Seattle Nesties
Dear Community,

Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.

If you have questions about this, please email [email protected]

Thank you.

Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.

Mortgage Changes......Condo's, Mortgage Insurance Guidelines

 I have had a few clients ask me about these changes, so I thought I would write a  post for anyone else who was wondering.

 

?The new Homebuyer Tax Credit provides an $8,000 credit that will be available to first-time home buyers when they purchase a primary residence between January 1st, 2009 and December 1st,2009. The credit does NOT require repayment.

? Effective immediately, interest rates on condos will be higher when borrower?s are putting less that 25% down. FHA financing is still available with 3.5% down.

? The FHA Jumbo, currently at $506,000, was just approved to increase back to the 2008 limit of $567,500. The conventional loan limit is expected to increase to 567,500, but is not available yet.

? MI (mortgage insurance) companies are changing their guidelines as of March 9th.Most of the MI companies now consider Washington State a declining market which will have an impact on the LTV on both SFR and condos.

 

Re: Mortgage Changes......Condo's, Mortgage Insurance Guidelines

  • Wow, thanks! I have a question...so is the $8,000 credit only useful if you end up owing that amount on taxes once you are done filing? Or can you adjust your witholdings or something? I get confused if this really impacts us as upcoming first time homebuyers since we don't make very much money.

    What is "LTV"?

  • I would consult your accountant for your full tax credit benefits.  The full amount of credit is available for individuals with adjusted gross income of no more than $75,000 for single tax payers and married tax payers with income up to $150,000.  

    Since it is a tax credit, if you don't owe any taxes, you will get an excess credit in the form of a refund check. Example: If you owe $1,000 in taxes, you'll get a $7,000 refund check.

    I think this link will answer a lot of your questions too. http://www.federalhousingtaxcredit.com/2009/faq.php

    LTV means Loan To Value Raio. It is a ratio that depicts the relationship of a loan amount with the value of a property. LTV is one of the many factors used by lenders in determing whether or not to approve a mortgage. For example if a borrower wants $200,000 to buy a $250,000 the LTV ratio is $200,000/$250,000 or 80%.

    Hope this is helpful.

Sign In or Register to comment.
Choose Another Board
Search Boards