VHDA 1ST Time Home Buyer – Tax Credit Plus Program
· This loan has a built-in second mortgage to help cover the down payment and closing costs, with zero interest and no payments for the first 12 months.
· The recent economic recovery legislation has created a tax credit incentive of up to $8,000 for first-time home-buyers. VHDA’s Homebuyer Tax Credit Plus loan lets borrowers take advantage of the federal First-time Homebuyer Tax Credit to finance the down payment and closings.
Choose the preferred payment plan:
· Pay off the second mortgage-Build equity in your home.
· Pay off the second mortgage over 29 years-Save the tax credit for a rainy day, home improvements or help pay existing debt.
· make payments on the principal of the second mortgage before the repayment period begins; this will reduce the required monthly payments for the remaining 29 years on the second mortgage.
Program Features:
· Affordable fixed-rate financing on both mortgages.
· Repayment of the second mortgage begins one year after the first mortgage payment.
· Interest rate of second mortgage: zero interest for the first year-beginning the 13th month, the same interest rate as the first mortgage.
· Maximum loan amount: First mortgage-maximum FHA Mortgage
Second mortgage-up to 5% of sales price (no cash back)
· Loan must close no later than November 30, 2009.
Guidelines and Details
· Time Limit: Loan must close no later than Nov. 30, 2009
· Eligibility Requirements: Borrowers must meet federal First-time Homebuyer Tax Credit requirements as well as VHDA’s requirements regarding first-time homebuyer status, income limits, and sales price limits.
· Maximum Income: The combined income of all household members may not exceed VHDA’s maximum income limits.
· Maximum Sales Price/ The combination of the first and second mortgage
· Total Loan Amount: may not exceed VHDA’s sales price/income limits.
Re: Regulation Z – Federal Truth-in-Lending (TIL)
This is to inform every one of upcoming changes the Federal Reserve has implemented regarding the timing of TIL disclosures in order to be consistent with the new Mortgage Disclosure Improvement Act of 2008 (MDIA). These changes apply to all loan applications received by the Lender on or after July 30, 2009.
These changes apply to all mortgage lenders and may affect the settlement dates of loans. The following is an overview of the new requirements:
· An initial TIL (Truth in Lending) must be delivered to the applicant within 3 business days (excludes holidays and Sundays) of application AND at least 7 business days prior to settlement.
· If the APR increases by more than 1/8th of 1% from the initial TIL, a corrected TIL must be delivered to the applicant at least 3 business days prior to settlement.
*** Settlement may not occur until both the 7 and 3 business day waiting periods have expired ***
It is therefore important to disclose to any potential applicants and the lender any fees that may be involved that could affect the APR (realtor, inspection, pest, etc.).
Caryn Grafton
Personalized Mortgage Lender
George Mason Mortgage
Office: 703-259-0746
Mobile: 703-786-5213
E-Fax: 703-738-7001
4100 Monument Corner Drive I Fairfax I VA I 22030
Thomas Merical
http://www.findahomesellahomenow.com/
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