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Colleen Kuchta

$8,000 -Down Payment Assistance!

June 01, 2009 at 04:14 PM · Posted under Colleen Kuchta

As I am sure you are aware, first time home buyers qualify for an $8,000 tax credit if they purchase a new home between January 1, 2009 and December 1, 2009. The credit can be applied to their 2008 return, by filing a simple amendment. What you may not know is this: First time buyers can now use that $8,000 tax credit as their down payment!

The National Association of Realtors has been urging the Federal Housing Administration to allow the down payment option. On Tuesday, May 12, 2009 it was decided that the down payment option would be allowed. Many buyers have taken advantage of the $8,000 tax credit, but still others have put off buying a new home because they didn’t have enough money for a down payment. This is great news for buyers using FHA financing, which only requires a 3.5% down payment!

Qualified home buyers will need to use a lender approved by the Federal Housing Association to take advantage of the down payment option. Using an approved lender will allow buyers to have the funds available on the day of closing. Need help finding a qualified lender? We are happy to connect you. The Kuchta’s - Kelly & Colleen 262-894-6512 or ckuchta@shorewest.com Final approval for the down payment option was given May 29, 2009. There are 2 ways to use the tax credit as your down payment. The first way is called Secondary Financing; you would secure a loan and a 2nd lien in order to get the money, and use it as your down payment. The second way to use the tax credit as your down payment is called Purchase of Tax Credit. Your lender ‘purchases the tax credit’, and it is used towards your down payment. There are several conditions to be met for each of these options. FHA will also be tracking the monetization activities.

For all the rules or help finding a qualified lender, contact The Kuchta’s - Kelly & Colleen 262-894-6512 or ckuchta@shorewest.com.

Posted by:Colleen Kuchta

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Tagged with fha, nar, secondary financing, tax credit, the kuchta's

Homeowner Beware!

June 01, 2009 at 10:05 AM · Posted under Colleen Kuchta, Fair Housing

As if the state of our economy and the rising number of foreclosures is not enough, homeowners now need to be aware of scam artists looking for new ways to cheat you. Here are the 5 most common scams homeowners are facing:

The Obama Rescue Plan Scam
Some rescue companies are charging distressed home owners thousands of dollars to modify their mortgage under the new Obama housing relief plan. There is no need to pay for this help. You can find out all that you need to know, and if you are eligible at MakingHomeAffordable.gov or by calling 888-995-HOPE.
Bait and Switch Scam
Con artists pose as legitimate housing counselors ready to help you refinance. They present you with what appears to be an application for re-financing. What it ends up to be is a transfer of title, and you lose your home.
Rent-to-Buy Scheme
You are approached by someone stating that they know you are having difficulties making your mortgage payment. They offer to help you out by purchasing the home from you, and allowing you to rent it from them. They tell you that once your finances are in order, you can buy it back from them. Once they purchase the home from you, your equity is gone. The lease terms they give you are less than fair, and you are quickly evicted.
The Middleman Scam
A self-proclaimed rescuer promises to negotiate with your bank, on your behalf. They ask for the fee up front; some even charge thousands of dollars. They tell you that you don’t need to contact your lender, lawyer or credit counselor. You make your payments to this middleman while he negotiates with your lender, eventually he disappears with your money.
The Bankruptcy Scam
A con-artist promises to negotiate with your lender, or work out re-financing on your behalf - again there is an up front fee. They never contact your lender, instead they file for your bankruptcy and pocket the money. You don’t know anything until the expensive bankruptcy goes through and ruins your credit for the next 10 years.

Remember - if it sounds to good to be true, it probably is! The Kuchta’s - Kelly & Colleen 262-894-6512 or ckuchta@shorewest.com

Posted by:Colleen Kuchta