25 Sep 08 Buy and Bail and FHA’s Response
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So wouldn’t you know FHA found that the original rule for Buy and Bail was a little too steep and left many homeowners stuck in their home with no other course of action than to sell or head towards foreclosure.
If you are not quite sure what Buy and Bail means see my other articles on Buy and Bail Rules and Buy and Bail Part I and Part II
Now on to the new adjustments and how to work with this new rule to get what you want out of your Real Estate transaction.
- To be eligible to purchase a home using a FHA loan you would need to be relocating for a new job.
- The new home must reside outside a reasonable distance from your current residence and this is based upon underwriter’s discretion.
- Must have a full 1-year lease agreement from the closing date forward.
- You will need to show evidence of rental/lease by showing security deposit as cashed and/or first months rent.
- The adjusted equity position in your existing home is now 75% up from 70% but the appraisal can only be 6-months old or less. Now there is a small wrinkle in there that states you can show you put a 25% down payment based upon original purchase price but they may still require an appraisal to support the purchase price. Again the underwriter’s discretion.
Now the above rules are a good start but be prepared to have your potential rental income put under a microscope. FHA is extremely concerned about inflated rental agreements and has put in extra measures on the underwriting side of things to prevent fraud in this area.
Good news is that this amount of income that can be applied to your loan application for potential rents may be increased 15% in some cases and that will really help in qualifying for your new home.
Just in case you missed it, there are a couple ways to play the game:
- Add a non-occupying Co-borrower to you loan, must be a relative, to help you qualify.
- Make enough to cover both mortgage payments, current home and the new one.
- Short sale your home and buy before the negative reports on your credit report.
As always use a true Real Estate or Mortgage Professional because what you don’t know will hurt you in the end NOT the Realtor or Loan Officer.
Brent Lane
The Lane Group
Tags: buy and bail, closing date, co-borrower, existing home, fha, fha loan, home loan, Homes for Sale, lease agreement, loan eligibility, loan officer, loan qualifications, mortgage info, mortgage professional, Real Estate, rental agreements, rental income
30 Aug 08 New Home Incentives
Elliott Homes in Arizona and the Sacramento area of California – Receive 0% interest or No down payment for a limited time when you purchase an Elliott Home. Restrictions apply; visit ElliottHomes.com for more information about their new homes for sale and new home community locations. Click Here (in Arizona, on select homes, receive up to 7% co-broke on an Elliott Home – restrictions apply)
Cachet Homes in Arizona – When you purchase a new Cachet Home during the Home for the Holidays Gift Event, you will receive a great deal, you may be able to move-in by Thanksgiving, and you will also receive a $25,000 Home Joy Certificate. Restrictions apply; visit Cachet Homes for more details. Click Here
Liberty homes in Utah low Monthly Payment $473 payment based on home sale price of $206,950 with 10% down payment at 6.25% interest, 6.84% APR, Principal, Interest, Taxes, Insurance and Mortgage Insurance, OAC. Restrictions apply; visit the Liberty Homes special offers page for more details. Click Here
Mercedes Homes – TX, FL, SC and NC - Win the trip of your dreams…and a chance to win $100,000 in cash. Restrictions apply; visit the Mercedes Homes Dream Vacation promotional page for more details. Click Here
Holiday Builders – TX, FL, AL and SC - For a limited time, first-time homebuyers “Hit the Jackpot!” 5.75%* Fixed for life + $7,500 off price of home + $7,500 tax credit. Restrictions apply; visit the Holiday Home Builders promotional page for details. Click Here
Ryland Homes in Southern California is offering a $5,000 discount* on a new Ryland Home to community leaders: Firefighters, Law enforcement, Military personnel, Educators. Restrictions apply; visit the Southern California Community Leaders promotional page for details. Click Here
For a limited time, VIP Homes in Arizona is offering a 2-1 buydown to purchasers that qualify for an FHA mortgage. Restrictions apply; visit the VIP Homes incentives page for more details. Click Here
Richmond American Homes - Nationwide – 48 Hours of Added Value – September 6th and 7th. Restrictions apply; visit the Richmond American Homes promotional page for details. Click Here
Catalina Homes – Phoenix, Arizona - 3 communities and 3 special offers – The Manors at Baseline, $20,000 off – Baseline Mountain Ranch, 3% towards closing costs – Vineyard Mountain Ranch, huge discounts and 100% financing available – Restrictions apply, visit Catalina Homes for more details. Click Here
More information about these incentives, and information about each home builder’s promotional disclaimers can be found on their website or by contacting a sales representative. Information was found on each home builder’s website and/or in the New Homes Section Home Builder Incentives section.
Tags: Home Builders, Homes for Sale, new home incentives
17 Jun 08 Bus Tours of Foreclosed Homes
As more and more homes are reportedly being foreclosed on, there has been an increasing need for banks to deplete their inventories. It appears that several real estate agents have stepped up to the plate and have begun introducing tours of foreclosed homes in their areas. Real estate agents from the east coast to the west coast have adopted some form or another of bus tours that features homes that have foreclosed.
In Massachusetts, DCU Realty charges bus riders for the privilege of viewing homes at bargain prices. The fees range between $20 for members of its affiliated Digital Federal Credit Union, and $25 dollars for nonmembers. Homes are reported as ranging between modest foreclosed homes and more upscale foreclosed homes.
In the Bay Area surrounding the Contra Costa county area of California, foreclosures have been the highest throughout the entire state. This area is also seeing one of the most frequently run tours of foreclosed homes. Foreclosure Finder Tours will bring potential buyers on a tour of foreclosures in Antioch, Byron, Pittsburg, and Brentwood. There is no charge for this service and there are reportedly four tours scheduled every weekend.
While many of these homes are in need of minor repairs, most commonly due to damaged walls and missing fixtures, they are in overall good condition. Most homes will likely end up costing the buyers a considerable amount of money to have the home returned to its original condition, so this is something that buyers should keep in mind when considering buying a foreclosure.
Tags: bank owned, California Real Estate, contra costa county, dcu realty, digital federal credit union, foreclosure, foreclosure finder tours, Homes for Sale, massachusetts real estate, reo
