Just passing on information that has been relayed to us. Please speak with your loan officer or directly to the government resources listed below for more information. Thanks, Dave Libman, OUR Team - 612-247-3874
FYI – Minneapolis is offering 10K for down payment assistance for anyone who purchases a foreclosure. If you stay less than 5 years you pay it back(interest free), but if you stay longer than 5 years it is yours to keep. They have Minneapolis zoned into 3 areas so depending on area there are income restrictions based on median average income in that particular area.
St Paul is still slow to catch on but seems to be brewing something as well. They do have something similar for teachers, police officers, city employees, firefighters, health providers in place.
Below is the Dakota county Silver Lining Loan info
Silver Lining Loan ProgramIn today's economy and housing market it is important to remember that there is a Silver Lining. Foreclosure rates have increased in communities across the nation over the past few years and now it's time to begin rebuilding and stabilizing neighborhoods.
To aid in this effort, the Dakota County Community Development Agency (CDA) created the Silver Lining Loan Program which will provide up to $15,000 to homebuyers purchasing bank-owned properties in areas of the county that have experienced higher than normal levels of mortgage foreclosures.Loans may be used for:
Up to 50 percent of the required downpayment
Payment of normal and usual closing costs and/or
Buy down of mortgage principal
Homebuyers will not receive any portion of a Silver Lining loan as cash.
Eligible Properties
Single family homes, duplexes, townhomes and condominiums located in eligible areas of Dakota County that are unoccupied, foreclosed homes that are beyond the redemption period and are bank-owned.
Eligible areas include:
Apple Valley *
All areas eligible except small NE corner
Burnsville*
All areas eligible except around Crystal Lake
Eagan*
Most of the city is not eligible
Farmington
All areas eligible
Hastings
All areas eligible
Inver Grove Heights*
Most of the area in western 2/3 of city is not eligible
Lakeville
All areas eligible
Northfield
All areas eligible
Rosemount*
Most of the city is not eligible
South St. Paul
All areas eligible
West St. Paul
All areas eligible
Smaller Cities
All are eligible except Lilydale and Mendota
*Click on the city name to see a map with eligible areas. Consult with participating mortgage lenders to determine a property's eligibility in these cities.
Ineligible areas: Mendota Heights and all Dakota County townships
Maximum Purchase Price = $256,080
Purchase price can not exceed 85 percent of appraised value.
Appraisals will be ordered by the Dakota County CDA and will meet the Uniform Relocation Assistance and Real Property Policies Act criteria.
Home must pass a Housing Quality Standard (HQS) inspection conducted by the Dakota County CDA.
Eligible BorrowersHomebuyers who are income eligible and qualify for a traditional fixed-rate first mortgage loan can apply for a Silver Lining Loan through a participating mortgage lender.
Household Size
Income Limit
1
$70,500
2
$80,550
3
$90,600
4
$100,700
5
$108,750
6
$116,800
7
$124,850
8
$132,900
*Income limits are as of 3/09 and are subject to change.Homebuyers also must occupy the home they purchase with a Silver Lining loan as their primary place of residence.
Eligible FinancingSilver Lining loans can be used in conjunction with any fixed-rate FHA, VA, RHS, Fannie Mae or Freddie Mac insured loan product that is generally considered to be an "A" or "prime" lending product.
Silver Lining loans are not eligible for use with subprime, interest-only or balloon loans, or with adjustable rate mortgages (ARMs).
Loan Terms
Zero percent interest
No monthly payments
Minimum loan = $1,000
Maximum loan = $15,000
Repayable when the primary mortgage is paid off, the home is no longer the primary residence or when the home is sold or refinanced.
Considered a "special mortgage" under the terms of Minnesota Statutes 58.13. Loans will be separately secured by a Second Mortgage and Promissory Note.
Home Stretch® Homebuyer Education certificate required prior to closing.
How to ApplyInterested homebuyers must work with a participating mortgage lender to determine eligibility for a Silver Lining loan. Silver Lining Participating Lenders (PDF)The Silver Lining Program is funded by the federal Neighborhood Stabilization Program through the U.S. Department of Housing and Urban Development. The program is part of the Dakota County CDA's Homeownership Connection services which provides resources to help homebuyers and homeowners be successful.
Questions?Contact Stephanie Newburg at (651) 675-4466 or snewburg@dakotacda.state.mn.us
Friday, May 22, 2009
Wednesday, April 1, 2009
First time buyer Incentives....(8000.00)
It's not as easy as it may appear, get all the info in order to be eligible to take advantage of this great opportunity before End of Dec!!!!!!!!!!
Rentals/ Rent to Own
More ways to find good rental or rent to own properties in the Twin Cities areas. Be the first to get the news!!!!
New guidelines for CAT I, II, and III
You must know the ins and outs on buying foreclosed or shortsale properties in St. Paul, things have gotten tougher but the proper procedure will help ease the pain and hopefully make for a smooth transition.
Helpful government website
It seems there has been a flood of new programs to help folks with their mortgage payment and house value - but sorting through the rules and regs can be daunting! We have agents on OUR Team who can help - they've been through the process personally as well as professionally. But if you'd like to start by doing some reading, here is a government website that seems to be helpful in sorting through the noise... http://www.financialstability.gov/ If at some time you'd like to talk with one of our agents to help point you in the right direction, please give us a call - we're here to help. Chuck Brooks 612-386-4259, Stan Weber 651-485-9100, Dave Libman 612-247-3874, Kyle Babcock 651-331-0319 RE/MAX Results Realtors
Thursday, March 5, 2009
Short Sale Information
Short Sale procedures:
The definition of a short sale is selling ones property/home for less than what is owed to the bank and having the bank support the sale and forgive the borrower’s debt.
In Today’s economy and with the drop in the housing market a lot of people are forced to sell their home.
The current value of the home is nowhere near where it was 3-5 yrs ago when they bought it, and they can’t afford to keep it, due to mortgage being too high, or they may have been in an adjustable rate mortgage and the interest rate has made their payment go up 150-400 per month more. The banks will offer to do a loan modification in order to keep you in your home, but that doesn’t ease the fact that the payment still bears a burden on your daily struggle. It only puts a band aid on a severe problem to buy time.
You must speak with your agent early on the home sale process about a short sale, and what all it entails.
Normally you would have drained your savings, your investment accounts, your checking account and your making your mortgage with just pennies to spare each and every month, if something was to break i.e. furnace, dryer, washing machine, your vehicle total havoc would occur.
When listing your home, sign an authorization to release information form that gives your agent the right to speak with your lender about your loan or loans. A lot of documentation is going to be needed and supplied to the bank in order for them to accept the terms of a short sale.
1. Home must be listed for at least 90 days
2. Current market analysis must be supplied for comps to bank
3. Must have last 3 bank statements
4. Must have last 2 yrs of Tax returns
5. Must provide a hardship letter stating what the circumstances were that led to current situation
6. Must still allow showings and have an offer in writing
The bank will normally tell you they can’t do a short sale unless you are behind on your payments at least 2-3 months, let’s not sit and wait for this to happen, in doing so now it’s reported to the credit bureau and your credit score starts taking a hit then you will find it hard to rent or get into another option. We will supply all documentation to the bank, list your home very aggressively, get an offer in writing send it to the bank and strongly suggest to them this is the best it’s going to get for the tough housing market that we are in.
If they accept the offer, your obligation to repay the loans will be forgiven, your credit score will still get a little ding but it is a lot less than if your home had been foreclosed on and you can begin to repair your credit and within 1-2 yrs you could qualify to buy again.
If you have a first mortgage and a second the process is a bit harder but it can still be done, just have hope and most of all have an agent that know what he or she is doing. They must be very aggressive with the banks and they must have all the ducks in order. The Agents on Our Team are just that, with over 50 yrs of combined experience in Real Estate. We have been very successful in pushing short sale through for both our Buyers and our Sellers.
Other options are available as well such as, : Deed in Lieu Give us a call for more information on this process.
The definition of a short sale is selling ones property/home for less than what is owed to the bank and having the bank support the sale and forgive the borrower’s debt.
In Today’s economy and with the drop in the housing market a lot of people are forced to sell their home.
The current value of the home is nowhere near where it was 3-5 yrs ago when they bought it, and they can’t afford to keep it, due to mortgage being too high, or they may have been in an adjustable rate mortgage and the interest rate has made their payment go up 150-400 per month more. The banks will offer to do a loan modification in order to keep you in your home, but that doesn’t ease the fact that the payment still bears a burden on your daily struggle. It only puts a band aid on a severe problem to buy time.
You must speak with your agent early on the home sale process about a short sale, and what all it entails.
Normally you would have drained your savings, your investment accounts, your checking account and your making your mortgage with just pennies to spare each and every month, if something was to break i.e. furnace, dryer, washing machine, your vehicle total havoc would occur.
When listing your home, sign an authorization to release information form that gives your agent the right to speak with your lender about your loan or loans. A lot of documentation is going to be needed and supplied to the bank in order for them to accept the terms of a short sale.
1. Home must be listed for at least 90 days
2. Current market analysis must be supplied for comps to bank
3. Must have last 3 bank statements
4. Must have last 2 yrs of Tax returns
5. Must provide a hardship letter stating what the circumstances were that led to current situation
6. Must still allow showings and have an offer in writing
The bank will normally tell you they can’t do a short sale unless you are behind on your payments at least 2-3 months, let’s not sit and wait for this to happen, in doing so now it’s reported to the credit bureau and your credit score starts taking a hit then you will find it hard to rent or get into another option. We will supply all documentation to the bank, list your home very aggressively, get an offer in writing send it to the bank and strongly suggest to them this is the best it’s going to get for the tough housing market that we are in.
If they accept the offer, your obligation to repay the loans will be forgiven, your credit score will still get a little ding but it is a lot less than if your home had been foreclosed on and you can begin to repair your credit and within 1-2 yrs you could qualify to buy again.
If you have a first mortgage and a second the process is a bit harder but it can still be done, just have hope and most of all have an agent that know what he or she is doing. They must be very aggressive with the banks and they must have all the ducks in order. The Agents on Our Team are just that, with over 50 yrs of combined experience in Real Estate. We have been very successful in pushing short sale through for both our Buyers and our Sellers.
Other options are available as well such as, : Deed in Lieu Give us a call for more information on this process.
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