Q: I am in the process of selling my home through a short sale and have been told that no bank will give me a new loan because of this. I need to purchase a less-expensive home and don’t want to rent and keep bouncing my family around. Is there any bank that will lend to me? -- Roberta
A: Roberta, the Federal Housing Administration has announced that as long as you are current on your existing mortgage at the time of your short sale, the agency will provide mortgage financing if you decide to purchase a new home for your family. You will, however, still need to qualify and meet all existing FHA guidelines, but the government is offering an option for people in your situation.
Q: I am unemployed and in need of cash until I find a job. I do not have life insurance, and no 401(k) plan to tap into, but I own my home. Is there any way I could tap into my home’s equity while I am still unemployed and looking for work? I know that having no job or income is something that would ordinarily disqualify me for a loan. What is your opinion, other than looking for a job, which I am constantly doing? -- Steve
A: Steve, you are not alone in this situation. Unemployment is at record highs and looks to be on pace to get worse before it gets better. The only viable option I see for you is private or “hard money” financing. Generally, the main criteria for this comes down to the amount of equity in your home. If you have substantial equity, this may help you bridge your situation until you get a job and then can refinance out of this loan into a traditional mortgage. Also, I would suggest seeking out even part-time work, which can lead to a full- time position down the road. Lastly, if you have a family member who would be willing to co-sign on the loan, you may be able to use a Federal Housing Administration non-occupant co-borrower option that allows the government to lend to your family member on your home even if your relative doesn’t live there. More due diligence would be necessary to see if this would be feasible, but it could be an option.
Q: I am looking to buy my first home but don’t want to commit until I know for sure that housing prices won’t keep going down. I only have a small amount of money for a down payment and don’t want to be underwater right after I purchase. Where do you see the market trending? -- Janice
A: Janice, U.S. home prices rose 0.5 percent in November from a year earlier, the first annual gain since 2007, as home buyers who expected a federal tax credit to expire stepped into the market. The 12-month gain, the first since December 2007, was led by a 2.9 percent increase in the region that includes California, as reported by the Federal Housing Finance Agency in Washington, where prices also rose 0.7 percent from October. Clearly, no one has a crystal ball, but it does look like we are seeing some initial signs that it may be turning around.
Q: I am married with two young children and need to purchase a home for my family but have been told that the down payment assistance programs of the past no longer exist and I need to put down 3.5 percent, plus closing costs for an FHA loan. Is there any assistance in the marketplace that can help me since I don’t have that amount of money available? - Leticia
A: Leticia, a bill introduced by U.S. Representative Al Green, a Texas Democrat, and supported by the U.S. Conference of Mayors would restart a program that allows nonprofit groups to donate the 3.5 percent down payment that low-income buyers need to get FHA-insured mortgages. The plan, which funded the purchase of more than 1 million homes over 10 years, was halted by lawmakers concerned about rising defaults and evidence that some buyers were charged more than others. Shaun Donovan, the secretary of Housing and Urban Development, is against the idea and is creating resistance against this bill passing. I would suggest you write to your local congressman expressing that you are in favor of this bill and believe it should be supported and passed. Without this, there are very few options, if any, for down payment assistance.
Source: http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2010/01/ask_a_real_estate_professional_12.html
The Criscitos has been selling South Florida luxury and commercial real estate for over a decade and has sold over $1 billion dollars of property. They work as a multi-lingual team speaking english, Spanish, Italian and Portuguese. They carved out a niche as a leading boutique real estate company with two distinct divisions -residential and commercial- both personally overseeing by Marcela and Anthony Criscito.
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