and multifamily rental housing. Expanding this program will help strapped borrowers seeking to refinance their home loans.
Government Sponsored Enterprises The legislation will reform Fannie Mae, Freddie Mac and the Federal Home Loan Banks by establishing a strong, independent regulator that will have enhanced authority to raise capital standards and take corrective actions if the GSEs are undercapitalized. It will also permanently increase the maximum loan limit to $625,500 for Fannie Mae and Freddie Mac. This will help buyers seeking homes in high-priced markets such as California and the Northeast.
The bill also creates a new affordable housing fund to be financed by the GSEs. The fund will be used to finance the construction, maintenance and preservation of affordable rental housing projects nationwide.
Property Taxes The legislation will provide temporary tax relief for home owners who do not itemize their deductions. For tax year 2008, taxpayers who do not itemize their deductions but pay property taxes will receive a $500 additional standard deduction ($1,000 for married couples). This provision will particularly benefit home owners who have paid off their mortgages.
Community Development Block Grants The legislation provides $3.9 billion in grants to state and local governments for the purchase of foreclosed homes and the rehabilitation or redevelopment of residential property
There are several down payment assistance options available to Mississippians in the Southern 3 Counties. These counties were hit hardest 3 years ago by Hurricane Katrina. Each program has its own rules and income limits. These programs will still be allowed under the new Housing Act. If you are interested in getting more information on any of these programs, please call me at 228-257-9000.
1) City Community Block Grants - each city receives a set amount of money by the state at the beginning of each year. In some cases, the grants can exceed $20,000 per family. It is distributed on a first come/first serve basis. Those who are approved bring all of the required items so that their application can be send to the state agency for final approval. One of these items includes a homebuyer class certificate. To obtain this certificate, the homebuyer must an 8 week course for homeownership through a non-profit agency approved by the city. Typically, the homebuyer must agree to stay in the home for a given amount of years and then the grant is forgiven. Most cities on the coast have about 12 grants available per year. If you want this program, be organized, get your credit straight and complete the homebuyer education requirement asap.
2) Long Term Workforce Housing Grant - see #1. The amount of the grants & rules for this program are due out by 9/1/08. Call me to be put on the email list for more information once this is officially announced.
3) MS Home Corps Mortgage Revenue Bond Program - these funds are available throughout the year. The down payment/closing cost assistance = 3% of the loan amount. There are income limits and purchase price limits. The 3% is a gift that does not have to be repaid, however, if the home is sold within the first 10 years, there could be a tax recapture fee if they realize a 50% capital gain as well as have an increase in household income greater than the formula set out by the program.
4) Home of Your Own (HOYO) - This program can give up to $20,000 in the way of down payment and upgrades to a home for a family that has a disabled person living in it. This program has unique rules and limitations. Call me for more information if you believe you would qualify for this program.
5) REACH Program - This program can offer up to $40,000 (up to $10,000 from employer & matching funds 3X EAH program) for eligible homebuyers. This program is still in the test phase and will hopefully be officially announced by the end of Aug 2008. If you would like to be on the email list for more information when it is officially announced, please call or email me.
The purpose of my blog is to provide mortgage industry information that will help homebuyers obtain the best financing for their individual needs and to help realtors close more deals. Knowledge is power. With the changing of the rules within the mortgage industry, it is more important than ever for realtors to know basic credit guideline rules.
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.
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