Financing Information for Buyers & Agents
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Tax Credit-Special Rules for Military
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Special Rules for Members of the Military, the Foreign Service
and the Intelligence Community
Congress has acknowledged the unique circumstances affecting members of the military, the foreign service and the intelligence community by making the following exceptions that apply to both the $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers.
Exemption From Tax Credit Recapture Rules
- Typically, homes that are sold or that cease to be used as a principal residence within three years of the initial purchase are subject to recapture of the tax credit.
- However, qualified service members who sell or move from a tax credit home within three years of the initial purchase due to official extended duty are exempt from the recapture rule.
Extension of Tax Credit Deadlines
- The home buyer tax credit is available for qualified purchases with a binding sales contract in place on or before April 30, 2010 and closed by June 30, 2010.
- However, for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
Definitions
- “Qualified service member” means a member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community.
- “Official extended duty” means any period of extended duty outside of the United States for at least 90 days during the period beginning after December 31, 2009 and ending before May 1, 2010.
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Just when you thought you understood the process..... |
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Veteran? If you are a veteran, you may be eligible for 100% financing. To determine if you are eligible to receive the VA Loan Guaranty, fill out this form, and fax it to 808-246-2505.
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Refinancing-Rates are at an all time low, but your property is “underwater”. Here are some solutions:
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If the value of your home has declined, yet you would still like to take advantage of the historically low interest rates, it may be possible.
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Written by Sharon Gerber
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Tips on how to prepare for and navigate through the mortgage process.
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USDA Rural Development Loans
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Did you know that the entire island of Kauai is designated as rural? Read on for more information about 100% financing with no mortgage insurance.
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Appraisal Process-Home Valuation Code of Conduct-Implementation Overview
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In December, 2008, the final version of the Home Valuation Code of Conduct (HVCC) was released by Federal Housing Finance Agency (FHFA). This code must be followed for all conventional loan originations sold to Fannie Mae or Freddie Mac effective May 1, 2009. The key requirements of this code include the following:
- The lender may not accept any appraisal report completed by an appraiser selected, retained, or compensated by any third party, including mortgage brokers.
- The lender, or other third party delegated by the lender (but not to include mortgage brokers), must be responsible for selecting, retaining, and providing for payment of all compensation to the appraiser.
- No party may provide to the appraiser an anticipated, estimated, encouraged, or desired value.
- The appraiser is specifically prohibited from providing an estimated value or comparable sales at any time prior to the completion of an appraisal report.
- A member of the lender’s loan production staff or underwriting staff may not select, retain, recommend, or influence the selection of the appraiser for any particular appraisal assignment.
- Establishes the Independent Valuation Protection Institute, to which appraisers and borrowers can report violations of this code or perceived improper influence to determine a desired value.
Click here for a complete copy of the HVCC.
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Since the inception of the HVCC process, many issues have come up. Homeowners, realtors and loan officers are no longer allowed to choose their appraiser or get on the phone to discuss issues that possibly could have been worked through. And many lenders will not accept an appraisal ordered by another lender...what happened to being courteous and writing a letter of release to the new lender when your current lender denied your loan? Now the borrower must pay for a 2nd appraisal. To contact your legislators and other agencies that have influence on this process, please click here.
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What is Credit Scoring?
What is Credit Scoring and how is it used when applying for a mortgage?
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New Fannie Mae Guidelines
Fannie Mae issues new guidelines, effective mid-December.
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