Showing posts with label Housing Stimulus Bill. Show all posts
Showing posts with label Housing Stimulus Bill. Show all posts
Monday, April 13, 2009
Fannie Mae DU Refi Plus
The new Fannie Mae DU Refi Plus program began last week and we are still trying to work out some of the bugs. The program, which is supossed to help overleveraged homeowners, is still calling for appraisals on many deals. Part of the program is the benefit of being able to get an appraisal waiver so you can refinance to take advantage of today's historically low rates. While you still can take advantge of the low rates, odds are you will still need to get an appraisal. The nice part of the program is that if you did put money down on your current mortgage you still may be able to take advantage. For example, if you bought your home in 2005 for $300k and it is now appraising for a number around $250k, and you put 20% down, so your loan amount is $240k minus any principal you may have paid down in the last 4 years. You can still refinance and take advantage of rates that start in the 4's on a 30 year fixed, even though you have lost almost all of your equity you still will not have to pay mortgage insurance on the new loan. You will be able to payoff your current loan, and add in any closing costs to make up the new loan with the new rate. There are many more details to this program, but it can help many people. Feel free to contact me with any questions and we can see if now is the time for you to take advantage of your very own stimulus plan.
Tuesday, August 5, 2008
August 5th, 2008 Housing Stimulus Bill Summary
Well George Bush signed the "Housing and Economic Recovery Act of 2008" on July 30th, so what does this mean for you?
1.If you are in MN the new conforming loan limit of $625,500 does not apply. We are still capped at $417,000 if you want conforming loan rates that will be backed by Fannie Mae and Freddie Mac.
2. In the metro area the FHA loan limit for 1-unit residences will be $335,800. The limit is $271,050 throughout the rest of MN.
3. If you are a new home buyer: You can qualify for a tax-credit up to $7500 if you purchase(d) a home between April 9,2008 and June 30, 2009. The credit is repayable over 15 years (basically making it an interest free loan)
4. FHA Foreclosure Rescue: If you have a problematic subprime loan and your lender agrees, you could qualify to have your loan balance reduced to 90% of your current appraised value. You would then have a new 30 year fixed FHA loan. Any equity built after this modification would be split 50/50 with the lender.
5. Seller-funded downpayment assistance programs: (ex. Nehemiah) Are prohibited starting October 1st, 2008. You still can get downpayment assistance from nonprofits or other sources such as churches, employers, or family members
6. Minimum FHA down payment: Will be increased from 3% to 3.5% of the purchase price starting January 1, 2009
These are the main items that may have a direct effect on your next home purchase. If you have any questions or would like additional information feel free to contact me.
1.If you are in MN the new conforming loan limit of $625,500 does not apply. We are still capped at $417,000 if you want conforming loan rates that will be backed by Fannie Mae and Freddie Mac.
2. In the metro area the FHA loan limit for 1-unit residences will be $335,800. The limit is $271,050 throughout the rest of MN.
3. If you are a new home buyer: You can qualify for a tax-credit up to $7500 if you purchase(d) a home between April 9,2008 and June 30, 2009. The credit is repayable over 15 years (basically making it an interest free loan)
4. FHA Foreclosure Rescue: If you have a problematic subprime loan and your lender agrees, you could qualify to have your loan balance reduced to 90% of your current appraised value. You would then have a new 30 year fixed FHA loan. Any equity built after this modification would be split 50/50 with the lender.
5. Seller-funded downpayment assistance programs: (ex. Nehemiah) Are prohibited starting October 1st, 2008. You still can get downpayment assistance from nonprofits or other sources such as churches, employers, or family members
6. Minimum FHA down payment: Will be increased from 3% to 3.5% of the purchase price starting January 1, 2009
These are the main items that may have a direct effect on your next home purchase. If you have any questions or would like additional information feel free to contact me.
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