Cheryl Powell- SFR,ABR,Broker,Realtor- Remax Signature- Concord NC Real Estate

Have you had a Bankruptcy, Foreclosure, Short Sale or Deed in Lieu of Foreclosure and are wondering how long you have to wait before you can obtain a new home loan? Here are the guidelines as of Februrary 2011, which I verified with a loan officer friend.

Of course, every rule is made to be broken and under the right circumstances of reestablished credit and an underwriter waiver/exception you may be able to qualify for a new home loan in less time than the general seasoning periods. A seasoning period, in this case, is the mortgage industry term for waiting period.

BANKRUPTCY

♦ Chapter 7- FHA & VA require two years seasoning. Conventional loans now require four years seasoning. If the bankruptcy has been discharged at least one year and less than two years, it is possible to obtain an FHA or VA mortgage. It must be documented that the bankruptcy was due to an extenuating circumstance. For example a loss of job, acts of nature, medical emergencies, etc. USDA Rural Development generally requires three years seasoning after discharge, but may make an exception before that with reestablished credit and an underwriter "waiver".

♦ Chapter 13- This type of filing indicates an effort to pay creditors. FHA and VA will allow borrowers to purchase a home after one year from the date of discharge if the payments have been made on time and their payment performance has been satisfactory. Conventional loans require 2 years from discharge date of 4 years from dismissal date. USDA Rural Development generally requires three years seasoning after dismissal, but may make an exception before that with reestablished credit and an underwriter "waiver".

SHORT SALES

♦ Conventional and VA loans require two years minimum seasoning on a short sale.

♦ FHA will allow borrowers to obtain a new mortgage after a short sale if: The borrower was current on their mortgage and other debts at the time of the short sale and proceeds from the short sale serve as payment in full.

♦ FHA will not allow borrowers to obtain a new mortgage after a short sale if: The borrower is taking advantage of a declining market or are purchasing a similar or superior property at a reduced price within commuting distance.

♦ USDA Rural Development generally requires three years seasoning after discharge, but may make an exception before that with reestablished credit and an underwriter "waiver".

FORECLOSURE or DEED IN LIEU OF FORECLOSURE

♦ FHA requires three years seasoning on a borrower with a previous foreclosure or deed -in-lieu of foreclosure. If extenuating circumstances can be documented exceptions can be granted.

♦ Conventional loans now require a seven year time period from completion date.

♦VA loans require a two year seasoning period before acquiring a new VA loan. If the foreclosure was on a VA loan then the applicant may not have full entitlement available for the new loan.

♦ USDA Rural Development generally requires three years seasoning after discharge, but may make an exception before that with reestablished credit and an underwriter "waiver".

Contact me anytime if I can help in any way. I'd love to help you find your new home!

This Down Payment Assistance Program is provided through the City of Concord's Business and Neighborhood Services Division, which receives HOME Investment Partnership Funds, allocated annually through the Department of Housing and Urban Development (HUD).

Home buyers can receive a depreciating loan of up to $5,000 to put towards their down payment, prepaids, or closing costs. Applicants of this program must be a first-time homebuyer and have annual incomes that do not exceed eighty-percent (80%) of the median income of the area. If you haven't owned a home in the past 3 years, you are considered a 1st time home buyer for the purposes of this program... displaced homemakers and single parents are also included. Applicants must attend an 8-hour homebuyer education workshop at Prosperity Unlimited, Inc prior to the closing date. The home must be located within Concord City Limits.

The maximum assistance available is $5,000, and is in the form of a five-year depreciating loan. The loan will depreciate 20% per year for the next five years, at which time the loan will be considered paid in full. Buyer must occupy dwelling as the primary residence for at least five years, as to maintain the affordability requirements set forth by the U.S. Department of Housing and Urban Development. The sale of the property during the affordability period triggers repayment of the direct HOME subsidy that the buyer received when he/she originally purchased the home.

Contact me anytime for more information about this program and other downpayment assistance programs for buyers in Concord NC and surrounding areas.

Many people haven't heard of the FHLB (Federal Home Loan Bank) grant program for 1st time home buyers in North Carolina, so I thought I'd share information about this great program. Similar programs may be available in other states.

This program is only available through member banks of the Federal Home Loan Bank (FHLB) system. The only participating NC banks that I am aware of are RBC Bank and Monarch Mortgage. As of today, both of these lenders have their 2011 funding for this program. I know loan officers with both of these lenders, so let me know if you need a good loan officer to contact.

It is my understanding that as of today, 2/21/2011, $7500 is available to 1st time home buyers. This funds can be used for down payment assistance, interest rate buydown, and/or principal reduction. There is a maximum total household income of 80% of the Area Median Income, so check with your loan officer for the exact maximum income limits for the area you plan to purchase your home. The grant is initially set up as a 0% interest 2nd mortgage, but it is forgiven at 20% per year that the homeowner lives in the property and is completely forgiven after 5 years!

I'd love to help you find your new home in the Concord and Greater Charlotte NC Area, so give me a call if I can be of assistance in any way.

UPDATE (1/26/2012): The 2012 FHLB Grant Program offers up to $5,000, instead of the previous maximum of $7,500. Qualifying buyers would receive 4 times the amount they put into the transaction from the FHLB Grant Program, for a maximum of $5,000 assistance with $1,250 buyer funds in the transaction.

Do you have questions about the new North Carolina "Due Diligence" Offer to Purchase and Contract? If so, you're not alone! The NC Association of Realtors made dramatic changes to the standard NC Offer to Purchase and Contract, which went into effect on January 1, 2011. New terms were added, such as a Due Diligence Fee paid by the buyer DIRECTLY TO THE SELLER, and a Due Diligence Period. Gone are the inpsection period and loan commitment period, both of these items now fall under the Due Diligence Period. This video, created by the NC Association of Realtors General Counsel, may clear up some of the confusion.

Changes to Offer to Purchase & Contract as of January 1, 2011 from NC Association of REALTORS on Vimeo.

I have been trained and have already written/negotiated several offers using the new Offer to Purchase & Contract. So if you are looking for an experienced and knowledgeable Realtor to help you through a NC real estate transaction, give me call anytime.

The Homebuyer Tax Credit has been extended to include home purchases with a contract date by April 30, 2010 that close no later than July 1, 2010. In addition to 1st-time homebuyers, the tax credit has been expanded to include certain repeat homebuyers.

According to media reports, this will be the last extension of the homebuyer tax credit. The tax credit, historically low interest rates and buyer's market home pricing, make this a great time to purchase real estate. Hurry before it's too late!

The information below provides basic information about the current tax credit, call me today for more detailed information.