Agent 2 Buyer Tip - Omaba Delivered It! Now Let's Bring It HOME! What you can do to stimulate your neighborhood.

Cindy: Cannot wait to catch up with you.

April: Glad you found the information useful

Steve: I am with you. We all need to take an active roll on a local level to promote and support change.

Nick: Interesting that you noticed. I have been playing with Headlines and will be writing a post about the Psyche of the Headline.

Mike: Go get em.....

Fernando: I agree. It is up to use to show the benefit and help get these people off the fence and into a home of their own. If that is there desire.

Viji: It will be interesting to see how many states provide this. Our local program WHEDA was cut when the bonds were hit so hard back in September. Perhaps there will be local $$ available from the plan. I would love to know what you find out. Please keep us informed.

Isabel: I bet you are going to have a great year! Have fun with all your new clients.

Elizabeth: Thanks for your comment - You are correct. The tax credit is 10% or $8,000, however 10% of $135,000 is $13,500, therefore the credit would be maxed at $8,000 for which they would have the ability to claim this year on an amended return. I am no tax expert either, so it is recommended that all tax related questions be directed at a tax professional.....

I think you are getting the tax credit and the downpayment mixed up - On a $135,00 purchase, the FHA downpayment (3.5%) would be $4,725.00 - Keep in mind that 3% must be the borrowers money and balance (1/2) can come in the form of a gift - The above example is great way to enable one to save for the downpayment - Of course it will depend upon how much they make, etc.

Also, are you aware of the $100 down FHA program? Borrowers can purchase a HUD owned home for just $100 down. The 3.5% FHA downpayment requirement is waived on these HUD owner homes.

On another note: The bond that I speak of can be used as a downpayment and in the form of a loan that would be paid back once the tax credit was received - Absolutely acceptable, in fact if a Federal, State or Local government agency or non-profit agency had a secondary financing program, the borrower would have the ability to borrow the downpayment from that agency for the purchase of the home utilizing FHA financing. The following is the rule from the official FHA site.

Federal, state, and local government agencies, as well as nonprofit agencies considered instrumentalities of government may provide secondary financing for the borrower's entire cash investment. The second lien itself must be made or held by the eligible governmental body or instrumentality. Neither governmental units nor their established nonprofit instrumentalities may use agents,''' including other nonprofits or for-profit enterprises to make the second lien regardless of the source of those funds. In other words, even if the funds used for the secondary financing were derived from an acceptable source such as HUD HOME funds or from a unit of government or the eligible nonprofit instrumentality, the subordinate lien must be in the name of the eligible entity, i.e., the state, county, city or eligible nonprofit instrumentality must be the lien holder.

This authority cannot be delegated to another party that is not itself permitted to provide this level of secondary financing. These other entities, however, may be used to service the subordinate lien if regularly scheduled payments are to be made by the mortgagor. Loans secured by secondary mortgages are subject to the conditions described below.

1. The FHA-insured first mortgage, when combined with any second mortgage or other junior liens from government agencies may not result in cash back to the borrower. The sum of all liens cannot exceed 100 percent of the cost to acquire the property. The cost to acquire is the sales price plus allowable borrower-paid closing costs, discount points, repair and rehabilitation expenses, and prepaid expenses. The cost to acquire may exceed the appraised value of the property under these types of government assistance programs. The FHA insured first mortgage cannot exceed the FHA statutory limit for the area where the property is located. The combined indebtedness, however, may exceed the FHA statutory limit.

2. The required monthly payment under both the insured mortgage and the second mortgage or lien, plus other housing expenses and all recurring charges, cannot exceed the borrower's reasonable ability to pay.

3. The source, amount, and repayment terms must be disclosed in the mortgage application, and the borrower must acknowledge that he or she understands and agrees to the terms.

Shoot, this could have been its own post.....

Johnny: Great points - I am glad to hear that your market is experiencing recovery.

Jack: Any time!

Beth: By working together, we can improve and enhance opportunities in our local markets.