Roger Howell

The last couple of years have seen the elimination of most of the zero down payment options for home buyers. While there are a few options left, questions of who qualifies and how to get a home when you have no down payment have been the most asked questions.

Recently, we have rolled out a Zero Down Home Loan for first time home buyers in Idaho. The general requirements are:

Must not have owned a home in the last 3 years.

The borrowers must have a fico score of at least 680

The combined debt to income ratio must not exceed 45%

The borrowers must contribute at least $1000 to the transaction.

Now there are other qualifying that must be done, but those are the main qualifications.

This program doesn't require private mortgage insurance, making it very affordable.

When compared against the often used FHA program with secondary financing and required mortgage insurance premium, it came in much lower monthly payment.

So if you're a First Time Home Buyer in Idaho, and you have questions on how to qualify for this program, call me at 208-861-7579.

With the deadline for the tax credit approaching, I have heard all sorts of rumors and untruths regarding its extension and expansion. I even saw an article from a well know personal finance magazine that suggested that the buyer only had to be under contract by Nov. 30Th to claim the tax credit. One look at the IRS web site told differently. The point is, we're hoping for this to be extended or expanded and some of us will delude ourselves or others that it has already happened.

To extend this, congress has to agree to it and set the terms. Right now, the climate in Washington is less than perfect for this as they are all fighting on how best to take over the health care industry. As a result our industry concerns; HVCC, Seller funded DPAs, and the first time home buyer tax credit have all been pushed aside. Yes, some in Congress have brought this issue up, but until recently, its been lost in the shuffle.

Yesterday there was some action on the much hoped for extension of the first time home buyer tax credit. The Senate voted to extend the tax credit until April 30Th of 2010. They also clarified that you just have to be in contract by then, and have a further 60days to close. They also provided for a move up buyer tax credit of $6500 for homeowners who have lived at their present homes 5 years or more.

This extension/revision of the first time home buyer tax credit is attached to an unemployment insurance bill, so it should get through, but you never know. The House still has to approve it and any differences reconciled by committee. I wouldn't expect the president to veto it. I'll believe it when I see it.

In the meantime, I'm cautioning everyone who makes application that lenders are not promsing to close on or before the 30th of next month, so be advised.

Here in Idaho, the First Time Home Buyer Tax Credit program has been a God send. It has stimulated Idaho home sales over last year and I'm sure its kept plenty of Idaho Real Estate Professionals in business.

Even though the First Time Home Buyer Tax Credit is not new, I still get many questions regarding the program. when it first started, we had few resources to call on. I recently found the official IRS site and form that I have been forwarding to all my Idaho First Time Home Buyers.

The links are http://www.irs.gov/pub/irs-pdf/f5405.pdf (the form)

and http://www.irs.gov/newsroom/article/0,,id=206291,00.html (the guidelines)

Remember, the home must be occupied by November 30th to be eligible for the First Time Home Buyer Tax Credit program. For those who are building a home in Idaho, it might be getting too late to take advantage of the program if you don't finish and occupy the property by then.

Hopefully, Congress will extend the tax credit when they get back in session.

I get asked more questions about credit than I do about interest rates. Many times its from someone with a credit issue or perceived credit issue and they're looking for reassurance about their credit.

The FHA Mortgage program doesn't have a minimum credit score, instead it looks at the credit history as a whole. The biggest one is that a borrower must have a clean credit history for the last 12 months. That means anyone with a 30 day late payment on their credit report is ineligible. Also, FHA Mortgages have a 2 year waiting period after a bankruptcy discharge.

Now the lack of a minimum credit score doesn't stop the individual banks and lenders from having their own requirements on top of FHA Mortgageguidelines. Right now, most lenders and banks are requiring a 620 minimum fico score. They are also requiring that the borrower have a minimum established number of credit lines, usually 3 to 5. This can be a problem for the first time home buyer or someone who doesn't use a lot of credit.

In my next post, I'll go into detail about how one can overcome a skinny credit profile and get approved for one of my Idaho FHA Mortgages.

Save Money on your Veteran's Administration Loan every month with a "Streamlined Refinance" No new appraisal required.

The VA Streamline Refinance doesn't require a new appraisal, nor does it require proof of income or assets. It does require that we verify that you're employed, a quick phone call can take care of that.

Some of the things to remember when getting a VA Streamline Refinance, is that you cannot pull a lot of extra cash out, maybe $500 max. You also cannot pay off a second mortgage or equity line with the VA Streamline Refinance. You must be lowering your payment (exception for a shorter term) and generally improving your financial picture to qualify. You also must be current on your loan to qualify for a VA Streamline Refinance

To see if you qualify for a VA Streamline Refinance, call me at 208-861-7579. Or you can go directly to my website and start the application today.