“Fannie Mae, the agency sponsored by the U.S. government to help make housing more affordable to all Americans, now offers HomePath, a special new home loan to finance the sale of its current real estate owned (REO) properties across the country.

Lower down payments and relaxed requirements mean more home shoppers can become homebuyers. HomePath helps you sell more homes!

Prospect Mortgage Company is among a select group of mortgage lenders nationwide who can offer the HomePath loan to get your clients into one of these foreclosed properties.

Here are the key benefits of a HomePath Mortgage Loan:
  • Only 3% down required on a primary residence property
  • No mortgage insurance required
  • No property appraisal required
  • Only 10% down on 1-2 unit investment properties
  • Get up to 6% in seller concessions on primary residence properties”

What a great time to buy!!!

Search for Fannie Mae REO properties eligible for HomePath financing at:
http://reosearch.fanniemae.com/reosearch/

Tax Provisions

·         $8,000 first-time home buyer, true tax credit (no repayment) for the purchase of a principle residence between January 1 and December 1, 2009.  Recaptured if home is sold within three years.  Removes the restriction on the use of tax credit proceeds with Housing Finance Agency-issued tax exempt mortgage revenue bonds.  

·         Short-term gap financing for Low Income Housing Tax Credit (LIHTC) projects:

1.      Provision allowing states to turn in portion of 2009 LIHTC allocations for cash.

2.      Special appropriation of $2 billion in HOME funds.

·         Up to a ten-year deferral of tax from business debt cancelled as part of a repurchase or restructuring.

·         5-year carryback of 2008 net operating losses for businesses with gross receipts of less than $15 million (three year average).

·         Extension of enhanced bonus depreciation.

·         Extension of increased small business expensing.

·         Enhancements to the section 25C program for energy efficiency remodeling improvements to existing homes.

·         One-year patch of the Alternative Minimum Tax.

·         Increase New Markets Tax Credit allocating authority for 2008 and 2009.

·         Delays for one year the start of 3% government contractor withholding requirement.

Appropriations Provisions

·         $2 billion for full year payments to owners of Section 8 project based rental assistance properties.

·         $2.25 billion through HOME program and Low Income Housing Tax Credit program to fill financing gaps.

·         $1 billion for CDBG.

·         $2 billion for Neighborhood stabilization program.

·         $1.5 billion for homelessness prevention activities (help with rents, etc).

·         $250 million for energy retrofitting and green investments in HUD assisted projects.

·         $1 billion for Section 502 direct loans under the Rural Housing Service.

·         $10.4 billion for Section 502 guaranteed loans under the Rural Housing Service.

·         $27.5 billion for highway spending.

Other Key Provision

·         Increases in FHA, Fannie Mae and Freddie Mac loan limits to 2008 levels.

As always, if you would like more specifics or would simply like to know what this data means to you, give me a call and I would be glad to answer any questions.