The foreclosure crisis continued to grow in the first half of 2009, affecting more than 1.5 million homes, according to a mid-year report from foreclosure listing service RealtyTrac Inc.
The report cites a 9 percent increase in total properties in foreclosure compared to the previous six months, and a nearly 15 percent increase in total properties facing foreclosure compared to the first six months of 2008.
The report also says that 1.19 percent of all U.S. housing units (one in 84) received at least one foreclosure filing in the first half of the year.
"In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels," said James J. Saccacio, chief executive officer of RealtyTrac, in a prepared statement.
States with the highest foreclosure rates are:
Nevada
Arizona
Florida
California
Utah
Georgia
Michigan
Illinois
Idaho
Colorado
States with the highest number of actual foreclosures are:
California
Florida
Arizona
Illinois
Nevada
Michigan
Ohio
Georgia
Texas
Virginia
Source: RealtyTrac (07/16/2009)
Friday, July 17, 2009
Friday, July 10, 2009
FHFA Authorizes Fannie Mae & Freddie Mac to Expand Refinance Program to 125% L-T-V
The Federal Housing Finance Agency has authorized Fannie Mae and Freddie Mac to expand the Home Affordable Refinance Program (HARP) to homeowners who are current on their mortgage payments from the present loan-to-value ratio ceiling of 105 to 125 percent. With these expanded refinance opportunities, qualified borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac will be allowed to refinance those loans according to the terms of the Home Affordable Refinance Program established earlier this year.
“I am pleased to join Secretaries Donovan and Geithner in announcing this expansion of the Obama Administration’s Making Home Affordable program,” said FHFA Director James Lockhart. “The higher LTV refinancings will allow more homeowners to strengthen their finances by taking advantage of lower mortgage rates. The Enterprises are also incenting these borrowers to combine a lower mortgage rate with a faster amortization schedule, which will enable them to get ‘above water’ on their mortgages more quickly. This program could assist many homeowners who otherwise would have difficulty refinancing due to declining house prices,” Lockhart said.
The program provides borrowers with an incentive to reduce the term of their loan from 30 years to a shorter-term, fixed-rate mortgage and therefore pay down the principal more quickly and reduce lifetime interest payments. Borrowers who refinance may see lower monthly payments and a more sustainable mortgage which will reduce the risk of default. This expansion of HARP will assist the Enterprises in managing the credit risk associated with these higher loan-to-value mortgages. If your loan is held by Fannie Mae or Freddie Mac and you are current on your mortgage payments, you may be eligible to refinance your mortgage loan even if your LTV is up to 125%. LTV, or loan-to-value-ratio, is a measurement that compares the principal balance of your loan (the amount you currently owe) to the actual value of the house. For example, if your loan amount is $300,000 and the current value of your home is $240,000, your LTV is 300/240, or 125%.
Previously, under the Making Home Affordable Program for Fannie Mae and Freddie Mac loans, only homeowners seeking loans with a maximum LTV of 105% were able to refinance. The eligibility guidelines for refinancing have recently been expanded to allow more homeowners to participate. Now borrowers with LTVs up to 125% can take advantage of lower interest rates to lower their monthly payment or take the opportunity to move into a fixed-rate mortgage.
Refinancing to a lower interest rate will usually result in a lower monthly payment. Alternatively, if you can afford your current monthly payment, you may consider using the savings to get “above water” much quicker. It may be right for some homeowners to pay off their mortgage in less than the typical 30 years – which means building equity faster and paying less interest over the life of the loan.
If you refinance into a 20-year or 25-year fixed-rate mortgage loan, just like the standard 30-year mortgage, your total principal and interest payment will never change. Your monthly payment will be a little higher than with a traditional fixed-rate 30-year mortgage due to the shorter term. Ask your lender about this option – if you can commit to making slightly larger monthly payments, which may still be less than your current payment.
Let’s say that your monthly principal and interest payment on your current mortgage is $1,857, and by refinancing into a 30-year mortgage, you reduce your payment by $200, to $1,657.
Source: Federal Housing Finance Agency News Release July 1, 2009
“I am pleased to join Secretaries Donovan and Geithner in announcing this expansion of the Obama Administration’s Making Home Affordable program,” said FHFA Director James Lockhart. “The higher LTV refinancings will allow more homeowners to strengthen their finances by taking advantage of lower mortgage rates. The Enterprises are also incenting these borrowers to combine a lower mortgage rate with a faster amortization schedule, which will enable them to get ‘above water’ on their mortgages more quickly. This program could assist many homeowners who otherwise would have difficulty refinancing due to declining house prices,” Lockhart said.
The program provides borrowers with an incentive to reduce the term of their loan from 30 years to a shorter-term, fixed-rate mortgage and therefore pay down the principal more quickly and reduce lifetime interest payments. Borrowers who refinance may see lower monthly payments and a more sustainable mortgage which will reduce the risk of default. This expansion of HARP will assist the Enterprises in managing the credit risk associated with these higher loan-to-value mortgages. If your loan is held by Fannie Mae or Freddie Mac and you are current on your mortgage payments, you may be eligible to refinance your mortgage loan even if your LTV is up to 125%. LTV, or loan-to-value-ratio, is a measurement that compares the principal balance of your loan (the amount you currently owe) to the actual value of the house. For example, if your loan amount is $300,000 and the current value of your home is $240,000, your LTV is 300/240, or 125%.
Previously, under the Making Home Affordable Program for Fannie Mae and Freddie Mac loans, only homeowners seeking loans with a maximum LTV of 105% were able to refinance. The eligibility guidelines for refinancing have recently been expanded to allow more homeowners to participate. Now borrowers with LTVs up to 125% can take advantage of lower interest rates to lower their monthly payment or take the opportunity to move into a fixed-rate mortgage.
Refinancing to a lower interest rate will usually result in a lower monthly payment. Alternatively, if you can afford your current monthly payment, you may consider using the savings to get “above water” much quicker. It may be right for some homeowners to pay off their mortgage in less than the typical 30 years – which means building equity faster and paying less interest over the life of the loan.
If you refinance into a 20-year or 25-year fixed-rate mortgage loan, just like the standard 30-year mortgage, your total principal and interest payment will never change. Your monthly payment will be a little higher than with a traditional fixed-rate 30-year mortgage due to the shorter term. Ask your lender about this option – if you can commit to making slightly larger monthly payments, which may still be less than your current payment.
Let’s say that your monthly principal and interest payment on your current mortgage is $1,857, and by refinancing into a 30-year mortgage, you reduce your payment by $200, to $1,657.
Source: Federal Housing Finance Agency News Release July 1, 2009
Friday, July 3, 2009
Top Rising, Falling House Markets
When the recovery in housing finally comes, some housing markets will rebound sooner than others. Real estate forecasting service Local Market Monitor, which covers the nation’s 300 largest markets, has identified 13 markets where it predicts home prices will rise in the coming months and 11 markets where it expects home prices will continue to decline significantly.
To make these picks, Local Market Monitor uses a proprietary formula.
Here are the 13 markets where it expects prices to rise:
Baton Rouge, La.
Buffalo-Niagara Falls
Dallas-Plano-Irving
Fort Worth-Arlington
Houston-Sugar Land-Baytown
Little Rock-North Little Rock-Conway, Ark.
McAllen-Edinburg-Mission, Texas
Oklahoma City
Rochester, N.Y.
San Antonio
Syracuse, N.Y.
Tulsa
Wichita, Kan.
Here are the 11 markets where it believes home prices will continue to decline:
Bakersfield, Calif.
Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla.
Fresno, Calif.
Las Vegas-Paradise
Miami-Miami Beach-Kendall
Orlando-Kissimmee
Oxnard-Thousand Oaks-Ventura, Calif.
Phoenix-Mesa-Scottsdale
Riverside-San Bernardino-Ontario, Calif.
Stockton, Calif.
West Palm Beach-Boca Raton-Boynton Beach, Fla.
Source: Local Market Monitor (06/23/2009)
To make these picks, Local Market Monitor uses a proprietary formula.
Here are the 13 markets where it expects prices to rise:
Baton Rouge, La.
Buffalo-Niagara Falls
Dallas-Plano-Irving
Fort Worth-Arlington
Houston-Sugar Land-Baytown
Little Rock-North Little Rock-Conway, Ark.
McAllen-Edinburg-Mission, Texas
Oklahoma City
Rochester, N.Y.
San Antonio
Syracuse, N.Y.
Tulsa
Wichita, Kan.
Here are the 11 markets where it believes home prices will continue to decline:
Bakersfield, Calif.
Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla.
Fresno, Calif.
Las Vegas-Paradise
Miami-Miami Beach-Kendall
Orlando-Kissimmee
Oxnard-Thousand Oaks-Ventura, Calif.
Phoenix-Mesa-Scottsdale
Riverside-San Bernardino-Ontario, Calif.
Stockton, Calif.
West Palm Beach-Boca Raton-Boynton Beach, Fla.
Source: Local Market Monitor (06/23/2009)
Friday, June 26, 2009
Rebound in Home Prices May Take Awhile
Housing analysts say that while sales are picking up, home prices are likely to continue dropping at least through mid-2010, and some prognosticators say until 2013.
The pessimists point to a rising number of option ARMs and Alt-A mortgages that are likely to reset in the next 18 to 24 months, leading to still more foreclosures.
"We're about two-thirds of the way through the pricing correction on a percentage basis," says Joshua Shapiro, chief U.S. economist with MFR Inc., an economic consulting and analysis firm. He predicts that prices will fall another 20 percent over the next 18 months.
"This is clearly the worst housing crisis since the Depression," says John Burns, president of John Burns Real Estate Consulting. "I think that once prices bottom out, they're going to stay flat for several years."
Source: Fortune, Janet Morrissey (06/19/2009)
The pessimists point to a rising number of option ARMs and Alt-A mortgages that are likely to reset in the next 18 to 24 months, leading to still more foreclosures.
"We're about two-thirds of the way through the pricing correction on a percentage basis," says Joshua Shapiro, chief U.S. economist with MFR Inc., an economic consulting and analysis firm. He predicts that prices will fall another 20 percent over the next 18 months.
"This is clearly the worst housing crisis since the Depression," says John Burns, president of John Burns Real Estate Consulting. "I think that once prices bottom out, they're going to stay flat for several years."
Source: Fortune, Janet Morrissey (06/19/2009)
Friday, June 19, 2009
Areas with the Best and Worst Economies
Thirty-eight of the country’s top 100 metro areas avoided declines in home prices in the past year, reports the Brookings Institution’s quarterly MetroMonitor, which tracks indicators of economic recession and recovery in these areas.
Areas with stable home prices were concentrated in the less-affected parts of what Brookings calls the “Manufacturing Belt,” Pennsylvania and upstate New York, and the Sun Belt: Texas, Oklahoma, Arkansas, and Louisiana. These areas also had below average shares of properties affected by foreclosure.
Cities whose economies were the strongest had businesses involved in oil and gas exploration, military employment, education, and government.
Here are the top 10 and the bottom 10 metro areas, according to how MetroMonitor ranked their economic health:
Top 10
1. San Antonio
2. Oklahoma City
3. Austin
4. Houston
5. Dallas
6. McAllen, Tex.
7. Little Rock, Ark.
8. Baton Rouge, La.
9. Tulsa, Okla.
10. Omaha, Neb.
Bottom 10
1. Providence, R.I.
2. Toledo, Ohio
3. Stockton, Calif.
4. Fresno, Calif.
5. Modesto, Calif.
6. Jacksonville
7. Lakeland, Fla.
8. Tampa
9. Bradenton, Fla.
10. Detroit
Source: The Brookings Institution (06/17/2009)
Areas with stable home prices were concentrated in the less-affected parts of what Brookings calls the “Manufacturing Belt,” Pennsylvania and upstate New York, and the Sun Belt: Texas, Oklahoma, Arkansas, and Louisiana. These areas also had below average shares of properties affected by foreclosure.
Cities whose economies were the strongest had businesses involved in oil and gas exploration, military employment, education, and government.
Here are the top 10 and the bottom 10 metro areas, according to how MetroMonitor ranked their economic health:
Top 10
1. San Antonio
2. Oklahoma City
3. Austin
4. Houston
5. Dallas
6. McAllen, Tex.
7. Little Rock, Ark.
8. Baton Rouge, La.
9. Tulsa, Okla.
10. Omaha, Neb.
Bottom 10
1. Providence, R.I.
2. Toledo, Ohio
3. Stockton, Calif.
4. Fresno, Calif.
5. Modesto, Calif.
6. Jacksonville
7. Lakeland, Fla.
8. Tampa
9. Bradenton, Fla.
10. Detroit
Source: The Brookings Institution (06/17/2009)
Friday, June 12, 2009
Too Early to Call Housing Bottom
Housing research organization IHS Global Insight estimates that the average U.S. home is undervalued by 12.2 percent, and many previously pricey communities are undervalued by considerably more.
A recent study released by IHS used home prices, interest rates, area incomes, population density, and historic premiums and discounts to analyze housing values. It examined 330 markets and found homes are underpriced in 248 of them.
Despite the high percentage of undervalued areas, IHS says "it is too early to call a bottoming," as "job losses continue, housing inventories remain elevated, and consumers remain wary in light of economic uncertainty."
Here are the 10 most undervalued areas:
1. Vero Beach, Fla., -42.5 percent
2. Houma, La., -41.4 percent
3. Las Vegas, -40.9 percent
4. Merced, Calif., -40.1 percent
5. Cape Coral, Fla., -39.1 percent
6. Houston, -36.9 percent
7. Midland, Tex., -34.8 percent
8. Lafayette, La., -34.4 percent
9. Vallejo, Calif., -34.3 percent
10. Stockton, Calif., -34.3 percent
Source: CNNMoney.com, Les Christie (06/04/2009)
A recent study released by IHS used home prices, interest rates, area incomes, population density, and historic premiums and discounts to analyze housing values. It examined 330 markets and found homes are underpriced in 248 of them.
Despite the high percentage of undervalued areas, IHS says "it is too early to call a bottoming," as "job losses continue, housing inventories remain elevated, and consumers remain wary in light of economic uncertainty."
Here are the 10 most undervalued areas:
1. Vero Beach, Fla., -42.5 percent
2. Houma, La., -41.4 percent
3. Las Vegas, -40.9 percent
4. Merced, Calif., -40.1 percent
5. Cape Coral, Fla., -39.1 percent
6. Houston, -36.9 percent
7. Midland, Tex., -34.8 percent
8. Lafayette, La., -34.4 percent
9. Vallejo, Calif., -34.3 percent
10. Stockton, Calif., -34.3 percent
Source: CNNMoney.com, Les Christie (06/04/2009)
Friday, May 29, 2009
National Association of Realtors: Existing-Home Sales Jump
Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®. Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.
Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. “Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”Buyers Once Again Emerge An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago. “This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.It's critical that distressed homes be quickly cleared from the market, Yun says. “Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans. “We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.A Closer Look at the NumbersNational median existing-home price: for all housing types, was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.Total housing inventory: at the end of April, rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2-month supply at the current sales pace, compared with a 9.6-month supply in March. “The gain in inventory is largely seasonal from sellers entering the spring market," Yun says. "Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier."Single-family home sales: rose 2.5 percent to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8 percent below the 4.30 million-unit pace in March 2008. The median existing single-family home price was $169,800 in April, which is 14.9 percent below a year ago.
Existing condominium and co-op sales: increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price was $173,900 in April, down 18.5 percent from April 2008.
By RegionNAR reported the following with existing-home sales across the country:
Northeast: jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
Midwest: slipped 2 percent in April to a level of 1.00 million and are 9.9 percent lower than a year ago. Median price: $138,800, down 11.7 percent from April 2008.
South: increased 1.8 percent to an annual pace of 1.74 million in April but are 8.9 percent lower than April 2008. Median price: $148,000, which is 12.8 percent below a year ago.
West: rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. Median price: $222,600, down 21.8 percent from April 2008.
Source: NAR
Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. “Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”Buyers Once Again Emerge An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago. “This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.It's critical that distressed homes be quickly cleared from the market, Yun says. “Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans. “We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.A Closer Look at the NumbersNational median existing-home price: for all housing types, was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.Total housing inventory: at the end of April, rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2-month supply at the current sales pace, compared with a 9.6-month supply in March. “The gain in inventory is largely seasonal from sellers entering the spring market," Yun says. "Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier."Single-family home sales: rose 2.5 percent to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8 percent below the 4.30 million-unit pace in March 2008. The median existing single-family home price was $169,800 in April, which is 14.9 percent below a year ago.
Existing condominium and co-op sales: increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price was $173,900 in April, down 18.5 percent from April 2008.
By RegionNAR reported the following with existing-home sales across the country:
Northeast: jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
Midwest: slipped 2 percent in April to a level of 1.00 million and are 9.9 percent lower than a year ago. Median price: $138,800, down 11.7 percent from April 2008.
South: increased 1.8 percent to an annual pace of 1.74 million in April but are 8.9 percent lower than April 2008. Median price: $148,000, which is 12.8 percent below a year ago.
West: rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. Median price: $222,600, down 21.8 percent from April 2008.
Source: NAR
Friday, May 15, 2009
Lenders Chase Short Sale Sellers
An increasing number of lenders are going after borrowers who sell their homes for less than they owe – known as a short sale – in order to recover more of the difference between the amount owed and the sale price.
Lenders say the factors that they consider when they decide to seek more money are:
How large was the unpaid debt?
Was the property an investment or a personal residence?
How much money does the borrower make and what other assets does he have?
What is the policy of the mortgage insurer or the holder of the second lien?
A PMI Group Inc. spokesman says the mortgage insurer "primarily target[s] borrowers who are not experiencing hardship – but those who simply elected to walk away from the property due to its decline in value."
Source: The Wall Street Journal, Ruth Simon (4/30/2009)
Lenders say the factors that they consider when they decide to seek more money are:
How large was the unpaid debt?
Was the property an investment or a personal residence?
How much money does the borrower make and what other assets does he have?
What is the policy of the mortgage insurer or the holder of the second lien?
A PMI Group Inc. spokesman says the mortgage insurer "primarily target[s] borrowers who are not experiencing hardship – but those who simply elected to walk away from the property due to its decline in value."
Source: The Wall Street Journal, Ruth Simon (4/30/2009)
Thursday, April 30, 2009
Have New-Home Sales Found the Floor?
It looks like sales of new homes have finally bottomed out.
The Commerce Department reported Friday that after hitting a record low in January — 74 percent lower than they were in July 2005 — new home sales rose in February and were flat in March.
"We believe that the bottom is at hand and that sales will begin turning in the second half of this year," writes IHS Global Insight economist Patrick Newport. "As previous recessions show, demand for new homes does not evaporate altogether, even in the hardest of times."
Median sales prices are still falling, down 12 percent in March compared to the same month the previous year. Analysts say they are likely to remain low until inventory is sold off.
Source: The Associated Press, Alan Zibel (4/24/2009)
The Commerce Department reported Friday that after hitting a record low in January — 74 percent lower than they were in July 2005 — new home sales rose in February and were flat in March.
"We believe that the bottom is at hand and that sales will begin turning in the second half of this year," writes IHS Global Insight economist Patrick Newport. "As previous recessions show, demand for new homes does not evaporate altogether, even in the hardest of times."
Median sales prices are still falling, down 12 percent in March compared to the same month the previous year. Analysts say they are likely to remain low until inventory is sold off.
Source: The Associated Press, Alan Zibel (4/24/2009)
Friday, April 17, 2009
Down-payment Assistance Program available on any Utah New Home!
What is the $6,000 Home Run Grant?
The $6,000 Home Run Grant is a mortgage assistance program that grants $6,000 to home buyers who finance the purchase of a newly constructed, never occupied residence in Utah using a 30-year fixed rate mortgage. The Home Run Grant is funded by the Housing Relief Restricted Special Revenue Fund, established by Utah Governor Jon Huntsman, the Utah State Legislature, and Utah Housing Corporation.
Who is eligible to receive a $6,000 Home Run Grant?
· The Home Run Grant is available to any Utah home buyer who meets the following income restrictions:
o Single person, $75,000
o Married couple, $150,000
· Buyers must occupy the purchased home as a primary, permanent residence no later than 30 days after closing.
What homes can be purchased with a $6,000 Home Run Grant?
Homes must be recently constructed. They cannot be previously occupied.
How does a home buyer apply for a $6,000 Home Run Grant?
Home buyers should tell their home builder, realtor and mortgage lender that they want to apply for a Home Run Grant. Mortgage lenders are the key link between the home buyer and the Home Run Grant. The mortgage lender assists the home buyer to provide necessary information to secure the grant from Utah Housing Corporation. The home buyer does not work directly with Utah Housing Corporation.
What type of loan can home buyers use to purchase the home?
Buyers must qualify for a 30 year, fixed interest rate loan of their choice to finance the purchase of the home. Examples of qualifying loans include:
* Conventional
* FHA, VA, or Rural Housing
* Utah Housing Corporation’s FirstHome and FirstHome Plus
* Federal Home Loan Bank’s HomeStart
What mortgage lenders can assist homebuyers to secure a $6,000 Home Run Grant?
Any mortgage lender qualified to make mortgage loans under Utah law can assist homebuyers to secure the Home Run grant.
Can the $6,000 Home Run Grant be combined with the new federal $8,000 tax credit?
Yes. Home buyers can take advantage of both the Home Run $6,000 Housing Grant and the $8,000 federal tax credit. The $6,000 grant is available at the time the home is purchased.
How many Home Run Grants are available to home buyers?
A total of 1,666 grants are available. Each grant is $6,000. Only one grant can be used for each home purchase. Home Run Grants are distributed on a first-come first-serve basis to qualified home buyers through the home buyer’s mortgage lender.
*Information taken from Ivory Homes Fact Sheet
The $6,000 Home Run Grant is a mortgage assistance program that grants $6,000 to home buyers who finance the purchase of a newly constructed, never occupied residence in Utah using a 30-year fixed rate mortgage. The Home Run Grant is funded by the Housing Relief Restricted Special Revenue Fund, established by Utah Governor Jon Huntsman, the Utah State Legislature, and Utah Housing Corporation.
Who is eligible to receive a $6,000 Home Run Grant?
· The Home Run Grant is available to any Utah home buyer who meets the following income restrictions:
o Single person, $75,000
o Married couple, $150,000
· Buyers must occupy the purchased home as a primary, permanent residence no later than 30 days after closing.
What homes can be purchased with a $6,000 Home Run Grant?
Homes must be recently constructed. They cannot be previously occupied.
How does a home buyer apply for a $6,000 Home Run Grant?
Home buyers should tell their home builder, realtor and mortgage lender that they want to apply for a Home Run Grant. Mortgage lenders are the key link between the home buyer and the Home Run Grant. The mortgage lender assists the home buyer to provide necessary information to secure the grant from Utah Housing Corporation. The home buyer does not work directly with Utah Housing Corporation.
What type of loan can home buyers use to purchase the home?
Buyers must qualify for a 30 year, fixed interest rate loan of their choice to finance the purchase of the home. Examples of qualifying loans include:
* Conventional
* FHA, VA, or Rural Housing
* Utah Housing Corporation’s FirstHome and FirstHome Plus
* Federal Home Loan Bank’s HomeStart
What mortgage lenders can assist homebuyers to secure a $6,000 Home Run Grant?
Any mortgage lender qualified to make mortgage loans under Utah law can assist homebuyers to secure the Home Run grant.
Can the $6,000 Home Run Grant be combined with the new federal $8,000 tax credit?
Yes. Home buyers can take advantage of both the Home Run $6,000 Housing Grant and the $8,000 federal tax credit. The $6,000 grant is available at the time the home is purchased.
How many Home Run Grants are available to home buyers?
A total of 1,666 grants are available. Each grant is $6,000. Only one grant can be used for each home purchase. Home Run Grants are distributed on a first-come first-serve basis to qualified home buyers through the home buyer’s mortgage lender.
*Information taken from Ivory Homes Fact Sheet
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