If Buyer does not have a downpayment?

In today's lending situation, is it possible to buy a property with no downpayment -

well if they do not have a downpayment, as long as they have two credit scores above a 660 and they meet the income qualifications, they are eligible for the Utah housing program. They need to talk to a lender to make sure they qualify

Is there anyway for a home buyer to access the money alloacable to the credit sooners than waiting to file their 2008 tax return?

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downnpayment. Buyers should adjust their withholding amoun ton their W-4 via their employer or through their quarterly estimated tax payment. ISR Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qaulified purchase does not occur, then the individial would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

What to Know About Inheriting Property

Inheriting property can be exceedingly confusing for the heirs, particularly if they plan to sell the property. While getting expert legal advice is the best approach for the person who has inherited property, here is some basic information that can help a real estate professional better understand the situation.

Every state has a legal process that allows the person who was willed property to transfer ownership of it from the previous owner’s name to the new owner’s name. The attorney assisting with the probate of the will can help fill out the forms. If there is no lawyer involved, sometimes someone in the clerk of courts office can guide the person inheriting property through the transfer process.
Generally, there is little or no transfer tax or other cost involved because the person who is inheriting the property didn’t pay anything for it.
When a person dies and title is transferred to a spouse or a child, the due-on-sale clause in a mortgage contract doesn’t apply. Otherwise, while a lender could call the loan, in the current economic climate it is unlikely if the person inheriting the property makes regular payments.

Source: Real Estate Matters Syndicate, Ilyce Glink (08/24/2008)

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Sellers May Want to Offer Assumable Mortgage

One of the good way (especially now) to market you property is to offer assumabble mortgage

Sellers who can’t find a buyer should look at the terms of their mortgage and, if it is permitted in their area, offer to let a buyer assume their loan.

Utah Housing Loan is assumable loan.

Assumable mortgages made in recent years generally carry interests rates below current market rates. Plus, a buyer who can qualify with the lender can step into a mortgage without having to come up with a down payment or pay hefty closing costs.

It is definitely win-win for sellers and buyers.

The Website HomeAssume.com matches buyers and sellers. FHA and VA mortgages are assumable, as are many conventional adjustable-rate mortgages

Why Seller funded downpayment goes away?

Main points about the Seller-funded Downpayment Assistance Provision

* Seller-funded downpayment assisted FHA loans have a very high default rate. In FY2007, the default rate on seller-funded downpayment loans was more than 28%, roughly three times the default rate on FHA loans without seller-funded downpayment assistance.

* The FHA does not collect enough in premiums to sustain a 28% default rate on its loan portfolio without the need to raise premiums for all FHA borrowers or receive a federal subsidy for the first time in the 71-year history of the FHA program.
FHA is the only mortgage program that has allowed seller-funded downpayment assistance.

* Under the legislation, FHA borrowers can still receive a 100% loan. The only requirement is that they must contribute 3.5% of the total costs in either the downpayment and/or closing costs.

Facts About Seller-funded Downpayment Assistance Provision

Facts About Seller-funded Downpayment Assistance Provision

The Housing bill signed by the President on July 30, 2008, does not eliminate all downpayment assistance programs from eligibility for FHA insurance. Only those programs that are funded directly from the seller or other party to the transaction are prohibited. Downpayment assistance from family members, government programs, or charities that are not seller-funded is still permitted. The prohibition goes into effect October 1, 2008. Read more about the Seller-funded Downpayment Assistance Provision.

Few Mortgage Tips

1.With the sub-prime issues continuing to impact the real estate industry, it is refreshing to know that veterans can get 100% financing on a single family residence. The lending limit for a veteran to purchase in Utah is $417,000. This applies to duplexes, triplexes and fourplexes as well

2.Did you know that missing just ONE payment on that little credit card balance can cause your FICO score to drop 100 points in one month and could disqualify you for a loan, even if the minimum payment is only $5.00. Watch those little ones. . .paying only the minimum on time is more important than paying the whole balance off.

Financing...

Before you start looking at Salt Lake City homes, it’s a good idea to know how you will finance the purchase of your new home and how much of your own money you will need to accomplish this. Keep in mind that the better your credit is, the less you will need in most cases.
The costs are listed below:

• Down Payment : Most houses are bought with 0% to 20% down. There are many loans for a variety of needs. If you put 20% or more down, there is no private mortgage insurance.
• Closing Costs : Closing costs and prepaid taxes & insurance will typically be another 2%-4% of the purchase price. However, the Buyer can negotiate with the Seller to pay for the Buyers closing costs and add them to the price of the house. The lender allows this, so the Buyer usually doesn't need to save this amount to buy a home.
• Inspections: A home inspection will cost $300 or more and is worth it. The Buyer should plan on paying for this at the time of inspection.

Other concerns for down payment:

• Your Credit: If your credit is good you will have more options.
• Once you’ve saved some money, what other things beside the purchase of real estate will you need that money for?
• The type of house you are buying (If you're buying a fixer-upper, you'll need money to fix it after you buy it)
• 20% down. No private mortgage insurance (PMI) if you put 20% down. This matters more if you will be staying in the house for a long time. However, it usually makes sense to buy homes with little down if the price of real estate is going up, and try to eliminate the PMI later as a result of your appreciation
.• Interest rate. Some low down payment (0% down) programs have higher interest rates, but many are quite competitive.