First Time Homebuyer Tax Credit: How Long Will Funds Last?

These estimates give a general idea of the number of applications received and the amount requested for the First-Time Buyer Credit. 57% of the estimated requested credit is shown since the $100 million cap will only be reduced by 57% of the credit allocated to the buyer. The amounts do not reflect actual amounts which will be allocated. Once the state determines that they have received sufficient applications to allocate the full $100 million, they will stop accepting applications for the First-Time Buyer Credit. There is also a separate "New Home" Credit.
First-Time Buyer Credit Applications
As of # Apps Received 57% of Estimated Requested Credit
05/04/10 430 $ 2,351,000
05/11/10 2,470 $ 13,283,000
05/18/10 4,830 $ 25,473,000
05/25/10 7,330 $ 38,357,000
06/01/10 9,760 $ 50,948,000

Applications are quickly absorbing available funds.
At this rate, I don't expect the credit to last much past July 2010.

The second last-minute credit report before closing

Up till now, realtors and homebuyers were infrequently affected by this practice. Starting June 1st, 2010, it becomes the rule rather than the exception. Your lender is likely to order a second credit screening immediately before closing. It is part of Fannie Mae's "loan quality initiative" to cut down on slipshod underwriting and fraud by borrowers. This second report is designed to find out whether you have obtained, or even shopped for, new debt between time of loan application and the closing. If you have made applications for credit of any type, the closing may be put on hold pending further investigation, and your transaction could potentially fall through.
How should a borrower prepare for the new credit check procedures? Just follow one basic rule: total abstinence. Resist new spending completely between loan application and closing. And don't apply for new credit or increase credit lines without discussing it with your lender first!

HomePath Mortgage Financing Basics for First Time Home Buyer

Here are the basics of HomePath Mortgage that every first time home buyer should become familiar with:

• No appraisal required.
• Can finance up to 97% of the purchase price. (Over 95% is "Homepath Flexible".)
• No MI is required. This increases the buyer's purchasing power.
• Gift or grants OK for down payment.
• Loans from relative employer, gov't or non-profit agency OK for "Homepath Flexible".
• It is only for FNMA REO properties.
• Minimum $500 from borrower's own funds.
• Up to 6% seller contributions for owner occupied and second homes from 75% to 97% LTV
• Up to 9% Seller contributions for LTV under 75% .
• 1-4 unit, condos, PUD's and modular homes.
• Min FICO score of 660 for LTV greater than 80%
• Min FICO of 580 for LTV less than 80%
• Permanent Resident Aliens with Alien Registration Card OK (*with 5% down)(*must live and be employed in US for FLEX) , Non Permanent Resident Aliens with SSN and US employment OK.
• Over 95%, Fixed Rate programs from 15 to 30 year terms are available in 5 year increments to $417,000.
• Under 95%, 5% Down payment required from borrower's own funds to 80% LTV. (Borrower's own funds for Down Payment requirement waived below 80%.) Over 80% requires 660 FICO, under 80% requires 580 for 1-2 Units. 3-4 Units requires 580 FICO to 75% LTV.
• Under 95%, Fixed Rate programs 8 to 30 year term in annual increments available, with , and 5/1 and 7/1 Libor to $417,000.
• High Loan Balance Loans are available to 90% with 700 FICO or to 75% with 660 FICO Fixed Rate for 1 Units. 2-4 Units to 75% LTV with 740 FICO. 5/1 LIBOR is 75% to 680 FICO for 1 Unit and 75% with 740 FICO for 2-4 Units.
• Temporary Buydowns up to 3% permitted.

(I am a direct lender in AZ, CA, CO, OR, NV, WA )