Missoula Real Estate, Homes for Sale, and Area Information » Home Buyer Assistance Programs

First Time Homebuyer and Move Up Buyer Tax Credit

Monica Ray — Mon, 01 Feb 2010 17:01:12 +0000

Missoula First-Time Home Buyer & Move- Up Home Buyer Tax Credit

New Legislation

New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:

Extends deadlines for purchasing and closing on a home.
Authorizes the credit for long-time homeowners buying a replacement principal residence.
Raises the income limitations for homeowners claiming the credit.

Under the new law,an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.

For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.

People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.

General Information

Homebuyers who purchased a home in 2008, 2009 or 2010 may be able to take advantage of the first-time homebuyer credit. The credit:

Applies only to homes used as a taxpayer’s principal residence.
Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405, which you file with your original or amended tax return.

Source. IRS.gov

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Kevin & Monica Ray
Office: 406-822-SOLD (7653)
Cell: 406-207-1185
Email: RayTeam@YourMT.com

Montana Real Estate Resources

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Montana Board of Housing 2010 PROGRAM

Monica Ray — Thu, 07 Jan 2010 12:41:18 +0000

We just received this update on the Montana Board of Housing program for 2010 from our friends at First Security Bank in Missoula. As of 1/7/10:

Montana Board of Housing 2010 PROGRAM

*Reservations accepted on a “First Come, First Serve Basis”

*Interest rate is 5.125%

*Term is 30 year mortgage

*1% Origination Fee

*1% Discount Fee

*Eligible loans: FHA, VA, and Rural Development

*Homebuyer Education is required for all loans unless the allowed exceptions are met

*Setaside programs subject to approval are currently at 5.50%

*Homebuyer Education required on all setaside loans

*INCOME LIMITS- Contact your lender

Missoula County – 2 or less in family $71,280

Missoula County – 3 or more in family $83,160

*LOAN LIMITS

Missoula County purchase price limit new or existing $236,840

Mineral County purchase price limit new or existing $236,840

Sanders County purchase price limit new or existing $236,840

Ravalli County purchase price limit new or existing $236,840

Missoula County is a targeted area

For information on qualifying for a MBOH loan, contact your local Montana lender. For a list of homes that may qualify, contact Kevin and Monica Ray of Access Realty at 406-207-1185 or 406-544-3098.

USDA Direct Loan – Montana Home Buyer Programs

Monica Ray — Sat, 29 Aug 2009 11:21:07 +0000

USDA Direct Loan – Montana Home Buyer Programs
USDA Rural Development
www.rurdev.usda.gov/mt/

Program Overview

USDA Direct Loan is a loan that provides low- and very low-income applicants with 100% financing with no private mortgage insurance. Applicants must qualify through a local Rural Development office. Applicants may obtain financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. This program may also pay a portion of the mortgage interest, based on income. This program is available nationwide.

Who is eligible for this program?
Borrowers must meet income requirements and qualify for the loan. Updated area loan limits are listed at http://www.rurdev.usda.gov/rhs/sfh/area%20loan%20limit%20pdf%20files/MT.pdf Funds pay for a portion of the mortgage interest.Is this program for first time buyers only? Yes

Property Eligibility Requirements
Allowable property types: Single family home, duplex, condo, manufactured home

Benefit Details

Loans are fixed-rate. Rates are provided by the local Rural Development office. Varies, based on income.

Benefit:	Borrowers can obtain 100% financing with no private mortgage insurance.
Loan Term:	33 years
Homebuyer Counseling / Education Required:	No
Owner Occupancy Required:	Yes

Please note: Every attempt is made to reflect accurate and up to date information on housing programs displayed on this site. Some inaccuracies may exist. For verification email MT Housing Resources.Source: Montana Association of Realtors (R) - MTHousingResources.com

Visit MTHousingResources to take a quiz to see what Montana Home Buying Programs are best suited to your needs.

VA Loan – Veterans Home Buyer Program

Kevin Ray — Sat, 29 Aug 2009 11:17:34 +0000

VA Loan – Montana Home Buyer Programs – Real Estate
Department of Veterans Affairs
www.homeloans.va.gov

Program Overview
VA Loan is a program in which the VA is authorized to guarantee loans to eligible veterans to build a house in which the veteran will occupy the home. The no down payment loan may include simultaneous purchase of the land on which the residence is situated or will be situated. This program is available to Veterans anywhere.

Who is eligible for this program?
Veterans of military service are eligible for this program. To be eligible for a VA loan you must have a Certificate of Eligibility, which determines the maximum loan for which you are eligible. The Certificate of Eligibility is normally issued shortly after discharge from the military, which is verified by the DD214 form. This certificate may be obtained through the assistance of a lender or from the VA. Each applicant must be an eligible veteran, must occupy or intend to occupy the property within a reasonable period of time after closing. Applicants must have a good credit record and sufficient income to pay the mortgage. VA loans may be used for the purchase, construction, improvement or refinancing of a home.Is this program for first time buyers only? No

Property Eligibility Requirements
The property must be located in the United States, its territories or possessions. The sales price cannot exceed $ 417,000 . Allowable property types: single-family home, condo, townhouse, 1-4 family properties

Benefit Details

The loan maximum may be up to 100% of the VA-established reasonable value of the property plus the applicable VA funding fee for a max LTV of 103%. Loans are available for resale, purchase or new construction. A VA-assigned appraiser must be used. The maximum loan limit is generally $417,000. Subsequent use of VA Benefit increases the funding fee to 3.35%. 100% of sales price. The loan limit is generally $417,000; however, the loan limit depends on the Freddie Mac conforming limit.

Benefit:	No down payment or cash reserves are required. The VA guarantees part of the loan; mortgages have competitive interest rates, and no down payment is required.
Homebuyer Counseling / Education Required:	No
Owner Occupancy Required:	Yes
Other Program Comments:	For resale purchase or new construction. Applicants must qualify through an approved VA Lender. Contact Winston-Salem office for certificate of eligibility.

Source: Montana Association of Realtors (R) - MTHousingResources.com

Visit MTHousingResources to take a quiz to see what Montana Home Buying Programs are best suited to your needs.

Good Neighbor Next Door – Firefighters, Teachers, Medical Technicians, Police Officers – Montana Home Buyer Programs

Monica Ray — Sat, 29 Aug 2009 11:13:44 +0000

Good Neighbor Next Door

Program Overview

Good Neighbor Next Door is a program that provides a 50% discount on HUD homes with as little as a $100 down payment. This program is specifically for firefighters, medical technicians, police officers, and teachers/faculty in grades K-12. Houses must be located in one of Montana’s HUD-designated revitalization areas: Billings, Butte, Cut Bank, Glasgow, Great Falls, Havre, Helena, Kalispell, Missoula and Polson.

Who is eligible for this program?
Borrower must be employed full-time as either a police officer, firefighter, teacher/faculty (PreK-12), or emergency medical technician. Earnest money is now required and due at time of contract signing and is 1% of HUD’s listed price. This must be in the form of a cashier’s check payable to the U.S. Dept. of HUD. All participants must be employed full-time by a federal, state, county, or municipal government; Indian tribal government or division of local government. Borrowers must be in good standing with their employers. Current homeowners cannot participate and applicants cannot have owned any other residential real estate for one year prior to bid submission. Applicants must agree to live in the GNND home as their only residence for three years after they move into it. Participants must certify their intention to continue their current occupation for one year. HUD reserves the right to change eligibility requirements. Law Enforcement Officers: You must be sworn to uphold and make arrests for violations of federal, state, county, or municipal law. Your employer must certify that you are a full-time officer with unlimited general powers of arrest. Law enforcement officers are restricted to the boundaries of their authority to make arrest. Municipal, county, and state agencies usually have power of arrest throughout the entire state. Therefore, they are allowed to enter any property in the state. Federal law enforcement officers are the only area UNRESTRICTED participants in the GNND program. Federal Bureau of Prisons personnel are no longer eligible. Teachers: You must be state certified and employed by a public or private school grades preK-12. Teachers are restricted to homes that are located in the area or school district serviced by their employer. Firefighters & EMTs: You are restricted to homes that are located in the area serviced by your employer. Applicants must be employed full-time and be in good standing with their employers. Reduction in purchase price.Is this program for first time buyers only? No

Property Eligibility Requirements
The sales price cannot exceed $ Variable; contact lender for maximum purchase price in your area.. Allowable property types: single family

Benefit Details

Interested applicants must go to www.goodneighbornextdoor.us and sign in to view available properties and make bids. Assistance amount is up to a 50% discount on the sales price. Participants also may apply for an FHA-insured mortgage with a down payment of only $100, and finance all closing costs and acquisition expenses.

Benefit:	This program allows full-time law enforcement officers, firefighters, teachers and EMTs to purchase a HUD home at a 50% discount off the listed price.
Homebuyer Counseling / Education Required:	No
Owner Occupancy Required:	Yes
Other Program Comments:	If the home you want to purchase needs repairs, you may use FHA’s 203(k) or the new 203(k) streamlined mortgage program. This program allows you to finance both the purchase of the home and the cost of needed repairs. You have the benefit of one loan for both costs and one monthly payment.

Visit MTHousingResources to take a quiz to see what Montana Home Buying Programs are best suited to your needs.

Fannie Mae Expanded Approval with Timely Payment Rewards – Montana Home Buyer Assistance Programs

Monica Ray — Sat, 29 Aug 2009 11:08:09 +0000

Fannie Mae Expanded Approval with Timely Payment Rewards
Fannie Mae MyCommunity Mortgage

Program Overview

Fannie Mae Expanded Approval with Timely Payment Rewards is a an option in Fannie Mae’s Desktop Underwriter automated underwriting system that allows lenders to take a more comprehensive view of a borrower’s credit-worthiness. As a result, lenders can offer mortgage loans to many borrowers who previously were unable to receive conventional financing. Expanded Approval helps borrowers with less-than-perfect credit buy the home they need at a competitive interest rate. The Timely Payment Rewards feature rewards qualifying borrowers with an interest rate reduction of up to one percent after making timely mortgage payments for a consecutive 24-month period within the first four years, thus qualifying them for a one-time interest rate reduction. However, if your credit is good, you may qualify up-front for a lower interest rate. All locations across the United States are eligible for this program.The application fee is $ Determined by Lender.

Who is eligible for this program?
A minimum of a 3% borrower contribution (or $500 for 1-unit primary residences) must be made towards down payment or closing costs. The 3% can come from flexible sources, including gifts or unsecured loans from relatives, employers, public agencies, grants, non-profits, or secured borrowed funds. There are no income limitations. The funds for this program are to be used for purchase, limited cash-out refinance and cash-out refinance.Is this program for first time buyers only? Yes

Property Eligibility Requirements

There are no limitations on location.
Allowable property types: Purchase: 1- to 2-unit primary residences, including condos, co-ops, PUDs, and leaseholds; 1-unit second homes; 1- to 2-unit investor properties; eligible manufactured housing (Level 1 and 2 only). Limited Cash Out Refinance: 1-2 unit primary residences; 1-unit second homes and 1- to 2-unit investment properties; Cash Out Refinance: 1-unit primary residences; 2-unit primary residences (Level 1 only), 1-unit second homes only (Level 1 only).

Benefit Details

This program offers higher loan limits than FHA, with no income limits, geographic limitations, or homebuyer counseling required; competitive interest rates; and considerably lower financing than non-traditional lenders for borrowers. Borrowers are allowed to finance up to 100%. This is a good solution for homebuyers who have concerns about their credit histories and may have less than perfect credits; seek lower than non-conventional rates; have limited funds for down payment and closing costs; or want to reduce monthly payments, without costs of a refinance (allows qualifying borrowers with an automatic interest rate reduction of up to 1% after they make timely mortgage payments for a specified period). Maximum financed amount is $417,700 for a single-family residence or $533,850 for a 2-family residence.

Benefit:	This program offers a mortgage with relaxed qualifications that may help buyers qualify who may have had past credit problems. Loan amounts are for up to 100% of the purchase price; no prepayment penalties, fast loan approval and streamlined documentation is a plus.
Loan Term:	30 years
Homebuyer Counseling / Education Required:	No
Owner Occupancy Required:	Yes
Other Program Comments:	Timely Payment Rewards is not permitted on ARMs or bi-weekly mortgage payment structure. Balloon loans are not permitted. Fast loan approval and streamlined documentation.

Visit MTHousingResources to take a quiz to see what Montana Home Buying Programs are best suited to your needs.

FHA Loan – Montana Home Buyer Assistance Programs

Kevin Ray — Sat, 29 Aug 2009 11:05:28 +0000

FHA Loan – Missoula Real Estate – Montana Home Buyer Assistance Programs

Program Overview

FHA Loan is a offers a standard fixed-rate loan for 1- to 4-family owner-occupied houses and only requires a mimimum down payment of 3.5% from the borrower. This loan permits 100% of closing costs to be a gift from a relative or government agency. Insurance on FHA mortgages are often rolled into the total monthly payment at 0.5 percent of the total loan amount, which is roughly half of the price of mortgage insurance on a conventional loan. Properties located anywhere in the Continental U.S., Alaska and Hawaii are eligible.

Who is eligible for this program?
Borrower must supply one full month’s worth of pay stubs showing year-to-date earnings or the last years W2s for salaried employees. Self-employed borrowers must have the last two years of income tax returns with all schedules, and the last two months’ bank statements. Borrowers must qualify with a participating HUD-approved mortgage lender under FHA guidelines. Borrowers can purchase a home or refinance their current home.Is this program for first time buyers only? Yes

Property Eligibility Requirements
All of the continental United States, Alaska and Hawaii are eligible. Allowable property types: Single-family homes, 1 to 4 units, FHA-approved condos and PUDs

Benefit Details

Low down payment of only 3.5% is required from the borrower. The FHA Loan Limits can be found at: https://entp.hud.gov/idapp/html/hicostlook.cfm

Benefit:	Someone who may have had a few credit problems or no traditional credit should be able to obtain an FHA loan.
Loan Term:	10-30 years
Owner Occupancy Required:	Yes

Source: Montana Association of Realtors (R) - MTHousingResources.com

Visit MTHousingResources to take a quiz to see what Montana Home Buying Programs are best suited to your needs.

Missoula Real Estate, Homes for Sale, and Area Information » Home Buyer Assistance Programs

First Time Homebuyer and Move Up Buyer Tax Credit

New Legislation

General Information

Call Us Today!

Montana Real Estate Resources

Article Topics

Recent Articles

Montana Board of Housing 2010 PROGRAM

Montana Board of Housing 2010 PROGRAM

USDA Direct Loan – Montana Home Buyer Programs

VA Loan – Veterans Home Buyer Program

Good Neighbor Next Door – Firefighters, Teachers, Medical Technicians, Police Officers – Montana Home Buyer Programs

Fannie Mae Expanded Approval with Timely Payment Rewards – Montana Home Buyer Assistance Programs

FHA Loan – Montana Home Buyer Assistance Programs