Big, Big News for 1st Time Homebuyers

HUD recently announced that they would allow 1st time home buyers to use the new $8,000 tax credit as their down payment on FHA mortgages, making the dream of homeownership a reality for many across the United States. Below is an update from a recent news release provided by HUD.

"A U.S. Department of Housing and Urban Development official said Tuesday that HUD would move forward with a plan to let first-time homebuyers use the currently available tax credit of up to $8,000 as collateral for "bridge loans" to cover the down payment on Federal Housing Administration-insured mortgages.

HUD spokesman Brian Sullivan said Phoenix-area lenders misinterpreted the department's withdrawal of an official communication, known as a "Mortgagee Letter," announcing the program last week.

"There was a premature posting of a Mortgagee Letter," Sullivan said to explain the withdrawal, adding that the program's details had not been finalized.

Sullivan would not say when the bridge-loan program would be initiated, or whether it would be substantially different from what originally was announced.

A week earlier, real-estate agents and home builders had issued statements supporting a HUD proposal to let banks, non-profit organizations and local governments offer short-term bridge loans to cover the down payment for first-time buyers eligible for the tax credit.

Jill Hoogendyk, president of HomePoint Mortgage Co.in Phoenix, said Mortgagee Letters are the primary means of communication between HUD and mortgage lenders.

"We get told over and over that nothing is official or should be counted on until we are given a Mortgagee Letter - no matter how much we've heard that HUD is going to do something," Hoogendyk said."

Mortgage Rates Hit Record Low…Again!

Well, you’ve just about run out of excuses for not buying a new home. Prices are lower than they have been in 4-5 years, inventory levels are up with plenty to choose from, the government has chipped in an $8,000 tax credit for 1st time buyers and now…RECORD LOW INTEREST RATES!

According to Freddie Mac’s Primary Mortgage Market Survey, 30-year fixed rate mortgages are down to 4.78% for the week ending April 30th, 2009. That rate matches the lowest rate in the HISTORY of Freddie Mac’s survey, which began in 1970. Need I say more?

If you’re sitting on the fence, don’t sit their much longer or you will miss out on the buying opportunity of a lifetime. All of your friends and relatives may have overpaid for their home with a 6.5% adjustable rate mortgage that is now at 8.5%, but NOT YOU. You are going to buy a great home at a great price with a great mortgage rate!

Give me a call today, and let’s talk about your options.