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Friday, May 29, 2009

$8000 Tax Credit- Updated Guidelines 5.29.2009

Blogging From The Desk of Alicia Lagarde-Craig

Thousands of first-time homebuyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit that was designed to boost the battered U.S. housing market.

The Federal Housing Administration on Friday released details of a plan in which borrowers who use FHA loans can get advances from lenders that effectively let them receive the credit before they complete their taxes.

The FHA had no estimate of how many borrowers would qualify. But the agency, which backs about a quarter of new home loans, is projected to guarantee about 2.2 million loans in the next budget year.

Borrowers can claim the credit by filing an amended 2008 tax return or can wait for their 2009 return.

The change "will present an enormous benefit for communities struggling to deal with an oversupply of housing," Housing Secretary Shaun Donovan said in a statement.

Borrowers will still have to come up with the FHA's required 3.5 percent down payment, unless they work through a state or local housing program. But officials say the money can still be used for closing costs or a larger down payment.

The tax credit was included in the economic stimulus package signed by President Barack Obama in February.

Send all questions to: AliciaLagarde@kw.com

Tuesday, May 12, 2009

Pathway to Homeownership Soft-Second Mortgage Loan Program

Blogging From The Desk of Alicia Lagarde-Craig

Pathway to Homeownership Soft-Second Mortgage Loan Program

Own a Home. This is the Path.

Receive up to $65,000 soft second home mortgage at 0% interest.

100% forgivable in 10 years with continuous owner occupancy; payable only upon sale or refinance.

Up to $10,000 closing cost assistance grant also available.

Eligible Properties:

*One or two unit residences within one of the Orleans Parish Housing Opportunity Zones (see map on http://www.financeauthority.org/), or when the residence is part of the New Orleans Redevelopment Authority (NORA) Re-development Portfolio or when the seller can demonstrate at least $5200 of damages realized from Hurricane Katrina and/or Rita within Orleans Parish

*Maximum Property values: One unit, either New or Existing: $289,704; and Two unit, Existing Only: $370,884

*All properties must meet City Building Code and Zoning Code requirments as well as the physical standards and inspection procedures of FHA/VA, Fannie Mae or Freddie Mac mortgage loan product chosen by the borrower

*Newly constructed, reconstructed or renovated homes are eligible. Modular or panelized construction is also eligible

Eligible Borrowers:

*Have not owned a home within the last 3 years or no longer own your home because of a divorce or death of a spouse

*Have not received payments from Road Home under the 'sell' or 'relocate' option *Family incomes at or below the following:

1 person $50,280

2 persons $57,360

3 persons $64,560

4 persons $71,760

5 persons $77,520

6 persons $83,280

7 persons $89,040

8 persons $94,680

*12 Hour homebuyer education required

*Minimum personal investment of 1% of purchase price or $1500, whichever is greater

Steps to Buying Your New Home:

1. Visit the Finance Authority of New Orleans website to learn about the program at http://www.financeauthority.org/.

2. Gather your financial information: tax returns and W-2s for the last three consecutive years, pay-stubs within the last three months, financial documents related to all your sources of income, listing of all real estate investments, listing of all investments in stocks and/or bonds, listing of the balances due to any creditor or for any credit account owed.

3. Determine the first mortgage loan amount you can afford. You can do this by registering with a homebuyer training organization OR visiting a participating lender (see a list of homebuyer training organizations and participating lenders at http://www.financeauthority.org/). OR, you can complete a pre-application at our website http://www.financeauthority.org/ and a home counselor will call you.

4. Register with a participating homebuyer training organization certified by the Louisiana home-buyer Training Collaborative, Inc. and take the required 12-hour homebuyer education and training course. See our website for a list.

5. Complete a loan application with a participating lender. Please bring all documents gathered in step two to the participating lender.

6. Negotiate an Agreement to Purchase a home with the seller of a home in a Housing Opportunity Zone OR with New Orleans Redevelopment Authority (NORA) OR with a seller within Orleans Parish who can demonstrate $5200 of Hurricane Katrina/Rita damage. You should seek the assistance of a realtor in negotiating the agreement to purchase.

7. Close on your new home loan.


To learn more about the Pathway to Homeownership Soft-Second Mortgage Loan Program, call (504) 524-5533 local or (877) 524-5533 toll-free

This home mortgage loan program is made possible by Louisiana Recovery Authority, State Office of Community Development, City of New Orleans & The Finance Authority of New Orleans. The Finance Authority does not discriminate on the basis of age, sex, religion, national origin, physical handicap, political or union affliation. No person, solely on the basis of any of the above factors, shall be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under the loan program operated by The Finance Authority of New Orleans. Effective Date: February 18, 2009