Economic Rescue Passed--Now What?

Is is time for a new Dollar Bill?

Ok, deep breathe..... Lets talk about the week. Monday was brutal, followed by some recovery Tuesday and Wednesday.


Yesterday the Senate voted the Revised Economic Recovery plan and Congress finally said Yes today. So in 25 words or less.... what does the Economic Recovery plan mean? Credit lines will remain open and lending should continue. Is it the magic bullet that everything is perfect and all will be the same as before or better? No- but it is a start.

Now it is up to us to get the word out that financing is still available without a large down payment. Inventory is strong and it is a wonderful time to purchase. Many potential buyers are now feeling as if they can't buy a home until they save money for a large down payment. This is not always the case and if buyers want to purchase a primary home, there are ways that are still available to reduce cash required for closing. All programs do require that the buyer qualify for the house, which is a good thing as it won't put people in homes that they can't afford. The credit history does not have to have been perfect. We do have financing for homes for people with credit scores of 580 and higher, as long as they can show a good rental payment history.

On October 1, 2008, the ability to get an FHA loan and have the seller contribute to a seller-funded down payment assistance program such as Ameridream and Nehemiah ended. The passage of Housing Bill 3221 by Congress took this feature away, ending the ability to have the seller help a buyer to get 100% financing on an FHA loan. A buyer will now have to contribute 3% towards down payment (3.5% after January 1, 2009) for an FHA mortgage.

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  FHA mortgage allows a gift from a family member - A family member can gift the 3% down payment required . FHA loan limit is$271,050, making it a very attractive loan in Dallas/Fort Worth area.
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  There are First Time Home Buyer Bond Programs available. Many of these programs are getting their new allotment of funds this month.
  Zero down VA loans are available for those who have eligibility for having served in the military. In addition, using the VA in conjunction with the Texas Veterans Land Board program
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  USDA Rural Housing loan - this program actually has the ability to include closing costs in the mortgage as well as no down payment and no monthly mortgage insurance! There are income and location limitations but many people are surprised to see exactly what areas do qualify (i.e., Rockwall, Wylie, Forney, Little Elm,Princeton, Anna, and Melissa, just to name a few).

Interest rates are still low, and buyers can purchase a home with a lower payment. It is a great time to purchase a home.