President Barack Obama promised Saturday to reduce mortgage costs as a key part of his plan to improve the economy.
Analysts applauded the move, saying that making low-cost mortgages widely available could stabilize housing markets and jumpstart new home construction.
Beyond that, observers say aid for the troubled housing market will help blunt the anger many Americans feel over the financial bailout as the executives of firms that received billions take bonuses while average people lose their homes
Source: Reuters News, Mark Falsenth
Tuesday, February 3, 2009
Friday, January 30, 2009
New MHDC Program
January 30, 2009
You may have already heard about this program but, if you haven't, MHDC (Missouri Housing Development Commission) has announced a new program to work in conjunction with the Federal First Time Homebuyer Tax Credit program. --Quote from MHDC web site, --With over 30 years experience funding mortgages for first time homebuyers, MHDC knows that the biggest barrier faced by first time homebuyers is acquiring money for down payment and closing costs. As a result MHDC created a program that allows homebuyers to receive the value of the tax credit at the time of closing.
How the Federal First Time Homebuyer Tax Credit Works: First time homebuyers receive a tax credit worth 10% of their home purchase, up to $7500. The credit is claimed on the homebuyer's federal tax returns. The credit is refundable, which means that the homebuyer receives a refund for the amount of the credit minus any federal tax liability. The credit is essentially an interest-free loan from the federal government and must be repaid through an increase in federal income taxes over a period of 15 years.
How the MHDC Tax Credit Advance Loan Program Works: MHDC makes a second mortgage to the homebuyer at the time of closing worth up to 6% of the home purchase price or a maximum of $6750, which is used to cover down payment and closing costs. The tax credit advance loan is paired with the MHDC financing for the first mortgage in the form of a safe 30 year, fixed rate mortgage. The homebuyer then files for the federal tax credit and uses the credit refund to pay off the MHDC tax credit advance loan. If the tax credit advance loan is paid off by the designated deadline (no later than June, 2010), the homeowner pays no interest other than a modest servicing fee. If the tax credit advance loan is not paid in full by the deadline, principal and interest payments to repay the loan over 10 years begin automatically. MHDC loan programs are available for households with incomes up to $85,000. The federal tax credit and the MHDC tax credit advance loan program are both currently set to expire June 30, 2009.
The URL for MHDC web site containing this information above is http://www.mhdc.com
You may have already heard about this program but, if you haven't, MHDC (Missouri Housing Development Commission) has announced a new program to work in conjunction with the Federal First Time Homebuyer Tax Credit program. --Quote from MHDC web site, --With over 30 years experience funding mortgages for first time homebuyers, MHDC knows that the biggest barrier faced by first time homebuyers is acquiring money for down payment and closing costs. As a result MHDC created a program that allows homebuyers to receive the value of the tax credit at the time of closing.
How the Federal First Time Homebuyer Tax Credit Works: First time homebuyers receive a tax credit worth 10% of their home purchase, up to $7500. The credit is claimed on the homebuyer's federal tax returns. The credit is refundable, which means that the homebuyer receives a refund for the amount of the credit minus any federal tax liability. The credit is essentially an interest-free loan from the federal government and must be repaid through an increase in federal income taxes over a period of 15 years.
How the MHDC Tax Credit Advance Loan Program Works: MHDC makes a second mortgage to the homebuyer at the time of closing worth up to 6% of the home purchase price or a maximum of $6750, which is used to cover down payment and closing costs. The tax credit advance loan is paired with the MHDC financing for the first mortgage in the form of a safe 30 year, fixed rate mortgage. The homebuyer then files for the federal tax credit and uses the credit refund to pay off the MHDC tax credit advance loan. If the tax credit advance loan is paid off by the designated deadline (no later than June, 2010), the homeowner pays no interest other than a modest servicing fee. If the tax credit advance loan is not paid in full by the deadline, principal and interest payments to repay the loan over 10 years begin automatically. MHDC loan programs are available for households with incomes up to $85,000. The federal tax credit and the MHDC tax credit advance loan program are both currently set to expire June 30, 2009.
The URL for MHDC web site containing this information above is http://www.mhdc.com
Monday, October 13, 2008
Law Makes Housing Affordable for Veterans
Daily Real Estate News / October 12, 2008
Veterans across America now have expanded home ownership opportunities due to the Veterans Benefits Improvement Act of 2008, which President Bush signed into law last Friday.
The bill includes housing provisions for veterans who are already home owners and those who aspire to home ownership, according to the National Association of Realtors.
"This bill will go a long way toward helping veterans buy and keep their homes", says NAR President Dick Gaylord.
Three provisions, in the legislation are critical to help veterans during the current housing turmoil.
1. The law will make it easier for veterans who have fallen victim to risky subprime loans to refinance their loans into safer, more affordable loans backed by the US Department of Veterans Affairs.
2. The legislation also makes the VA loan limit increase permanent, which will help veterans living in high-cost areas.
3. The VA also can now offer adjustable-rate mortgages to veterans. That would make home ownership more attainable for military families and personnel who often have to move more frequently than their civilian counterparts.
"We need to support and protect those who serve our country," Gaylord says. "Helping ensure that every veteran who can afford to own a home and wants to do so will have the opportunity and that everyone who responsibly owns a home is able to keep it a part of that commitment."
-NAR
Veterans across America now have expanded home ownership opportunities due to the Veterans Benefits Improvement Act of 2008, which President Bush signed into law last Friday.
The bill includes housing provisions for veterans who are already home owners and those who aspire to home ownership, according to the National Association of Realtors.
"This bill will go a long way toward helping veterans buy and keep their homes", says NAR President Dick Gaylord.
Three provisions, in the legislation are critical to help veterans during the current housing turmoil.
1. The law will make it easier for veterans who have fallen victim to risky subprime loans to refinance their loans into safer, more affordable loans backed by the US Department of Veterans Affairs.
2. The legislation also makes the VA loan limit increase permanent, which will help veterans living in high-cost areas.
3. The VA also can now offer adjustable-rate mortgages to veterans. That would make home ownership more attainable for military families and personnel who often have to move more frequently than their civilian counterparts.
"We need to support and protect those who serve our country," Gaylord says. "Helping ensure that every veteran who can afford to own a home and wants to do so will have the opportunity and that everyone who responsibly owns a home is able to keep it a part of that commitment."
-NAR
Tuesday, October 7, 2008
Fed Tries to Unclog Credit Markets
Daily Real Estate News - October 7th, 2008
Wall Street took a nose-dive Monday, with the Dow Jones Industrials plunging more than 800 points at one point during the day before finishing down 370. The sell-off on Monday sent the Dow below 10,000 for the first time in four years.
The US government, facing increasing pressure to do something about the unstable financial markets, is reportedly weighing a plan to buy massive amounts of unsecured short- term debt in a dramatic effort to break the credit clog.
The market for this financing, in which many companies rely to make payrolls and purchase supplies, has virtually dried up.
Pressure is also growing on the Fed to cut its key interest rate, now at 2 percent. Many predict the Fed will act on or before its next meeting on October 28-29. This really doesn't affect mortgages directly but can have an impact on them.
Treasure Secretary Henry Paulson has tapped a former Goldman Sachs executive Neel Kashkari who has worked with Paulson at the department since July 2006, to serve as interim head of the government's effort to unclog the credit markets.
Source: The Associated Presss, Jeannine Aversa (10/07/08)
Wall Street took a nose-dive Monday, with the Dow Jones Industrials plunging more than 800 points at one point during the day before finishing down 370. The sell-off on Monday sent the Dow below 10,000 for the first time in four years.
The US government, facing increasing pressure to do something about the unstable financial markets, is reportedly weighing a plan to buy massive amounts of unsecured short- term debt in a dramatic effort to break the credit clog.
The market for this financing, in which many companies rely to make payrolls and purchase supplies, has virtually dried up.
Pressure is also growing on the Fed to cut its key interest rate, now at 2 percent. Many predict the Fed will act on or before its next meeting on October 28-29. This really doesn't affect mortgages directly but can have an impact on them.
Treasure Secretary Henry Paulson has tapped a former Goldman Sachs executive Neel Kashkari who has worked with Paulson at the department since July 2006, to serve as interim head of the government's effort to unclog the credit markets.
Source: The Associated Presss, Jeannine Aversa (10/07/08)
Tuesday, August 26, 2008
DOWN PAYMENT ASSISTANCE ABOUT TO END
Very important changes are being made to the Down Payment Assistance Programs. All clients using DAP's must have their file submitted to underwriting by August 29th. The transaction must be signed, closed and funded by September 30, 2008.
We have been told there will be no exceptions to this new policy.
Remember, the USDA / FHA rural housing loan is an excellent alternative for those who require 100% financing. These loans are available in specified areas and you must meet the income guidelines. Call us today and we will get you in touch with a qualified lender. The Garnett Team, 816-985-PAUL.
We have been told there will be no exceptions to this new policy.
Remember, the USDA / FHA rural housing loan is an excellent alternative for those who require 100% financing. These loans are available in specified areas and you must meet the income guidelines. Call us today and we will get you in touch with a qualified lender. The Garnett Team, 816-985-PAUL.
Friday, April 11, 2008
Mortgage Demand Up
The number of mortgage applications increased 5.7 percent last week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly mortgage applications survey.
On an unadjusted basis, the index rose 10.9 percent compared with the same a week age. The bulk of the increase came from purchase loans, which rose 8.1 percent compared with the refinance index which was up 3.4 percent. The refinance share of mortgage activity decreased slightly from 53.4 the previous week to 52.2 last week.
source: Mortgage Bankers Association (04/09/2008)
On an unadjusted basis, the index rose 10.9 percent compared with the same a week age. The bulk of the increase came from purchase loans, which rose 8.1 percent compared with the refinance index which was up 3.4 percent. The refinance share of mortgage activity decreased slightly from 53.4 the previous week to 52.2 last week.
source: Mortgage Bankers Association (04/09/2008)
Friday, March 28, 2008
Last Minute Home Owner Tax Primer
As April 15th approaches, here is what home owners need to know about the deductibility of mortgage interest and property taxes.
Taxpayers may deduct on Schedule A of Form 1040 interest on the purchase or home equity debt on two residences, their primary home and another dwelling, including a boat or mobile home. These dwellings must have sleeping, cooking and toilet facilities to qualify for a loan interest deduction. Interest paid on vacant land isn't deductible.
Real estate taxes are deductible on all properties owned by the taxpayer - not just the first two. The deduction must be taken in the year the taxes are paid. Taxes placed in escrow are deductible when they are paid to the taxing authority, not when the money is put in escrow. Penalties and interest on late tax payments aren't deductible.
Also, in order to deduct taxes and interest, the taxpayer must itemize instead of taking the standard deduction.
Source: Houston Chronicle, Shannon Buggs ( 03/27/08)
Taxpayers may deduct on Schedule A of Form 1040 interest on the purchase or home equity debt on two residences, their primary home and another dwelling, including a boat or mobile home. These dwellings must have sleeping, cooking and toilet facilities to qualify for a loan interest deduction. Interest paid on vacant land isn't deductible.
Real estate taxes are deductible on all properties owned by the taxpayer - not just the first two. The deduction must be taken in the year the taxes are paid. Taxes placed in escrow are deductible when they are paid to the taxing authority, not when the money is put in escrow. Penalties and interest on late tax payments aren't deductible.
Also, in order to deduct taxes and interest, the taxpayer must itemize instead of taking the standard deduction.
Source: Houston Chronicle, Shannon Buggs ( 03/27/08)
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