My Blog

Many people have called and or emailed me to ask if they can rent out their current home and buy a new home and use the rental income to qualify for the new home.  The answer is yes as long as you have a minimum of 25% equity in you current home which will have to be supported by an appraisal. If you don't have 25% equity you will have to qualify with both the old and new house payments without the rental income.

For more information on this subject or any other mortgage question give me a call or email me your question.

Enjoy the spring!

Dan 

If you have been thinking of refinancing for the sole purpose of reducing your current rate expense and have been playing the "how low will they go" rate game, now may be the time to pull the trigger and lock in your rate!

I believe the trend will be upward in the coming months.  As the saying goes, pigs get fat,  hogs get slaughtered!

Dan Latimer

The "First Time Homebuyer Tax Credit" has been extended until June 30,2010 and has been expanded to include move up buyers. Not only will people who buy a home who haven't owned a home in the last three years be eligable for a tax credit up to $8,000 but current homeowners that move up and buy another home will recieve a $6,5000 tax credit.

For more details click here. 

As the November 30, 2009 deadline for closing first time homebuyers loans in order to qualify for the $8,000 tax refund credit draws near many lenders are imposing cut off dates for new loan applications. 

Many first time homebuyers may find that they have waited too long in order to be gaurenteed that they will recieve the tax credit.  Lenders have seen a surge new mortgage applications and are fearfull that they will not be able to honor normal time frames in order to expidite loan applications in a timely manner in order for the new home buyer to recieve the tax credit. 

The bottom line is "Don't wait untill the last minute to execute a purchase agreement to buy a home"! 

In the end the tax credit isn't the only reason to buy a home.  Owning is still better than renting.  Home prices have bottomed out in most areas and have already begun to raise in other areas. 

Now is a good time to buy with or without the tax credit.

Dan

Please take note that if you are going to take advantage of the $8,000 tax credit you must close on the loan prior to December 1,2009.  Keep in mind that all lenders are still extremely busy with loans and that they may not be able to guarantee that your loan will close prior to the deadline.

Act now to ensure that you are able to take advantage of this incredible opportunity!

Dan

Homebuyer Tax Credit Advantage Program

The downpayment second mortgage program that was introduced by OHFA and tentatively scheduled to start March 30, 2009 has been temporarily suspended awaiting approval from HUD.

I will post when the program becomes available or as more information becomes available.

Dan

Homebuyer Tax Credit Advantage Program

Effective Date: March 30, 2009

The Homebuyer Tax Credit Advantage Program offers a second mortgage to borrowers who obtain a first mortgage through the OHFA First-Time Homebuyer Program. In order to encourage first-time homebuyers to enter the market in 2009, the program will allow OHFA first-time homebuyers to leverage the benefit of the federal first-time homebuyer tax credit for down payment and/or closing costs. The American Recovery and Reinvestment Act of 2009 amended and extended the first-time homebuyer credit to include purchases closing between January 1 through November 30, 2009. For qualified first-time homebuyers who purchase a home in 2009, the maximum credit is $8,000 and can be claimed on a buyer's 2008 or 2009 federal tax return.

• The loan may be up to three percent of the purchase price. No cash back may be issued to the borrower.

• Principle and interest payments are deferred until July 1, 2010 after which, loans will amortize over 15 years at an interest rate 1% above the first mortgage rate.

• The OHFA application fee will be $300 and can be paid by the buyer, seller or financed in the loan.

• There is an incentive for early repayment of the loan. If the loan is paid in full prior to July 1, 2010, OHFA will forgive $300 of principal.

• Lenders may charge a special processing fee of $75.

• All loans must be recorded as second mortgages using OHFA note and mortgage documents.

• Borrowers must have a minimum 600 credit score.

• Borrowers must complete homebuyer education through a HUD approved counseling agency or through OHFA's streamlined program.

For more information and details e-mail or call me today!

Dan

NEW HOMEBUYERS CAN NOW REDUCE THEIR TAX LIABILITY WITH OHFA'S NEW MORTGAGE CREDIT CERTIFICATE

COLUMBUS — Ohioans can now buy a home and lower their tax liability with a Mortgage Credit Certificate (MCC) from the Ohio Housing Finance Agency (OHFA). OHFA has launched its MCC Program to encourage new homeownership, allowing qualified first-time homebuyers to take a direct tax credit for a portion of their mortgage interest up to $2,000 per year for the life of the mortgage.

“The MCC Program is just one of the ways OHFA is continuing to provide resources that make sustainable, quality housing available to homebuyers,” said Doug Garver, Executive Director of the Agency. “By using this credit, Ohioans can reduce their tax burden and keep more of their hard-earned money.”

The MCC Program provides for a credit between 20 and 30 percent, depending on whether the property is in a target area, non-target area, or if it is a Real Estate Owned property. Borrowers are eligible for the MCC Program by being approved for a mortgage and meeting certain requirements, including income limits, maximum home sale price, limited prior homeownership interest, and purchasing the home as a primary residence.

In addition, the recently passed American Recovery and Reinvestment Act provides an $8,000 tax credit for homes that are closed between January 1, 2009 and November 30, 2009. This credit can be used in conjunction with OHFA’s First-Time Homebuyer Program or the MCC Program.

MCCs are available on a first-come, first-served basis through participating lenders and are not transferable. To locate a lender in your area, visit the Homeownership section of OHFA’s web site at www.ohiohome.org.

OHFA utilizes federal and state resources to provide housing opportunities for families and individuals through programs designed to create, preserve, and manage affordable housing throughout the State of Ohio. The Agency is a self-supporting quasi-public agency governed by an eleven-member board, nine of whom are appointed by the Governor and confirmed by the Senate. Two additional seats on the board, by statute, are reserved for the Director of Development and the Director of Commerce, or their designees, and both serve as ex officio voting members.

To see if the property that you are interested in purchasing is in a target area give me a call with the address. I would be happy to provide more specific information for you.

Dan

If you have been watching the news this week, you may have noticed that the debate in Washington has finally turned toward real stimulus for the housing industry. As a result, I believe that we could be on the brink of a substantial turn arou nd in the real estate market. Now, it’s critical that we all join together and deliver a powerful message to our legislators that we support this stimulus.

Last night, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences.

Today, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence.

If these two provisions survive in the final passage of a stimulus bill they could have a tremendous impact on our industry. If they are coupled together with provisions to ease the flow of credit and reduce foreclosures, we could see an immediate and dramatic turn-around in real estate.

I feel that these provisions represent real economic stimulus. They will put money in the hands of millions of homeowners, increase sales, stabilize home values and add more revenues to local communities in the form of property taxes.

I urge each of you to contact your senators and representatives to let them know that you believe these provisions are essential components of any stimulus bill. You can go to the official senate and house web sites to locate the email and phone number of your legislators.

Let's hope that our government acts responsibly and in the best interest of us all!

Dan Latimer

The Plain Dealer and others have written widely on how the credit crisis and other factors have hurt the local real estate market. Given this difficult situation, if you think the assessed value for your real property tax purposes is too high, I want you to be aware that Ohio law provides a process for you to challenge that value. The Cuyahoga County Board of Revision is charged with the responsibility of dealing with complaints seeking tax relief. Please note, the time period for filing a complaint with the Board of Revision is December 1, 2008 through March 31, 2009.

You can find more information from the Cuyahoga County Auditor's website at www.auditor.cuyahogacounty.us.

Dan Latimer