Urgent-Do you qualify up to $30,000 free money from a short sale?

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The lending institutions, Bank of America, JP Morgan Chase, GMAC, CitiMortgage and WellsFargo, have a relocation assistance incentive program for distressed homeowners. They offer relocation assistance funds up to $30,000 after the Realtor has sold the home. The homeowner receives their money at the closing table. The HAFA, Home Affordable Foreclosure Alternative, Program is a win-win situation for the lender and the homeowner to prevent foreclosure procedures. Under the Dodd-Frank Act, the HAFA, Home Affordable Foreclosure Alternative, requires the homeowner to qualify for the program. The qualifications for the HAFA Program are as follows: 

1. Homeowner - primary residence in the State of Florida
2. Must qualify for the HAFA Program
3. List your home with a license Florida Realtor 
4. Close the transaction on or before September 26, 2013
5. Minimum relocation assistance is $2,500 to $30,000. It is based on the unpaid principal balance on the loan.
6. Relocation Assistance Funds will be documented on the HUD1 and 1099 MISC will be issue for taxes.
7. Ginnie Mae, FHA, VA and USDA Loans are ineligible for the program.
8. Lot Loans are ineligible for the program.

Relocation Calculation of Funds

The lender calculates the relocation assistance funds from the unpaid principal balance of the loan. Since the full balance of the loan isn’t paid at closing, the lender may file a deficiency judgment.  As of December 31, 2012 the homeowners do not have to pay taxes on the relocation assistance funds.

Re-establish Credit

The homeowner may lose at least 180 to 250 points on their credit score. It depends on the how the other accounts on their credit report were paid. The applicant will need to rebuild their credit report within the next three years after a short sale. The booklet, "Increase Your Credit Score After Short Sale, Foreclosure and Bankruptcy", provides the techniques to increase an applicant's credit scores after a short sale. The program offers “FREE 30 DAYS COACHING” as well as the booklet at increaseyourcreditscorenow.com
 
We provide monthly newsletters on how to increase an applicant's credit scores and weekly blogging information at increaseyourcreditscorenow.blogspot.com

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Neighborhood Lift Program - Down Payment Assistance Money

 

WellsFargo has committed $30,000,000 to the State of Florida to stabilize the market in the distressed areas that were the hardest hit in the real estate crisis. The Neighborhood Lift Program provides down payment assistance funds for First-Time Home buyers in these cities as follows: Jacksonville, Florida, Orlando, Florida, Tampa, Florida and Miami, Florida. The program provides the opportunity for First-Time Homebuyers to purchase an affordable home. It takes the pressure off of buyers trying to save all of their funds to purchase an affordable home. As long as First-Time Homebuyers have invested 3.5% of the sale price as their contribution into the program, the buyer may qualify for the program. There is no maximum sale price limit for the program but the home should be at an affordable home price.

The City of Jacksonville has been allocated $7,000,000 from WellsFargo for the First-Time Homebuyers Program. The program offers the community the opportunity to reduce the high inventory houses in the market and to increase the real estate value. The Neighborhood Lift Program requires the applicant to meet the household income limit guidelines and to qualify for a credit score at least 640. The applicant may be eligible for the household income limit.

Neighborhood Lift Requirements

The applicant may qualify for the program under a FHA Loan as well as a VA and Conventional Loan. The major requirements for an applicant are a credit score at least 640 and invested funds with 3.5% of the sale price. Based on the income the First-Time Homebuyer may qualify up to $15,000 of the down payment assistance funds.  The additional requirements for Neighborhood Lift Program are as follows:

1.      Household Income cannot exceed 120% of the median income in the area

2.      Single Family Home - Detached Home-owner-occupied in Duval County

3.      No manufactured housing

4.      Homebuyer Education Class-(required) from a HUD Approved Counseling agency

5.      Fixed Interest Rate

6.      Currently-No home ownership. If the applicant owns a home, it must be sold prior to closing.

7.      Must be approved by the participating lending institutions for the first mortgage loan in order to receive the down payment assistance funds.

Soft Second Mortgage-Payment Repayment Plan

The down payment assistance fund is 0% interest rate for the five years period. It is a soft second mortgage and there is no monthly payment due on the second mortgage as long as the first mortgage is paid on time. The second mortgage is forgiven after the five years period. If the home is sold prior to the five years, 20% is forgiven for each year the applicant owned the home.

                                                       Household Income - Jacksonville, Florida

Check Credit Score

Each applicant should pull their credit report from all credit bureaus, Equifax, TransUnion and Experian, at least six months before applying for a mortgage application. This gives the applicant time to repair any duplicate accounts, late payments, charge-off, repos and judgments on their credit report and to increase their credit scores. The Neighborhood Lift Program requires at least a credit score of 640 for a FHA approval.

Credit Score Below 600

Applicant with credit scores below 600 may still have the opportunity to purchase an affordable home. The booklet, "Increase Your Credit Score After Short Sale, Foreclosure and Bankruptcy", provides the techniques to increase an applicant's credit scores. The program offers “FREE 30 DAYS COACHING” as well as the booklet at increaseyourcreditscorenow.com

 

We provide monthly newsletters on how to increase an applicant's credit scores and weekly blogging information at increaseyourcreditscorenow.blogspot.com

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What Is A FHA Loan?

FHA, Federal Housing Administration, is one of the loan products that the government created to provide private mortgage insurance from approved FHA lenders.  It was set up to provide loans for low and median income families and to assist buyers in purchasing an affordable home.

Purpose

FHA Loan was implemented in 1934 to assist low to median income families to purchase homes. It provided insured loans for buyers that didn't have 20% down payment funds and couldn’t qualify for a Convention Loan that required a larger down payment to purchase a home. The down payment requirement for a Conventional Loan may have been 5% or 10% of the sale price.

No Credit Score

A FHA Loan doesn’t require credit scores to qualify for a loan. However, most lending institutions review their risk management assessment model for their company. The lenders require a minimum credit score to reduce the risk management assessment for the bank. FHA requires a down payment of 3.5% of the sale price from the applicant invested funds. If the applicant doesn’t have the funds saved, the applicant may receive a gift letter from a family member. The funds are verified from the family member’s account before the bank accepts the gift letter. The applicant must have a middle credit score of 640 out of all three credit bureau scores. The lender requires these documents for FHA loan approval as follows:

•  The last two years of 1040 from the borrowers
•  Three months of bank statements
• The recent 30 days' pay stubs
• Application Fee (appraisal and credit report)

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New FHA Guidelines

On June 8, 2012 FHA increased their upfront Mortgage Insurance Premium to 1.75% on all FHA Loans and increases the annual Mortgage Insurance Premium to 1.50%. However, FHA had to increase the Mortgage Insurance Premium to cover the lost from the short sale and foreclosure loans. It costs the applicants more money to qualify for a FHA loan and it reduces the loan amount that an applicant may qualify to purchase.

Credit Score Below 600

There is an opportunity for buyers to increase their credit score if it’s below a 600 credit score. We provide techniques to increase an applicant’s credit score at www.increaseyourcreditscorenow.com. Most applicants with some good credit may increase their credit score within 30 days and qualify for a FHA Loan.