Yes, it doesn’t matter what you buy or who you buy it from. As long as your income is under $75,000 per year and you haven’t had ownership in real estate for the past 3 years, you qualify. You must be under contract by November 1, 2009 and close by November 30, 2009 though. Also, keep in mind that mortgages take at least 30-45 days to close as of July 1st due to the new government regulations.

Your credit is for 10% of the purchase price of the home to a maximum of $8,000, so in your case, you should be eligible for $2,500. Remember that you must purchase the home prior to receiving the refund so it is not available as a down payment. Go to this link for a Q & A on the program or contact me directly for a pre-approval at 847-512-2775.

Thanks

You only need 25% down on a condo with a Conventional mortgage if you want the lowest rate or a rate similar to what you would get on a house. You CAN put as little as 5% down on condominium, you will just pay a slightly different rate. FHA allows as little as 3.5% down with no change in rate for condominiums but it has a high mortgage insurance payment that you won’t find on a Conventional mortgage.

If you have good credit scores, your rate around 5.25% with 2 points is reasonable today but you might consider not paying any points and taking closer to 5.875%. The payment difference is only $42.22 per month verses spending over $2000 to buy it down. That means it will take you 51 months or over 4 years to feel the savings. Any mortgage rate under 6% is a great rate. Determine how much time you will spend in the home and take note that most homeowner’s will refinance in the first 3 years despite the 30 year fixed low rates. You can get a few pieces of great furniture for $2000.

I am not familiar with the Home Steps program. You should ask your lender but typically points are considered closing costs and could be used to soak up credits from other parties. The chances are good that you would be able to charge the two points and if you can, I would suggest it but you should contact your lender to find out for sure.

Best of luck and congratulations on your new home!

My closing costs do not add up to $4,725, but I want to take advantage of this program. I asked the lender to increase it by 2 pts and now I see a total of $4450.33 for closing costs. A difference of $274.33 will remain unused. Might you know if HomeSteps would allow me obtain a loan with 2pts and use it towards the closing? Just wondering…..

I have a question. I am buying a condo for $135K and I am able to put 20% down.

Would you say a rate of 5.28 for a $108K loan amount and two pts is reasonable?

It depends on your lender and the type of mortgage you have. The HARP loan is designed to help homeowners with Fannie Mae and Freddie Mac loans refinance with lower appraised values. I’m not sure if the CDA program is a Fannie Mae or Freddie Mac program but you can find out if you are eligible for HARP by checking your eligibility with your current lender.

Best Regards,
Corinne