New Home Buyer Credit for San Jose Buyers

The $8000 first time home buyer credit has been extended and expanded for San Jose and rest of the Bay Area buyers. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009. In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time. So Who Gets What? The…
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Government’s role in Housing, How far will it go?

This year Government has announced a ton of programs to prop up the Housing Market. Some of the major programs have been geared towards Foreclosure Prevention by launching 125% refinance program and incentivising Loan Servicers for modifying loans for struggling home owners. The Higher Conforming Loan Limits up to $729,750 would also be extended through 2010. Of course, all this has come with increased regulation. My focus on this blog is to talk about 3 actions that has had the most impact: Action #1 Buying Mortgage Backed Securities (MBS) The Government earlier this…
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San Jose Weekly Mortgage Market Commentary 11/01/2009

The week that was: A good week for the interest rate markets. Mortgage interest rates declined about 10 basis points. Treasury once again successfully sold $123B of notes in four auctions. Consumer confidence measured by The Conference Board declined more than expected, implying consumers may not be as convinced of a recovery as the equity markets. Personal spending in Sept declined, new home sales were expected to be up slightly in Sept but declined 3.6%. Finally the stock market ended the week on what looks like the beginning of the long over-due correction…
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Senate close to extending First Time Home Buyer Credit

There has been a lot of buzz in the media over last couple of days about extension of First Time Buyer Credit. National Association of Mortgage Brokers (NAMB), National Association of Home Builders (NAHB) and National Association of Realtors (NAR), have been working with the Government for sometime now to extend the credit. Without the extension, the credit is set to expire on Nov 30, 2009. There have been lot of proposals including not only extending the credit but expanding it to cover all kinds of buyers (and not just the First Timers)…
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3% CHDAP DownPayment Assistance for San Jose First Time HomeBuyers

This post will help you find all the details on 3% down payment assistance program (CHDAP) for San Jose and rest of the Bay Area First Time Home Buyers. I have earlier blogged about CalHFA 5% downpayment program & $8000 First Time Home Buyer Credit in my earlier posts. The California Homebuyers Downpayment Assistance Program (CHDAP) is a deferred payment, simple interest rate junior loan not to exceed 3% of the sales price or appraised value, whichever is less. The junior loan may be combined with a CalHFA first mortgage loan that is…
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FHA allows $8000 tax credit for down payment in San Jose

But can you really use it? Not so fast.... Federal Housing Administration (FHA) announced today that the first time home buyer credit of $8000 can be used as down payment in San Jose & rest of the Bay Area. If you are a first time buyer with limited down payment and you are the type who doesn't read fine prints, it certainly is a great news. But I have my reservations - some serious ones. I see some very basic issues with the announcement which would either delay the implementation or may have…
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$8000 First Time Home Buyer Tax Credit for San Jose Purchase

First Time Home Buyer Tax Credit for San Jose and rest of the Bay Area Who is Eligible? The $8,000 tax credit is available for first-time home buyers only. The law defines first-time home buyer as a buyer who has not owned a principal residence during the three-year period prior to the purchase. All U.S. citizens and residents (as defined by IRS) who file taxes are eligible to participate in the program. Payback Provisions The tax credit is a true credit. It does not have to be repaid. The only repayment requirement is…
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