What is keeping me from buying a Home?
In today's buying market the two things you need are, a job (you can be self-employed if you pay yourself a salary) and a credit score above 640. FHA has moved their credit rating up but more importantly, the banks doing the loans have raised up their criteria to a 640. Why? Banks are tired of making bad loans. Today unless you are buying a multimillion dollar home you cannot get a "no documentation" loan. The criteria for this kind of loan is you have to put down 40% or more. Who wouldn't take that loan!
You may be able to get an investor loan with a higher interest rate and 25-30% down. Plus now there are more regulations than ever!
Stay tuned for more information coming your way.
Sunday, January 31, 2010
Saturday, January 23, 2010
Big Brother is Watching
WASHINGTON — The Internal Revenue Service today announced its first successful prosecution related to fraud involving the first-time homebuyer credit and warned taxpayers to beware of this type of scheme.
On Thursday July 23, 2009, a Jacksonville, Fla.-tax preparer, James Otto Price III, pled guilty to falsely claiming the first-time homebuyer credit on a client’s federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.
To date, the IRS has executed seven search warrants and currently has 24 open criminal investigations in pursuit of potential instances of fraud involving the credit. The agency has a number of sophisticated computer screening tools to quickly identify returns that may contain fraudulent claims for the first-time homebuyer credit.
“We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.”
Whether a taxpayer prepares his or her own return or uses the services of a paid preparer, it is the taxpayer who is ultimately responsible for the accuracy of the return. Fraudulent returns may result not only in the required payment of back taxes but also in penalties and interest
On Thursday July 23, 2009, a Jacksonville, Fla.-tax preparer, James Otto Price III, pled guilty to falsely claiming the first-time homebuyer credit on a client’s federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.
To date, the IRS has executed seven search warrants and currently has 24 open criminal investigations in pursuit of potential instances of fraud involving the credit. The agency has a number of sophisticated computer screening tools to quickly identify returns that may contain fraudulent claims for the first-time homebuyer credit.
“We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.”
Whether a taxpayer prepares his or her own return or uses the services of a paid preparer, it is the taxpayer who is ultimately responsible for the accuracy of the return. Fraudulent returns may result not only in the required payment of back taxes but also in penalties and interest
Monday, December 7, 2009
New Criteria for FHA Updated 2010
New Criteria for FHA
FHA Recent Announcement on Policy Changes
The Federal Housing Administration announced today that FHA will be taking active measures to address risk and strengthen finances by announcing policy changes that will affect future FHA loan files.
These changes include: Increasing Mortgage Insurance Premium to build up capital reserves. The first step will entail an increase to UFMIP by 50 basis point (2.25), with a follow up request to legislative authority to increase annual MIP. HUD is scheduled to release a Mortgagee letter tomorrow that will be in effect in early spring.
FHA will also implement a New Credit Score requirement for all borrowers. All borrowers must have a minimum score 580 in order to qualify for minimum down payment of 3.5%, any borrowers with scores less than 580 will be required to bring in a minimum of 10% down payment. These changes will be effective in early summer of 2010. Check with local lenders because their credit score requirements may be higher than FHA's
Lastly, HUD has announced they will reduce allowable sellers concessions from 6% to 3%.What this means to you is, if the Seller is paying closing costs, their contribution is limited to 3%. You the Buyer would have to pay the difference. Closing costs are really a Buyer expense and it became customary in the past for Seller to pay or at least contribute to them. Looks like things are changing. Besides the Sellers have already taken a hit on their price.
This change will be posted in the Federal Register in February and will be effective in early summer of 2010.
Click here for details: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016
FHA Recent Announcement on Policy Changes
The Federal Housing Administration announced today that FHA will be taking active measures to address risk and strengthen finances by announcing policy changes that will affect future FHA loan files.
These changes include: Increasing Mortgage Insurance Premium to build up capital reserves. The first step will entail an increase to UFMIP by 50 basis point (2.25), with a follow up request to legislative authority to increase annual MIP. HUD is scheduled to release a Mortgagee letter tomorrow that will be in effect in early spring.
FHA will also implement a New Credit Score requirement for all borrowers. All borrowers must have a minimum score 580 in order to qualify for minimum down payment of 3.5%, any borrowers with scores less than 580 will be required to bring in a minimum of 10% down payment. These changes will be effective in early summer of 2010. Check with local lenders because their credit score requirements may be higher than FHA's
Lastly, HUD has announced they will reduce allowable sellers concessions from 6% to 3%.What this means to you is, if the Seller is paying closing costs, their contribution is limited to 3%. You the Buyer would have to pay the difference. Closing costs are really a Buyer expense and it became customary in the past for Seller to pay or at least contribute to them. Looks like things are changing. Besides the Sellers have already taken a hit on their price.
This change will be posted in the Federal Register in February and will be effective in early summer of 2010.
Click here for details: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016
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