More Help for California Homeowners

As a member of the California Association of Realtors,  I receive timely information....some of what I received today may be very good news to many of you!

If you were a first time home buyer this year, if you are needing assitance in keeping your home or if you would like to see about an FHA refinance from a conventional loan.....READ THIS BLOG!

Call me with any questions concering any of these matters! 619-741-4294
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®


State first-time buyers tax credit deadline Aug. 15

The Franchise Tax Board (FTB) recently announced it will accept applications for the California first-time home buyer tax credit through midnight on Sunday, Aug. 15, 2010. The FTB believes it will have received more than enough applications to cover the $100 million allocated for eligible first-time home buyers. It will continue to accept applications for the new-home portion of the state tax credit.



Due to the high volume of faxes, consumers may experience some delays and difficulties in connecting to the FTB fax number during normal business hours. It can take several minutes or possibly up to an hour to connect and transmit the fax. Buyers who receive a busy signal are advised to try again later. The fax number is open 24 hours a day, so consumers may fax applications during non-business hours when the line is not as busy.

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California homeowners receive additional foreclosure assistance

The Obama Administration today announced additional support to help homeowners struggling with unemployment through two targeted foreclosure-prevention programs--the existing Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets and the soon-to-be-launched U.S. Dept. of Housing and Urban Development (HUD) Emergency Homeowners Loan Program. Through the Hardest Hit program, California will receive an additional $476 million to assist homeowners struggling to make their mortgage payments due to unemployment.



The Emergency Homeowners Loan Program will provide assistance to homeowners by offering eligible borrowers a declining balance, deferred payment “bridge loan” (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist with payments on their mortgage principal, interest, mortgage insurance, taxes, and hazard insurance for up to 24 months.



Under the program, eligible borrowers must:



Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years;

Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home;

Demonstrate a good payment record prior to the event that produced the reduction of income.

HUD will announce additional details, including the targeted communities and other program specifics when the program is officially launched in the coming weeks.

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FHA launches refi program for underwater borrowers


The Federal Housing Administration (FHA) last week provided details on its “FHA Short Refinance” program that will enable lenders to provide additional refinancing options to underwater homeowners. Beginning Sept. 7, the FHA is offering eligible underwater non-FHA borrowers the opportunity to qualify for a new FHA-insured mortgage.



Participation in FHA's refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score greater than or equal to 500. The property must be the homeowner's primary residence and the borrower's existing first lien holder must agree to write off at least 10 percent of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115 percent.



Additionally, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.