The Obama Administration is moving forward to help home owners. The plans that they have put forward are for the most part encouraging and meaningful. I think the one exception is the cap on the mortgage deduction' But here they are in a nutshell
8,000 first time buyer credit.
This program provides an 8,000 credit for first time home buyers. A first time buyer is defined as some one who has not purchased a home with in the last 3 years.
Requirements are maximum income 75,000 for an individual and 150,000 for a family. This is adjusted gross income.
You must live in the house 3 years otherwise you pay back the full 8,000.
If you do not use the whole 8,000 credit you get a check for the balance.
The program also expires on Dec 31 2009.
Existing home owner help
For existing home owners there is help too. But the program is a little more complicated.
You can reduce your payments up to 31% of your income. Interest rates can go as low as 2%
Your payment reduction will last for 5 years. After that you refinance around 5 %
Your loan must be through Freddie Mac or Fannie Mae ( 60 % are) Check with the person on your coupon book.
If you have no equity or even up to 5% negative equity you can refinance.
You must be able to document your income. And you must provide a letter fo hardship showing why you should qualify. Uncle Sam WILL check.
Your loan must have been made before Jan 2009
If your mortgage is for more than 729,750 ( a jumbo) you are not eligible.
The program will expire in 2010. Date at this point debateable
Rules and guidelines are coming out even as I write this post Consult your Realtor and Lender for more information. This is in no way a bail out. Rather a really good helping hand to help folks in trouble.
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Charlie Ragonesi All Mountain Realty Big Canoe and Mountain Blog
On line at www.allmountainrealty.com Call at 706 579 1098
