Wednesday, December 17, 2008

US Government and City Creative Loans.

I read The article on The Wall Street Journal yesterday about the USDA Loans program.

DECEMBER 16, 2008

Home Buyers Turn to USDA for Mortgages
Agency Program Backs Loans to Aid Rural Development; No Money Down -- Even Now

To be eligible for a USDA-backed loan, a borrower can't have income that exceeds 115% of the median county income, and the loans are restricted to areas with lower population density -- generally towns of no more than 25,000 residents. So while home buyers in big cities aren't eligible for the loans, residents of many of America's fastest-growing towns and exurbs do qualify. The loans that come through the program are made by private lenders, then insured by the government and sold to Ginnie Mae, a federal agency that sells mortgages to investors.
Home builders, many of which have overbuilt properties in these areas, are eagerly promoting the program to sell excess inventory.

The USDA program accounted for 40%-50% of sales in October and November for Scottsdale, Ariz.-based home builder Meritage Homes, says John Bargnesi, vice president for sales.

"It's one of our main tools right now."


City of Temecula - Home Improvement Loan for FTHB Program

The City of Temecula Redevelopment AgencyHome Improvement Loan Program for First Time Home BuyersThe City has determined that many homes eligible for the First Time Homebuyer Program are in need of some repair. In the current market many of these affordable homes are Bank-Owned properties that may have suffered some distress either at the hands of former owners or through neglect and vacancy.

This program is designed to work in tandem with the First Time Homebuyer Program.Property Type: Single Family detached homes, condominiums, townhouses and manufactured homes on a 433 permanent foundation.Property Location: Within Temecula City LimitsMaximum Amount: $10,000Loan Terms: A ten year loan at 5% interest.

The loan is forgiven on the maturity date if the terms have not been breached. If title to the property is transferred, the borrower ceases to occupy the property or the first mortgage is refinanced with cash taken out the loan becomes due and payable immediately.

Requirements: The application must be processed concurrently with the First Time Homebuyer Program.Eligible Repairs: Housing staff will perform a pre-inspection of all work to be done to determine eligibility. Eligible repairs include, but are not limited to:

Code items
Deterioration of structure or fencing
Repair or replacement of roof
HVAC systems, wall heater or evaporative coolers
Windows, Screens, Garage Doors & Entry Doors
Exterior Painting
Non-working or missing major appliances

Repair items damaged by neglect, vandalism or theft Participant must obtain a minimum of 2 bids from licensed contractors. All work must be inspected by housing staff or building inspectors prior to payment. Payment may be made directly to the approved contractor or to the homeowner as reimbursement.

Qualifying Income:Family Size / Income

1 / $52,100 2 / $59,500 3 / $67,000 4 / $74,400 5 / $80,400
6 / $86,300 7 / $92,300 8 / $98,200

Farm Service Agency
How about the FSA Loans to First Time Farmers & Ranchers?

The Farm Service Agency (FSA) provides direct and guaranteed loans to beginning farmers and ranchers who are unable to obtain financing from commercial credit sources. Each fiscal year, the Agency targets a portion of its direct and guaranteed farm ownership (FO) and operating loan (OL) funds to beginning farmers and ranchers.

More loans and Disaster Assistance Programs on USDA FSA site.

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