• Closing costs;

• The purchase of new Whirlpool® appliances by Fannie Mae; or

• A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%.

To be eligible for this incentive:

• Offers must be accepted on or after January 28, 2010;

• Property sales must close before May 1, 2010, and;

• Buyers must be owner-occupants (investors are excluded).

The incentive reinforces the organization’s commitment to stabilizing communities and assisting buyers

If you’re interested in a Home Path Fannie Mae mortgage and you want the best chance of being approved possible, call or send me an email with some of the specifics of your situation. I work for Vintage Mortgage Group. We are aligned with multiple banks offering the best pricing.

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3. CalHFA and Down Payment assistance programs deliver 100% Financing in the Bay Area-

This just in from HUD:

In an effort to shore up its flailing balance sheet and dwindling capital reserves, the Federal Housing Authority rolled out theses sweeping financial changes.

Effective for case numbers assigned on or after April 5, 2010 FHA will collect an upfront mortgage insurgence premium of 2.25%. The current FHA premium for Bay Area borrower’s is 1.75%. The monthly premiums will remain the same at 55BPS for a loan to value greater than 95% and 50BPS from a loan to value less than 95%.

If your interested in an FHA mortgage and you want the best chance of being approved possible, call or send me an email with some of the specifics of your situation. I work for Vintage Mortgage Group.  We are aligned with the biggest FHA banks with the best pricing plus. That’s what I do for you as your Mortgage Consultant.

Related posts:

1. FHA Risk Based Premiums Starts Today-
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HUD’s David H. Stevens issued a waiver of the 90 Day Flipping Rule that has prevented private sellers (LLC’s, Trusts, etc) from taking offers from FHA home loan borrowers. This waiver was issued for a period of 1 year, starting February 1, 2010. There are a few conditions, such as the seller can’t be related to the buyer in any way. Also, if the home is being purchased for 20% or more of what the seller acquired the property for in the last 90 days, then the FHA borrower’s lender must be able to justify the sales price via an appraisal, and possibly a second appraisal, which must include notations of exactly how the property has been improved upon to justify the sales price.

The other very odd condition that comes into play if the home is being sold for 20% or more of what the seller purchased it for in the last 90 days is that the LENDER must order a home inspection. This, until now I suppose, is very unconventional. The lender however can make the buyer pay for this home inspection. This inspection report must be provided before the close of escrow, to the buyer. The inspection the lender orders for the borrower, must cover certain items, as outlined in the FHA guidelines (click link below for waiver and conditions). The use of an FHA approved inspector is not required however.

This move by HUD, will now enable FHA borrowers, across the nation, to purchase homes that have been foreclosed on, that are owned by private parties – not banks (not REOs). In some parts of the country, the inventory has really decreased, such as where I am Pleasanton, CA; we have just a 2-3 month supply of homes in inventory. FHA buyers will now have more home options on the table, and perhaps, more homes will be sold with this waiver of the 90 day flipping rule by HUD.

Download HUD FHA waiver of 90 day flip rule press release

Download HUD FHA waiver of 90 day flip rule – waiver and conditions

I would like to add that despite the great news, lenders may overlay FHA guidelines with stricter guidelines of their own. With that said, as soon as lenders acknowledge the FHA change in their individual guides, I will be sure to pass along the information.

Related posts:

1. 2010 FHA policy change. What you need to know for the benefit of your client post short sale-
2. Feds reverse rule to assist first-time home buyers downpayment assistance
3. Foreclosures spike again in February

California’s real estate market may again become golden for some home buyers now that Gov. Arnold Schwarzenegger has proposed up to a $10,000 tax credit for those who purchase new or existing homes in the state.

Program specifics have not been available, so it is uncertain whether Californians would be qualify for both the state and federal credit, which offers up to $8,000 to first-time buyers and $6,500 to existing homeowners.

The state program will allow buyers to get one-third of the credit back on their taxes each of the three years after purchasing a home. The federal program returns the full credit amount in the first year.

Credit’s supporters

Schwarzenegger’s proposal must be approved by the state legislature, although that seems likely considering its quick passage of a previous home buyer tax credit in 2009. That program only covered the purchase of new, unoccupied homes, and started in March with a $100 million limit. So many homeowners took advantage that the program ran out of money by June, eight months before it was scheduled to end.

This time, Schwarzenegger is asking for $200 million, which is expected to draw more than 20,000 home buyers. Similar to the previous program, there will be no income limits to qualify, although buyers must occupy the house as their primary residence.

Obviously, the real estate industry was ecstatic with the development, considering how quickly consumers jumped on the last tax credit. Home builders were a bit more tepid in their response, realizing this time they will not have the program devoted to their market.

Allison Barnett, a lobbyist for the California Building Industry Association, told the Sacramento Bee that using tax credits for new home construction creates more jobs. Of course, she failed to mention that it also increases inventory, which is not what the state market needs.

Criticism of credit

Adding a program that will cost $200 million did not escape criticism, especially in a state with a $20 billion deficit for 2010. Proponents, however, countered that for every new house built, the state receives $16,000 in tax revenue.

That argument would make more sense if the program was limited to new homes as was the previous tax credit. The state appears to be banking on the tax credit to quickly take a big chunk out of existing inventory.

Foreclosures, however, could keep the inventory from falling much. It’s no secret that many lenders are keeping foreclosures off the market and even delaying taking homes back from borrowers to keep the properties off their books and prices higher.

This tactic will likely adjust so that lenders can take advantage of the tax credit by putting their distressed properties on the market.

Regardless of whether they are buying a new, existing or distressed property, home buyers are going to benefit from the program.

Related posts:

1. Expansion of First-time Home Buyer Tax Credit for the Bay Area’s home buyers-
2. $8,000 Tax credit back on the table to buy a home for first time home buyers-
3. Time to get off your parents back- Consumer Credit Loop Hole comes to an end…

As we leave 2009 and charge into 2010 HUD has introduced new guidelines for FHA in regards to financing after a Short Sale. Short sales are defined as the lender is accepting less than the total amount due on the property financed.

Borrowers are NOT eligible for a new FHA mortgage if they pursued a short sale agreement on their current principal residence simply to take advantage of declining market conditions, and or purchase, at reduced price, a similar or superior property within a reasonable commuting distance.

Borrowers ARE eligible for a new FHA mortgage IF:
- They were current on their mortgage and installment debts at the time of the short sale of their previously owned property, and
- The proceeds from the short sale serve as payment in full.

Borrowers in default on their mortgage at the time of the short sale (or pre-foreclosure sale) are NOT eligible for a new FHA mortgage for 3 years from the date of the pre-foreclosure sale.

The changes listed above are in effect now for all FHA mortgages. As always, if you or anyone you know would like more details on Short Sales or FHA mortgages in the Bay Area please feel free to contact me anytime.

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