Ask a Realtor

Well Intentioned new HUD rules went in to effect January 1, 2010. The intention was to provide a new standardized GFE that would empower the buyer and make it easier for the buyer to shop for a loan.

To some extent I think that they have accomplished their goal with one huge problem.

The problem now is that with the new rules the lenders have become much less free with the GFE.

We are now getting estimates with all kinds of names except for GFE.

I will write more on this as the industry sorts it out. Until then you will find below some info.

Sample of the new GFE

http://www.hud.gov/content/releases/goodfaithestimate.pdf

Explanation of the new GFE

http://www.hud.gov/offices/hsg/ramh/res/resparulefaqs.pdf

To Qualify you:

Must be in a binding contract to purchase a house prior to April 30, 2010 and settle on the purchase prior to June 30, 2010.

The Maximum Amount of the Credit is:

$8,000.00 for first time home buyers.

$6,500.00 for the “long time resident” credit. (To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence)

You may claim an eligible 2010 credit on your 2009 or 2010 taxes.

To qualify for the full tax credit your income(MAGI) must be less than:

$125,000.00 if you are filing single.

$225,000.00 if you are filing jointly.

You cannot get the credit if:

You are a dependent.

You are buying a home  with a purchase price of more than $800,000.00.

You are under the age of 18 on the date of the purchase.

You are buying a home that is not going to be your primary residence.

Some Useful Resources:

http://www.irs.gov/newsroom/article/0,,id=215791,00.html

http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

http://www.nahb.org/generic.aspx?genericContentID=128298

http://www.federalhousingtaxcredit.com/

I just got off the phone with one of my favorite Lenders and he just received an e-mail this morning that his bank is lowering the boom (or raising the bar) on construction loans. It looks like people trying to get this type of loan will have to do a lot more jumping through hoops now. This Lender will now only work with you if you are using a well known Builder and will now use actual value instead of appraised value. You will probably have to have a lot more of your own money in the pile now as well. The bottom line is you will probably be better off buying an existing property unless you have money to burn.

Buying or selling a home can be one of the biggest decisions that most people make.  However most muddle through the process with preconceived notions that are wrong, bad information from friends and relatives or just a lack of knowledge.  Often times the case is that the buyers or sellers must rely upon people for advice that have an inherent conflict of interest or a lack of experience to answer correctly.  Other times I see people rely upon TV or the newspaper for information that is just simply incorrect.  It is to these situations that I hope to bridge the gap of knowledge.  I daily see people lose thousands of dollars as a result of ill informed decisions.  So to wrap up I am looking for you, the public, to ask me questions and I will answer them honestly free from any conflict of interest.  I truly hope you can benefit from my experience as an Oklahoma Realtor and my almost compulsive need to analyze things.  It is my goal to ultimately contribute to creating a more informed public.  Through knowledge much of the pain and anxiety of a real estate transaction is removed.  So let’s make that next real estate transaction an enjoyable one.  Fire away.  Send me your questions and I will respond with some straight answers.  Until then…………………………………