FHA VA Blog

Have you been trying to figure out a way to get the necessary money saved for a home? We know the first time buyer tax credit is available to qualified first time buyers, but what do you do in the meantime if you don't have the money upfront?

First, we should understand what a first time buyer is. It is someone who hasn't owned a home in the last three years. So even if you owned but it was over three years ago since you sold the home, you may be eligible.

The great thing about the down payment assistance in Colorado is that it is used through CHFA. Check out the link there to learn more about this program.

In a nutshell you can get a 0% loan for the necessary amount of your required downpayment (up to $6,000). This is yours interest free until July 2010, when it converts to an 8% interest rate and a 120 month term. Now you aren't required to pay it back when you get your tax credit, but you will then make payments if you don't. So some folks may not pay it back knowing they can use the tax credit to improve their house, reduce credit card debt, or to save for future needs. Just as an example if I decided to keep the money and not pay CHFA back next year I would pay on $6,000 , 8%, 120 months it would be about $72 a month I would pay back. Otherwise, I would pay it back when I get my tax credit and owe no interest for borrowing it.

There is also another option for downpayment assistance through CHFA and if you want to learn more click on the link above. CHFA is a great community based organization and can help the American Dream come true.

CHFA requires you to work with a CHFA approved lender, so if you are interested in learning more about CHFA let me know as Summit is an approved CHFA lender~

Ray

I was in a meeting last week and training today to be part of the lending force who will be able to offer the mortgage certificate to folks buying in the city and county of Denver.

The way it works is you will receive a credit based on a percentage of the mortgage interest you will pay in a given year. We all know when we buy a house that the mortgage interest is tax deductible. However, this credit allows you to adjust your W4 and increase your take home pay.

For Example, if you buy a $200,000 home at 5% interest rate you will pay $10,000 in mortgage interest over a year (thus tax deductible for your family). With the mortgage credit you will have $166 additional dollars per month in your paycheck while you own the home. This also is factored into your ability when you qualify for the house to offset your debt ratios. That is right it helps you when you qualify to buy the house as well as in your paycheck. You can use an FHA, VA or even conventional mortgage when you do this as well.

For more information give me a call to learn more or shoot me an email.

Ray, Branch Manager, Summit Mortgage Denver

rwilliams@summit-mortgage.com

303-779-0591 ext 101