As most everyone is aware the tax credit deadline stated you must be under contract prior to May 1, 2010.  The other part of the deadline stated that anyone under contract by that date must close on or before June 30, 2010.  There is an amendment to a current bill to extend the closing deadline to September 30, 2010.

Mortgage News Daily explains it:

The June 30 closing deadline has not been extended…but it was accepted as an amendment to the Tax Extenders Bill. Under the amendment, borrowers who signed purchase contracts by April 30 would be given three extra months to close their loan and still qualify for the homebuyer tax credit. The new deadline would be September 30, 2010.

Check out the full story from Mortgage News Daily

CHFA issued a notice to all CHFA registered MCC lenders today which states:

As a result of the popularity of the CHFA MCC Program, availability of reservations for the CHFA MCC program is temporarily limited to loans in designated set-asides. Those set-asides include loans in which the Property is located in a Targeted Area, Property located in Grand or Routt County, and loans for Eligible Veterans (defined in the Sellers Guide as “a person who served in the active military, naval, or air service of the United States, and who was discharged or released therefrom under conditions other than dishonorable, as defined in 38 USC subsection 101″).

The silver lining in this notice was:

CHFA is also pleased to announce that the CHFA Statewide MCC program is now available to non-first time homebuyers who are purchasing a property located in a Targeted Area or if they are an Eligible Veteran.

Based on these changes we need to know what a “Targeted Area” is.  CHFA has listed the “Target Areas” in their Seller Guide in Chapter 11 or page 125.

Although we are normally one of the first to know about these great programs we are also normally the first to let you know when they are no longer available.  Both are valuable when trying to get deals closed.  Providing extra benefits through these programs can save deals where other lenders can’t get them done while knowing when they are no longer available can save time, money and energy into a transaction that wouldn’t have worked without such a program.  We keep you updated with this news at it happens!

The change was minimal but enough to make a difference to the income limits for the down payment assistance programs often used in Colorado. Some of these programs have not updated their programs while others have.  We will not list out each program as this will be outdated the moment a program changes their income limits.  Instead, please reference our down payment assistance page for links directly to the individual programs to stay up to date.

Here is a quick look at the Median Family Income (MFI) changes in some of the areas (listed by HUD as Metropolitan Statistical Areas or MSAs) in Colorado you may be interested in:

• Boulder
  • 2010 = $89,600
  • 2009 = $89,100
• Colorado Springs
  • 2010 = $70,600
  • 2009 = $70,800
• Denver/Aurora
  • 2010 = $75,900
  • 2009 = $76,000

If you would like to see the full list for 2010 or 2009 please use the following links for Colorado’s MSAs:

• 2010 HUD Income Limits and listing of Median Family Income
• 2009 HUD Income Limits and listing of Median Family Income

For even more information directly from HUD, please visit their Multifamily Tax Subsidy Income Limits page.

• Long term mortgage rates are at 20-30 year lows
  • According to Freddie Mac, in a press release yesterday, the average rate on a 30-year fixed mortgage was 5.01% this week, up from 4.98% last week.  Last year at this time, the average rate for a 30 year fixed mortgage was 5.25%.  Rates fell to a record low of 4.71% average in early December
• FHA allows 6% seller concessions (may decrease to 3% this summer)
• FHA up front mortgage insurance is currently only 1.75% (set to increase to 2.25% on April 5)
• FHA 90 day flipping rule waiver is in effect until February 1, 2011
• CHFA (Colorado Housing and Finance Authority) has financing for buyers with credit scores as low as 580
• CHFA has down payment assistance programs available
• CHFA can offer loans with market interest rates and down payment assistance with the FirstStep Program
• CHFA MCC (Mortgage Credit Certificates) are available
• Fannie Mae is offering 3.5% incentive to buyers purchasing Fannie Mae owned properties
• HomePath financing is available for Fannie Mae owned properties
• The First Time Home Buyer Tax Credit is available
• Move Up Buyers receive a $6,500 tax credit
• Home values expected to increase from November 2009-2010

If you were on the fence before reading this, we hope this spurs you into action and clears up any confusion or questions about the benefits of purchasing now.  If you have any questions, please contact us.

Lending A Hand

Marla Wynn

The Wynn Team

CHFA FirstStep

Through the sale of non-taxable mortgage revenue bonds, CHFA is able to offer mortgage rates at or below market interest rates for first time buyers (anyone who has not owned a home for the past 3 years).

CHFA FirstStep Plus

Same program as the FirstStep with the addition of a second mortgage loan to assist with down payment, closing costs, prepaids and/or temporary buy downs.  The maximum amount of the second mortgage is 3% of the first mortgage amount.

Income Limits

Both of these programs do have income limits associated with them.  The entire household (everyone over 18 who will live in the home) must be below the total income as follows:

• 1 Person Household = $60,800
• 2 Person Household = $76,000
• 3+ Person Household = $87,400

Additional Restrictions

• CHFA is only available within the state of Colorado
• Borrowers must work with a CHFA Approved Lender
• Can not be combined with the Mortgage Credit Certificate
• Must be owner occupied and qualify for FHA, VA or USDA Mortgage Loans
• Additional restrictions may apply and details can be found at CHFA

Interest Rates

Rates can change at any moment but at the moment I type this the First Step Rates are:

• FirstStep = 5.000%
• FirstStep Plus = 5.25%
• Rates can be found on the CHFA website at http://www.chfainfo.com/lender/Single_family_lending_partners_and_realtors/Todays_rates.icm

Lending A Hand

Scott Wynn

The Wynn Team