Interesting article about the lenght of time it is taking to process and close mortgage loans.
While it's true we are required to do more behind the scene processing, we are a local community bank with local processing, local underwriting, and local closing.
What that means to you: Faster closings.
Friday, June 19, 2009
$8,000 Tax Credit
A lot of questions have arisen about HUD's approval of the $8,000 tax credit being approved for use PRIOR to closing; i.e., as a source of down payment. Here's an article from http://www.fhaloanpros.com/
FHA Deals With No Money Down To Be Rare
Posted: 15 Jun 2009 12:27 AM PDT
A lot has been made of the $8,000 tax credit and how it can be combined with FHA financing to buy a home with nothing down.
If you would dearly like such an arrangement to be widely available, that just isn’t the case today and won’t be the case tomorrow.
To understand why, you have to look at several realities.
First, the FHA is insistent that homebuyers purchase with 3.5 percent down, money which must come from either their own pocket or in the form of a gift.
Second, you can only use the tax credit for a downpayment when the money is advanced to you by a state housing agency or an approved nonprofit. Otherwise the tax credit will go into your bank account sometime after your purchase.So to buy with FHA financing and no money down several things have to happen. You have to be able to get a “bridge” loan from an approved third-party — that state housing agency or approved nonprofit — AND you can’t borrow more than $228,571.42.
Call me for ideas on how to make this work for you.
FHA Deals With No Money Down To Be Rare
Posted: 15 Jun 2009 12:27 AM PDT
A lot has been made of the $8,000 tax credit and how it can be combined with FHA financing to buy a home with nothing down.
If you would dearly like such an arrangement to be widely available, that just isn’t the case today and won’t be the case tomorrow.
To understand why, you have to look at several realities.
First, the FHA is insistent that homebuyers purchase with 3.5 percent down, money which must come from either their own pocket or in the form of a gift.
Second, you can only use the tax credit for a downpayment when the money is advanced to you by a state housing agency or an approved nonprofit. Otherwise the tax credit will go into your bank account sometime after your purchase.So to buy with FHA financing and no money down several things have to happen. You have to be able to get a “bridge” loan from an approved third-party — that state housing agency or approved nonprofit — AND you can’t borrow more than $228,571.42.
Call me for ideas on how to make this work for you.
Subscribe to:
Posts (Atom)
