OfflineI just came from meeting with my realtor at a house I put an offer in on today. We were discussing the bill that has just been signed. She said that lenders have been informed there will be NO MORE cash back at closing, no repair allowances, no seller incentives allowed at closing at all. They have been given no dates, but it could be anytime. Basically that would mean the only concession we as the seller could give is to lower the asking price. I find this hard to believe. Can anyone elaborate on this or have additional information?
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I spent two hours talking with my mortgage broker last night. I understand that all of what Rina said is true. I understand also that this all goes into place on October 1st. Also the bail out will probably not help many people. Banks would need to forgive some of the debt. The new loan can not be more than 90% of current appraised value. Then any appreciation that the buyer gets when they sell the property, they will need to share with the FHA (from 50% to 100%). If there are any second or third loans on the property, they would need to be compleatly forgiven. Down payment assistance programs such as Ameridream will no be allowed. There will be a tax break for first time home buyers, but those funds would need to be repaid. There was more, but this is all that I can recall. Loans for investment purposes will require a minimum of 20% down in my area. FHA loans (3% down) cannot be used for investment properties. I am getting old, and my memory is weak, so some of these details may be faulty.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
I said that everything Rina said is true. As far as seller incentives go, no cash can go to the buyer. I don't know if you can help with closing costs for the buyer. I need to do some more research.
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
Thanks for the info. Let us know if you find out more.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249