DOWN PAYMENT ASSISTANCE, TAX CREDITS AVAILABLE TO HELP YOU PURCHASE A HOME

MONEY IS AVAILABLE FOR DOWN PAYMENT AND CLOSING COST TO HELP YOUR PURCHASE A HOME!


Avondale, Phoenix, Mesa, Gilbert, Chandler and other Valley cities have money available to help you purchase a home through their neighborhood stabilization programs. What that means to you is $$$$ towards your new home purchase.

You have seen them; they are all around town, vacant homes, abandoned homes, foreclosed homes, etc. In order to keep the neighborhoods from being eye soars, breeding grounds for vandalism, or crime scenes, a conscience effort is being made to fill those properties with responsible buyers. This could be you!

Short of cash to purchase a home?

There are several programs available to help. President Obama signed The Worker, Homeownership, and Business Assistance Act of 2009 into law on Friday, November 6th to help strengthen the nation's economic recovery. It is anticipated, that by extending the first-time homeowner tax credit and expanding the program to cover current homeowners, the inventory of unsold homes will continue to be reduced and homeownership will continue to rise. The White House states that "residential housing investment grew 23 percent in the third quarter, one of the contributors to positive economic growth. The bill temporarily extends the $8,000 tax credit for first- time homebuyers for homes under contract by April 30, 2010.
It also expands the program to provide a $6,500 tax credit for existing homeowners if they have lived in their homes for at least five (5) years and want to "step up" to a new home. Again, the law states that homes must be under contract by April 30, 2010.

Additionally, it extends the same tax credits until May, 2011 to members of the "uniformed services whose duty takes them overseas."
Fraud in on the rise in many arena, and mortgage fraud is not an anomaly, therefore a measures designed to combat fraud and protect responsible homebuyers is a part of the President’s plan. One of his requirements is to limited home purchases to people who meets the minimum age requirements, and can produce "documentary proof of the purchase to receive the credit.

Who is eligible?

All U.S. citizens who file taxes.

Who is considered a "first time" homebuyer?

Anyone defined by law as buyers who have not owned a principal residence during the three-year period prior to the purchase. Who is considered an "existing" homebuyer?Anyone who has been living in their principal residence for five (5) consecutive years out of the last eight (8) and is purchasing a home to be their new principal residence.

Are there income limits?

Yes. Homebuyers filing taxes as a single or head-of-household can claim the full applicable credit for either of the tax credit programs if their modified adjusted gross income (MDGI) is less than $125,000. Single or head-of-household taxpayers with incomes between $125,000 and $145,000 are eligible for partial credit. For married couples filing jointly, combined income cannot exceed $225,000. Married couples whose combined incomes are between $225,000 and $245,000, and file a joint tax return are also eligible to receive a partial tax credit. Single taxpayers whose MAGI is greater than $145,000, and married couples filing a joint tax return with a MAGI over $245,000 are not eligible to participate in the program. What are the effective dates?Homes purchased after November 6, 2009 and before May 1, 2010 are eligible for the tax credit. Home purchases subject to a binding contract signed by April 30, 2010, will qualify if closing occurs before July 1, 2010.

What types of homes qualify?All homes with a purchase price of LESS THAN $800,000 qualify provided that the home will be used as the principal residence. Vacation homes and rental property purchases DO NOT qualify.

Is the tax credit refundable?

Yes... if the amount of income taxes owed is less than the credit amount a homebuyer qualified for, the government will send a check for the difference. All qualified homebuyers can take the tax credit on either their 2009 or 2010 tax return.

CALL ME FOR INFORMATION ON FUNDS AVAILABLE THROUGH VARIOUS CITY PROGRAMS TO GIVEN TOWARDS YOUR DOWN PAYMENT AND CLOSING COST.

CYNTHIA SMITHERMAN, ABR, GRI, DB, CPDE, ASP, C-REO , REALTOR, REALIST, VP-AAREB.
602 697-4487 OR EMAIL:Cynthia@emagehomes.com
http://www.homes4saleaz.com/
equal opportunity real estate agency

Housing Tax Credit Working, So Keep Momentum Going, NAR Urges Congress

As REALTORS we work hard to help our community realize the dream of homeownership. These are the words of our the National Association Realtors President. We will keep you updated.

Housing Tax Credit Working, So Keep Momentum Going, NAR Urges Congress

FHA ANTI-FLIP RULE

This article was posted by a Loan Consultant on Active Rain, I thought it would be a good thing to repost for those who missed it.

TED CANTO, Sr. Loan Consultant (Academy Mortgage):
90 Day FHA Anti-Flipping Rule: Can you finance FHA before the 90 days?

I do not mean to kick the dead horse while it is being buried but my previous post on the 90 Day FHA Anti-Flipping rule generated 4300+ hits, so of course I stopped kicking the horse and went to the next farm to milk the cow. Obviously you know this is a hot topic in our industry and we are always hoping the rule just goes away. However, it will not. The important thing here is to understand it, embrace it and work with the lemons that are handed to us. OK OK!! I will tell you what this post is about already.

In regards to the FHA 90 Day Anti-Flipping Rule, FHA is mainly concerned with the date in which the sale has been bonafide NOT the recording date. However, I will put the disclaimer on this statement. Most banks do not intepret the rule for what it is. Based on FHA's interpretation, some lenders will indeed allow the loan to fund with an FHA loan. However, most banks' internal policies do not allow this to occur, they instead base their decision on the recording date not the SETTLEMENT DATE.

"If the owner sells a property within 90 days after the date of acquisition, that property is not eligible security for a mortgage insured by FHA unless it falls within one of the exceptions to the time restrictions on resales set forth in §203.37a(c) of the regulations. FHA defines the seller's date of acquisition as the date of settlement on the seller's purchase of that property. The resale date is the date of execution of the sales contract by the buyer that will result in a mortgage to be insured by FHA."

If this does not make sense, allow me to break it down for you:

Typical Scenario:

Investor buys property and sale is executed on September 2nd (Settlement Date)
Deed/ Title is recorded on September 30th
Seller writes contract on December 3rd and attempts to close the transaction on December 15th and gets stuck due to the lender not allowing the sale (ie: sale date is not January 1st)

The way the rule actually works:

Investor buys property and sale is executed on September 2nd (Settlement Date)
Deed/ Title is recorded on September 30th
Seller writes contract on December 3rd (91 Days after settlement) and closes the transaction on December 15th per FHA guidelines NOT January 1st (which most lenders will limit you to).
SOLD!!

If you have any questions or interested in learning if your property fit into this box, contact Ted to review.

If you are looking to purchase a home, contact Cynthia at:

Emage` Fine Properties, LLC

602 697-4487

http://www.homes4saleaz.com/

Home Equity Conversion Mortgage Program - HUD

I helped my parents get a Reverse Mortgage - they now live a worry free lifestyle. It was quite easy to get this set up for them. We called a local mortgage company that specializes in Reverse Mortgages. The attended counseling prior to signing up, and within three (3) weeks, they were worry free. In fact, they received over $20,000 for their nest egg. To sweeten the pot, they pulled equity out of their home two more times totaling $50,000. They live in a lovely Condo in a gated community with 2 Bedrooms, 2 Bath, single level, large living room, family room, and a one car garage. The community has tennis courts, 3 golf courses, state of the art fitness center, and much more. Here is how the Reverse Works:

The Home Equity Conversion Mortgage (HECM) program enables older homeowners to withdraw some of the equity in their home in the form of monthly payments for life or a fixed term, or in a lump sum, or through a line of credit.
In addition, the HECM mortgage can be used to purchase a primary home when the borrower is 62 years of age or older and is able to use cash in hand to pay the difference between the reverse mortgage and the sales price plus closing costs for the property.

Purpose: To be eligible for a HECM mortgage, current homeowners must be 62 years of age or older, own their home outright or have a low mortgage balance that can be paid off at closing with proceeds from the reverse mortgage. The home must be their principal residence. In addition, the HECM can be used to purchase a primary home if the borrower is able to use cash in hand to pay the difference between the HECM and the sales price and closing costs for the property.

The program requires that borrowers either receive free or low cost reverse mortgage housing counseling from a HUD approved reverse mortgage counseling agency before applying for a reverse mortgage. FHA insures HECM loans to protect lenders against loss if amounts withdrawn exceed equity when the property is sold.
Type of Assistance: HECM can be used by homeowners who are 62 years of age and older. The total income that an owner can receive through HECM is the maximum claim amount, which is calculated with a formula including the age of the owner(s), the interest rate, and the value of the home.

Borrowers may choose one of five payment options: (1) tenure, which gives the borrower a monthly payment from the lender for as long as the borrower lives and continues to occupy the home as a principal residence; (2) term, which gives the borrower monthly payments for a fixed period selected by the borrower; (3) line of credit, which allows the borrower to make withdrawals up to a maximum amount, at times and in amounts of the borrower's choosing; (4) modified tenure, which combines the tenure option with a line of credit; and (5) modified term, which combines the term option with a line of credit.

The borrower remains the owner of the home and may sell it and move at any time, keeping the sales proceeds that exceed the mortgage balance. A borrower cannot be forced to sell the home to pay off the mortgage, even if the mortgage balance grows to exceed the value of the property. A HECM loan need not be repaid until the borrower moves, sells, or dies. When the loan must be paid, if it exceeds the value of the property, the borrower (or the heirs) will owe no more than the value of the property, if they sell the property to repay the loan.

Two mortgage insurance premiums are collected to pay for HECM: an upfront premium (2 percent of the home's value), and a monthly premium (which equals 0.5 percent per year of the mortgage balance).
A lender can charge an origination fee up to $2,500 if the home's appraised value is less than $125,000. If the home is valued at more than $125,000, lenders can charge 2% of the first $200,000 of the home's value plus 1% of the amount over $200,000. HECM origination fees are capped at $6,000.
All HECM borrowers are required to complete reverse mortgage counseling through a HUD approved housing counseling agency.

Eligible Customers: To be eligible for HECM, a homeowner must (1) be 62 years of age or older, (2) have a low outstanding mortgage balance or own their home free and clear, and (3) have received HUD approved reverse mortgage counseling to learn about the program.
An eligible property must be a principal residence, but it can be a single family residence, a one to four -unit building with one unit occupied by the borrower, a manufactured home, a unit in an FHA approved condominium, or a unit in a planned unit development. The property must meet FHA standards, but the owner can pay for repairs using the reverse mortgage.

Application: Borrowers who meet the eligibility criteria above can apply through an FHA HECM approved lending institution. Borrowers can locate FHA approved lenders through HUD's searchable listing.
Technical Guidance: This program is authorized by the Housing and Community Development Act of 1987, Section 417, Public Law 100-242 (12 U.S.C. 1715z-20). Program regulations are in 24 CFR 200 and 206.
For More Information: Homeowners who want to learn more about this program should call HUD's toll-free housing counseling information line, (800) 569-4287 or see the searchable list of HUD approved reverse mortgage housing counseling agencies.
Additional information is available from AARP's Home Equity Conversion Information Center (202) 434-6044.

If you are looking for a Condo in a retirement community, I have another 3 BR, 2BA, 1400+ sf, in the same community for just $125,000. Call Cynthia Smitherman, CDPE, ABR, GRI, DB at 602 697-4487.

Emage` Fine Properties, LLC
http://www.homes4saleaz.com/

HOMES FOR POLICE OFFICERS, FIRE FIGHTERS AND MEDICAL PERSONNEL

The Neighbor Next Door initiatives are a collection of FHA's home sales programs designed to help communities and promote homeownership.
If you are a law enforcement officers, firefighter, emergency medical technicians or teachers you have an opportunity to purchase homes in these communities where homes are set aside for you in helping to revitalize a community. HUD provides a substantial incentive in the form of a fifty percent discount off the list price of eligible properties.

Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.

How the Program Works

Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program.

You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD's regulations for the program.HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.

For more information contact:

Cynthia Smitherman, CDPE, ABR, GRI, DB,VP AAREB

Emage` Fine Properties, LLC

602 697-4487

http://www.homes4saleaz.com/

WHAT WE HAVE DONE FOR OURSELVES ALONE DIES WITH US - WHAT WE DO FOR OTHERS IS IMMORTAL

What We Have Done For Ourselves Alone Dies With Us- What We Do For Others is Immortal

As service industry specialist in the area of Real Estate, we orchestrate wonderful things for perfect strangers. Contrary to all the negative comments from disgruntled people regarding Real Estate Agents, our hearts are in the right place. I have been through weddings, divorces, births, and death with my clients. I have seen them happy, sad, broke, prosperous, employed and unemployed. I have seen them healthy, and I have seen them ill.

My clients become more than business acquaintances, many have become very dear to me. One couple who I secretly refer to as "My Kids", experienced my fussing over them like a mother hen when helping them purchase their first two homes. I watched their children grow from toddlers, to pre-high school-er, and soon to be high schoolers.

I have another family who I am also very fond of, and genuinely am happy to hear from when they call just to say hello. It warms my heart when they ask of my family by name, one by one. It let's me know they care enough to remeber that my father has cancer, or that my son is a Chef, they care enough to ask of my husband, and lastly to ask how I am doing. To them, I am more than the lady that helped them purchase a home. I am their friend.

I have helped many people with different nationalities, different educational backgrounds, different religions, and different political views than me. However, there is always a common bond that transcends any culture, or politcal differences; that bond is genuine respect, and admiration.

So I can honestly say, that I am Proud to be a REALTOR, the rewards are greater than any commission, my greatest reward is that I can honestly say, my clients are truly friends and have become a part of my extended family.

Cynthia Smitherman, CDPE, ABR, GRI, DB, VP. AAREB

REALTOR, REALTIST. 602 697-4487 http://www.homes4saleaz.com/

HUD Dollar Home Programs Offers Discount Programs to Buyers

When I was in my mid twenties, I remember my friends being able to purchase homes in the neighborhood for just $1.00. I really did not understand how this concept worked, or even why, but it did. Every so often we would see individuals fixing up an vacant home, and within weeks, a new family was there. Everyone knew it was purchased for just $1.00.

As a Real Estate professional, I realize how much of a benefit the dollar program can be to low to moderate income people. With a little elbow grease, they too can capture the American Dream of home ownership. I feel today, with the condition of our housing market and the over flow of vacant homes, this leaves an opportunity for many people who could not otherwise purchase a home.

In Arizona, the program works a little different; here is how it works according to HUD:


HUD's Dollar Homes initiative helps local governments to foster housing opportunities for low to moderate income families and address specific community needs by offering them the opportunity to purchase qualified HUD-owned homes for $1 each. Dollar Homes are single-family homes that are acquired by the Federal Housing Administration (which is part of HUD) as a result of foreclosure actions. Single-family properties are made available through the program whenever FHA is unable to sell the homes for six months.

By selling vacant homes for $1 after six months on the market, HUD makes it possible for communities to fix up the homes and put them to good use at a considerable savings. The newly occupied homes can then act as catalysts for neighborhood revitalization, attracting new residents and businesses to an area.
Local governments can partner with local nonprofit home ownership organizations or tap into existing local programs to resell the homes to low- and moderate-income residents of the community.

To find out how HUD Home Programs Offers Discounts Programs to Buyers, contact your local HUD real estate broker.

Emage` Fine Properties, LLC is a HUD real estate broker call today to get your free list of HUD homes.

602 697-4487

http://www.homes4saleaz.com/