How Downpayment Assistance Programs can help you and why you should act NOW!

The VHDA is  changing the rules come September 7, 2016 when it comes to downpayment assistance programs.  Assistance for both FHA and traditional loans are being REDUCED.  However, you still have time to apply before the deadline!  Don't miss out on potentially thousands of dollars in purchase power by not taking advantage of these programs NOW!

How Downpayment Assistance Can Help You Foot the Bill for a Home
By Cathie Ericson of Realtor.com

House-hunting bummer: You’ve found the perfect home, and you’ll have no trouble covering your monthly mortgage and bills—but that 20% down payment is woefully out of reach. Could that mean you’re out of luck?

Not quite. That’s because there are 2,290 down payment programs across the country that can help—that is, as long as you meet eligibility requirements in terms of income, occupation, or credit. Yet many home buyers don’t even think about applying for down payment assistance, because they’re not aware of these programs or they assume they don’t qualify.

“Consumers do not know about these programs, and those that do assume it’s more difficult to get than it is,” said Jonathan Smoke, chief economist of realtor.com®. Read on to make sure you don’t miss out.

How much money can down payment assistance provide?

One study found that buyers who use down payment assistance programs save an average of $17,766. To reach this figure, these buyers save an average of $5,965 upfront at the down payment stage. Because this also lowers the amount of money they owe their lender, it means they save on average an additional $11,801 in monthly house payments over the life of the loan.

How can you find out if you qualify for down payment assistance?

While many down payment assistance programs are geared toward low-income home buyers, you don’t have to be destitute. Plenty of programs are geared to middle-income buyers as well. Yet a survey by NeighborWorks America found that 40% of respondents hadn’t received any information about down payment assistance programs for middle-income homebuyers, which could have saved them a bundle.

Part of the reason for the confusion might be because the programs are fragmented.

“Down payment assistance can come from many different sources, including the federal government, counties, and local communities,” says Chantay Bridges with TruLine Realty in Los Angeles.

There will be a list of qualifying factors, Bridges cautions, but a number of programs are available, including FHA and VA. Homes that are part of a Neighborhood Stabilization Program often qualify, as do homes purchased by teachers, firefighters, and other civic employees under certain programs. Many counties also offer down payment assistance to first-time buyers, who are defined as anyone who hasn’t owned a home in three years.

How to find downpayment assistance programs near you

A great place to start is Down Payment Resource, which offers a handy calculator that can show you what you may be eligible for. Many multiple listing services nationwide display a special icon on the listing of a property that might qualify for down payment assistance.

Many options are also listed by state, or you can check your state on the Department of Housing and Urban Development website.

Also check with your agent and lender for programs available in your specific county, because they change frequently—and these professionals should be up on the latest options.

To view the original article, click here.

Equal Access to HUD Properties and FHA Lending

In honor of Pride Fest this weekend in Richmond, VA I thought I'd share an article about HUD Equal Access Rule!

HUD Issues Guidance Based on Equal Access to Housing Rule
RISMEDIA, Wednesday, July 15, 2015— As part of the recent White House Conference on Aging, the U.S. Department of Housing and Urban Development (HUD) issued guidance to better serve and help avoid discrimination to LGBT Americans seeking HUD-assisted or HUD-insured housing. The guidance will help clarify the Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Rule (Equal Access Rule), which was originally published in 2012. The Equal Access Rule ensures that housing across HUD programs is open to all eligible individuals regardless of actual or perceived sexual orientation, gender identity or marital status, including Section 202 Supportive Housing for the Elderly.

“Every American deserves to live with dignity, regardless of who they love or who they are,” says HUD Secretary Julián Castro. “HUD is committed to fighting unjust discrimination and to expanding housing opportunity for all.”

HUD’s guidance on multifamily and insured housing programs clarifies that a determination of eligibility for housing that is assisted by HUD or subject to a mortgage insured by the Federal Housing Administration (FHA) shall be made in accordance with the eligibility requirements provided for such a program by HUD, and be made available without regard to actual or perceived sexual orientation, gender identity, or marital status. The guidance also clarifies that no owner of administrator of HUD-assisted or HUD-insured housing, approved lender in an FHA mortgage insurance program, nor any recipient or sub-recipient of HUD funds may inquire about the sexual orientation or gender identity of an applicant for, or occupant of, HUD-assisted housing or housing whose financing is insured by HUD, whether renter or owner occupied.

Violations of the rule and guidance could result in HUD’s determination that the owner has failed to comply with program requirements. HUD may pursue any available remedy, including sanctions, that it determines appropriate to remedy the violation. 

The creation and implementation of the Equal Access Rule builds on HUD’s and President Obama’s commitment to expanding opportunity, advancing equality, and leveling the playing field for the LGBT. Since 2010, HUD has taken steps to strengthen LGBT protections, such as formally adopting the principle that gender identity discrimination is sex discrimination under the Fair Housing Act, releasing agroundbreaking study on LGBT housing discrimination, and pursuing complaints under the Equal Access Rule. The multifamily assisted and insured housing guidance follows additional guidance issued by HUD in February on home lending and transgender access to homeless shelters.

For more information on the recent guidance, please click here.

Pre-Inspection Home Dissection

    When I first became a real estate agent, I would write offers left and right— hungry to get my clients the house they wanted.  But with experience I learned how to work smarter, not harder.  The first year I was an agent I would say that I wrote offers on about 8 to 10 houses that got released because of the inspection findings.  It was that year I put together a guide on things to look for when walking through a home.  There are always going to be issues you can’t catch on your own, perhaps under the house, that only an inspector can find.  But before writing a contract, before getting an inspection, before wasting anyone’s time and money, I’ll share a few things to look for starting with asbestos siding.

     It is mostly found in older homes built between the 40s and 60s.  It is very flat siding with vertical ripples running down to wavy edges.  If you see this style of siding it is 100 percent of the time asbestos.  When looking for asbestos in an older home, it’s important to walk all the way around the house.  Often it is covered up with vinyl siding except for say, a screened-in porch or an addition. 

     Before you even make the trip out to see the potential house, check the MLA sheet.  Most of the time it will tell you if it’s asbestos siding, or will at least denote “other."  If you know you qualify for an FHA loan, unless you want to get a very expensive renovation loan, it’s usually best to move on to the next house.  There are ways to remediate the problem if the siding is perfectly intact.   The asbestos siding can be sealed and then covered with vinyl to properly protect it. If any of the siding is broken, it can be very expensive to remove it due to health and environmental implications.

     Another thing to consider is resale value.  If you have a conventional loan and bypass all the requirements of an FHA, when you go to resell, asbestos siding can become an issue.  Even if it’s not a concern of yours at the present moment, it can be one for a potential buyer.

     If you educate yourself on the basics, you can do your own pre-inspection before spending hundreds of dollars to have someone tell you what’s in plain sight.  Next week, I’ll share a few more tips!