$8,000 Could be Used for Down Payment!
WSJ is reporting, HUD through the FHA is working on plans to allow first-time home buyers to use the $8,000 tax credit for purchasing a home as the down payment if the loan is done through approved lenders and non-profits.
This is big! Not only would you not have to pay back the $8,000 but you wont have to wait for it to come as part of your tax refund. Talk about having your cake and eating it too.
Details have yet to be finalized, I’ll be following developments so stay tuned.
Mortgage Rates Hit 37 Year Low!
Yes, Virginia there is a Santa Claus!
Mortgage rates hit a new 37 year low this week. This is the second week in a row that interest rates on 30 year fixed rate mortgages have hit a new low.
This is great time to purchase or refinance. The average rate on a 30 year fixed rate mortgage has dropped to 5.14%. A $200,000 loan at this low rate would save you $100 per month over a loan at 6%. And over the life of the loan you would save $36,000. Not bad!
Buy a Home for ONLY 1% Down!
Since the end of down payment assistance (DPA) we have been looking for home loan programs for our clients that require little or no money down. And there is good news, we’ve found one at The Lending Co.
To fully understand how the loan works and how you can take advantage of the 1% down payment FHA home loan give Phil Trepak a call at 480-483-4601, be sure to tell him Gary and Karen sent you (we don’t get a referral fee or anything, I just want Phil to know the time he’s invested educating us is yielding results).
Here is a basic run down on the loan program:
You may be asking why they would give you 2% out of there own pocket? The first reason is that an FHA loan requires a 3% down payment. So your 1% and their 2% add up to your 3% down payment. The second reason is that they will make their money through the loan origination, over the life of the loan, or by reselling it to another lender.
You will still have to qualify for an FHA loan, after all times have changed and this isn’t like a few years ago when all you had to do was be able to fog a mirror to get a mortgage, but FHA loans are typically easier to qualify for than conventional loans.
Now for the next part that truly makes this a 1% down payment home purchase. When we write your offer on the home you like we ask the seller to pay for your closing costs. Having the seller pay for the buyer’s closing costs is not unusual in today’s real estate market.
So there you have it. You provide 1%, The Lending Co. provides 2%, the seller pays your closing costs and you get a fixed interest rate loan. Now all we need is to find the right house.

