USDA Rural Housing Income Limits have gone up!

I have been utilizing the USDA Rural Housing program for some time now. It’s been a great resource for families with little or no down payment, and wants to live on the outskirts of town.

Another great feature of this loan is that it provides financing up to 102% of the homes value yet there is no Mortgage Insurance. It is just a great loan!

Just when I thought this loan couldn’t get any better, the guidelines changed and made it even more appealing to my borrowers. Two of the main guidelines that will make or break this program are The Location of the property and the Income Limits for the family.

Well good news! Last year the income limits were based PER PERSON living in household. The limits would increase for each individual. Example being that a working family of 3, in Clackamas County, would have only qualified for a USDA Loan if they made LESS than $48,900/year. This made it very hard for a family with 2 incomes to qualify if they had well paying jobs.

Well the new income limits have gone up for the better. Instead of having a PER PERSON income limitation, there is a tier now. Tier 1-4 persons in the household now may earn up to $80,500. If your family falls within the 5-8 person tier, you may now qualify if you make up to $106,250.

This has been a great change to the program. I have had several married buyers who's 2 person, combined income put them out of reach of this program. Today, with a limit of $80,500, they now can look for their first home in the outskirts of town.

Lastly, I have recently been informed that in July 09' the areas of Wilsonville and McMinnville will become eligible for this great program. Please be sure to check in regularly as I will let you know when this change has happened.

Contact Me today for more information on this program.

Thanks for reading.

Bryan

Tax Credit for Downpayment? Maybe in the future

We have recently received several inquiries as to how a First Time Homebuyer might utilize the $8,000 Tax Credit at the time of loan closing on an FHA purchase transaction. At this time, HUD/FHA has not announced any instruction/direction regarding this issue. The Director of HUD did make the following comment in a speech yesterday (May 12th) at the National Association of Realtors (NAR) Real Estate Summit:

“… we are taking action to further help the housing market recover. I'm excited to announce here at NAR that FHA's policy on the "monetization" of the first-time homebuyer tax credit will soon be published.”

“We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly.”

A full copy of his speech can be found at: http://www.hud.gov/news/speeches/2009-05-12.cfm

Several outside sources have taken this comment and promoted it as a “done deal”. We at Sunset have contacted HUD and they have confirmed that they are aware of the comment, but they have not yet received any direction from Washington on how this will all play out and as such they cannot offer any direction at this time.

This possiblity could be a great way to get first time home buyers limited on their downpayment into a home. Patience is necessary to see how this will work out.

I will keep my eyes and ears open for any news and updates, and keep you apprised of the situation.

Contact Me for any further information and be sure to check back often.

Thanks for reading.

Bryan