Warren Buffet predicted we will be out of the housing crisis in only 12 more months…
And the Federal Home Loan bank of San Francisco has a grant program for home buyers. The bank will match the members savings 3-1 for down payment assistance up to $15,000. Here is the link if you would like more information: http://www.fhlbanks.com/
Good news everybody; originally when the Senate passed the new FHA housing assistance bill they were going to discontinue the down payment assistance programs which currently helps over 3,000 families a month purchase a home. It looks as though they have had a change of heart and decided to keep this program in place.
U.S. Reps. Al Green (D-TX), Gary Miller (R-CA), Maxine Waters (D-CA), and Christopher Shays (R-CT) reauthorizes and reforms charitable down payment assistance funded in part by sellers, which has helped over one million families and individuals become homeowners since 1999. The program was eliminated by legislation signed by President Bush on July 30, 2008.
Finally the Republicans and Democrats got together and got something done!! This is a happy day in politics. Now if only they can figure out how to lower gas prices!
The bill also includes language to ensure that FHA maintains its financial stability by permanently authorizing the Secretary to assess higher premiums to higher risk borrowers.
That’s it for now and as always I will keep you abreast as thing develop in this ever changing mortgage market.
Contact me directly at mgarnes@garnesmortgage.com
Las Vegas and Henderson home buyers looking for a 100% loan program let me introduce the G.A.P. or Grant America Program…
The Grant America Program, better known as G.A.P., is a down payment assistance program designed for home buyers purchasing a home in conjunction with an FHA mortgage.
FHA loan programs are looking very attractive right now to home buyers in the Las Vegas and Henderson areas. Congress has stepped up and increased FHA loan limits in the Las Vegas, Henderson and surrounding areas in Clark County Nevada to $400k for 2008. FHA is still a 97% LTV mortgage. However, HUD allows a borrower’s required 3% investment to come from a number of sources including gifts, grants and certain family and government sourced loans. No other mortgage product, which is currently being underwritten, allows a homebuyer to borrow his down payment, regardless of source!
“How does the Grant America Program, or G.A.P. work?”
G.A.P. is a down payment grant service which will “gift” up to 10% of the purchase price of a home, to a qualified borrower who purchases a home enrolled in the program. This money is not repaid by the borrower and is not a loan. Any property seller may enroll their home into the G.A.P. program, as long as the property meets the other requirements for an FHA mortgage. As long as the borrower qualifies for an FHA loan and purchases a home enrolled in G.A.P., the borrower will qualify for a down payment grant. Once a borrower has been approved for their FHA mortgage and all contingencies have been met, G.A.P. will wire the borrowers down payment funds directly to the closing office on the day of closing. I, as your loan officer, am continuously kept apprised of your status. Also, I can expect to receive written approvals and updates by email. At closing, to satisfy the enrollment process, the property seller agrees to contribute part of their equity to G.A.P., in an amount equal to the grant being gifted to the borrower, plus a $395.00 processing fee.
Example:
$200,000.00 Purchase Price ———-$6,000.00 Grant from G.A.P. to Buyer
$500.00 Transfer Taxes ————–$194,000.00 FHA Mortgage to be repaid by Buyer
$3,395.00 G.A.P. Enrollment Fee -$200,000.00 Total Paid to Seller
$12,000.00 Real Estate Commission
$6,000.00 Borrowers Closing Costs
$182,000.00 Net to Seller
By the seller agreeing to make this contribution, they are insuring that funds will be available for other families purchasing a home in the future. The sellers contribution, of just a small part of their equity, replenishes the pool of funds, so that G.A.P. is available for generations to come. Furthermore, this makes the program entirely self funding and does not require one dime of taxpayer money. This is unlike the current administration’s program named, the “American Dream Downpayment Initiative,” which has cost us all hundreds of millions of dollars.
G.A.P. is fully funded and can never run out of funds.
If you would like to learn more about the G.A.P. program or have specific questions regarding your situation you can contact me directly by phone at 702.526.3133 & 866.427.6375 or e-mail at mgarnes@garnesmortgage or matt@BuyLasVegasRE.com
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