But, they are the Government, so how do you see this working out?  Yeah, me neither.

US Congressman Scott Garrett (R-NJ) recently introduced the “FHA Taxpayer Protection Act of 2009.” In his bill, borrowers would be required to make a 5% downpayment on FHA loans, as opposed to the 3.5% downpayment in the current guidelines.

In a Press Release Garrett states:

“Homeownership is a noble goal.  However the benefits of Homeownership using government subsidies must be balanced against the potential risk of insuring less creditworthy borrowers and exposing the American taxpayer to that risk. As we have learned repeatedly throughout the mortgage crisis, the amount of equity a homeowner has in their home directly correlates to the credit risk associated to their mortgage.

I know there are those in this area who believe that Congressman Garrett is on the right track with his Bill… I strongly disagree with you. In the Triangle (RDU area) we are sitting in the middle of 21 Universities and Colleges.  We are a mecca for Research and Technology jobs.  We are attracting young, hard working, EDUCATED first time homebuyers.  And this particular segment of the market is helping us keep our home values in place – because they are buying.

ANYTHING we do to disrupt this current, qualified buyer is a mistake – for ALL of us. We have too much inventory, banks are taking homes back everyday (contributing to that Housing Inventory), we should be ENCOURAGING them to purchase homes – especially now!

If you are interested in purchasing a home in Wake County, Durham County, Orange County or Johnston County, and want more information on qualifying for FHA loans - please call Steve and Eleanor Thorne, 919-649-5058.  We are Professional Mortgage Planners with more than 20 years experience and the lowest mortgage interest rates!

Here are qualifying requirements for an FHA Mortgage Loan:

• You can have a Co-Signor on a FHA loan.
• You need to wait at least 2 consecutive years following a bankruptcy.
• Any history of foreclosure must be at least 3 years old
• You must have had a stable income for at least 12 months and proof that you have paid all your bills.
• You must be able to make a 3.5% down payment, which is considerably lower than conventional loans.
• The Downpayment can be a GIFT!
• There are also eligibility requirements for the home. Properties that are eligible for a FHA loan include: single-family homes, 2-4 unit properties, condominiums, double-wide manufactured homes and modular homes. Ineligible homes include (but are not limited to) co-ops, boarding houses, commercial properties, hotels, and private clubs. A home is also ineligible if the seller acquired the house within the past 90 days. For any property over 10 acres, the loan will be based on the price of the house and the first 10 acres only. Additionally, the property must be used as a primary place of residence.
• You can count Part Time Income for a FHA Loan
• You need a credit score of at least 620 to get our best priced FHA Loans… lower scores might qualify- call us for details!

If you are considering a PURCHASE of a home in Cary, NC – or refinancing a FHA Mortgage in Raleigh, NC Steve and Eleanor Thorne – First Financial Services, Inc. Cary NC, 919-649-5058 for the BEST (read cheapest!) FHA Mortgage Rates!

 THIS IS HUGE!

There are few details available about how they will execute this, but here’s a link to the information I was able to find:

http://www.realtor.org/RMODaily.nsf/pages/News2009051202?OpenDocument

They are G-I-V-I-N-G you a $8000 credit that you can use on your 2009 and 2010 taxes! For details on this credit, click here!

First Time Homebuyers have many loan program options.  If you, or your spouse, are a Veteran then you qualify for a 100% VA Home Loan!

VA Mortgage Loan Basic Guidelines:

• No restriction about where the property is located
• No income restriction
• Maximum loan with no downpayment is $417,000
• Seller can pay closing costs
• Total Debt should not exceed 43% of Gross monthly income

USDA Rural Development also offers Mortgage Home Loan Programs with no money down!

• Restricted to more rural areas – but all counties in NC have qualifying properties! Click here to see if your property is eligible!
• Income Restrictions based upon how many people live in your home, click here to see if you meet those requirements! These income restrictions vary by COUNTY.
• You can not currently own a property in the Geographic Area you are purchasing (unless it is in adequate), and if you have a previous home rented, you must show evidence that you are reasonably receiving income from that property (it’s a little complicated)
• The Seller can help with closing costs, and you can receive a gift – but you can not have liquid assets equal to more than 20% of the sales price.
• No swimming pools. (LOL!)

FHA Mortgage Home Loans are another great alternative for first time home buyers!

• Maximum Loan Amount restrictions based upon the county the property is located.  To find out the limit for homes in the NC County you are interested in, please click here!
• No Maximum Income Requirements!
• Swimming Pools are Okay! 8-P
• Down Payment of 3.5% can be a gift!
• Allow non-occupying co-borrower!
• If you have a bankruptcy or foreclosure in your past you might still qualify! (you MUST have re-established your credit, and have at least 3 current tradelines with AT LEAST 12 months of clean credit)

Our advice is that if you are First Time Home Buyer thinking you would like to purchase this year to take advantage of the $8000 Tax Credit you need to check on your credit scores in the near future.  Meet with a loan officer, find out if you need to work on your credit NOW, because in general, credit score guidelines are getting tighter!

If you are considering a home purchase, please call Steve and Eleanor Thorne, First Financial Services, Inc 919.649.5058 for specific details regarding your situation!

FHA mortgage loans offers some of the most flexible financing available for today’s home buyers!

Here are the Basic Guidelines:

• You can Own property somewhere else…. meaning if you move to NC from Ohio (for instance) and you own a property there, you can still qualify for a FHA mortgage loan in NC! (but there are some details you need to remember about using rental income so click here to learn more!)
• You can get a Gift for the Downpayment!
• We can use income from a Second Job if you’ve had that job for at least 18 months, and/or you have a history of working 2 jobs!
• Minimum Credit Scores are more difficult to pin down.  In GENERAL – you need at least 12 months of “clean credit,” and no collections or judgements in the last 12 months.  I you are new to the credit “game” it’s going to be tough to get a loan, but we do have some investors that will help with “non-tradtional credit.”
• Debt To Income Ratios are “loosly” 33/43.  This means that based upon your GROSS income, you can have 33% of your monthly income going to your housing expense (which includes Principal and Interest, Taxes, Insurances and HomeOwner Dues, if you have them!).  Then you take your Gross Monthly Income and only 43% of your income can be gong to TOTAL debt – which includes the Housing expense above, but it also includes the items which report to the credit report (car payments, credit cards, etc.)
• Downpayment is 3.5%!
• You do not have to count child care payments!  (WHEW!)
• You can use a non-occupying co-borrower.  This means that if your parents want to help you by being on the mortgage loan, you can use their income and assets to qualify.  BIG, BIG, B-U-T here… you can not have sorry credit, and overcome that with a co-borrower. 
• The maximum loan amount for Wake County and Johnston County in NC is $271,050.  The maximum loan amount in Orange and Durham Counties is over $330,000!
• You can STREAMLINE refinance to a lower rate FHA Mortgage with minimal costs!

If you are considering a purchase or refinance and have questions about FHA mortgage financing – please call us!

Granted, downtown Carrboro and Chapel Hill do not qualify – but MOST of the county does! To find out if your specific property qualifies, click here!

The parts in the “shaded” areas do not qualify for USDA loans, however, all of the rest does!  The maximum income amounts for Orange County are lower than Wake County!

• 1- 4 people in household maximum income is $82,000

• 5 or more people in the household maximum income is $88,550

If you have questions about qualifying for a USDA Home Loan in Orange County, NC - please call Steve and Eleanor Thorne, First Financial Services, 919-649-5058!

The Rurual Economic Development Fund is what it use to be called, now it’s just a part of the USDA, and the goal is to provide mortgages, and incentives for folks to purchase homes in less “densly” populated areas!

So, in Wake County, NC that would be the areas in Apex, Holly Springs and Wake Forest (click the links for maps).  All of Fuquay and Garner qualify for a NO MONEY DOWN, USDA mortgage… parts of Durham qualify (look at the areas around Briar Creek!) and all of Johnston County qualifies.

Again, it’s a NO MONEY DOWN loan, with NO PMI!  One of our customers was just quoted in the WSJ about this program!  He said, “I couldn’t believe it until I got to closing!”  He only paid $1200 out of pocket to get into a very nice $228,000 home!

If you want more information about qualifying for a USDA home loan, please click here!  Remember!  If you are a first time homebuyer, or you have not owned a home in the last three years, you might qualify for a $7500 Tax Credit!

PS!  The program is running out of money.  Please click here for details!

Then take the $8000 credit the government is giving first time home buyers – and BUY a house!

You have some great financing options (and YES we are STILL making loans to folks, and first time home buyers have the EASIEST qualifying of any group!):

• FHA will allow gift funds for downpayment (or you might have it saved up)… you will need about 4% of the sales price to cover downpayment and closing costs!  (Click here for details on FHA loans)
• FHA 203K loans can cover the cost of “fixing up” some of those foreclosed properties you might be looking at. It allows you to borrow money based upon the “fixed up” value of the home! (Click here for details on 203K loans)
• Veterans have access to 100% loans! No PMI, can borrow over $400,000, and there’s no restriction about where the property needs to be located! (click here for more information on VA benefits!)
• USDA also has 100% loans, and although there are some restrictions (click here for details) there’s no PMI, and it’s a 100% loan!

So what are you waiting on?  When you buy a house, you get a RAISE!  (It’s TRUE! Check out the Tax Advantages of Home Ownership!)  Call Stephen L. Thorne, Mortgage Loan Officer in Cary NC for more details at 919-649-5058!

Now, FHA says that if you have a HOME LOAN, and you are renting that property, the income from the home is not allowable unless the following is met:

“Underwriters will no longer be permitted to include rental income from a primary residence being vacated in favor of another principal residence unless one of the following applies:
 
·                     the homebuyer is relocating with a new employer, or being transferred by the current employer to an area that is not within a reasonable commuting distance, OR
·                     the homebuyer has a 75% LTV or less, as determined by a current (no more than six months old) residential appraisal (may be exterior-only) on the current primary residence.”

If you are considering a purchase, and are interested in FHA financing, please call us early in the process so that we can identify any prospective issues!