FHA SPOT CONDO APPROVALS ARE NO LONGER AVAILABLE FOR CASE #’S ASSIGNED ON OR AFTER 2/01/2010. SEE ATTACHED MORTGAGEEE LETTER

http://docs.google.com/viewer?a=v&q=cache:FceBAPzurksJ:www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-46aml.pdf+MORTGAGEE+LETTER+2009-46A&hl=en&gl=us&sig=AHIEtbQK6XKLL-B_5g8KbrabOOwIlcHYvw

[Update Nov 2009] Following Congress approval, President Obama has signed off on the bill approving an extension of the $8,000 new home buyer tax credit until April 30th 2010. Also, the new provisions in the extension are NOT retroactive. Here is a summary of the new and updated provisions and their impact on you if you have or will be purchasing a home in the future.

- Qualification Period : First-time home buyers who bought after January 1, 2009 and before April 1 2010 (with closing to take place before July 1), would get the $8,000 home buyer tax credit. For the purposes of claiming the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. This is an update from the original November 30th 2009 deadline. If you and your spouse claim the credit on a joint return (both of you must meet the income and past ownership criteria to qualify), each spouse is treated as having been allowed half of the credit for purposes of repaying the credit. So the total amount claimable is still only $8000 (up to April 30th 2010).

- Income qualification limits: The home buyers’ credit would be available to individuals with a modified adjusted gross income (MAGI) of up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the original rules. The higher income limits are only for homes purchased after Nov. 6, 2009. That is, the existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009. Those with incomes higher than the above limits do not qualify for any part of the tax credit.

- *NEW* Current Homeowners looking for a replacement primary residence could also qualify for a $6,500 (up to $3,250 for a married individual filing separately) under the new “long-time resident” provision. They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. This new provision also only applies to homes purchased after November 6^th, 2009.

- Claiming the new home buyer credit: For qualifying purchases, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. A new version of Form 5405, First-Time Home buyer Credit, is available on the IRS website. Taxpayers claiming the credit on their 2009 returns, will not be able to file electronically but instead will need to file a paper return by using the new version of Form 5405. A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.

If you are shopping for a home loan and you want to find a property that is USDA approved use the link below:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Many of the county’s loan limits have decreased; therefore, it is important to carefully check for VA loans that will be closing on or after January 1, 2010 to ensure the correct loan limit is being applied. 

 http://www.homeloans.va.gov/loan_limits.htm

The Department of Veterans Affairs Loan Guaranty program does not impose a maximum amount that a veteran may borrow; however, county limits must be used to calculate VA’s maximum guaranty amount for a particular county, thus limiting the maximum loan amounts that are acceptable in the secondary market. It is important to note that county limits were lowered in some markets due to the decline in house prices. 2010 limits apply to all loans closed on/after January 1, 2010.

Lots of stress over the new approval process for FHA financing for Condos.  To keep things simple, the deadline to use the old rules to buy a condo with FHA financing is 10/1/2009. Your FHA case number needs to be pulled before that date on the property you wish to purchase.

You should first find out if your condo project is FHA approved. If it’s approved you are good to go and dont need to worry about the new rules. If its not FHA approved the project needs to get approved by HUD.  To speed things up they are allowing lenders to get the project approved. At this momement I have not found a lender that acutally will do this. They are all telling me they will send in the file to HUD directly. These are major banks telling me this.  Or they are telling me they are just not sure ,and dont have anything in place to handle these approvals.  I did call Santa Ana HOC and they said they will be sending out a memo extending the deadline to 11/2. But this memo has not been sent out yet so the date before the new rules will take affect is still 10/1/2009. HUD is currently at 6-8 week turntimes to get a project approved and they expect longer turn times after 10/1 of course.  When I get any updates I will let you know.

 Thanks,

Hello everyone. Im using this blog to answer questions and post updates on items that may be helpful to clients shopping for a home loan and for real estate agents if they want to keep updated on recent changes in loan guidelines.