Tax Credit Extended and Expanded

Good news for those feet draggers that waited until the last minute to buy. The first time home buyer credit has been extended through June 30, 2010. Buyers will have to be under contract before April 30, 2010 and the loan must close by the end of June. First timers will still get the $8000 and the income limtis have been raised to $125000 for single persons and $225000. Income above those limits begins to be phased out as it increases until no tax credit is available.
In addition, the program has been expanded to move up buyers that have resided for 5 consecutive years over the last eight years in their same residence. This tax credit follows the same income guidelines but the tax credit is limited to a maximum of $6500. This program is exceptionally good for any senior planning to make a move. They can use a reverse mortgage to purchase their new residence instead of paying all cash or using a new forward mortgage and still bank the $6500 if they qualify. Call my office for details or visit our website at: http://www.cme4loans.com/8000.  Cobranded flyers are available.

Using a Reverse Mortgage for Buying a Home

Today, HUD annouced the establishment of guidance for purchasing a home using an FHA HECM Reverse Mortgage. This is great news for seniors and the real estate community in general. To give you an idea of how this works:

• 
  Appraised Value/MCA* $300,000
  Sales price $300,000
  Principal Limit** $ 199,500
  Minus Loan Fees $ 15,500
  Avail. HECM proceeds $184,000
  Req. Investment $ 116,000

* Appraised Value/MCA is defined as the maximum claim amount and is used to determine the principal limit which is the lesser of the appraised value or the FHA national mortgage limit. The principal limit is the maximum amount available to the HECM mortgagor.
** Assumes the age of the youngest HECM mortgagor is 67 and a principal limit factor of .665 for a 5% expected average mortgage interest rate.

In the above example, the buyer would bring $116,000 to the closing table for the purchase of this $300,000 home and have NO mortgage payments going forward! Owner occupancy is mandatory of course and homebuyer education is required. Call me at (253) 536-5626 for more details about this program. I am developing a web page and a seminar with all the details and will blog when they are ready. GOOD SELLING!