First Time Home Buyer Credit and More

Good Day!!!

• What a great time to be a Buyer, Seller, or Refinancer!
• Interest Rates are the lowest in over 30 years. That is unbelievable. So what ARE YOU WAITING FOR! Move up, buy a home, or refinance.
• Rates will not stay here forever.
• OH wait and home prices at their lowest

Below you will find.....
- First Time Home Buyer Tax credit
- Extension of Higher Loan Limits
- FHA Condo Changes
- Change to Debt to income ratio
- CAR helps buyers and Realtors stand out! - flyer attached

First Time Home Buyer Tax Credit - has NOT passed yet: Here is what we know:
- Has passed the Senate but has to go back to the House than to the President
- 10% of the purchase price to max of $8K for FTHB
- Extended to Apr 30 but COE has to be within 60 day after
- Move up buyers eligible; has to have lived in their house the last 5 of the 8 year; eligible for $6500 credit
- Capped at purchase price to $800K
- Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.

Extension of Higher Loan Limit
There is a bill that has passed House and Senate that is to extend unemployment benefits. Also tied to this is the extension of the High Loan Limit of $729,750. It is sitting on the President's desk waiting for signature....

FHA Condo Changes Dec 7th
There has been no full release of the new guidelines yet by FHA. We do know:
- Spot approvals will no longer be allowed
- Condos FHA approved prior to Nov 2008 will no longer be FHA approved
- Banks will be allowed to do the approval but there will be heavy fines ($1M or $500K I've heard both) if HUD finds the approval not to regulation/liking.
- The cost for an HOA will be $3 to $5K for the approval
- HUD will take 8 to 12 weeks to approve
- Only 30% of all condos in the complex can have FHA loans

CAR Help Buyers - Mortgage Protection Program - http://www.car.org/aboutus/hafmainpage/carhafmortgageprotection/
I made a call yesterday to find out that one of my clients a First Time Home Buyer a year ago was laid off 3 months ago. I gave him some advice but what could I say.
There is something that you can do for you current First Time Home Buyers. I've told you about this before but I think we all need a reminder......
C.A.R. Housing Affordability Financing Mortgage Protection Program
Qualified buyers who lose their job due to Layoff maybe eligible to receive $1500 per month for up to 6 months to help them making their mortgage payments

Change to Debt to Income Ratios
As I mentioned in a previous email; maximum debt to income ratio guidelines are changing.
Date has been moved to Dec 12th with the release of Fannie Mae's updated underwriting software (DU).
The max debt to income ratio of ALL LOANs will be 45% with exception to 50% with compensating factors; reserves at closing, high FICO (680 or higher), 10% or more down payment, no derogatory credit history, and others.
What is debt to income ratio: all expenses / total income
Example: Two Borrowers; Total expenses before purchase of new home of $1000
- Total income is $6000
- Borrower is purchasing a home for $200K with total house payment of $1800
(principal/interest/property taxes/insurance)
- Debt to income ratio ($1000+1800)/$6000 = 47%