Georgia Dream Disaster Expansion – Down Payment Assistance
The Georgia Dream down payment assistance plan has been extended to higher loan amounts and higher income amounts in the Fall and Winter of 2009. Call me on my cell phone for specific examples of the augmentation to this program – that’s 678-439-8683.
Here is some information directly from Georgia DCA about the Georgia Dream Down Payment Assistance Plan.
Higher Income Limits!
Higher Purchase Price Limits!
No First Time Home-buyer Requirement!
In the 21 counties designated as Federal Disaster Areas.
The 21 Georgia counties are:
Carroll, Catoosa, Chattooga, Cherokee,
Cobb,Crawford, Dawson, DeKalb, Dooly, Douglas, Fulton, Gwinnett, Heard, Houston, Newton, Paulding, Peach, Rockdale, Stephens, Taylor and Walker.
For a limited time ANY HOME BUYER in these counties may qualify for Georgia Dream products with the following special guidelines:
You DO NOT have to be a First Time Home Buyer (For a Georiga Dream? First Mortgage Loan combined with NSP or “PLUS” down payment assistance)
Higher purchase price limits
Catoosa, Chattooga, Crawford, Dooly, Houston, Peach, Stephens, Taylor and Walker – $250,000
Carroll, Cherokee, Cobb, Dawson, Dekalb, Douglas, Fulton, Gwinnett, Heard, Newton, Paulding and Rockdale – $300,000
Higher Household Income limits
Catoosa, Chattooga, Crawford, Dooly, Houston, Peach, Stephens, Taylor and Walker
1 or 2 persons $73,000
3 or more persons $85,000
Carroll, Cherokee, Cobb, Dawson, Dekalb, Douglas, Fulton, Gwinnett, Heard, Newton, Paulding and Rockdale
1 or 2 persons $86,000
3 or more persons $100,000
Hear Me Clearly: First Time Homebuyer's Must Qualify and Offer NOW!
By NOW! I mean if you have not called a loan officer to get qualified, found a property and made an offer you’re dangerously close to missing the First Time Home Buyer’s Tax Credit. I know what you hear in your mind, “it’s good through the end of November.” You would, of course, be correct in so saying. Your correctness would be equivalent to leaving New York City for a trip to Tokyo to see your best friend’s wedding which happens at 5PM your time and you are getting on a jet at Noon your time the day of the event. In other words it’s “possible” you can make it on time but not very likely with the available equipment.
What Is The MDIA – Mortgage Disclosure Improvement Act?
The MDIA Rule went into effect, in part, on July 31, 2009. Many people still are not aware of this rule and how it may affect every closing in the nation. This rule, unlike some others, applies to banks, lenders and brokers equally.? In short it says the Truth-In-Lending document with an accurate Annual Percentage Rate must be delivered to the borrower a minimum of seven (7) business days before closing.
This rule affects all loans whether it is an FHA loan, a Fannie Mae loan, a Freddie Mac loan, or a Ginnie Mae loan. The MDIA affects loans originated by brokers, lenders and bank employees. The MDIA applies to new homes, previously existing home and home refinance loans.
Here is the catch: If the APR changes more than .125% the Truth-In-Lending (the other 1/2 of the Good Faith Estimate) has to be resent and another waiting period of three (3) business days must expire. Some lender interpret that to include a decrease in the APR of more than .125% and some only consider an increase of more than .125% since the government’s action does not specify.
There are many, many reasons the initial disclosure could be wrong including loan amount which may be affected by the appraisal, payoff which could be higher (and usually is on a refi) than indicated on the current mortgage coupon, or a list of other factors which may even affect a home purchase – not just a refinance.
FHA Home Loans and Town Homes
All homes are not alike but most home buyers need a home loan to purchase the home unless they are successful enough to have the cash!
Many towns and cities today have true “town homes” where the building is mixed use. This particular home in downtown Smyrna, Georgia even has a little tomato garden on the upper deck and a shop on the ground floor. FHA home loans (HUD mortgages) has the solution for these properties up to the county limit. So what’s available outside of the county limit?
The answer really depends on the zoning for the property and what is available by lender in the local area. Currently FHA will approve loans up to 96.5% of the sales price with the loan amount not exceeding the county limit for the county where the property is located. To know for sure if an FHA home loan can be used on your property be sure to contact your FHA home loan expert before making an offer on the property.
Since each property may have a different type of business located on the first floor there “can” be issues affecting the type of loan you get and whether or not an FHA home loan is available on that particular property. Again, always contact your local FHA home loan expert to get the best answers for your individual needs.
FHA Lenders Charging Higher Interest for Lower Scores
Although we do not sell to Chase, CITI, Countrywide (Bank of America) or Wells Fargo I have been told by others at my level in the industry who do these mega-lenders will now or soon be charging higher interest on FHA loans to people with lower credit scores. This is called Loan Level Pricing Adjustment and is meant to combat high risk lending. One unintended consequence is that the raising of the rate could cause the debt-to-income ratio to go out of range. That is an unlikely scenario considering the size of the LLPA but it could happen.
Since lenders are somewhat like lemmings you can rest assured all, or at least the vastly greater majority, of them will soon be following suit and adding their own LLPAs forthwith. What this means for you as a buyer, home owner looking to refinance, or real estate agent dependent on FHA loan solutions for marketing your services is you’ll want to move perhaps a little more quickly than anticipated.
Here is a verbatim quote from an industry insider regarding LLPAs at his company:
620 – 659 (.250) – means borrowers with scores this low (either borrower) pay a higher interest rate
660 – 719 (000) – means borrowers with scores in this range pay the marked interest rate
720 + ? ? .250 - means borrowers with scores in this range pay a lower interest rate
What it ultimately means for the borrower is take care of your credit. Pay your bills on time, do not ever extend your credit and babysit your scores. We at Novation do not currently have any LLPA on FHA home loans.
I am available for questions at any time. Ken Cook 678-946-0101
Congratulations Warner Robins – Best Place To Raise Children 2009
The Businessweek list of the 50 best places in America to raise children is out and our own Warner Robins, Georgia is on the list! Read the listing and see the photo here.
Warner Robins is just a little over an hour south of Atlanta and minutes from the former state capitol of Macon. Our FHA home loans are perfectly suited for the majority of home mortgages for new homes or to refinance a home in Warner Robins.
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Daily Rates for Qualified Buyers
Today |
Last Week |
|
| 30 Year Fixed | 3.50% | 3.61% |
| 15 Year Fixed | 2.88% | 2.92% |
| 5/1 ARM | 2.31% | 2.51% |
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