Government bails out first time home buyers

First the automakers got the money. Next it was the banks who got “bailed out”, then AIG.First time home buyers just got that same preferential treatment.
On October 1, one of the most popular first time home buyer programs, USDA,  ran out of funds. This happens every year and the program gets refunded when the new budget is passed. This year circumstances are dramatically different, and there was no guarantee the program would get funding.

If you’re not familiar with the program, USDA has become one of the most popular programs for first time home buyers. It’s 100% financing (that’s right) with only one loan and a relatively small MI premium. They will consider credit scores as low as 580 and have many of the same guidelines as FHA when it comes to approving you for your first time home buyer loan. Not all properties qualify for this program, but those that are in the eligible areas can be a foreclosed home, a short sale, standard sale and even new homes.

Bank of America was the servicing lender for the loans in the past and their exit from that market left everyone in a state of “limbo” in regard to the future of the program.

Make a long story short, the government backed secondary market investor, GNMA, has reached agreement with many lenders to continue funding the program while budget issues are still being resolved.

For more information on the USDA first time home buyer program, Click Here

Buying your first home like applying for your dream job?

In many ways buying your first home is like applying for your dream job.

The decisions you make will affect your family for years to come, so being prepared and putting “your best foot forward” is as important in the home buying process as it is in preparing a resume’ for your dream job.

As your future employer reviews your resume he/she will determine, based on current and past performance your ability and willingness to be the perfect employee and your first time home buyer lender will be evaluating your home loan application to determine your ability and willingness to repay them and repay them on time.

The most important question you have to answer is: Do I really want this job?

Like your dream job your first home is one of the most important decisions you will make.

A good decision provides a solid foundation for a promising financial future.

A decision made without careful consideration can lead to major financial problems including bankruptcy and/or foreclosure.

Here are 5 things we advised last year to get your family ready to buy your first home. Think of this as your undergraduate work. Now we’re going to show you some practical steps that will get you started down the path to homeownership.
Read the complete article

Down Payment Assistance for San Diego first time home buyers

First time home buyers in San Diego may now be eligible for down payment assistance through the San Diego Housing Commission.SDHC also has funds available for first time home buyers who may be in need of closing costs assistance to help them make that jump from renter to homeowner.

How do I qualify for down payment and or closing costs assistance?
1. You must a first time home buyer - defined as not having owned a home in the last 3 years
2. Your income cannot exceed the program guidelines based on family size.
3. You have to qualify based on your income and credit for the underlying first mortgage
4. You will be required to attend a certified first time home buyer education class

How much down payment assistance can I get?
You may be eligible for up to 17% of the purchase price. The maximum purchase price is $408,500

What homes are eligible for down payment assistance?
Single family, townhomes and condominiums located in all zip codes that begin with 921 may be eligible.

Do I have to repay the down payment assistance?
Yes, the money has to be repaid but there are no payments as long as you own the home as your primary residence. Interest accrues at 3%.

Am I eligible for closing cost assistance too?
Yes, first time home buyers may be eligible for closing cost assistance of 4% or %15,000, whichever is less, with or without the down payment assistance.

Will I be eligible for a first time home buyer tax credit?
The federal first time home buyer tax credit expired in 2010, but first time home buyers (and some non-first time home buyers) may qualify for MCC (mortgage credit certificate) which converts part of your interest deduction to a dollar for dollar credit against your income tax liability. Click here for more information

To contact a first time home buyer specialist - Click Here