Get Up To $8000 in Free Money From The Federal Government To Buy A Home In 2009
You get 10% of the value of the home you purchase, up to a maximum of $8000
In order to claim your $8000 – you must:
1. Have not owned a home in the last 3 years.
2. Make less than $75,000 as a single tax filer — or less than
$150,000 as a couple.
3. Buy a home before November 30th, 2009.
To get a FREE Tax Credit Guide, just call 1-888-275-5165 x 302 for a
24 hr. Recorded Message — or go to www.TaxCreditGuide.com
The DRE recently issued a fraud warning alerting consumers about loan modification scams and informing consumers of what they can do to protect themselves. The alert is available in both English and Spanish. Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October, the DRE has filed more than 200 Desist and Refrain Orders. A list of the companies and persons the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp
It is worth noting that not all firms who collect advance fees for loan modification services do so illegally, the DRE said. In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with real estate law.
The California Association of Realtors (CAR) also has learned of what appears to be a loan modification assistance program and lead generator, from a company using the legislative bill number 3648, that looks as if it’s a government entity. It even has a seal closely resembling a governmental seal but it is not affiliated with the government.
Be on the alert for schemes seeking funds and making claims that might be misleading or unlawful. If you have any suspicions or questions, feel free to contact me or your personal real estate consultant.
On June 8th, Fannie Mae issued a list of tougher policies that could directly affect thousands of buyers in the coming months, especially those involved in job-related transfers.
Reversing a long-standing policy, Fannie no longer will permit mortgage applicants to count the income of so-called “trailing spouses” in the household income to qualify for a loan.
A” trailing spouse” is one who joins his or her spouse or partner in a job-related move, but who has yet to obtain employment in the new location.
If the main breadwinner’s income isn’t sufficient to handle the mortgage, the loan application will be rejected; only when the trailing spouse has documented income in the new location will it be counted.
Therefore, some transfering couples will either have to qualify on the basis of one income” — forcing couples to “buy less house than they wanted” — or “they may have to rent for an extended period of time until the spouse or couple is re-employed. If a couple must wait to purchase a new home until the spouse can find a new job, it might cause some to reconsider whether they want to make the job shift at all. (It is estimated that about 800,000 households in the United States move in a typical year because of job transfers.)
The good news is that Freddie Mac still counts “trailing spouse” or co-borrower income for loan applications, but under strict guidelines: The amount of the trailing co-borrower income cannot exceed 33 percent of the total qualifying income for the mortgage application. That income cannot be from self-employment and the “trailing spouse” must have been continuously employed in the same occupation for at least two years preceding the relocation. And the co-borrower must provide a statement of intent to find employment in the new location. The loan officer or lender must also analyze the local employment market and verify that there are adequate opportunities and earnings potential for the co-borrower.
(I would like to know how they do that. Anyone know?)
As part of its June 8 tightening of underwriting rules, Fannie Mae also announced that it plans to discount the values of all borrowers’ stock, bond, mutual fund and retirement fund holdings that are claimed toward the applicants’ financial reserves needed to qualify for a mortgage. Fannie previously counted 100 percent of the claimed or documented value of stocks, bonds and mutual funds toward reserves but, now, it will discount them by 30 percent. It seems too bad that they have to do that, but it certainly makes sense in this economic environment.
These changes will make it difficult for folks in the short term, but lenders needed to be more responsible about loaning money and we all benefit when everyone “does the right thing.”
