Solomon Greene

Gwinnett County Community Development has confirmed the return of the HOMEStretch Down Payment Assistance program. Credit and income eligible Georgia first time home buyers looking to buy a property in Gwinnett County may now qualify for down payment assistance of up $7500 to be used toward the down payment (yes, the 3.5% down on an FHA mortgages), closing costs and pre-paid expenses on the purchase of inhabitable single-family homes, town homes and condominiums built after 1977 and priced up to $200,000. Eligible borrowers may take advantage of low prices on new and existing construction traditional property sales, as well as foreclosures and short sales with very little money down.

The Gwinnett County Down Payment Assistance program varies from some of the others. While the income limits have recently been reduced, other positives do apply.

• Borrowers may benefit from open market FHA interest rates rather than one linked to the program
• The mortgage is forgiven in five years provided the buyer remains and occupies the property during that period
• Condominiums and town homes may be purchased

Visit the Atlanta Down Payment Assistance blog for more information. If you are NOT working with an agent, write or call Solomon today at (678) 775-2677 for important details and restrictions.

Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
http://www.AtlantaDownPaymentAssistance.com

Buyers in higher income households might be interested in knowing that the State of Georgia Down Payment Assistance Program for households earning up to $100K per year will be expiring very soon. Regret the late notice, but word only came in today that the state must be officially notified of contracts for home purchases using this program before March 1, 2011. There's still the HUD-owned Home $100 Down with no income limits and the and the Rewards options, but the expiring program broadens the borrower's choices to include new construction, non-foreclosure properties and others priced up to $300K.

If you are not working with an agent, please write or call today to get pre-approved and let's try to make this deadline.

Thanks
Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
(678) 775-2677

How would you respond if you knew well in advance that the price of your favorite cereal would be increasing by over 27%? Most savvy consumers who could would likely stock up on a few boxes before the expected price increase date, right? That was called "loading the pantry" during my time with the big CPG companies. You see, the retailers knew well in advance that the price would be going up on your favorite items while their customer base learned about it through sticker shock.

Word has come recently of an increase of .25% in the monthly mortgage insurance premium for FHA mortgages on all contracts established after April 18, 2011 (from the current .90% to 1.15%). Think that amount is too small to be of any real concern? Consider that the monthly payment could increase...

• $15.62 on a $75,000 mortgage
• $20.83 on a $100,000 mortgage
• $31.25 on a $150,000 mortgage
• $42.00 on a $200,000 mortgage
  

As you may see, what seemed to be an incremental increase can and will have a profound impact on debt-to-income ratios and, therefore, your ability to buy that dream home. The government is also positioning itself to scale back intervention in the secondary mortgage market, an action that could lead to even greater increases in interest rates than we've already seen in recent months.

For those of you who have the means, peace of mind and intention to buy, now clearly is the time to get the process underway. Call or write today for more information on how to get qualified for a mortgage, the home search process and more.

Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
(678) 775-2677

Consumers with less than perfect credit may be interested in knowing that a well-known national lender has announced their willingness to consider offering mortgages to credit-challenged Metro Atlanta borrowers. Here are a few of the stipulations…

• The borrower’s total monthly mortgage payment (including home owner association dues) may not exceed 31% of their gross monthly income. Further, the borrower’s proposed total monthly mortgage payment plus any other monthly payments toward debt such as un-deferred student loans, auto loans, credit cards may not exceed 43% of the borrower’s gross income.

• The borrower must provide their own down payment

• No down payment assistance

-- Gift funds must be in borrower’s accounts for at least sixty days prior to credit review
-- Required down payments also apply to purchases of HUD-owned homes (no $100 down)
-- Credit scores of 500 – 579 require 10% down
-- Credit scores of 580 – 600 require 5% down

• Seller contribution to closing costs capped at three percent

• The borrower must have a minimum of two months of reserves to cover payments of principal, interest, taxes and insurance in addition to the required down payment

• Existing bankruptcy and foreclosure rules remain in place, but this program may even be available to borrowers who have encountered one or both of those events two or more years ago

Approval is not guaranteed as this is only the start of the evaluation, a process that could last a few weeks. But borrowers who are approved for a mortgage can immediately begin searching for a home with confidence that they can close.

If you are not working with a real estate agent, please call (678) 775-2677 or write today for more details and let’s get started.

Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
http://www.AtlantaDownPaymentAssistance.com
(678) 775-2677

Do you know of someone who’s looking to buy a property in Dekalb County? Please share the information with them about the various programs available to help them buy with very little out-of-pocket expenses and various levels of requirements.

State of Georgia Down Payment Assistance – Up to $10K may be available to credit and income eligible GA first time home buyers and families moving up to their next home to put toward their down payment and closing costs on properties priced up to $300K. Programs are available for households with income limits as high as $100K to buy an inhabitable property of their choice anywhere in the metro Atlanta area (outside the City of Atlanta), including foreclosures and short sales. Restrictions apply, so please see the Georgia Down Payment Assistance flier here and then call for the details.

Neighborhood Stabilization Program Funds – Up to $25K may be available to credit and income eligible GA first time home buyers and families moving up to their next Dekalb County home to put toward their down payment and closing costs on properties owned and restored through this program. The program is available to households with incomes at 120% of the Metro Atlanta area median income (Single person HH income limit: $60,300, two person: $68,950, three person: $77,550, four person: $86, 150) and the completion of a HUD-approved home buying class is required. Please call for other more important details and a list of properties today.

Dekalb County Down Payment Assistance – Up to $8K may be available to credit and income eligible GA first time home buyers looking to buy a Dekalb County single family, non-foreclosure property anywhere in Dekalb County outside the City of Atlanta priced up to $160K. The borrower must attend a HUD-approved home buying class, contribute one-percent toward the transaction and agree to other important restrictions, so please visit the Dekalb County Down Payment Assistance Page and then call today for more information.

HUD-owned Homes $100 Down Program – A down payment of only $100 may be required toward the purchase of a Georgia Dream Home anywhere in Metro Atlanta including all of the City of Atlanta and the seller will pay closing costs of up to three-percent (should be all) too. The credit-eligible borrower will also need $500 to $1,000 for an earnest money deposit, but $900 will be credited back at closing. Plan on $325 or so for a home inspection, around $450 for a possible appraisal fee, and $400 or so for utility deposits and the unknown. Many of these HUD-owned homes are in great condition and can close within thirty days, so please visit the $100 Down HUD-owned Home Page and then call for details today.

If you are not working with a real estate agent, please visit the Metro Atlanta Down Payment Assistance Blog and then call today for more information.

Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
(678) 775-2677