Mortgage Information

If you're like most buyers, a home is the most expensive purchase you'll ever make, and you'll probably need some form of financing. There are many lending institutions that offer a variety of mortgage products. Financing options and rates can vary widely, so it is important to do your research and shop around to ensure you get te mortgage that best meets your needs at the best price.

Mortgage 101      by Pamela Nelson-Chandler   With over 175 informative documents and interactive tools, Mortgage 101 can help you find the answers to your mortgage questions. View current interest ates, sign up for monthly newsletter, use interactive calculators and more. The time to buy is NOW! Tax Credit Update Many Americans already know that the Federal Government authorized an $8,000 tax credit for first-time homebuyers to stimulate the housing market. The guidelines stated that the homebuyer had to close the transaction between January 1, 2009 and December 1, 2009. This was open to first-time homebuyers only. The Federal Government has updated and extended the deadline for the Federal Tax Credit for the housing market. The updates are as follows: * First-time homebuyers will now have until April 30, 2010; * The maximum amount is $8,000, or 10% of the sales price up to $8,000; * The $8,000 will include the purchase of single family homes, condominiums and cooperatives (investment properties will be excluded); * The purchaser must reside and use the home as a primary residence for 36 consecutive months, or the tax credit must be repaid to the Federal Government; * Individuals earning as much as $125,000 a year will be eligible; * Couples earning as much as $225,000 a year will be eligible; * Anyone taking the credit from a home purchased in 2010 would be able to take the credit in 2009 tax returns; * Current home owners will be eligible for a $6,500 tax credit as long as you have resided in your current home for at least five years. The homebuyer credit will not be extended beyond April 30, said the measure's sponsor, Republican Senator Johnny Isakson. So consult your tax consultant for more details, talk with your lender, and contact me TODAY to get out there and find your new home before the deadline...the phrase "the time to buy is now" is definitely a real statement today!   Money for First Time Home Buyers Prince Georges County Housing Grants are available in Prince Georges County.   Anyone who has not owned a home in the past three years may qualify as a first-time home buyer. There are many options available to assist first time home buyers in purchasing a home in Prince Georges County Maryland. Each program has different requirements. Don't miss out on money to purchase your home. Contact me today and I will refer you to a lender who can tell you whether you qualify for first time home buyer programs. Down Payment on Your Dream Apply for up to $20,000 in down payment assistance in Prince George's Now is an exciting time to buy a home in Prince George's County. First-time home buyers can take advantage of the Down Payment on Your Dream down payment and closing cost assistance loan program valued up to $20,000 . . . in addition to the $8,000 Federal income tax credit. The Time is Now. Click Here for the Down Payment on Your Dream Brochure To qualify for Down Payment on Your Dream assistance, buyers must purchase a vacant, foreclosed property in Prince George's County. In most instances these properties will be owned by a bank or other lending institution. Finding and identifying a foreclosure is a somewhat different process than searching for a traditional "for sale" property. The best resource to find, view, research and purchase a foreclosed home is through the assistance of REALTOR® Pamela Nelson-Chandler. Prince George's County Neighborhood Stabilization Plan (NSP)   The Prince George's County Neighborhood Stabilization Plan is now available for first time home buyers in Prince George's County. NSP applications are now being accepted. Are you eligible for the Neighborhood Stabilization Plan? Which zip codes are eligible for the Neighborhood Stabilization Plan? Getting started with the NSP Prince George's County and Maryland State Workers are eligible for the NSP program. This includes Teachers, Police Officers, Fire Fighters, County Workers, State Workers, and Nurses. NEW GUIDELINES FOR REMAINDER OF NSP APPLICATION PERIOD INCREASED LOAN LIMIT OF UP TO $60,000 FOR HOUSEHOLDS AT OR BELOW 50% OF THE AREA MEDIAN INCOME LEVELS ONLY To increase housing affordability for applicants at or below 50% of the area median income levels, a new NSP loan limit of up to $60,000 is now available for down payment and closing costs assistance to purchase foreclosures in all 33 NSP eligible zip codes. The following new guidelines are effective immediately and will apply until the February 19, 2010 NSP Application deadline or until funds earmarked for this population are depleted. APPLICABLE ONLY TO HOUSEHOLDS WITH INCOME AT OR BELOW LEVELS OUTLINED BELOW Income Levels       1-Person Household   2-Persons Household   3-Persons Household   4-Persons Household   5-Persons Household   6-Persons Household   7-Persons Household   8-Persons Household   Very Low Income   50%   $35,950   $41,100   $46,200   $51,350   $55,450   $59,550   $63,650   $67,800 REQUIREMENTS 1. Up to $60,000 per household (note that $60,000 is not automatic). The amount approved is what will be needed to achieve requirements for back end ratio, and minimum LTV for 1st Trust 2. Maximum back end ratio 45% - no exceptions, no compensating factors 3. Minimum LTV for the 1st Trust loan is 65% 4. Maximum of 2 points, including loan origination 5. Additional points up to a total of 4, including loan origination, approved only if buy down of rate is documented. 6. Minimum applicant contribution of $1,000 7. 15 year primary residency requirement 8. 15 year loan term 9. 0% interest, deferred payment REPAYMENT REQUIREMENTS   Length of Time Purchaser Retains Home as Primary Residence   Balance Due(As % of Total DPCCA Loan Received)   Less than 5 years   100%   At Least 5 years but less than 15 years   70%   15 or more years   50% If you have any questions please contact Rosalyn B. Clemens, NSP Program Manager at 301-883-3288 or Yetta Stokes, NSP Senior Loan Processor at 301-883-7409.   Grants for Maryland & Prince Georges County Employees (Teachers, Nurses, Police Officers, Firefighters)  Maryland has up to $12,500 for first-time homebuyers. Down payment and closing assistance available. Participating Employers provide matching funds. Mortgage-Help Site Already a homeowner, but need help with your adjustable rate mortgage or other issues to try to prevent foreclosure? The Making Home Affordable program helps homeowners refinance or modify their mortgages with Fannie Mae or Freddie Mac. To learn eligibility requirements: go to makinghomeaffordable.gov or call the telephone hotline number at (888) 995-4673; Maryland homeowners, go to the Maryland HOPE (Home Owners Preserving Equity) website...if your mortgage is late, don't wait! More Financing-Related Information... Realtors Pledge Assistance for Obama Guidelines on Foreclosure Fixes RISMEDIA, March 6, 2009-Following President Obama's announcement of his "Making Home Affordable Plan, National Association of Realtors® President Charles McMillan stated the following: "NAR's 1.2 million members are eager to help make President Obama's Making Home Affordable plan a reality. We are pleased that the president released the guidelines today for refinancing and mortgage loan modifications and that the guidelines will be implemented immediately to help struggling homeowners as well as millions of eligible homeowners who have stayed current in their mortgage payments. "Housing stabilization must be the key component of any federal recovery plan. Helping families keep their homes is critical to this effort and for the health of our economy and communities across the country. "NAR has long called for a multipronged approach to address the housing and economic crisis. Allowing eligible homeowners to refinance or modify their loans will help millions of families avoid foreclosure. This in turn will support the housing recovery by slowing the growth in inventory due to foreclosures. Lowering unsold inventory will help stabilize home prices and values. We believe that the incentives the loan modification plan offers to borrowers and loan servicers will encourage additional loan modifications, reducing the default rate. "Moving forward, we must not only work to prevent foreclosures, but also bring financially healthy home buyers to the market to further reduce unsold inventory. Toward this end, we hope that the president and his administration will continue to look for new and creative approaches that will lower interest rates for all homeowners and buyers." For more detailed information on the Making Home Affordable plan, visit http://www.financialstability.gov/. FHA Loan Update If you think that "now is the time to buy" is just a sales phrase, it is not... The Housing and Economic Recovery Act of 2008 (HR 3221) (see the National Association of Realtors summary here) increased the minimum cash investment required by bowers to 3.5% and allows a maximum LTV of 100% (to include any financed UFMIP {MIP paid upfront}). FHA has indicated that the trigger date for this new cash investment requirement will be case numbers assigned on or after January 1, 2009.  The 2008 Economic Stimulus limits expired on December 31, 2008. Accordingly, the US Department of Housing and Urban Development (HUD) and the government sponsored enterprises (GSEs) have published new loan limits for 2009. Based on the permanent legislation passed in July, the new loan limits will go down from 125% of local area median to 115% of local area median. In addition, the high cost ceiling will reduce from $729,750 to $625,500. NAR is working to make the higher loan limits permanent, but has not yet been successful. Appeals to local area loan limits determined by HUD for implementing provisions of HERA must be made by December 6, 2009. FHA Loan Limits> (PDF: 540KB) FHA's mortgagee letter> (PDF: 152 KB) H.R. 1, the "American Recovery and Reinvestment Act of 2009," passed the House on February 13, 2009, by a vote of 246 - 184. Later that day, the Senate also passed the bill by a vote of 60 - 38. The President signed the bill on February 17, 2009. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.  View how the U.S. House of Representatives voted> View how the U.S. Senate voted> The DPA (Down payment Assistance) programs were eliminated effective October 1, 2008. Basically, the Act prohibits the use of downpayment assistance programs unded by those who have a financial interest in the sale (in other words no more seller assistance to downpayments via programs such as Ameridream and Nehemiah); however, it does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. Talk with your lender about your options and how the legislation could affect your situation. Different lenders have different deadlines and programs and are better prepared to answer the financial questions than I. However, as always, I stand ready to assist you with your real estate needs -- when you're ready to find your new home, let me know! Anyone that has not owned a home in the past 3 years.