$8000 Tax Credit To Be Allowed For Down Payment in conjunction with FHA mortgage programs for Florida buyers.

HUD has approved the use of the $8,000 tax credit to be used as a bridge loan for down payment on FHA insured loans.

In what could be a huge boost to the housing market, HUD Secretary Shaun Donovan’s has decided to allow Florida home buyers to use the $8,000 first-time home buyer tax credit in conjunction with FHA financing to help cover their down payment and closing costs on Florida FHA mortgage loans.  

One of the biggest challenges for Florida first time home buyer is saving up enough money for a down payment on their home purchase. The FHA mortgage program in particular requires the borrower to come to closing with 3.5% of the purchase price as their down payment. Often borrowers have to borrow these funds from family or close friends in an effort to take advantage of the historically low housing prices  that are now available to Florida home buyers.

The measures announced by HUD would allow FHA-approved lenders; federal, state and local government agencies; and FHA-approved non-profit organizations to supply Florida home buyers with short-term or “bridge loans” of up to 10% of the purchase price to use for the down payment of a Florida home. These funds equate  up to $8,000 first-time home buyer tax credit.

Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.

More information about these programs can be found on the National Council of State Housing Agencies Web site at http://www.ncsha.org/section.cfm/3/34/2920

Previously, the Florida home buyer would have been unable to access the tax credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS. Until then they borrowed the funds from family and friends with the understanding that they would be able to pay it back after they filed their income taxes.

The next step is to see how Florida FHA-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions o f the loans. NAHB encourages lenders to act promptly to put these provisions into place.

To qualify for the tax credit, Florida first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Florida Buyers can take the credit on their 2008 or 2009 income tax return.

Thomas Martin
1st Continental Mortgage

http://www.fhamortgageprograms.com/florida/

954-391-8387

http://www.realtor.org/press_room/news_releases/2009/05/re_summit

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FHA mortgage loans, FHA home loans,

FHA is short for Federal Housing Administration. FHA loans were created in 1934 to help stabilize the US economy during the great depression. The FHA mortgage helps Floridians realize the dream of Homing a Florida home. FHA was absorbed into HUD in the 1960s and is now known as FHA/HUD.

There are a great many benefits for those Florida homebuyers seeking an FHA loan that can only be found with an FHA Home loan.. Florida FHA loans are insured by the US government. They provide Florida FHA mortgage lenders with greater security against borrowers defaulting in contract to conventional mortgage programs.. FHA has sets the basic FHA guidelines for FHA mortgage lenders, however FHA approved lenders are able to add on their own specific underwriting requirements. This is why not all FHA lenders are able to offer Florida FHA loans to the same individuals. It is very important that you deal with a strong reputable  a company well versed in FHA loans and that knows exactly how to take advantage of all of their great FHA mortgage programs. For the Florida home buyer the FHA program can simplify the purchase of a Florida home, making financing with an FHA loan easier and less expensive than a conventional home loan program. Some highlights of the Florida FHA loan program include:

• Minimal Down Payment and Closing costs.
• Down payment less than 3.5% of Sales Price Gifts are allowed
• Seller can credit up to 6% of sales price towards closing and prepaid costs.
• 100% Financing available
• No reserves required.
• FHA regulated closing costs.
• Easier Credit Qualifying Guidelines such as:
  • No minimum FICO score or credit score requirements.
  • FHA will allow a home purchase 2  year after a Bankruptcy.
  • FHA will allow a home purchase 3 years after a Foreclosure.

Apply for an FHA loan at www.FHAmortgagePrograms.com

Most Florida banks and other Florida  lending institutions require a middle score of 640 to qualify for an FHA Home loan. However at FHAmortgageprograms.com we can provide FHA financing  to anyone with a middle credit score of 530 or higher. For those with credit scores lower than 530 we will work with you until your credit is sufficient to qualify for an FHA home loan in Florida.

Here are some of the prime benefits of an FHA loan:

• Low down payment of 3.5%
• Very low mortgage insurance coverage only .55% and is (typically 50%-75% lower than conventional Florida mortgage insurance)
• Co-signers (including non occupant co-signers) are allowed for FHA qualifying
• medical collections don’t need to be paid or small collection accounts
• FHA has No income limitations at all
• Ability to use non tradition trade lines to qualify (phone bills, light bill, electric bill, cell phone bill, etc..)
• No approved zoning requirements
• FHA loans on Mobile Homes loans are allowed
• 97.75% refinance is OK or  85% Cash out
• No reductions to FHA loan amount for declining markets
• Not credit score driven
• Resident aliens are allowed
• No prepayment penalties EVER
• Security of a 30 year fixed mortgage
• 6% seller contribution are OK!
• High debt to income ratios up to 42% and up to 50% with compensating factors
• Compensating factors such as length of time on the job or funds in reserves help overlook negative factors
• No reserves required from buyer
• Gifts are allowed from family, friends, work, or other interested parties
• Down Payment Assistance Programs allowed

FHA home loan are very popular right now for Florida first time home buyers and people with challenged credit access to low cost secure fixed rate mortgage.

http://www.fhamortgageprograms.com/florida/
http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml
http://www.fhamortgageprograms.com/faq/fha.shtml
http://www.fhamortgagefhaloan.com/
http://www.fhamortgageprograms.com/florida/Boca-Raton/
http://www.fhamortgageprograms.com/florida/Jacksonville/
http://www.fhamortgageprograms.com/florida/Panama-City/
http://www.fhamortgageprograms.com/florida/Okeechobee/

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