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First Time Homebuyers Can Apply $8,000 Towards Down Payment

Progress Made on FHA Loans

Progress is being made on allowing first time homebuyers to apply that $8,000 tax credit directly to the down payment on their new home, instead of waiting until next year's tax refund to collect the windfall.

Read tax credit story here - CNN Money.com

What does an $8,000 Down Payment Get You?

Many FHA loans require a 3.5% down payment.  $8,000 is 3.5% of a $228K home - thus the down payment requirements can be met nicely on many different homes in a first time homebuyer's price range.

Time is Running Out for the First Time Homebuyer Tax Credit!

Time is already quickly running out on the first time homebuyer tax credit.  The tax credit is only valid until December 1st, 2009 - and it's very unlikely that this will be extended.

With lending taking 30-60 days to put in place once a home is selected, that means that most first time homebuyers will need to choose their new home, and have an offer accepted, by October 1st, 2009. 

As we're already nearing June 1st, that's just 4 months of searching time left...

Are Many First Time Homebuyers Taking Advantage of the Tax Credit?

The answer is a resounding YES!

According to the National Association of Realtor statistics, a whopping 53% of homes purchased in March 2009 were purchased by first time homebuyers.  This compares to 40% of all purchases in 2008, or a 32% increase in the pool of first time homebuyers.

Another side effect - selection is reducing, and prices are just starting to rise in first time homebuyer price points. 

Most multiple offer situations are in these price points, so be sure to have your agent do a good comp analysis before making your offer, or chances are good you'll miss the opportunity to purchase your first (or second, or third) choice of your new home. 

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Which Part of the Triangle is Cheapest to Live?  Property Tax Guide

Looking for 100% Financing?

What Types of Homes Qualify for USDA 100% Financing?

There aren't many 100% financing opportunities left!

A USDA Rural Loan may help you purchase a home with no money down.

Wondering what kinds of homes might qualify for this kind of financing?

USDA financing is not just for farms! 

This beautiful custom home on 1.5 wooded acres just northwest of Pittsboro and 25 minutes from Chapel Hill qualifies for 100% financing through the USDA Rural Loan program.

Here's the financial details, using the USDA 100% Financing Program: 

Sales Price $272900

Funding Fee (mortgage insurance) 2% $5458

Total Loan Amount (Fee plus Sales Price) $278358

P&I (at 6.25%) $1714

Taxes and Insurance (est) $230

Total PITI $1944

No downpayment!

No Origination Fee - reduced appraisal and attorney fees!

Maximum Income for a family of 4 is $82000 in Chatham County (under the Durham MSA).  Not all lenders are approved with the USDA program.  Make sure to work with a lender who has expertise with USDA loans!

About This Home: 640 Rebecca Lane in Cattail Creek

Site finished Hardwood Floors in Formal Dining and Family Room

Custom Tile Floors in Foyer, Kitchen, Breakfast, Laundry, and All Baths

Oak Staircase with Wrought Iron Balusters.

Archway Openings Throughout First Floor

Trey Ceilings with great lighting and delicate trimwork

Multiple Piece Crown Moulding and Oversized Baseboard

Master Bath includes terrific Maple Cabinets (upper and lower!), Tile Floor, Soaking Tub with Tile Surround, and Custom Tile Shower with Glass Enclosure.

Walk In Master Closet with Built In Wood Shelving

Wood Shelves in All Closets

Huge Upstairs Bonus Room

Expanded Island Kitchen with Maple Cabinets and Stainless Steel Appliances

Finished and Painted Garage with Workshop Area

Circular Driveway

Cattail Creek offers custom homes on wooded acreage, in the $250s-360s.

Contact Us or call 919-278-8070 for more information about homes available now in Cattail Creek.

Interested in seeing if you qualify for this loan program?  Want to know what other areas and credit scores qualify?

To find out more about the USDA loan program, contact Steve or Eleanor Thorne at First Financial, 919.649.5058, or visit http://stevethorneonline.com/.

Read Eleanor's information about the USDA program.

I hadn't heard of this loan program before a great local lender pointed it out...

The USDA has a 100% financing program called Rural Housing Loans.   My first thought - this must be for farms or farmland.  It's not!  These loans can be used to purchase a wide variety of homes.

There are two big catches: location and income level.

Surprisingly, most of the Triangle area DOES qualify, as long as you're not in the Cities of Cary, Raleigh, Durham, or Chapel Hill - the population there is too large, and this program was created to help potential homeowners in rural areas.  But that leaves a lot of areas open.

As you can see, all of Chatham County is qualified, as well as Harnett and Johnston counties.  Parts of Fuquay-Varina, Holly Springs, the outskirts of Apex, parts of Knightdale, Wendell, Clayton, and Zebulon are all qualified.  To check if the address of the home you're considering qualifies, click here. 

The next catch is income level.  If you make over a certain income, you can't apply for this program.  Income limits depend on how many people in your family are over the age of 18. 

There are two different types of loans in this program - Section 502 Guaranteed Rural Housing Loan Program and Section 502 Direct Rural Housing Loan.  You'll want to ask an expert for the details of the differences in these two loans.

For example, a family of 5 living in Chatham County (2 adults and 3 children) can have a maximum income of $88,550.00 for the Guaranteed Rural Housing Loan Program, but a maximum of only $61,600.00 for the Direct Rural Housing Loan Program.  

However, before you knock yourself out of the running, check with a loan professional like Steve and Eleanor Thorne Meridian Residential.  These income levels represent ADJUSTED INCOME, after deductions for various things like child care and child credits. 

For instance, that family of 5 could have a gross income of $101K per year, and $12,000 yearly in child care expenses.  This and other credits could place adjusted income just below the maximum $88,550, meaning they could be qualified for the guaranteed program. 

The maximum allowed adjusted income varies by family size and location, so to check and see if you qualify, click here

This seems like a program worth checking into.  I'm not a mortgage professional, so make sure to ask someone who is for all the details, and to see if you qualify.  For more information on USDA loans contact Steve and Eleanor Thorne Meridian Residential.  919-649-5058

Raleigh and the Triangle Area

Whether you're looking at relocating to Raleigh to start your career, to find a friendly place to raise a family, or retiring in a terrific climate, Raleigh and the Research Park Triangle has something to offer you. Great schools, lots of lakes and golf courses, top-rated cultural centers, universities, and hospitals - and all only two hours to the ocean and three hours to the mountains - it's no wonder that Raleigh is a "Best Place to Live"!

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Which Part of the Triangle is Cheapest to Live?  Property Tax Guide

Copyright 2008 by Stanton Homes.   Please refer to a qualified mortgage professional for any questions about home loan programs.  This article is presented for informational purposes only.