First-Time Buyers assistance on Downpayment, Closing Cost, and FHA loans

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First-time homebuyer defined under federal tax rules has not owned a home as a principal residence within the last 36 consecutive months to the date of purchase.

根據聯邦稅法, 只要你過去三年沒有擁有過自用住宅, 你就符合首次購屋的條件.

[首次購屋者可得到頭期款的協助] There is a downpayment assistance by California Housing Finance Agency (Cal HFA) called MyHome Assistance Program.

Borrower Requirements

• Be a first-time homebuyer. See the definition of a first-time homebuyer.
• Occupy the property as their primary residence, non-occupant co-borrowers are not allowed
• CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
• Your income must be less than the allowable MyHome income limits.
  • • MyHome Income Limits when using an FHA first mortgage
    • MyHome Income Limits when using an Conventional first mortgage
• Meet the requirement of the lender and mortgage insurer / guarantor.

Property Requirements

• Sales price of the home cannot exceed CalHFA’s sales price limits established for the county in which the property is located
• Be a single-family, one-unit residence, including approved condominium/PUDs
  • Guest houses, granny units and in-law quarters may be eligible
• Manufactured housing allowed when combined with a FHA first mortgage only and home must be on a permanent foundation

Additional Property Guidelines

• Condominiums must meet the guidelines of the first mortgage
• Manufactured housing is not permitted
• There is a five acre maximum on the size of the property
• Leaseholds/Land Trusts and Co-ops are not permitted
• Meet the requirements of the mortgage insurer/guarantor

For more information, please go to Cal HFA website.

[首次購屋者可得到過戶產權相關費用的協助] The Santa Clara County Association of REALTORS® (SCCAOR) and the Silicon Valley Association of REALTORS® (SILVAR) saw an unmet need in assisting first-time homebuyers and applied for a $100,000 grant from the California Association of REALTORS® Housing Affordability Fund. The Santa Clara County REALTOR® Foundation and the Silicon Valley REALTORS® Charitable Foundation are contributing the necessary operational funds to implement the grant.  Housing Trust Silicon Valley is the administrator for this program.

Buyers looking to qualify will need to meet three key standards before applying,

• They must use a REALTOR® in the transaction;
• be considered a “first-time homebuyer” under federal tax rules; and
• meet the income requirement of earning up to 120% of the area median income.

First-time homebuyers will be eligible for awards of up to $5,000 per grantee for customary non-recurring closing costs paid by the buyer.

Non-recurring closing costs (excluding any upfront fees paid outside of closing by the buyer) are defined as:

• Title & Escrow
• Recording fees
• HOA transfer fees
• Document transfer fees
• Loan fees (including origination, loan processing, tax service and flood cert.)
• City transfer tax

No repayment of the grant is required and the grant is forgiven at the close of escrow. Funds awarded will be sent directly to the Title Company handling the transaction, prior to close of escrow.

For more information, please go to Housing Trust Silicon Valley website.

All those assistance programs’ funds are limited and available on a first come first served basis.  Program will end when funds are depleted. Funds are reserved upon receipt of a complete application and all requested documentation. Incomplete applications will not be accepted.

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[聯邦房屋管理局為其批准的貸款提供抵押保險] The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created. Learn more about FHA loan requirements and guidelines.

FHA mortgage lending limits in CALIFORNIA 2017 vary based on a variety of housing types and the cost of local housing. FHA loans are designed for borrowers who are unable to make large down payments.

Why you might want to consider a FHA loan?

• Ok Credit scores and Low downpayment: to get a mortgage with a down payment as low as 3.5 percent, the borrower needs a credit score of 580 or higher. Those with credit scores between 500 and 579 must make down payments of at least 10 percent.
• Downpayment and Closing Cost: FHA borrowers can use their own savings to make the down payment. But other allowed sources of cash include a gift from a family member or a grant from a state or local government down-payment assistance program. The FHA allows home sellers, builders and lenders to pay some of the borrower’s closing costs, such as an appraisal, credit report or title expenses. For example, a builder might offer to pay closing costs as an incentive for the borrower to buy a new home.  Lenders typically charge a higher interest rate on the loan if they agree to pay closing costs. Borrowers can compare loan estimates from competing lenders to figure out which option makes the most sense.
• Shop around for FHA-approved lenders: Not all FHA-approved lenders offer the same interest rate and costs — even on the same FHA loan. Costs, services and underwriting standards will vary among lenders or mortgage brokers, so it’s important for borrowers to shop around.
• Two-part mortgage insurance: Two mortgage insurance premiums are required on all FHA loans: The upfront premium is 1.75 percent of the loan amount — $1,750 for a $100,000 loan. This upfront premium is paid when the borrower gets the loan. It can be financed as part of the loan amount.  The second is called the annual premium, although it is paid monthly. It varies based on the length of the loan, the loan amount and the initial loan-to-value ratio, or LTV. The following premiums are for loans of $625,500 or less.
• You can borrow cash for repairs: A so-called “streamlined” 203(k) allows the borrower to finance up to $35,000 for nonstructural repairs, such as painting and replacing cabinets or fixtures. The chief advantage of this type of loan is that the loan amount is not based on the current appraised value of the home, but on the projected value after the repairs are completed.
• Financial hardship relief allowed: Loan servicers can offer some relief to borrowers who have an FHA-insured loan, have suffered a serious financial hardship or are struggling to make their payments. That relief might be in the form of a temporary period of forbearance, a loan modification that would lower the interest rate or extend the payback period or a deferral of part of the loan balance at no interest.

If you are thinking about buying or selling, please contact me at 408-859-5864 or Sabrina [at] InsiderProperties [doc] biz

如果你有買房或賣房的計畫, 請和我聯絡.