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/

New Down Payment Assistance money should be available at the end of this month.  It seems that there are two components of the new issue.  One will be the normal issue which gives first time home buyers the down payment needed with an FHA Loan.  The other will be for first time home buyers too, but will be an advance of the Tax Credit.

Much like the Cash for Clunkers program this money will go fast.  Once the money is gone this program will no longer be available until the next issue which will probably be next year.  First time home buyers that qualify may receive both the Down Payment Assistance and the $8,000.00 Tax Credit. 

If you are looking for the deal of the century then the time to buy would be between 8/25/2009 and the time the bond money runs out which will be about 30 days later(based on the time it took the last issue to be used up).  In order to reserve this money you must be in a contract to purchase on a specific property, which means if you are looking to take advantage of the double benefit then you should contact a Realtor and begin looking at houses immediately.

According to OHFA:

Projected opening of 08/25/09 at 10:00 am.  $32.8 million bond
       issue with 6.10% interest rate. 1st Gold and OHFA Shield/4Teachers funds with
       3.5% DPA or Oklahoma Tax Advance Credit funds will be available.

  Home Buyers’

Class

That is the name that many in the industry have given to the new Home Valuation Code of Conduct (HVCC) that went into effect May 1, 2009.  The intention of HVCC  was to increase the independence of the appraisal process.  It was meant to free appraisers from pressures to increase appraisals at the behest of Mortgage Brokers and Real Estate Agents.

The code of conduct is the result of a legal settlement with the attorney general of New York. It is applied nationwide. And it should be considered a case study in the value of the legislative process: If the HVCC had been a bill introduced into Congress, it would have never passed without having undergone drastic changes. But it wasn’t a bill and it isn’t a law; it’s a legal settlement by one state’s attorney general, imposed on all 50 states.

As often is the case with government intervention we get not the intended goal but instead a lot of messy side effects.  So far this what I have observed as unintended effects:

1)  Appraisals now take much longer resulting in the need for longer rate locks which results in the consumer ultimately paying a higher rates.

2) Out of fear of compliance many banks have outsourced hiring appraisers to third party companies who charge more and pay appraisers less.  So the amount spent by the consumer has increased while the amount of money given to the appraiser is reduced while companies who only job is government compliance has increased.  Also, the third party companies looking to make the most profit often hire appraisers that are unfamiliar with the area of the property resulting in bad appraisals.

These are two of the effects noticed so far.  As the industry adjusts to HVCC I will keep you updated.

2009 Home Buyer Tax Credit

Below are some of the assistance programs  for buying with down payment assistance or making repairs to your home.  Many of the programs have income, occupancy and home buying status requirements.  I recommend that you contact the people on the website or flyers to dig deeper into the programs to see if you may qualify.  This is meant to be a starting point to assist you in discovering the many programs for home buying assistance.  If you are looking to buy a home feel free to contact me and I will get you in a great home.  Happy House Hunting!

Central Urban Development, Inc.

Building Low Income Housing in North East Oklahoma City.

In April, 2004 the company launched its initial residential project, the construction of thirty new quality homes in the John F. Kennedy (JFK) subdivision. This project is planned for a three-year time frame. The $3 million housing effort is fully supported by private, city and many support organizations whose mission is to see a total revitalization of this quadrant.

The houses are 1,200-1,500 square-feet brick veneer homes each with two-car garages, three bedrooms, two full baths, living/dining room, kitchen equipped with some appliances, laundry room, and spacious closets. The homes are designed to be energy efficient and not burden the owner with maintenance expenses. Our goal is to attract professional families who left for the suburbs back to the inner city neighborhood to increase the social value of the community as well as its property values.

www.cudi.org

Flyer

urban-league

Council Of Neighborhoods

Building low income houses.

www.councilofneighborhoods.org

Flyer

council-of-neighborhoods-programs-and-services

Urban League of Greater Oklahoma City, Inc.

The Housing and Community Development Department provides quality & affordable homes to low to moderate income families by rehabilitating existing structures & constructing new homes.

http://www.urbanleagueok.org/housing.htm

Neighborhood Services Department Housing Programs Division

Grants and interest-free or low-interest Loans to purchase and repair homes

http://www.okc.gov/neighborhood/homes/affordable.html

Weatherization Program

Home repair and weatherization.

http://www.caaofokc.org/index.php?option=com_content&task=view&id=17&Itemid=30

Community Action Agency of Oklahoma

Down Payment Assistance and Closing Costs

http://www.caaofokc.com/index.php?option=com_content&task=view&id=23&Itemid=36

Flyers

community-action

Oklahoma Housing Finance Agency

Down Payment Assistance

http://www.ohfa.org/OHFAAdvantage/homebuyers.htm

Flyer

ohfa-advantage-loan-program

Jefferson Park Neighbors Association, Inc.

Sell remodeled and new homes that qualify for Down Payment Assistance.

http://jeffersonparkok.org/?page_id=36

Map of target areas for down payment assistance programs

City of Oklahoma City Down Payment Assistance Programs