UPDATED - November 7th, 2009 **It is LAW - signed by Obama on Friday**!

The Florida First-Time Home buyer Tax Credit may soon be known as the Home Buyer Tax Credit… being opened to non-first time buyers for the first time.

As you have likely already read on My FHA Mortgage Blog - the Florida First-Time Home Buyer tax credit is on the verge of extension.   I noted there that there are a few exciting changes that benefit you - the home buyer!  Here is an explanation as to their significance.  Those noteworthy changes between the current tax credit and the proposed tax credit are:

• Change in the deadline. From November 30, 2009 to April 30, 2010.  MORE IMPORTANTLY, however is what has to “happen” by the deadline date.  As it is now, you ahve to close by Nov. 30th.  The extension has wording that states you need to be under contract by April 30th.  HUGE difference - especially if you are looking at an Orlando Short Sale, Orlando Foreclosure, or Orlando Bank owned property.  The difference can not be overstated! It does not remain open-ended however… you have 60 days from 4-30-10 to close on that property.
• There is also a possibility that the tax credit would be opened up to non-first-time buyers. It looks like non-first time home buyers could be eligible to receive a $6500 credit for homeowners that have lived in their home for 5 years or more.  This is big since many of the Orlando homes for sale are not suited for the first time home buyer market.  This allows those that own to sell and move up - furthering the impact the housing market can have on the sputtering economy.
• Income limits are also possibly effected. Right now to receive the full benefit, the income limits are $75,000 and $150,000 for single/married income earners [respectively]. That may jump to $125,000/ $225,000. This furthers the number of folks that fit the parameters and can be the key to making this effort work!

Understand that as this gets enacted, it will get crazy busy for folks in the industry, so it is of vital importance to let those you care about know about this blog post so that they can get the groundwork done before it gets nuts!

It is important to note that - while it is not yet through he entire process, the momentum seems to be behind the extension of the Florida First-Time Home Buyer Tax Credit until April 30, 2010 if it makes it to the President and is signed.  Here is what needs to happen. [In case you missed it from my syndicated blog post on MyFHABlog.com.]

Contact me ASAP to review the best scenario for you and the people you care about.

Chris Brown
Orlando Mortgage Pro
Direct: 407 - 377 - 0500 x 210
Chris@OrlandoMortgagePro.com

_____________________________________________________

Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the many leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, the newest contributor to Lenderama and has been recently featured on Fox35 News.

Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210

Click Here to Apply Online

Not sure how to connect? Find out at FindChrisBrown.com

As covered on Fox 35 News:

Email Chris your questions now.

The government’s $8000 First-Time Home Buyer Tax Credit available for Lake Mary Real Estate expires Nov. 30 — a short sixty-ish days from now.

When you consider that in the “New World” of Lake Mary Real Estate financing, closings can take up to 45-60 days, first-time buyers have 2 weeks at most to find a home.

Buyers that do not have a fully-executed contract by Oct. 15 have little chance of meeting the November 30 deadline and, therefore, little chance of claiming the tax credit.  At best - they are rolling the dice.

Email Chris your questions now.

This is especially true for Lake Mary real estate purchases involving short sales… in fact if you are not under contract by around Oct. 7th - you can forget closing on a short-sale in time!  My Opinion.

Congress passed the First-Time Home buyer Tax Credit program as part of the 2009 economic stimulus plan. IRS Form 5405 outlines the program criteria and includes the following stipulations:

• A Home buyer can’t have owned a “primary home” in the past three years
• The home can’t be bought from a family member such as a parent, spouse, or child
• The adjusted gross income [AGI] for the household must be below $75,000 [single tax filers] and $150,000 [joint tax filers]

The credit is capped at $8,000 or 10% of the purchase price, whichever is less.  And don’t forget – the First-Time Home Buyer Tax Credit is a true tax credit.  It’s not a deduction.

Email Chris your questions now.

Follow me here - this means that a tax filer who claims the full $8,000 and whose typical tax liability is $5,000 would receive $3,000 cash from the IRS and have their $5000 obligation wiped out.  If you have already paid your 2008 taxes and are filing an amended tax return to receive the credit, you would get the whole $8000 from the US Treasury.

If you can’t close by November 30, 2009, though, you can’t claim the credit.

The clock is ticking. If you’re planning to use the First-Time Home Buyer Tax Credit, the time to act is now.

Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.

Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210

Mortgage markets were flat last week overall, although mortgage rates were somewhat volatile from day-to-day.

For rate shoppers, the best pricing was available Monday morning and Friday afternoon — everything in between was slightly elevated.

It’s the second consecutive week in which rates finished unchanged.

There was a string of good news last week about the economy, led by housing.  New Home Sales, Existing Home Sales, and the Case-Shiller Index all surprised to the high-side and consumer confidence numbers came in higher-than-expected, too.

In prior weeks, strong data like this would have caused mortgage rates to rise.  Last week, however, it didn’t.  Mostly because foreign demand for mortgage-backed bonds has remained strong.

This week, there’s only one major data release and its timing may prove to be problematic.

Friday, the Bureau of Labor Statistics releases the August Non-Farm Payrolls report.  With housing’s rebound seemingly underway, the jobs report takes on added significance.  Joblessness can undermine consumer confidence and spending and cause harm to the recovering U.S. economy.

This is one reason why rate shoppers should be cautious toward the end of the week — the jobs report will move markets.  The other reason to be cautious is because Friday is the day before Labor Day and Wall Street will be short-staffed.

Fewer traders means more volatility — if rates start to pop, they’ll really pop.

Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.

Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210

Orlando Mortgage rates are suffering through another volatile week, causing problems for mortgage rate shoppers and Orlando home buyers.

After falling Monday and Tuesday, mortgage rates surged Wednesday and Thursday.  The momentum higher appears to be carrying into the weekend, too.

There are several data-related reasons for the mortgage market’s spastic activity this week:

1. Unemployment claims fell
2. Leading economic Indicators went up
3. Inflation readings remained stable

But while the up, down, and flat data points above fueled Orlando mortgage rate volatility, it’s not the data that’s making markets move the most.  It’s the psychological impact of the data.

See, data tells us about the past.  It measures and reports on what’s already happened.  Unfortunately for rate shoppers, mortgage markets are not made on data from the past – they’re made on the expectations of what will happen next - on the now and on the ‘yet to come’.

Therefore, Orlando Mortgage rates and Orlando FHA Mortgage Loans reflect Wall Street’s opinion of the future.

In reading the papers and watching the news, you’ll notice ongoing debate about the U.S. economy.  It’s unclear whether the recession is worsening or improving. 

On one hand, data is weak and sub-optimal.  On the other hand, the data is not nearly as weak as it was 6 months ago and, in some cases, it’s strong. To some, this is a signal that a recovery is already underway.

Or, it may just be a blip.

We can’t be certain in which direction the economy is headed and the same can be said for Orlando mortgage rates.  Because sentiment is changing so often, though, it forces us to be on our toes.  Huh, who saw American’s being fickle!? 

The last few months have been marked by large mortgage rate swings across small windows of time.  A rate that’s offered in the morning, for example, is rarely available in the afternoon.  Therefore, do your Orlando rate shopping in a compressed period of time and be ready to lock your rate at a moment’s notice.

When markets move, they tend to move quickly.  If you are a Orlando first time home buyer looking for the tax credit?  Don’t wait too long!

I am not sayin… I’m just sayin… =0)

FHA plan will stimulate new Orlando home sales and help stabilize Orlando housing market

Today, while speaking to the National Association of Home Builders, U.S. Housing and Urban Development [HUD], Secretary Shaun Donovan announced that the Federal Housing Administration (FHA) will indeed allow homebuyers to apply the $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said today’s action will help stabilize the nation’s housing market by stimulating home sales… we will see.

The announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to ‘monetize’ up to the full amount of the tax credit so that borrowers can immediately apply those funds to their down payment. Home buyers using an Orlando FHA-approved lender can apply the tax credit to their down payment in excess of 3.5 percent of appraised value - or towards their closing costs, which can help achieve a low, below market, interest rate. To read the FHA’s new mortgagee letter, visit HUD’s website.

“We believe this is a real win for everyone,” said Donovan. “Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation’s housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away.”

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 % downpayment on the purchase of their home. Current law does not permit approved lenders to ‘monetize’ the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today’s announcement, lenders can monetize the tax credit for use as additional down payment, for other closing costs, or buy down their low mortgage interest rate. In addition to the borrower’s own cash investment - which appears to still be the standard 3.5%, FHA allows Orlando First-time Home Buyer parents, employers and other governmental entities to contribute towards the downpayment over and above that 3.5%.

This is good news and can help the struggling housing sector. It should be interesting to see how they intend to implement this covertly complex initiative at the street level.

Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve. Chris can be found at Orlando FHA Loans, Chris[at]OrlandoMortgagePro[dot]com, or by calling 407.377.0500 x 210

The country’s, including Orlando, mortgage rates rose by 0.625 percent yesterday [Wednesday] - Ouch! Yes, you read it right. Zero-point-six-two-five percent.

The surprise surge in pricing started shortly after 1:00 P.M. ET, then continued all the way until the market’s closing. It was the sharpest one-day surge in mortgage rates in recent history. Perhaps ever.

For Orlando mortgage rate shoppers swept up in the surge, monthly payments are now higher by $29 per $100,000 borrowed.

That’s a significant shift.

For as rare as Wednesday’s events were, though, middle-of-the-day, 0.625 percent rate changes don’t just happen. Yesterday, the action was the result of a confluence of factors, including:

• Rising oil prices and gas prices
• Optimistic predictions about the end of the recession
• Concerns over the U.S. total debt load
• Fears of inflation

In addition, momentum-trading played a role.

As markets worsened, selling begat more selling, amplifying Wall Street’s total losses. As mortgage bond prices fell, mortgage rates went up. By a lot.

Mortgage markets are notoriously fickle and yesterday’s events proved it. Days like Wednesday are precisely why insiders recommend shopping for mortgage rates in a compressed timeframe. The faster you finish, the lower the risk of losing low interest rates to new market conditions.

If nothing else, this illustrates why you need a trusted advisor watching for your best interest - we were able to lock in several people before the shift, others - that second guessed, got hammered.

________

Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.

Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210

Being an FHA licensed Longwood mortgage company, we at Trinity Mortgage feel honored to offer our First-Time Home Buyers with Longwood Government-backed FHA programs that can truly provide for the American Dream of home ownership.

With low down payment requirements, competitive mortgage interest rates, flexible credit history guidelines, and common sense underwriting practices, FHA mortgage loans are designed to meet the primary needs of many First-Time Home Buyers.

Buying your first home can be, simply put, overwhelming at times… that is why is is imperative to make sure that you are not solely focused on just rates, but in getting sound mortgage advice as well. Seeking only rate has been one of the main contributers to the mortgage mess we now find ourselves in.

There are literally hundreds of questions that our clients uncover as they start their initial mortgage and Longwood real estate related searches.We invest a significant amount of time and effort in updating our blogs and home buyer packets with the most relevant and valuable information necessary so you feel confident that you are making the most informed decisions. Our goal - earn your trust through communication and service and the lowest cost of borrowing money over time.Please feel free to contact us directly at any time via phone, email, or online FHA mortgage application form if you desire no-nonsense mortgage insight to gain a better understanding of some of these complex details.

Floridas 1 FHA Mortgage Lender 407-377-0500 x210

Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.

Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210

Phew - I am sure glad the last blog-post subject line had a question mark in it!

Guess what disappeared… the mortgagee letter that was on HUDs website about this ability to “use the $8000 First Time Home Buyer Tax Credit” - yeah… its gone!

As of today you can not use the tax credit for a down payment.  True, there has been a lot of discussion on this, but as of now it is not currently an option.    Those statements were made by the Secretary of HUD yesterday and a HUD/FHA letter was published on the website Monday night.

Then…the new Director of HUD pulled that Mortgagee letter this morning and is no longer even available on the HUD website.  [Notice ML 09-15 has been pulled]. This theoretical program is not something that is deliverable as of yet. Sometimes I wonder if they are intentionally trying to sabotage the marketplace. They, once again, have gotten people worked up in a frenzy over something that might - maybe - possibly - happen… then they act as if it was not said at all!?  OMG, are you kidding me?

This is why, more than ever, it is important to have a trusted mortgage broker in your corner.  I will deliver the news to you as it comes out and if/when they change it, you will know about it first - here.  Thank you for the trust you place in me, it is not something that I take lightly.  If you have any questions don’t hesitate to call me, for now…..and if anything should come to market officially you will see it here.

Just as an FYI - before this could happen, there would need to be:

• …State agencies approved and funded for the down payment ‘float’
  
• …a Change to the HUD guidelines on the time frame that is allowable for a loan. [Currently must be amortized over 10 years with no balloon.]
• …and a change to the IRS guidelines allowing your refund to be re-assigned to a state or non-profit entity

How long do these things take?  Oh my, your guess is as good as mine.  With the tax credit due to expire on Nov. 30th, 2009, this may never even see the light of day.  Wanna know what happens - Subscribe to the blog to keep in the loop

Is Zero-down back for Lake Mary’s First Time Home Buyers?  Could be.  This is the next best news to working with Florida’s #1 FHA Mortgage Broker.  This info was released right at the close of business yesterday - getting it to you ASAP!

Hot off the press!

4:47 PM ET -  Shaun Donovan, secretary of the U.S. Department of Housing and Urban  Development, said that the Federal Housing Administration [FHA] is going to permit its  lenders to allow homeowners to use the $8,000 First Time Home Buyer Tax Credit as a down payment.  According to Donovan, the FHA’s approved lenders will be permitted to ‘monetize’  the tax credit through short-term bridge loans. This will allow eligible home  buyers to access the funds immediately at the closing  table.

For more information on this email me, or call me at 407 377 0500 x 210.  Or, you can get prequalified now with the online mortgage application.

The Super Bowl Weekend [wow, what a game - huh?] traditionally marks the start of the Lake Mary real estate Spring Buying Season. Anecdotally, Lake Mary real estate agents will tell you that buyer activity tends to tick higher at this time of the year… and I tend to agree. I have seen a definite up-tick in activity within the past week.

Meanwhile, with mortgage rates still trolling near all-time lows and Congress debating a first-time homebuyer tax credit, 2009 may bring out even more buyers than we’ve seen in the past. There are some proposed changes that make the First Time Home Buyer Tax Credit even better. Les Christie, a CNNMoney, Staff Writer states in his article Homebuyers get a Bonus in the Stimulus Bill,

“Technically, the stimulus bill is actually changing the terms of the $7,500 tax credit that was issued as a part of the Housing Recovery Act, which Congress passed last summer. That legislation required that the tax credit be repaid over 15 years, making it more of a no-interest loan. Not surprisingly, the measure had little impact on the market. The stimulus bill now under consideration would make that tax credit a true credit that doesn’t need to be repaid.”

Just having your home on the market may not be enough to attract an offer, though — the home has to have appeal. Consider that reason #233 to have a top notch Realtor in this market. That brings us to home staging — the process by which a homeowner re-organizes and re-presents the home to appeal to as many potential buyers as possible.

Home staging is part-science, part-art, and part-psychology. Homebuyers tend to judge homes within the first 8 seconds of seeing them so making a quality first impression can mean the difference between getting multiple bids, and just getting a lot of foot traffic.

The 4-minute video gives some quick-and-easy tips, including:

• Create more light in the home
• Clean up the closets and thin them out
• Remove the clutter from every room in the house

Even though home inventories are falling, supplies are still higher than in previous years. Home sellers wanting to stand out in a crowd may want to consider staging their homes to help them sell more quickly.

Staged homes sell for as much as 17% more money and as much as 40% faster than non-staged ones.

If you are looking at buying - your timing couldn’t be better. By the time you hear in the news that, “It is time to buy - uhhhh - you missed it by about 6 months.” the smart money is on buying now while all the ingredients are perfect and before the news catches on. The first Step in the process is to get Pre-Approved by a Lake Mary Mortgage Broker and asked them to introduce you to a tried-n-true Realtor that knows the area like the back of their hand.

If you are looking to sell - it is likely because you have a pressing need, otherwise I would recommend waiting. When you have a pressing need and time is important - play it smart. Before you list that house, contact me about options to selling like a

• Refinance,
• Short Refinance,
• or Loan Modification.

If we are able to determine that none of those is the best option, let me introduce you to a veteran Realtor that is the top in their market. Now is not the time to use Aunt Betty’s neighbor’s friend’s cousin that got their license in 1977.

Find out your options here and now. Send me an email and let me know your concern.