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Taxpayer
Stimulus Money
Are
You Eligible?
Money to pay off credit
card debt. Money for a new car. Money for your mortgage.
Do You
Qualify? Yes You Can . . .
Do it Yourself!
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5 Things about the "Hope for
Homeowners Act"
Every Homeowner Should Know
The Housing and Economic Recovery Act is much more than a
simple bill to help economically disadvantaged homeowners. The
massive program punishes predatory lenders, slashes mortgage debt and
reduces property taxes for people with homes valued as high as $625,000
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But some experts
predict the act may be underfunded and could leave behind thousands of homeowners who
fail to act quickly. The
key to participation in the program for most
homeowners is a new or refinanced loan through the Federal Housing
Administration (FHA).
Here's five things about the act that every homeowner should know.
Reduces total mortgage debt not
just the interest.
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The minimum reduction to total mortgage
debt provided by the program is 10% but for homeowners
refinancing into
an FHA loan
 the
savings can be significantly greater.
In addition, lenders who hold your old loan must waive any penalties or
fees, and help pay for the origination and closing costs of the new
loans.
- New and refinanced loans are based on your ability to repay ,
ensuring affordability and sustainable homeownership.
Provides up to $ 8,500 in tax
credits for current
or future homeowners.
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The Act
creates a refundable tax credit for first-time homebuyers that
works like an interest-free loan of up to $7,500 (to be paid back
over 15 years).
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Couples who refinance
under the program can take an additional $1,000 deduction for
property taxes ($500 for individuals).
Most homes are eligible.
Even homes in affluent housing markets can qualify for low-interest
FHA loans under the program. The new law raises conforming loan
limits for the FHA to
$625,500 but
only
primary residences are eligible: No investment properties, second or
third homes will qualify.
Loans
provided under this program must be 30-year fixed rate loans.
Adjustable rate mortgages and other types of creative financing that
led to the current crises are discouraged.
Homeowners should apply immediately.
The U.S. Department of
Housing and Urban Development says homeowners who want to
participate should not wait for the law to take effect
but should apply with an FHA-approved lender immediately!
How to
Determine Eligibility
- In person or by phone: Contact an FHA-approved lender to
determine eligibility.
- Online: Lending Tree provides a free no-obligation tool
to help borrowers quickly determine eligibility.
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Information source for this article is the
U.S.
Department of Housing and Urban Development. (www.hud.gov)
Please use the information for informational purposes only. This
document is NOT intended as legal advice. TXDILAR and Davick Services
are not associated with any government agency.
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