This is from the NAR website of the current provisions, I suspect that there will be some revisions however for the time being this is a good reference. For home buyers in Ohio, they also want to check out the Ohio Housing Finance Agency's Mortgage Credit Certificate Program, because it can easily triple the amount of Tax Credits a buyer can recieve. Drop me an email and I will glady send any buyer or Realtor information about this program.

How will this affect the Omaha real estate market? Was this tax credit a good idea? Stay tuned for my follow-up blog post.

If you are looking to buy a home in Rural Ohio, you may want to check out the USDA Rural Home Loan Program. 

Other rules do apply and the best way to find out is to give me a call or send me an email. 

Just recieved this notification that the new Condo Guidelines are being delayed again. One issue that was of interest to me was how Lenders were suppose to evaluate the Reserve Requirements. On another post here on Active Rain it was said for existing Condominums the guideline would be reserves needed to be funded at 60%. I have seen nothing to confirm that number, hopefully the updates promised by HUD will give the guidance for Lenders.

Implementation of FHA's new policy guidance for condominium project approval and condo unit financing will be delayed until December 7th 2009. The new guidance, to be issued within the next two weeks, will: 1) offer additional leniencies to address the difficult market conditions and
2) augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification.

Until the new guidance takes effect on December 7th, 2009 lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41. Further, the site condo and manufactured housing condo project changes that have already been implemented are not affected by this delay.

This is a question every home buyer should ask themselves especially if your Realtor/Agent has not encouraged you to Shop, Compare and Save. Above and beyond the Rate of Interest and Closing Costs, buyers need to keep in mind that one person/house is controlling the entire transaction. Recently, I was dealing with a buyer that was looking at a New Construction home and as part of the transaction the builder had incentive to use the builders lender. The buyer ultimately walked away from the transaction for a number of reasons. One of the reasons was they were feeling pressuredin general. Also the fact that the Seller/Builder was controlling every aspect of the transaction.

• Selling the home
• Arranging the Financing
• Obtaining the Appraisal from one of their chosen Appraisers
• Doing the Title Work
• Doing the Closing with their affiliated Title Company

Ask yourself if you want checks and balances by not having everyone in the transaction living under the same roof or having affiliated business arrangements with the individuals they deal with.

As far as a history lesson, consider Car Dealers, it is common place for them earn referral income when they arrange the financing for a car buyer. Also with the number of Cars Repossessed, a sales person is encouraged to do everything possible to get the car sold. Ask yourself if you are doing what is in your best interest or what is in the best interest of the Salesman/Dealership.

Here in Ohio, there are laws preventing your Realtor/Agent from receiving income on a per transaction basis from the Lender or Title Company, however via your Realtors ownership of the affiliated business or another indirect ownership thru an Affiliated Business Arrangement, there may be some conflict of interest. This is the reason buyers and sellers sign AfBA Disclosures. If you are asked to sign one of these forms, ask your agent/Realtor to explain to you any financial incentives they receive. If they say there are NONE, ask them if the company they work for tracks the number of referrals they make to AfBA and if these numbers are discussed periodically with their managers.

I know some Agents/Realtors that work to save their clients money via referrals to lenders and Title Companies, however I know others that make those referals with income or profits being their motive. If you agent/Realtor does not encourage you to independently Shop and Compare, do it for yourself. Convenience shopping at times can be good, however at time Convenience Shopping is not a buyers best option.

Below is one section of a Sellers Addendum that I believe needs to be reviewed with any buyers. Look at section (b). I think most know that seller addendums like these were written by the attorneys for the sellers and the clients they represent. The wording you see in section (b) is similar to what you see on HUD Owned properties, Now I am starting to see it more often on non HUD contract. IF you are asking the seller to assist your buyer with closing cost and encounter an addendum like this, verify with your buyer if they can cover the additonal closing costs that this paragraph will make them libel for paying.

Any Ohio buyers or Realtors that have any questions, please give me a call or send me an Email.