How to Use Down Payment Assistance Programs Part Three

Recently I received an email requesting information on down payment assistance programs for a specific city. Down payment assistance programs for that city are not listed on myhomedownpayment.com, yet.

This article is one of six on finding down payment assistance programs in your area. If you are looking for down payment assistance programs anywhere in the country, the following information should help get you up and started.

Back to the homework.

Go to the HUD web site and download a list of approved lenders in your area. Contact them.

Next go to the same HUD site to find a list of approved home buyer counseling providers. Take as many first time homebuyer classes as you can. Myhomedownpayment.com provides a list of online homebuyer classes.

Most down payment assistance programs will require you to take a class from an approved provider. No problem, your goal is to become as knowledgeable about the home buying process as possible.

The Steps:

1. Choose the first mortgage program you qualify for: FHA/HUD, Conventional, VA, or Rural Development
2. Choose a State Down Payment Assistance loan or grant (must be eligible)
3. Choose a County Down Payment Assistance loan or grant (must be eligible)
4. Choose a City or unincorporated area loan or grant (must be eligible)

If you need further assistance feel free to contact me at contact@myhomedownpayment.com.

The author, Yasmin Sabur, is the founding member of My Home Down Payment and myhomedownpayment.com, e-education businesses promoting affordable housing through mortgage down payment assistance programs for low-to-moderate income families.

How to Use Down Payment Assistance Programs Part Two

Recently I received an email requesting information on down payment assistance programs for a specific city. Down payment assistance programs for that city are not listed on myhomedownpayment.com, yet.

This article is one of six on finding down payment assistance programs in your area. If you are looking for down payment assistance programs anywhere in the country, the following information should help get you up and started.

Ask questions. Buying a home is not the time to be embarrassed because you don’t understand something. Ask questions, and ask for an explanation in English. If your questions are not answered in a timely or understandable fashion, move on. Ask all the questions you can think of in the beginning of the process. Interview real estate professionals and mortgage professionals.

Don’t sign any loan applications, release your social security number or have credit reports ordered before receiving an answer to your questions. Once you begin the loan process you will have to pay for credit reports and appraisals, in addition to other fees. You must be comfortable with the professionals before you commit your hard earned money.

The Steps:

1. Choose the first mortgage program you qualify for: FHA/HUD, Conventional, VA, or Rural Development
2. Choose a State Down Payment Assistance loan or grant (must be eligible)
3. Choose a County Down Payment Assistance loan or grant (must be eligible)
4. Choose a City or unincorporated area loan or grant (must be eligible)

If you need further assistance feel free to contact me at contact@myhomedownpayment.com.

The author, Yasmin Sabur, is the founding member of My Home Down Payment and myhomedownpayment.com, e-education businesses promoting affordable housing through mortgage down payment assistance programs for low-to-moderate income families.

How to Find Down Payment Assistance Programs

Recently I received an email requesting information on down payment assistance programs for a specific city. Down payment assistance programs for that city are not listed on myhomedownpayment.com, yet.

This article is one of six on finding down payment assistance programs in your area. If you are looking for down payment assistance programs anywhere in the country, the following information should help get you up and started.

Begin by doing your homework. Buying a home can be a confusing process.

All of the people involved in the purchase of your home, except you, are working professionals. This means you are paying them – the real estate agent, the mortgage loan officer, the processor, the appraiser, the inspector, the escrow and title companies, the closing attorney, the seller and many other people.

Because purchasing a home is not something you will do often, you may be resistant to learning as much as possible about the process. Yes, this is information you will not use everyday of your life, but this is the largest purchase most of us will ever make. An investment. The more you know the better.

The Steps:

1. Choose the first mortgage program you qualify for: FHA/HUD, Conventional, VA, or Rural Development
2. Choose a State Down Payment Assistance loan or grant (must be eligible)
3. Choose a County Down Payment Assistance loan or grant (must be eligible)
4. Choose a City or unincorporated area loan or grant (must be eligible)

If you need further assistance feel free to contact me at contact@myhomedownpayment.com.

The author, Yasmin Sabur, is the founding member of My Home Down Payment and myhomedownpayment.com, e-education businesses promoting affordable housing through mortgage down payment assistance programs for low-to-moderate income families.

Winter is breaking our California Hearts

We empathize with the East Coast in the midst of this year’s snow storm. That is, when we’re not busy planting heirloom tomatoes, mixed lettuce and herbs.

Okay, I’m sorry for rubbing it in. When I moved to California, after living in the Midwest, the Big Apple, Savannah, Houston and several other places in between, I was afraid I would never get used to the cultural distance. I love the beach, but it doesn’t replace political conversation, live jazz, dance companies, creative theatre or good restaurants. Little did I know that I would find the love of my life here.

The sunshine tax overwhelmed me. A cottage worth about $75,000 in the rest of the country costs half a million in most of southern California, or did up until last year. When it rains here for more than 15 minutes, you watch your money flying around with the drops on your windshield. Yeah, we know the rain is good, we don’t have any water.

I missed the changing seasons, the snow, crisp fall evenings, the first signs of spring. Then I bought a bungalow in the city on a half acre of land. The backyard was covered with Bermuda grass. You’ve all heard me on that subject. Slowly, but surely, we are getting rid of the BG and planting an organic garden.

I am totally in love. I ooh and aah over the first little green shoots of lettuce. Cry over apricot blossoms. Drool at the thought of heirloom tomatoes. Become orgasmic when the okra blooms. Who would have thought this Midwestern, Northeastern, city urban sophisticate (well that’s the way I think of myself), is at heart just a little old farm girl. Comments from the monkey gallery are not welcome. Food not Lawns!

How do I buy a house and benefit from the $8,000 tax credit?

At this point the question is no longer “can I buy a house” but, “how do I buy a house and benefit from the $8,000 tax credit?”

Sure you’re anxious and concerned about getting into a risky situation, in a time when so many of our friends, family and neighbors are losing both their jobs and homes.

Your concerns are valid. No one has a crystal ball to predict the future. The best we can do is plan carefully.

You also know the basics

1. make sure you have enough in savings to cover a minimum of six months of expenses;
2. have a stable two year income history (I say income history not employment history, because self employment, education, regular seasonal work, social security awards, alimony, stocks, bonds, annuities, and many other forms of income may be used to qualify for a mortgage); and
3. have a one year positive credit history.

If you have the basics covered now you need to find the right mortgage. I believe there are no better mortgages than those offered by government agencies – the FHA 3.5% down payment first mortgage, the VA 100% guaranteed mortgage, and the various mortgages offered by USDA Rural Development. HUD provides a list of approved lenders and home buying education providers in your area. This is where you should start.

Down payment assistance loans and grants can save you thousands of dollars over the life of your mortgage. Visit My Home Down Payment for a description of down payment assistance programs available nationwide and in California and Texas.

Public servants – teachers, firefighters, emergency medical personnel -are eligible for special mortgage assistance. These programs are available nationwide, offered by states and many counties.

Union members may be eligible for first time homebuyer loans and grants. Others should contact their employer’s human resources department and ask if loans or grants are available for first time homebuyers.

If you have a 401K inquire about borrowing funds from your account toward your down payment and closing costs. Using 401K funds will not prevent low-to-moderate income families from qualifying for additional down payment assistance programs. Do this now. Depending on how your plan is administered, you may have to wait several months or an annual quarter to receive funds.

As you move through the process of purchasing your first home (first time homebuyers are generally defined as any one who has not owned a home in three years), post the story of your experiences on housingtales.ning.com. Feel free to vent your frustration and share your joy.

My hope for you is that you will purchase a home for your family this year, share your good fortune with others, and if you purchase a property that another family lost that you will pray for their well being.

The author, Yasmin Sabur, is the founding member of My Home Down Payment, an e-education business promoting mortgage down payment assistance programs for low-to-moderate income families.

 

 

Buying a Home is a Process Part Two – Items to Include in Your Budget

The previous post covered expenses involved in owning and maintaining a home. This week (yes I know we were going to go over homebuyer classes, but I got ahead of myself), let’s take a look at current budget items for potential homeowners.

“Knowing where you are is a good way to get to where you want to go.”

Mama Yas

What is Income?

Income includes all of the money coming into the household, from all family members 18 years or older.

Begin now to save pay stubs, bank statements, divorce and separation decrees, disability, social security and insurance award letters. You’ll need these documents when you apply for a mortgage loan.

Income Items for Your Budget

Take Home Pay/All family members

Child Support/Alimony

Pension/Social Security

Disability/Other Insurance

Interest/Dividends

Other

Total Income

(Add the amount of all items to determine your total monthly household income before taxes and other deductions.)

Preparing to Compute Your Expenses

Gather together receipts and bills from several months to compute your monthly expenses. When you can it is always better to use a factual amount rather than guessing or estimating expenses.Set up manila folders for rent receipts with a copy of the related check or money order stub attached. Include folders for pension contributions and statements, savings and checking account statements, car payments, pink slips for vehicles you buy or sell, credit card payments and student loans.

Expenses Items for Your Budget

Rent/Mortgage (include taxes, principal, and insurance)

Life Insurance

Health/Disability Insurance

Vehicle Insurance

Homeowners or Other Insurance

Car Payments

Other Loan Payments

Savings

Pension Contributions

Groceries

Utilities (gas, water, electric, phone, cable, internet, satellite service)

Credit Card Payments

Car Upkeep (gas, maintenance)

Clothing

Personal Care Products

Medical/Dental/Prescriptions

Home Maintenance

Recreation, Entertainment and Dining out (include work lunches)

Child Care

Education

Charitable Donations (include tithes and zakat)

Miscellaneous Expenses

Total Expenses

(Add the amount of all items to determine your total monthly household monthly expenses.)

 

Income Should be Greater than Expenses

Deduct your total expenses from your income. Your income should be greater than your total expenses if only by a few dollars.

Now, that you know where you are you can begin planning for where you want to go. Hopefully that includes a new home in the near future. Glad to be on the journey towards that goal with you.

 

The author, Yasmin Sabur, is the founding member of My Home Down Payment, an e-education business that offers advice and information on affordable housing for first time homebuyers. MyHomeDownPayment.com is a national directory of down payment assistance programs for low-to-moderate income families.