Important Real Estate News for 1st time home buyers
There is important news for people considering purchasing a new home and the message is coming with a sense of urgency.
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Once again Broker/Owner Michael Tezak of Realty Executives and Jeff Svantner of Sistar Mortgage in their ongoing effort to provide the most current information to there agents, clients and the general public; are sharing industry news that is critical to potential home buyers. As Jeff Svantner, Vice President of Development for Sistar mortgage, says; “In this ongoing real estate and mortgage “crisis” as many lawmakers & economists are calling it, the general consumers need to know the truth about their local markets and the impact of new state laws & federal legislation… things are changing everyday
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On July 30, President Bush signed the Housing and Economic Recovery Act (HR 3221) into law. The new law contains wide sweeping changes for numerous housing related issues that will have serious implications on some people’s home buying ability.
One of the most noticeable changes is the forbidding of FHA from insuring mortgages from which the down payment comes directly or indirectly from an interested third party (such as the seller). This will lead to the elimination of all down payment assistance programs. This will dramatically effect many potential buyers ability to purchase a home and buyers need to be educated about the programs that may still benefit them.
For several years now, home buyers have been able to ease the down payment burden by having sellers assist with down payments. This became a widespread practice nationally especially with new construction. The new law has been put in place to eliminate the loophole of third party and seller assisted down payments, so more buyers will be required to have their own down payment. In addition, the new law is increasing the down payment requirement for these loans from 3% to 3.5%.
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Jeff Svantner of Sistar Mortgage says ‘buyers looking for seller assisted down payments now have a limited window to work within.“ If you purchase a home between now and September 30, 2008 you may still receive sellers assisted down payment and buyers need to be aware of their ability to qualify for a potential $7500 tax credit for purchases too.
Under the guidelines of the new housing law, borrowers may only fund the required down payment from their own assets or gifts from immediate family members. That means that in most cases buyers will have to come to closing with their own money.
Both Realty Executives and Sistar mortgage have briefed their staff on the current law and it implications. Buyers must move a little more quickly and they are prepared to handle the immediate needs of buyers who may have been waiting for the right opportunity.
Realty Executives Premier and Sistar Mortage will be a FREE seminar on every Wednesday starting August 20th from 530-630pm at the Realty Executives Premier office at 310 E Lincolnway in Valparaiso, Indiana.
Realty Executives and Sistar Mortgage has all of it agents trained on the new law and are ready to expidite the home buying process. Please contact Realty Executives at 219.462.2224 or by visting their website www.REXpremier.com or Jeff Savantner at Sistar Mortgage at 219.405.0893.
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Here’s the key, FHA mortgage loans will dominate the housing landscape for the next 12 months in NW Indiana. There are a lot fewer FHA mortgage lenders than there used to be, due to turnover and shutdowns.
Call 219-762-7200 or email jamess@fftmortgage.com if you need an FHA mortgage or assistance looking at your down payment, credit repair, or home buying process.
I know both Jeff and Mike, both do great work.