Chance Gates' Blog

$100 Down Payment Rules & Regulations

Where Do I Find HUD Homes?

Read more: http://www.brighthub.com/money/home-buying/articles/28618.aspx#ixzz1S7MIJO5b

Every NSP2 home for sale includes a $5000 Cash grant to be used for closing costs and a $15,000 interest free forgivable loan.   Applicants may also qualify for a WISH grant, which could provided up to an additional $15,000 forgivable loan.  Applicants can also purchase a Mortgage Credit Certificate through the Home at Last MCC Program offered by Neveda Rural Housing Authority

NSP2 targeted income groups

NSP2 activities are targeted towards two groups of people. Potential homeowners will be people making between 50% and 120% of the Area Median Income (AMI), and potential renters will be people making less than 50% of AMI. The AMI chart for Washoe County is as follows(FY 2011 Income Limits):

Area Median Income (AMI)

http://www.renoha.org/index.php?id=purchase

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney

http://www.realtor.org/rmodaily.nsf/f3c66d0c6457c1e1862570af000cb13b/c615c2ff2b23951c862578c4004f1789?OpenDocument&cid=WR07062011:22822&ed_rid=1698691

How much a home buyer should have a for a down payment on a home has been up for dispute among policymakers. Some recent federal regulators and lawmakers calling for a 20 percent or 10 percent down payment in order for mortgages to be considered a “qualified residential mortgage” and not subjected to extra fees.

However, such stringent down payment requirements could price many home owners out of the housing market, argues a growing number of consumer housing advocates. (Read more about the National Association of REALTORS®’ stance).

In fact, for many creditworthy home buyers in occupations that don’t boast high median salaries, they might have to wait a decade or even longer to meet the down payment rule.

The Center for Responsible Lending, which has argued that 10 percent or 20 percent down payment requirements are too high, has a chart on its Web site boasting the length of time it would take borrowers of different occupations to save enough for a 10 percent down payment on a 2010 median-priced $172,900 home.

▪ U.S. Army Staff Sergeant: 16 years (median salary: $30,176)
▪ Public school teacher: Nearly 15 years (median salary: $33,530)
▪ Firefighter: 10 years (median salary: $47,730)
▪ Police officer: Nearly 9 years (median salary: $55,620)

“We’re not advocating for zero percent down,” Kathleen Day, spokesperson for the Center for Responsible Lending, told The New York Times. “We think down payments are good. But we think the market should set them, based on the underwriting.” (That is, based on the borrower’s credit history and income and debt levels.)

The down payment proposal comes as part of new rules for mortgage lenders in the Dodd-Frank law. Federal agencies are trying to set criteria for what should be considered a reasonably safe mortgage or QRM. Lenders issuing a QRM will be able to sell the loan to an investor and avoid retaining any of the risk. However, lenders will consider non-QRMs more risky since they’ll have to retain a 5 percent ownership. (Loans insured by the Federal Housing Agency would be exempt.) For borrowers who are unable to meet QRM, they would have to pay more for their loans because lenders would have to boost interest rates on their loans to cover the extra costs.

What You Can Do

Lawmakers have extended the public comment on the new down payment rules to Aug. 1. The REALTOR® Action Center has issued a call for real estate professionals to help ensure their clients have access to affordable mortgages. To send a letter to your state lawmakers, visit REALTOR.org.

Mark your favorite properties and get instant updates price changes,  new pictures and status changes.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney

The Nevada Rural Housing Authority launched a new $25 million bond program.  To try and help thaw the frozen market for buyers of manufactured housing in Northern Nevada.

The bond program provides $4500 for first time purchasers.  This money doesn’t need to be repaid, and is available in communities with less than 100,000 people.

A 30 year loan with the down payment assistance would carry a fixed rate of 5.357%.  If a borrow opts out of the down payment assistance the 30 year loan would carry a fixed rate of 4.875%.

Either way, purchasers who have signed a contract by 4/30/2010 and close by the end of June may still qualify for the $8,000 federal tax credit  to first time buyers.

The Federal Housing Administration will raise the minimum down payment for its least credit-worthy borrowers, the agency announced Tuesday.

The change is among a number of major changes the FHA is making to ensure its long-term financial soundness.

Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent. The changes are intended to shore up the agency’s finances.

The FHA also will increase its upfront mortgage insurance premium from 1.75 percent to 2.25 percent. The agency is expected to seek congressional approval to raise annual mortgage insurance premiums, paid by borrowers over the life of the loan, above the current 0.55 percent maximum. The amount it will seek has yet to be announced.

For more information on the FHA changes, inlcuding a summary of all changes, visit

REALTOR.org.

Chance Gates does welcome any questions or comments on the Reno/Sparks real estate market or on any articles that may be posted.  Send your  emails  to  chance at ballard-company.com

Related articles by Zemanta

• Harder to get an Uncle Sam mortgage (money.cnn.com)

There are two new programs to get eligible  families $20,000 to assist with their down payment, closing cost, or even to buy down points to help make home ownership available. Under both programs the applicant must be a first-time homebuyer that can be income qualified.

2009 Income Limits

As a Reno/Sparks real estate professional I encourage all questions and comment on the Reno/Sparks real estate market or any article posted.  I can be reached by email at chance@ballard-company.com or http://www.myspace.com/chancegates

When buying a home it is important to remember the cost.  The days of 103% financing with nothing down are behind us for the most part.   So what will a buyer need to pay at closing?

The easiest place to start is the down payment; most FHA loans require 3.5% minimum. Every lender will require an appraisal, to determine the market value of a house. To get a complete cost of what a lender is going to charge ask for a good faith estimate.   Lender title insurance policy is another lender requirement.

A buyer should always know the condition of the home he/she is purchasing.  This can be accomplished by getting everything inspected by a licensed professional.   A home, pest, septic, and well are the common inspections, however there are more.   I do not recommend cutting costs by skipping the inspections.

Escrow fees and transfer tax are usually (not always) split.  Escrow fees are based on the purchase price and will change.  The Washoe County transfer tax is $4.10 per every thousand of the purchase price.   For example:

$100,000 house would be 100 x 4.10 = $410.00

There can be other costs such as a home warranty, property taxes, garbage fees, etc…

There can be many tax benefits, to homeownership. In today’s lending climate, it would be difficult to get into the predicament that many current homeowners find themselves in. However, homeownership is a big and costly responsibility and not one to be taken lightly. You should consult with your accountant, financial advisor, and lender to be sure that you are aware and able to meet the necessary monthly, yearly, and future financial commitments required in homeownership

As a Reno/Sparks real estate professional I encourage all questions and comment on the Reno/Sparks real estate market or any article posted.  I can be reached by email at chance@ballard-company.com or http://www.myspace.com/chancegates

• A 3% down payment, as opposed to a 5% down payment on traditional loans
• Low monthly mortgage insurance
• Low closing costs, which are regulated by HUD
• No credit score requirements
• Qualify for a loan two years after a bankruptcy
• Qualify for a loan three years after a foreclosure

• Conventional Fixed Rate Mortgages are set for a certain amount of time at a specific interest rate. The interest rate never changes, which means that your mortgage payment remains the same throughout the life of your loan except for fluctuations in property taxes and homeowner’s insurance. Fixed rate mortgages are usually not assumable and often have a prepayment penalty. Fixed rate mortgages are good for people who plan to own their home for a long period of time.
• Conventional Adjustable Rate Mortgages are set for a certain amount of time, but the interest rate changes over the lifetime of the loan. Usually the interest rate is a fixed for the first three or five years, but after that period of time the interest rate will rise and so will your mortgage payments. Adjustable rate mortgages are good for people who plan to stay in their home only for the amount of time that the interest rate is fixed.
• Hybrid Mortgages are similar to adjustable rate mortgages, but the fixed-rate time period is usually longer. For example, a hybrid mortgage may have a fixed interest rate for the first ten years and then the interest rate will increase. Hybrid mortgages are good for people who plan to spend many years in their home but know that they will eventually move into a new home.
• Jumbo Fixed Rate Mortgages are specifically for borrowers who are seeking a mortgage for $333,700 or greater. It is risky for a lender to finance a mortgage this high, so jumbo fixed mortgages are designed for large mortgages that are set for the lifetime of the loan, and the interest rate is usually higher than a conventional fixed rate loan.
• Balloon Mortgages are when a borrower makes smaller payments at the beginning of the mortgage and then pays off the entirety of the loan at a later date. This is good for people who know they will have a large sum of money in the future, or for people who need a lower payment now but expect to make more money in the future.
• Relocation Mortgages are available for people who need a loan to relocate to a new home while their existing home is for sale.
• Bridge Mortgages are similar to relocation mortgages; you can purchase a new home prior to the sale of your existing home. You will have a larger mortgage payment because you will pay for both homes until the existing home sells. However, if there is a home you want to purchase immediately and you are afraid that it will sell while you wait for your existing home to sell, then you can purchase the home with a bridge loan.
• Equity loans allow you to take a loan out on your home based on the existing equity percentage of your home.
• Self-Employed Income Mortgage Loans are available for people who are self-employed, and thus have difficulty showing proof of a steady stream of income.
• The VA’s Home Loan Guarantee Program for veterans is very similar to FHA loan programs. Veterans can get loans through the FHA to buy a home with no down payment, and get money to make home and energy-efficient improvements to their new homes.

These are just some of the many loans available for people who are looking to purchase a home through the FHA

Being a Reno/Sparks real estate consultant I always appreciate any question or comments on the Reno/Sparks real estate or any of the articles I post.

Send all questions to chance@ballard-company.com

Related articles by Zemanta

• What is LPMI? (azmortgageguru.com)
• What’s the difference between a Fixed Rate and an Adjustable Rate Mortgage? (ARM) (eddieoneverything.com)
• FHA Mortgages Rising (homeloans.org)
• Mortgages: Help for First-Time Buyers (nytimes.com)

Qualification Guidelines

• A first-time homebuyer is someone who has not owned or co-owned their own residence within the past three years. If purchasing in a Targeted Area there are no restrictions on former home ownership.

• Total gross household income must fall within the Maximum Income Limits set by NHD.

• The purchase price of the residence you wish to buy may not exceed the Maximum Purchase Price Limits for the area in which it’s located.

• Assets, including without limitation, may not exceed 50 percent of the purchase price of the residence being purchased, unless disabled or elderly and such assets are the primary source of income. There is a lower asset test for down-payment loans — maximum $5,000.

• Income must support the repayment of the loan pursuant to the underwriting criteria applied by FHA, VA, RHS, or Fannie Mae, as applicable.

• Credit must meet the underwriting criteria applied by FHA, VA, RHS, or Fannie Mae, as applicable.
  
• Successfully completes a HUD approved in-person 6 to 8 hour Homebuyer Counseling Course.

As a Reno/Sparks real estate consultant I always welcome any comments or questions on the Reno/Sparks real estate or any of the articles I posted.  You can email me directly at  chance at ballard-company.com