Clayton County Housing Authority Now has Down Payment Funds for Homebuyers!

This HUGE home is located in Clayton County!  It is only $100 down and this home qualifies for the Clayton County Home Buyer Assistance Program for an additional $5,000 towards the purchase!!

Clayton County Homebuyer Assistance Program (CHAP)

Clayton County provides first-time, low and moderate-income homebuyers with downpayment assistance through its HOME Investment Program. Applying for these funds has been subcontracted to the Housing Authority of Jonesboro which will provide eligible homebuyers with a Deferred Payment Loan for up to $5,000. If the homebuyer loses or sells the house within the first 60 months after closing this money will have to be repaid to the County. If the homeowner retains the property for 5 full years, the downpayment assistance becomes a grant and does not have to be repaid.

Naturally, the home purchased, must be in Clayton County and the buyer will be required to obtain a fixed-rate mortgage from a reputable lender.


Income limits are 80% of HUD Area Median Income Limits. Borrower contribution is $500. Purchase price limit is $180,000. They can be reached at 770-478-7282

Home buyer education counseling is also a requirement and can be obtained through a HUD approved counseling agency.

Please contact me if you would like further assistance using this program!!

Atlanta Development Authority Down Payment Assistance Program

Downtown Living can be yours!

The Atlanta Development Authority has several Homebuyer Down-Payment Assistance Programs. The Beltline Affordable Housing Trust Fund, Atlanta Affordable Homeownership Program, Opportunity Down Payment Assistance Program, Vine City/ English Ave Trust Fund. For all of these programs the borrowers must qualify for a first mortgage in addition to down payment assistance, which is a second mortgage. The buyer qualifications vary from program to program. This is the information for the Atlanta Affordable Homeownership Program.


The ADA program provides the buyer with a down payment of up to $15,000 or 10% of the sales amount, which can be used as a down payment, and or pay up to 50% of the closing cost. There are no monthly payments required on the second mortgage. The maximum purchase price is $252.890. The qualifications for the buyer is as follows:
Buyer is a first time home buyer and has not owned a home within the past three years.
Buyer must purchase within the incorporated city limits of Atlanta. Within the CDIA area.

Homebuyer counseling is required throught a HUD certified agency.  You can email me for a list of qulifying counseling programs.  These programs are free.
The homebuyer must contribute $1,500 of their owne money toward the transaction. this can easily be accounted for by the earnest money, appraisal, home inspection.

The buyer can qualify for a Conventional, FHA, VA 30 year fixed rate loan.

The following income limits apply depending on the size of the household:
1 person $40,150
2 person $45,900
3 person $51,600
4 person $57,350
5 person $61,950
Properties that are eligible are: single family detached homes, townhomes and condominiums located within the city limits of Atlanta .

The loan is deferred for five years, repayment is due in full upon sale, transfer, refinancing or when the home is no longer owner-occupied.  It remains as a "soft second" loan on the title of the property.

Please contact me for additional information and a list of participating lenders! 
Thanks for reading!

Foreclosure Prevention- Making Home Affordable & Hope Now

This home is listed by HUD for only $112,0000!  A great opportunity to move into a newer home at an affordable price!

If you know someone who is experiencing a difficult time, there is help.  President Obama has an initiative to assist homeowners in these difficult times.  I have outlined some information in this article and provided a website & contact numbers so that you may follow up.

Beware of Foreclosure Rescue Scams - Help Is Free!


•Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.

•Assistance from a HUD-approved housing counselor is FREE.

•Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.

•Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.

•Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

•Never make a mortgage payment to anyone other than your mortgage company without their approval.

http://www.makinghomeaffordable.gov/

The making home affordable program can assist home owners facing foreclosure in several ways. They can reduce your monthly payments by half for up to six(6) months and place your arreage on the back of your loan. they can also help assist you with a loan modifiation.  It is best to be prepared prior to speaking with a counselor about your situation.

Home Owner Checklist:  It is a good idea to have your documents ready prior to speaking with a Counselor 

•Information about your first mortgage, such as your monthly mortgage statement.

•Information about any second mortgage or home equity line of credit on the house.

•Account balances and minimum monthly payments due on all of your credit cards.

•Account balances and monthly payments on all your other debts such as student loans and car loans.

•Your most recent income tax return.

•Information about your savings and other assets

•Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.

•It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.
 
Call Hope Now @ 1-888-995-4673
 
.Once you have tried this avenue, if it does not work out then the next step to avoid a foreclosure would be to consider a short sale.   This is when you ask the bank for approval to sell your home for less than your original loan amount to avoid a foreclosure.  This is becoming a option that benefits both parties in the long run.  You will avoid having a foreclosure on your credit report and te bank does not have to put the home through its costly and time consuming REO process.  I will be providing more information on the Short Sale process in the future!
 
As always, thanks for reading!!

Get Up To $1,800 Back On Your Georgia State Income Tax When You Purchase a Home!

This Lawrenceville Hud home is listed at only $110,000!  Yes, it is part of the $100 down payment and 3% closing cost contribution program with FHA financing!

Get up to $1,800 back on your Georgia State Income Taxes when you buy a home before November 2009!

Governor Perdue signed the Georgia Homebuyer Tax Credit this week, which is GREAT news for Georgia home buyers. The bill will offer up to $1,800 in tax credits to Georgia homebuyers via a credit on their state income tax.


House Bill 261 gives a credit of either $1,800 or 1.2 percent of the purchase price, whichever is less. (You can only claim one-third of the credit each year, beginning with your 2009 Georgia tax return.) The purpose of the bill is to create a stimulus for home sales, and give a boost to the Georgia real estate market.

Here is how the Georgia Homebuyer Tax Credit applies to home purchases:

Applies to single-family homes and condos if they are your primary residence

The property must have been for sale prior to May 11, 2009 and must still be for sale

The property must be in default on or before March 1, 2009

The property has already been foreclosed on and is held by the bank or mortgage company

Homes purchased between June 1 and November 30, 2009 that meet the criteria will be eligible for the tax credit.


Here is just another reason why you should consider taking advantage of the great opportunites to get into your home today!

Get $8,000 Back On Your Federal Income Taxes! Hurry before December 1, 2009!

This loft is listed at only $102,000 for downtown Atlanta!

1.Who is eligible to claim the tax credit?


First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. A limited exception exists for certain contract for deed purchases and installment sale purchases. See the IRS website for more detail.

2.What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

3.How is the amount of the tax credit determined?

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.


4.Are there any income limits for claiming the tax credit?

Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
5.How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?

The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.


6.How do I claim the tax credit? Do I need to complete a form or application?

Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.

7.What types of homes will qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
8.I read that the tax credit is "refundable." What does that mean?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

9.I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?

Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

10. I am not a U.S. citizen. Can I claim the tax credit?

Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

11.Is a tax credit the same as a tax deduction?

No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

12.I bought a home in 2008. Do I qualify for this credit?

No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.

13.Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.

• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the credit.

$100 Down Payment Program offered by HUD

This lovely Lawrenceville home was offered at only $115,000 by HUD

In this article I will be explaining the $100 down payment program offered by HUD for Owner Occupants to purchase a home.

A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.
HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.
If you are an evacuee displaced by Hurricane Katrina, Rita or Wilma, HUD could sell a HUD home at a discount to you. (I will be writing another article on that soon!)

All properties available for purchase will be listed on http://www.bidselect.com/  This is a contrator hired by HUD to manage their lsitings.  You cannot buy the properties directly from HUD, Bidselect, or the contractor that is used in Georgia to process the paper work (PEMCO).  If you ae interested in purchasing a HUD home you must contact a HUD approved Real Estate Broker.  The Brokers working with HUD properties must go through an annual renewal process and they are (should be) familiar with the HUD bidding process, which is much different than that of general sales and working with other agents.  Also HUD uses its own key for agents to enter their properties and the HUD owned homes are not on any lockbox for you to enter on your own, or for any agents that are not HUD approved to use via the agent SUPRA lockbox.

The $100 Down payment Program
I love this program.  After congress did away with most of the down payment assistance programs last year, it left a gaping hole in the market.  Many people wanted to purchase a home, however coming up with the 3.5% down payment requirement dashed a lot of the dreams of the first time home buyers.  Many buyers can afford to maintain the monthly payments, however saving a lump sum of money proved difficult for many.  Thus the HUD $100 down program became much more attractive.

Basically if you are going to live in the home, HUD will allow you to close with a $100 down payment.  Once your successful bid is acknowledged by HUD (accepted), then your Broker will fill in $100 where the contract asks for the down payment amount.  HUD will still expect you to pay them the earnest money amont which is $500 for homes less than $49,000 and $1000 earnest money for homes more than $50,000.   Your loan amount will basically be almost 100%.  This is allowable by HUD and most banks will allow this type of financing when you are purchasing a HUD home.  But I suggest making sure your lender is aware that you are looking at HUD homes and intend on buying one.  The last thing that you want is an ugly surprise at the closing table, because believe it or not, although allowable by HUD, some lenders will not fund on a 100% financed home.

Another nice buyer bonus is that HUD will also give you a $1,000 buyer bonus at the closing table if you are going to be an owner occupant and if this it the first time the home has been listed by HUD and if your bid is won within the first 30days of the listing.  You can use this toward additional closing costs or it could mean you get some cash back at the closing table.  You will have to get with your lender to see how these funds can & will be applied.

Many times when buyers think of HUD homes, they get an image of an old beat up run down fixer upper.  Well let me tell you that is most certainly not always the case.  Now HUD does have many homes in it's website that are not FHA insurable (meaning the repairs will cost more than $5,000 to make it pass an FHA inspection for FHA financing), but please know that due to the economy and the flood of foreclosed homes coming on the market, HUD has some fabulous properties!  Newer and move in ready!  There are really some jewels!  They list properties typically on Wednesdays & Fridays.. and the bidding time varies.  It can be anywhere from a few days to a few weeks.

I suggest placing your bid on a home as soon as you know that you want it (of course after you have had the opportunity to walk through and asses the property).  Hud will take the highest & best bid, and in the case of a tie.. whoever bid first will typically win.  They are about business and impartial when it comes to these things.  So do not take it personal if you do not win the bid on the home you want.. just keep looking and bid on something else, and hey you never know, sometimes if the original buyer does not complete the purchase, HUD will place the home back on the market and notify your HUD broker that it is available again!

I encourage you to get an inspection after your offer is accepted. All HUD Homes are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any problems.  As a courtesy HUD will provide you their property inspection report done by their contractor.  It is a basic report to notify HUD about the general condition of the property as well as it helps HUD catagorize and price the property including figuring possible escrow repair costs.  HUD will not turn on the utilities for you.  You will have to contact all utility companies and get the utilities turned on in your own name for the inspections.  Yes, unfortunately that means you will have to pay any required deposits for this as well.  Please note, if you are purchasing a home during the winter months you will have to pay a de-winterization fee.  Typically $150 directly to HUD.  In the de-winterization process they pay a contractor to safely and securely drain the water from the home and shut off all utilites so that the home does not suffer any damage from being vacant.

If you elect not to get an inspection done on your home I strongly suggest getting a home warranty at closing.  These cost any where from $300 to $500 depending upon the coverage and the trip visit amount in case you have a problem.  But at least this will cover you in case of any major issues after you close.

Last but not least.. financing!  You must get an FHA loan to qualify for the program mentioned above.  You do not need FHA financing to purchase a HUD home, only if you want to take advantage of the $100 program!  I will be giving you more detailed information about FHA loans in a future article!
Thanks for reading!

HUD Home of The Day Only $100 Down Payment

Listing Bid at $98,000

This beautiful home is currently available in Henry County.  It was built in 2007 and has 5 bedrooms and 3 full baths.   What a great opportunity to move into a nice home. 

Homes listed by HUD have a Bidding period.  Basically meaning that they list the home on a certain date and then give prospective buyers any where from a few days to a few weeks to place a bid on the home.  You (via your HUD approved Real Estate agent) can bid any amount that you like however HUD is not obligated to accept the BID.  If you BID on a home that is a NEW listing for HUD and your BID is "acknowledged" meaning accepted by HUD you can receive a $1,000 bonus at closing if you plan on being an owner occupant. 

Once the Bidding has ended HUD will choose the highest and best bid.  Clients have asked me "what if my bid amount is the same as another buyer?"  HUD will typically resolve this issue by awarding the bid to whomever placed their bid first.  So even though the bidding period may end at a certain time & date.. you feel "what's the rush".. my suggestion would be to get your bid in as soon as you want the property, because you could lose it just because someone else placed their bid before yours!