Julie Staradumsky CREN

First Time Homebuyer Interest Rate - 5.625% with 0 points - 30 years!

A below-market, fixed interest rate is offered to first-time home buyers and urban area buyers. Down payments of as little as three percent are required and must come from the borrower's own assets. Loans are 30-year fixed rate. Certain closing costs can be gifted by family members, non-profit organizations or government agencies. Debt to income ratios are as high as 33 percent (housing debt, i.e., mortgage, taxes, insurance) and up to 38 percent (total monthly debt load). Please see the latest income and purchase price limits. Further detail is available on our Fact Sheet (below) or call 1-800-NJ-HOUSE.

FACT SHEET

1. INTEREST RATE: Please call a participating lender for current rates or call 1-800-NJ HOUSE.

2. MORTGAGE LOAN MATURITY: 30 year maximum term, conventional, fixed rate, maximum 100% Loan-to-Value (LTV). Loans may also be submitted using FHA, VA and/or RHS guidelines. Loan-to-value percentage is the unpaid balance of the mortgage principal to the appraised value or sale price (whichever is lower) of the property.

3. FEES: Borrowers must pay 1% of the loan amount at time of application. The lender will reimburse borrower at the time of closing on a zero point loan.

4. ELIGIBLE PROPERTIES: One-family units, including condominiums (new and existing), 2- to 4-family dwellings which have been in existence for 5 or more years. Targeted area only: any new or existing 2 unit dwelling. Targeted areas are located within the 42 municipalities listed on the attached income/price limits sheet.

5. ELIGIBLE BORROWERS: Individuals only. Corporations are not permitted to act as borrowers. Borrowers purchasing properties located in the statewide areas must be first time home buyers. Borrowers purchasing properties located in the targeted areas do not have to be first time home buyers, however, at the time of loan closing no other residential properties may be owned.

6. OCCUPANCY: Property must be occupied as the borrower's primary residence within 60 days of closing. Borrower must maintain occupancy for the life of the loan.

7. MORTGAGE INSURANCE: the following coverage is required on all conventional loans and is determined by downpayment.

8. HOME BUYER EDUCATION: All Community Home Buyers Program borrowers must participate in lender sponsored counseling sessions and be issued a certificate upon completion.

9. DOWNPAYMENT REQUIREMENTS: For conventional loans, insured with private mortgage insurance, downpayments as low as 0% are acceptable. If FHA insurance is used, the downpayment is based on mortgage amount and varies from 3-5%. VA and RECD do not require downpayments.

10. CLOSING COSTS: Borrower may fund closing costs with gifts or unsecured loans from non-profit organizations or public entities. Escrow payments must be paid from borrower's liquid assets.

11. INCOME LIMITS: Income limits for all mortgage programs are determined by the area of purchase as well as family size (listed on separate sheet).

12. PURCHASE PRICE LIMITS: Purchase price limits exist for both the statewide and target areas. Loans submitted using FHA, VA and/or RECD guidelines must adhere to FHA or HMFA guidelines (whichever is lower) regarding purchase price limits or mortgage loan limits.

HUD EXPANDS MULTI-LINGUAL WEBSITE TO HELP FAMILES WHO ARE LIMITED ENGLISH PROFICIENT TO GAIN ACCESS TO HUD PROGRAMS
New website offers translation of HUD Vital Documents for Free

WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today unveiled an enhanced website to promote equal access to housing programs by providing important HUD documents in 12 different languages. HUD's expanded Limited English Proficiency (LEP) website features factsheets, housing brochures and other forms in Amharic, Arabic, Armenian, Cambodian, Chinese, Farsi, French, Korean, Portuguese, Spanish, Tagalog, and Vietnamese, in addition to English.

"When buying or renting a home, obtaining important housing information should not depend on how well people speak English," said John Trasviña, HUD's Assistant Secretary for Fair Housing and Equal Opportunity. "This website greatly expands HUD's ability to offer all families access to our programs and services, regardless of the language they speak."

The HUD site offers brochures on fair housing, model lease agreements, information about HUD's Housing Choice Voucher Program (Section 8), and a Resident Rights and Responsibilities brochure in various languages. These documents are free to the public.

The LEP website is in response to Executive Order 13166, which requires all federal, local and state agencies that receive federal funding to ensure that people with limited language skills have meaningful access to government programs and services.

"The importance of homeownership and fair housing means HUD must be a leader in this area. HUD will continue our efforts to serve all persons by translating additional vital documents and posting them on the website," said Trasviña.

FHEO and its partners in the Fair Housing Assistance Program investigate approximately 10,500 housing discrimination complaints annually. People who believe they are the victims of housing discrimination should contact HUD at 1 (800) 669-9777 (voice), (800) 927-9275 (TTY). Additional information is available.

To view a copy of the press release in one of the 12 languages, click the links below:

Amharic
Arabic
Armenian
Cambodian
Chinese
Farsi
French
Korean
Portuguese
Spanish
Tagalog
Vietnamese

Information obtained from HUD

HUD TO OFFER HOUSING ASSISTANCE TO 4,000 AMERICANS WITH DISABILITIES
Agency seeking comment on how to allocate vouchers to support independent living

WASHINGTON - The U.S. Department of Housing and Urban Development today joined President Obama's commemoration of the tenth anniversary of the Supreme Court's Olmstead decision by announcing that it will offer rental assistance to 4,000 non-elderly families with disabilities, including 1,000 vouchers specifically targeted to those transitioning out of nursing homes and other care facilities. Through its funding notice, HUD is seeking comment from public housing authorities and others to ensure this critically needed assistance is distributed and administered in the most effective manner possible.

Today's announcement coincides with the tenth anniversary of the Supreme Court's ruling in Olmstead v. L.C. & E.W.which affirmed the rights of individuals with disabilities to live independently. To commemorate this landmark decision, President Obama declared 2009 the Year of Community Living.

"As individuals with disabilities leave institutional care, it is essential that they have housing options that will allow them to live independently," said HUD Secretary Shaun Donovan. "As we prepare to launch this initiative, we also want to make certain that we get input from local housing experts, disability rights advocates and others who can help us target this assistance to those who need it most. We also recognize how important it is for HUD and HHS to coordinate our resources to enable community-living for those individuals that live with disabilities."

HUD's Notice of Funding Availability (NOFA) will make $30 million in voucher assistance available to support approximately 4,000 Housing Choice Vouchers for non-elderly disabled families. HUD is making a 1,000 of those vouchers available specifically for individuals transitioning out of nursing homes and other institutions. These vouchers directly support a $1.75 billion initiative of the U.S. Department of Health and Human Services (HHS) to help persons who reside in health care settings move to community-based living. While HHS' Money Follows the Person (MFP)program offers health care, case management and other services to qualified families, it does not include funding for housing. HUD's funding initiative is designed to fill that gap.

The remaining 3,000 Housing Choice Vouchers are available to assist any non-elderly disabled family. The Department is encouraging local housing authorities to give strong consideration to using some or all of these vouchers to provide housing for those non-elderly persons that are living in the community, but are at-risk for institutionalization.

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HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Information obtained by HUD

Guidance on How to Use the Tax Credit with FHA Loans

On May 29, 2009, US Department of Housing and Urban Development (HUD) announced a program that allows borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on a FHA-insured mortgage. Since the announcement NAR has received many inquiries from our members regarding how this impacts first-time homebuyers in their state.

Currently, 10 state housing finance agencies (HFAs) offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. Generally, these programs offer tax credit advances with second liens on the home being purchased. The second lien may be "soft" (silent) or require monthly payments but may not result in cash back to the borrower and may not exceed the total amount needed for the down payment, closing costs, and prepaid expenses. The 10 states offering these programs are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, and Tennessee. Other states are developing programs so members are encouraged to regularly follow up with their respective HFA.

For all other states where such programs do not exist the tax credit may not be used to fund the 3.5 percent downpayment required for FHA loans. As always, the 3.5 percent downpayment may be a gift from a family member, employer or nonprofit, charitable organization. FHA-approved nonprofit organizations and FHA-approved lenders may monetize the tax credit for down payments in excess of 3.5 percent, closing costs and interest rate buy downs. Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers.

Mortgagee Letter 2009-15: Using First-Time Homebuyer Tax Credits
NCSHA State HFA Programs
Visit www.realtor.org/2009housingtaxcredit

Take the Stress Out of Homebuying

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It's critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Remember, there's no "right" time to buy, just as there's no perfect time to sell. If you find a home now, don't try to second-guess interest rates or the housing market by waiting longer - you risk losing out on the home of your dreams. The housing market usually doesn't change fast enough to make that much difference in price, and a good home won't stay on the market long.

3. Don't ask for too many opinions. It's natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family - the people who will be living in the home.

4. Accept that no house is ever perfect. If it's in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don't try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

6. Remember your home doesn't exist in a vacuum. Don't get so caught up in the physical aspects of the house itself - room size, kitchen, etc. - that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don't leave yourself short and let your home deteriorate.

9. Accept that a little buyer's remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don't lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home's most important role is to serve as a comfortable, safe place to live.