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18 YEARS OF REAL ESTATE EXPERIENCE IN LAS VEGAS, HENDERSON, NORTH LAS VEGAS. I HANDLE ALL COMMUNITIES AS WELL AS BANK OWNED FORECLOSURES, DISTRESS SALES, HUD HOMES AND SELLING HOMES ON A SHORT SALE......**Get FREE Daily Home Lists emailed to you!
CALL ELIZABETH HAMMACK, GRI at 702-604-1659
or **Email Your Request Here**
OBAMAS HOUSING PLAN UNVEILED! CLICK HERE FOR FULL DETAILS
$8000 TAX CREDIT FOR FIRST TIME HOMEBUYERS APPROVED! Everything you need to know HERE!
LAS VEGAS PROPERTY is abundant and priced really LOW! Here are your Las Vegas Real Estate Statistics on resale homes:
NUMBERS ARE UP!!! SALES ARE UP!!! NOW IS THE TIME TO BUY A HOME!
10,498 homes for sale
13,521 homes under purchase contract
3,138 Successful closed sales since 1/03/2010
This does include Henderson Nevada Homes and North Las Vegas Real Estate, but does not include new homes in Las Vegas NV that are offering well over
1500 additional homes for sale.
HomesForSaleInLasVegas.com is your number one resource for Las Vegas Bank Owned Homes and Foreclosures. We are also experts in Short Sales and can help you short sale your home smoothly.
Free Relocation Guide PDF
Get approved for a home loan today!  Call Brad Wolfe at 702-308-0813
Here is some information from this week that I thought you might find interesting.....
INTEREST RATES, according to Freddie Mac, are down near record lows this week. Close to the lowest they have been since 1971. 15 year mortgage rates are the lowest they've been in tracking history.
For details, visit: http://www.reuters.com/article/ousiv/idUSTRE5AI42W20091119
GOOD QUESTIONS I WAS ASKED THIS WEEK....
Q: "My home is about to go into foreclosure and I don't qualify for note modification. I heard Fannie Mae will lease my home back to me. Is this true?"
A: Fannie Mae is implementing the Deed for Lease™ Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.
Q: "I heard that a VA loan is "$1 down" but then I heard I am responsible for closing costs, which can be $1,000's. Which is it?"
A: The VA allows a veteran who qualifies income and credit-wise to purchase a primary residence without putting money down towards the sales price. Veterans do, however, need money towards closing costs and the earnest money deposit, which the seller generally requires when a sales contract is signed. Closing costs may be paid by the seller but they don't have to.
GOOD QUESTIONS I WAS ASKED LAST WEEK....
Q: "I heard the $8,000 federal housing tax credit was extended. Where can I get the details??"
A: FROM FEDERALTAXCREDIT.COM "The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers."
You can find the details on this extension and tax credit here at: www.federalhousingtaxcredit.com
Q: "When will we know the 2010 loan limits for FHA, Fannie Mae, and Freddie Mac?"
A: Congress and President Obama recently approved the extension through calendar year 2010 of expanded conforming loan limits for FHA, Fannie Mae and Freddie Mac single family mortgages.
Have a great Thanksgiving holiday!!
Best regards,
Aaron M. Gordon
Bank of America Home Loans
Senior Mortgage Loan Officer / Sales Manager
Platinum Club - Bank of America Top 5% in Nation
A: In today's lending environment, although your good credit and assets are excellent factors, you have to be able to prove your income to show you can make your payment. As a self employed borrower, you have to be able to document a two-year history of being self employed. Your income will need to be supported through tax returns.
Q: "How can an appraisal come in less than sales price when there are multiple offers that drive it over list price?
A: An appraisal is an opinion of value. Appraisers are required to abide by strict appraisal standards which consist of analyzing market trends, recent closed sales, pending sales, and other data.
When doing the appraisal on the property if the market trend is declining monthly, recent closed sales in the neighborhood were priced less or the same and sold a while ago, and the pending sales surrounding it are lower, this could result in an appraisal below agreed to sales price.
What can you do to help? Share information with the appraiser.
To guarantee the appraiser has the very best data available, it's important for the listing agent to meet the appraiser on-site at the time of inspection or make contact with him to provide information. The agent will want to provide the appraiser with the data that was used to come up with the list price and to show supporting value data in the form of recent closed sales and pending sales.
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QUESTIONS OF THE WEEK
Q: Can a buyer use the $8000.00 tax credit as a down payment? I have also heard that using it for the down payment is actually a loan for the $8000.00. Is this true????
A: CURRENTLY YOU CANNOT USE THE TAX CREDIT AS A SOURCE OF DOWN PAYMENT. THE TAX CREDIT, IF YOU ARE ELIGIBLE, COMES AFTER CLOSING. THERE WAS SOME TALK ABOUT LENDERS DOING BRIDGE LOANS FOR THE DOWN PAYMENT AND THEN YOU WOULD PAY THEM BACK WITH YOUR TAX CREDIT. WE DON'T DO BRIDGE LOANS.
Q: I have a client that would like to rent out their current house and purchase another house to live in. They owe $175,000 on this home and the value today is $190,000. They have owned their current house since 7/06. Would a current lease agreement work for qualifying?
AG: DEPENDING ON THE LOAN PROGRAM THEY SEEK, IF THAT CURRENT HOME DOES NOT HAVE AT LEAST 25-30% EQUITY, WHICH THEIRS DOESN'T, THEY WILL NEED TO PROVE ENOUGH INCOME TO QUALIFY FOR BOTH HOUSES (CURRENT AND NEW) WITH NO RENTAL INCOME COUNTED. THEREFORE, THE LEASE AGREEMENT WILL NOT SUFFIC
QUESTION OF THE WEEK : "My lender asked me for a copy of my tax returns and W2's. I have no idea where to find them. What can I do?"
You can call the IRS at 1-800-829-1040. Option 1, then option 9, then option 1, then option 2. You will be speaking with a live person. Tell the agent you want a complete transcript including W2's for whichever year you need. They will usually fax it to you within one day for free.
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"SOON BUYERS WILL WANT TO CONSIDER WIRING FUNDS TO ESCROW"
Effective October 1, 2009, the State of Nevada has enacted a "Good Funds" law.
The law states that for escrow to close the buyer's closing funds must clear the bank.
The buyer brings in a cashier's check for down payment and closing costs. The check must be deposited with the title/escrow company's bank prior to record/close.
If this cashier's check is drawn from a local bank, this clearance can take up to two business days and therefore could delay closing and recording.
If the buyer brings in an out-of-state cashier's check, the title/escrow company could have to wait up to 10 business days to verify the check has cleared.
Talk to your favorite escrow officer for more information on how their company plans to addressing this new law.
Based on this new law, you may want to consider coaching your buyers, especially those from out-of-state, to avoid the use of cashier's checks and to wire their closing funds to escrow
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"I recently bought a house for $100,000 and paid cash. I want to pull as much cash out of it as possible. How long do I have to wait?"
No matter if you paid cash or not, most lenders today require you to wait at least six months before pulling cash out so long as the value is based on lower of appraisal value or purchase price.
If you believe the home has appreciated and you want to use current appraised value, instead of original purchase price, to determine value you will likely have to wait at least one year from purchase to do this refinance
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GREAT NEWS: One of our lenders is allowing the $8000 first-time home buyer tax credit to be used for the down payment. Here's how it works:
1. The borrower calls me and gets pre-approved.
2. You find the borrower a property, an offer is made, and accepted.
3. The borrower amends his 2008 returns, using form 1040x, completes form 5405, then files with the IRS.
4. After 12 to 16 weeks, the check arrives.
5. The borrower then completes the purchase and becomes a homeowner!
***This is obviously a strategy that will work better with short sales (where banks take forever to approve a sale anyway), and with private party purchases (where the seller is ok with a 90-120 day escrow) rather than REO's. However, if a short sale approval is taking too long, and you included language that allows you to get out of the deal, you could always find your client another property. The primary goal now is to get the amended return and form 5405 filed ASAP!!!
***The borrower should consult a tax professional for advice, as I am NOT an accountant. I'm only telling you the procedure from a lending point of view.
WE ARE RUNNING OUT OF TIME. THE CREDIT EXPIRES DECEMBER 1, 2009 and checks can take up to 4 months to arrive so your clients must ACT NOW!!!
*The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
*The tax credit does not have to be repaid.
*The tax credit is equal to 10 percent of the home´s purchase price up to a maximum of $8,000.
*Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. A partial credit may be an option.
NOT SO GREAT NEWS: Beginning 8-1-2009, closings could take up to 11 days longer, because of new disclosure regulations. Once we take an application, we will send out the initial disclosures, and the client has 3 days to review. Until the 4th day, we can not order an appraisal. The second part of the new rules deals with APR changes. When its time to order DOCS, if the APR is more than an 1/8 % different, the lender is required to send out new disclosures, allowing 4 days for mailing, and 3 more days for review. To avoid any per diem penalties, I suggest 45 day escrows at a minimum.
FHA "as is" OFFERS: An FHA purchase can not really be as-is, because the property must be deemed "livable", and repairs must be completed before COE. "As-is, except for FHA required repairs" is a better option. Check with your Broker for specific language.
FHA 203k (fixer upper loan): Up to 35K in money for repairs can be rolled into the loan (no structural or pool repairs) and completed AFTER COE, so this is a nice option for those dumpy houses that the borrower falls in love with anyway.
Dan Sherbondy-Senior Mortgage Banker
I have 10 proud years in the industry and primarily focus on NEVADA and CALIFORNIA but can also loan in Idaho, Utah, Florida, New Mexico, Missouri and South Carolina.
All Types of Loans for All Types of People....FHA, VA, 10% down investor loans, First-Time Buyers, HomePath, $100 down HUD, Conventional, Refi, 105% LTV Refi, FHA Streamline Refi, Short Sale, 1/2 off for teachers, cops and firefighters and More HOMEPATH MORTGAGE FINANCING - certain homes offer special financing, contact your agent Elizabeth Hammack, GRI to find out which homes qualify for this program. **Lower down payment, down payment may be a gift, loan, grant, no mortgage insurance, no appraisal fees visit Homepath.com for more info
"Homeowner Affordability and Stability Plan" (HASP) and "Home Affordable Refinance Programs" (HARP).
HARP allows for the following refinance products released by Freddie Mac and Fannie Mae; Freddie Mac Relief Refinance, Fannie Mae Refi Plus and Fannie Mae DU Refi Plus. We intend to support these initiatives and high focus is being given to their release. We are working with external agencies and mortgage insurance partners and are awaiting clarification of outstanding items.
These refinance products are intended for borrowers with existing Fannie Mae or Freddie Mac loans that are current, but due to declining property values have been unable to refinance. The products allow for up to 105% Loan To Value. An announcement will be issued once agency and mortgage insurance guidelines are finalized and systems are updated. Please be assured that the Loan Product Descriptions will be available as soon as possible.
We anticipate huge number of refi apps so have your clients go to my website www.TheDreamLoan.com ASAP and click on FULL APPLICATION then fill it out and hit SUBMIT
TIP OF THE WEEK :
"EVERYTHING YOU WANT TO KNOW ABOUT THE $8,000 FIRST-TIME HOME BUYER TAX CREDIT"
For more info: http://www.federalhousingtaxcredit.com/2009/faq.php
Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009.
What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home´s purchase price up to a maximum of $8,000.
Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return.
How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.
How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return.
What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.
I read that the tax credit is "refundable." What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return. You should consult with a tax advisor to ensure you file this return properly.
Can I claim the tax credit if I finance the purchase of my home under the Nevada Bond Program?
Yes. The tax credit can be combined with the program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in this program.
Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer´s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.
I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.
Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding.
Can I get my $8,000 and use it for my 3.5% minimum down payment on an FHA loan?
No.
The Secretary of Housing and Urban Development has announced that HUD will allow "monetization" of the tax credit. What does that mean?
It means that HUD will allow buyers to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain increased down payment, after you have paid the minumum 3.5% yourself, and for closing cost expenses.
Under the guidelines announced by HUD, non-profits and FHA-approved lenders will be allowed to give home buyers short-term loans of up to $8,000.
In addition, approved FHA lenders will also be able to purchase a home buyer´s anticipated tax credit to pay closing costs and downpayment costs above the3.5% downpayment that is required for FHA-insured homes.
Banks have not yet announced how they will do this however. Stay tuned.
If I´m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. Ask your tax preparer.
For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008, then you can choose the year that yields the largest credit amount. Ask your tax preparer.
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"FHA 203K Rehab Loan Highlights"
I get a lot of calls about 203K FHA Rehab loans.
I am proud to announce that although there are only two Bank of America mortgage loan officers approved in the city for this special product, one of them, Kellie Saari, is on my team.
Here is what Kellie says you need to know:
FHA Full 203K : This is the preferred program that allows borrowers to obtain one mortgage to finance or refinance both the acquisition and the rehabilitation of the property.
To provide funds for the rehabilitation, the mortgage amount is based on the projected (improved) value of the property with the work completed, taking into account the cost of the work.
Features & Benefits:
Think of the 203K loan as a traditional FHA loan with a repair escrow.
Loan amount is based on "after improved value".
Funds for rehab/repairs are financed and disbursed as work is completed.
Same low down payment and credit qualifying as with any FHA loan.
Up to 6 months payments can be financed if property is not habitable during rehab
Appliances, cosmetic, and landscape may be financed.
Seller can participate in buyers closing costs up to 6%.
Eligible Improvements (This is only a sample of the items that are eligible) :
First items addressed are health, safety & weatherization.
Remainder can be applied to upgrades & remodeling.
Structural alterations and reconstruction.
Improved function & modernization.
Changes for aesthetic appeal.
Repair, or replace plumbing, heating, A/C, electrical systems.
Installation of well and/or septic.
Roofing, gutters, and downspouts.
Flooring, tiling, and carpeting & appliances.
Energy conservation improvements.
Major landscape work and site improvement.
Improvements for accessibility to the handicapped.
Call for other desired items, or improvements.
Minimum amount in repairs is: $5,000.00
Maximum amount in repairs: NO LIMIT!
Loan amount cannot exceed FHA county limit--- $400,000 in Clark County
Owner occupied Purchase, or rate & term refinance.
Single Family
Duplex
Tri-Plex
4 Plex
Condo (must be FHA approved) Maximum 4 units in each building.
"Luxury items".
BBQ pit
Bathhouse
Dumbwaiter
Exterior hot tub, sauna, spa and whirlpool bath
Outdoor fireplace or hearth
Photo mural
Installation of new swimming pool
Gazebo
Tennis court
Tree surgery
Items that will not become a permanent part of the property
Never completed homes
- Contractor (Licensed) is required to complete work.
1 bid and Work write-up
Work write-up replaces the need for a home inspection
Pest inspection required
Work must begin within 30 days of COE
Work must be complete with 6 months of COE
- EEM Feature--If you make the home more energy efficient there are some additional benefits. Please ask Kellie about these.
COE: 60 day closing from date of seller acceptance.
Contract must state: "Buyer´s loan proceeds are coming from an FHA 203K rehab. loan".
Seller can pay up to 6% of buyers closing costs (recurring & non-recurring).
Offer is made on what buyer wants to pay for the property in "as-is" condition.
Advantages of Going 203K
· Sell the property in "AS-IS" condition
· Agent receives commission before any work is started
· Think of a listing that is listed as "cash only" (due to needed repairs)
· Buyer loves home, neighborhood, school district, etc. but dislikes kitchen, bathroom(s) flooring, paint, etc.
· Home is older and needs new everything e.g. HVAC, roof, paint, flooring, kitchen/bathroom/bedroom remodel, etc
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QUESTION OF THE WEEK : "I bought a B of A Owned Property "As-Is" but now my lender, who is also B of A, is requiring repairs, why?"
When you buy a bank-owned property from a B of A, Wells Fargo, or other bank, they are not usually the actual seller. The actual seller is the holder of the Note on that property. Its usually a fairly large institutional investor. We are the servicing company for that loan and we represent the seller (investor) through the dispursement of the property through foreclosure.
That division of asset management is completely separate than the division that finances your property.
In a bank-owned property we often see "as-is" language. The main purpose of the "as-is" clause is to warn the buyer that the bank will not make repairs nor concessions based on the results of an appraisal or home inspection.
When you buy a bank-owned property, and you are seeking financing, its important to assess the property and the repairs it will likely require before making your offer. Consult with your lender before making an offer on an "as is" home. Not all loan programs will allow you to buy a home that needs substantial repairs.
When buying an REO property, you must be prepared to do some repairs yourself. Banks may not agree to make these repairs. They may not pay for these repairs. This may require out-of-pocket expense for you.
They may be willing to help with some, but don´t plan on it. Know what you are buying before you make your offer and be prepared to spend some money for repairs before you move in.
If you barely have enough money for the down payment and closing costs, be very careful in buying a bank-owned property, unless you have arranged for repairs with the seller.
LOWER YOUR INTEREST RATE TODAY: If you have an FHA or VA loan or you have a loan with Countrywide or Bank of America, you definitely want to call and find out about your streamline refinancing options. No appraisal on most loans, no credit report on some, and no income or asset documentation on most.
=========================================================== Introducing Freddie Mac´s Relief Refinance program! Relief Refinance allows borrowers who are current on their existing Freddie Mac owned mortgage to refinance up to 105% LTV.
Product Features include:
- Mortgage Insurance is not required on new Relief Refi loans if there is no MI on the existing loan
- LTV´s up to 105%. No CLTV or (H)CLTV restriction
- Streamlined documentation allowed, including no appraisal if applicable.
- 1-4 unit Primary Residence and Investment Property, and 1 unit Second Home
- Loan amounts up to the Temporary 2009 limits
- Only three (3) months seasoning required (note date to note date)
- No min. fico requirement if P&I payment is not increasing more than 20%
- No DTI requirements if P&I payment is not increasing more than 20%
- Condo approvals are not required
- Loan proceeds may be used only to:
- Pay the unpaid principal balance and accrued interest of the eligible first lien, or
- Pay not more than $2,500 in closing costs and/or prepaids
Appraisal
- For some one (1) unit properties, a Home Value Estimate (HVE) may be available for use in lieu of an appraisal:
Mortgage Insurance
- Mortgage Insurance is not required on the Relief Refinance loan if:
- The LTV of the new loan is <=80%; or
- The existing loan does not currently have MI
- Mortgage Insurance is required when the LTV of the new loan is >80% and the existing loan has MI
Borrower Eligibility
- Determine if the mortgage is currently owned by Freddie Mac by checking the following Freddie Mac website: https://ww3.freddiemac.com/corporate/
The Nevada Bond Program, which offers 100% financing, and is serviced by Bank of America Home Loans, has raised their income limitations.
Effective with all new bond reservations on/after April 15, 2009.
If you have a 1 to 2 Person household and your income is less than $78,480, you may now qualify. This is an increase from around $72,000.
If you have a 3 + Person Household and your income is less than $91,560, you may now qualify. This is an increase from about $84,000.
Keep in mind, you must be able to qualify for an FHA loan and you can't have more than $5,000 in liquid assets excluding 401K.
The rates are slightly higher, but if you need 100% financing today, BOND may be the way to go.
Remember we don't have a 620 minimum credit score on FHA loans like many lenders today
FIND REFINANCE AND MODIFICATION GUIDELINES AT:
http://www.treas.gov/press/releases/reports/guidelines_summary.pdf
http://www.treas.gov/press/releases/reports/modification_program_guidelines.pdf
As we learn more about the program, we will work with our customers to determine their eligibility.
Although the participation of each bank is voluntary, Bank of America and Countrywide are supportive of this program and the positive impact it will have on homeownership nationwide. We will work to implement the plan specifics as quickly as possible.
- TIP OF THE WEEK: "FHA LOAN LIMIT INCREASED TO $400,000 IN CLARK COUNTY"
As I announced earlier this week, FHA has raised the loan limit to $400,000 in Clark County and $325,000 in Nye County.
https://entp.hud.gov/idapp/html/hicostlook.cfm
This means buyers looking for homes up to $414,500 can now qualify with as little as 3.5% down. Great news for market stability as well. Stay tuned for details on rates.
If you have an FHA loan, please call me about refinancing your loan with no appraisal, credit report or income / asset documentation.
QUESTION OF THE WEEK: "WHY DOES IT TAKE SO LONG TO HEAR FROM ASSET MANAGERS ON REO AND SHORT SALE PROPERTIES?"
Customer service is the most important thing in our business. Many people get frustrated dealing with bank-owned properties and short sales. "Why do answers take so long?" is a question I hear all of the time.
At Countrywide, we service 100 million transactions per month. Payments, note mods, loan workouts, customer service, new loans, etc. 100 million. This represents $2.4 trillion in mortgage transactions each month. This represents 14 million customers nationwide.
Today, there are 190,000 homes in loss mitigation. 190,000. Each of these needs an asset manager.
It's important to communicate these numbers with your REO buyers and short sale buyers and sellers and set realistic timelines and expectations.
The good news is there were 39,000 loan mods in January 2009 alone.
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Military Income. In addition to base pay, military personnel may be entitled to additional forms of pay. Income from variable housing allowances, clothing allowances, flight or hazard pay, rations, and proficiency pay is acceptable, provided its probability of continuance is verified in writing. An additional consideration may be the tax-exempt nature of some of these payments which can be grossed up 25%.
Child Support Income. Income in this category may be considered as effective if such payments are likely to be consistently received for the first three years of the mortgage. The borrower must provide a copy of the divorce decree, legal separation agreement, or voluntary payment agreement and evidence that payments have been received during the last twelve months. Acceptable evidence of regularity of payments includes canceled checks, deposit slips, tax returns, court records, etc. Periods less than twelve months may be acceptable provided the payor's ability and willingness to make timely payments is adequately documented by the lender.
FHA permits properly documented child support to be grossed up under the same terms and conditions as other non-taxable income sources. This income may be grossed up 25%.
NOTE; Payment of arrearage is not to be included as income. If the decree states child support income of $200 and the borrower is getting an additional $100 towards the arrearage, we will not use the additional $100 as income or even as a compensating factor.
The U.S. Department of Housing and Urban Development (HUD) launched a new, comprehensive Web site to assist Americans with improving financial literacy, sustaining healthy homeownership and achieving financial security. My Money, My home, My Future
**IRS speeds Lein relief for distressed homeowners trying to refinance - See Article
FHA only allows a borrower to have one FHA mortgage at a time except under the following circumstances:
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A. |
Relocations. If the borrower is relocating and reestablishing residency in another area not within reasonable commuting distance from the current principal residence, the borrower may obtain another mortgage using FHA insured financing and is not required to sell the existing property covered by a FHA-insured mortgage. The relocation need not be employer mandated to qualify for this exception. Further, if the borrower returns to an area where he or she owns a property with an FHA-insured mortgage, it is not required that the borrower reestablish primary residency in that property in order to be eligible for another FHA insured mortgage. |
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B. |
Increase in Family Size. The borrower may be permitted to obtain another home with an FHA-insured mortgage if the number of legal dependents increases to the point that the present house no longer meets the family's needs. The borrower must provide satisfactory evidence of the increase in dependents and the property's failure to meet the family's needs.
The borrower also must pay down the outstanding mortgage balance on the present property to a 75 percent or lower loan-to-value (LTV) ratio. A current residential appraisal must be used to determine LTV compliance. Tax assessments, market analyses by real estate brokers, etc., are not acceptable as proof of LTV compliance. |
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C. |
Vacating a Jointly Owned Property. If the borrower is vacating a residence that will remain occupied by a co-borrower, the borrower is permitted to obtain another FHA-insured mortgage. Acceptable situations include instances of divorce, after which the vacating ex-spouse will purchase a new home, or one of the co-borrowers will vacate the existing property. |
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D.
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Nonoccupying Co-Borrower. A non-occupying co-borrower on property being purchased with an FHA-insured mortgage as a principal residence by other family members may have a joint interest in that property as well as in a principal residence of their own with a FHA-insured mortgage.
Therefore you must determine the type of any existing mortgage the borrower may have. The credit report may indicate the type but if not, you must get proof by obtaining the fully executed HUD for that property or a copy of the Mortgage. Please note: this is only needed if any of the existing mortgages will remain open at time of closing. | "FACTS AND FICTION OF THE $8,000 TAX CREDIT"
I have fielded many questions in the past few weeks about using the first time homebuyer's tax credit of $8,000 for different purposes.
IT COMES DOWN TO THIS: Today, you cannot use this $8,000 tax credit for the required down payment of 3.5% on an FHA loan.
HUD originally put out a mortgagee letter on May 12th saying this was allowed. Then it was rescinded the next day.
This past week they put out a new letter. This one states that you can receive the first time homebuyer's tax credit up-front, but not through the IRS. You cannot receive your $8,000 tax credit before you close on your home. This has been confirmed thru the IRS.
To read the full contents of the letter, copy and paste this link:
http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2009_MORTGAGEE_LETTERS/09-ML-15%20USING%20FIRST-TIME%20HOMEBUYER%20TAX%20CREDITS.PDF
The money can be given to you as a second mortgage from any Federal, State, or local agencies, and any FHA mortgagee or any FHA approved nonprofit organization. Just like the Nevada Bond Program works.
So you can get an advance, or a loan, from one of these approved parties.
You can use this advance it to increase your down payment from the minimum 3.5% required or to help you with closing costs. You cannot use it for the minimum 3.5% down payment. You still have to come up with the 3.5% yourself.
The challenge today to this new mortgagee letter is that the banks haven't yet decided how to execute this. We, here at Bank of America, expect to have some guidance in the very near future.
In the meantime, nothing has changed. Today, you can't use the tax credit at all on your FHA loan. However, stay tuned
Las Vegas Real Estate Market Report: 01/13/10
This is the latest Las Vegas Real Estate Market Report from www.NARREIA.com (National Association of Residential Real Estate Investment Advisors). For the week of January 13, 2010, data is obtained from the Greater Las Vegas Association of Realtors MLS.
Single Family Residence (SFR)
Available ? 8,622 (+174 , Last Week 8,448)
Under Contract ? 10,556 (+12 , Last Week 10,544)
Days of Supply ? 25 (+1 , Last Week 24)
Short Sales ? 10,874 (+151 , Last Week 10,723)
Condominiums and Town Homes (CONDO/TH)
Available ? 1,898 (-1 , Last Week 1,899)
Under Contract ? 2,608 (+31 , Last Week 2,577)
Days of Supply ? 22 (+0 , Last Week 22)
Short Sales ? 2,740 (+42 , Last Week 2,698)
Combined SFR + CONDO/TH
Available ? 10,520 (+173 , Last Week 10,347)
Under Contract ? 13,164 (+43 , Last Week 13,121)
Days of Supply ? 24 (+0 , Last Week 24)
Short Sales ? 13,614 (+193 , Last Week 13,421)
FIRST TIME HOMEBUYERS IN LAS VEGAS CAN STILL BUY A HOME FOR 3.5% OR LESS DOWN IF THEY QUALIFY...Dont let the stories about banning seller contributions to down payment scare you, there are many down payment assistance programs out there such as The City of Las Vegas Down payment assistance, the City of Henderson down payment assistance, Neighborhood Housing Services of Southern Nevada (NHHS) gifts funds, HUGS 1% down loan program, etc(TEMPORARILY OUT OF FUNDS). What is down payment assistance? This is cash money that home buyers can qualify for to use toward a down payment of a home. For Example if a home is $130000 and you get $30000 from North Las Vegas City for assistance, then you will get a loan for $1000000. This makes a payment much more affordable and if you get your real estate professional to ask the seller for closing costs, you are looking at total out of pocket to buy a home around $1500. This is amazing. If someone cant come up with $1500, they should not be buying a home.
**HUGS IS TEMPORARILY OUT OF FUNDS**Try buying a HUD home for $100 down! Call me 702-604-1659
A real estate agent that has taken the time to get educated and certified on these programs can help you easily see if you can participate. Some down payment grants
are up to $40,000! Many first time homebuyers can still buy a home with a 1% down FHA loan with some income guidelines. In other words, you cant make too much money in income, please see the HUGS program page for income guidelines.
Some other Down Payment assistance programs that are currently being offered are:
* The City of Henderson
* The State of Nevada
* Clark County Nevada
* Nevada Rural Hosing Authority
* The City Of North Las Vegas
* Neighborhood Housing Services of Southern Nevada
Other organizations are out there to help also such as Consumer Credit Counseling Service. www.CCSNEVADA.org . Most down payment contributions require a Home buyer education Class. These Classes are also offered in Spanish.
These range about 6 hours and discuss:
Advantages and Disadvantages of Home Ownership
Buying New Or Resale
Choosing a Realtor
Mortgage Requirements and Types
Shopping for a Mortgage
Understanding Credit Worthiness
The equal Credit Opportunity Act
Managing your money effectively
Discriminatory housing laws
predatory lending what it is and how to protect yourself
The home shopping process
Making an offer on a house
The closing costs
Consumer Protection factors
settling in to your new home
Protecting your investment
Even if you are NOT a first time homebuyer, many FHA loans can be obtained
with as little as 3.5% down payment. The maximum house loan you can get with FHA is $287500, but this buys a mass selection of Vegas Homes and North Las Vegas or Henderson Nevada homes. I would like to encourage you if you are looking to buy a home, take advantage of the incredible home prices and low interest rates that
are out there right now!
You can also look at Las Vegas HUD homes, for owner occupant purchasers, they are currently offering $100 down payment and a $1000 closing contribution for full price offers. You must use a HUD registered Nevada real estate agent to put in an offer, such as Elizabeth K Hammack, GRI, the owner of this site!
Your experienced HUD registered Las Vegas Realtor, can help you pre-qualify with a HUD certified mortgage provider and help you prepare all paperwork necessary to submit an offer, your HUD certified agent also has a HUD key to show you
HUD homes upon request.
Most of the Las Vegas real estate for sale is going to be bank owned, the reason for this is predatory lending that caused so many people to lose their homes and then even if they tried to sell it, they either didnt have enough equity to get out of it due to the major artificial inflation that took place in our market or they were somehow related to
the real estate industry...either a real estate agent, lender or even worked at a
bank that closed down.
It is a very sad time in history, but the important thing to remember is if we want to raise our economy and property values, we have to stay active in our spending...and I dont mean go out and buy things, I mean if you have a stable job and the income to buy a home, go buy it, there are some great deals to be had right now in a
Las Vegas Real Estate purchase! Sellers are begging to get their homes sold, whether by a short sale agreement with their bank, or by having the price low enough to compete with all of the bank owned properties on the market.
If you are not behind in payments, but help with an adjustable rate loan that is coming due, please contact me Elizabeth K Hammack, GRI or visit HUDS page for information on the Hope For Homeowners Program , this program can also help you when you are behind in payments, and do not want to sell your home. The Hope for Homeowners program was designed to help homeowners stay in their homes.
If you want to try to sell your home and you are behind in payments, you might be
able to negotiate a short sale which is a deal that your bank makes to take less than what is owed on the mortgage. Please contact your Realtor in Las Vegas
regarding any of these issues or see information pages regarding these issues
on this website before proceeding with a short sale, etc.
Dont be afraid to buy a fixxer: Lets talk about another option that is great for home buyers:
the FHA streamline 203k
This is a great program especially for the condition of most properties that are currently available on the market right now. Most of them need some TLC and some are just plain Fixxer Uppers. Virtually any kind of improvements are acceptable with the exception of pools and luxury appointments. 50% of the improvement funds are released shortly after closing on the home to start repairs and the remainder of the money is released upon completion.
A quick suggestion is to find contractors willing to bill for their fees, etc. No inspection is required for the FHA 203k if the repairs are under $15,000 dollars. The maximum amount for repairs that is allowed is $35,000. A home buyer must have a median credit score of at least 580 to qualify for this FHA loan. This is a great loan for homebuyers that would like to get a deal on a REO, Short Sale or other foreclosed property
The down payment required for most FHA loans is 3.5% with the exception of some special programs I have listed.
There are so many Las Vegas Real Estate Resources available, so feel free to email or call anytime for information, if you would like a FREE Las Vegas Relocation Guide emailed to you, please click here to sign in, thank you and happy hunting!
Something you might need or want to know is who is on the Federal Deposit Insurance Corporations failed bank list? I have provided a web link for you here
Here are some other Real Estate Resources for you:
Free Las Vegas Relocation Guide Request
Homes For Sale Las Vegas NV MLS
Las Vegas NEW home search
Las Vegas School Information
Real People Really Live in Las Vegas
Neighborhood Stabilization Plan
Worldwide Real Estate Directory and Buyers Guide
Austin Real Estate- Austin's premier, full service real estate brokerage. Proudly serving the greater Austin metropolitan area and the surrounding counties
Toronto Real Estate Listings!
Website sponsored by: Elizabeth Hammack, GRI with Elite Realty 702-604-1659
or email bethatc21@aol.com
**It is Illegal to discriminate against any person because of race, color, religion, sex, handicap, familial status, or national origin."
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