City of Grand Rapids announces Home Buyer's Assistance Program!

This is a great program for people buying in specific areas of Grand Rapids. A qualified buyer can get up to $5,000.00 interest free with no payments toward their down payment, closing costs and pre-paids. There are incomelimits!!! Also the city does a complete inspection of the property. If there is ANY evidence of lead base paint that is not properly contained, the house has to have a completed Lead Abatement. Give me a call with any further questions...

Bank of America Revises Short Sale Policy

Bank of America, one of the country’s largest mortgage lenders, says it is loosening its policies on short sales in response to the U.S. Treasury Department’s announcement last week that it would increase incentives for lenders to work out short sale deals.The government’s plan is a boon to banks, says David Sunline, BofA’s real estate management executive, because it provides guidance when there are multiple liens, a potentially litigious issue for lenders. In the past, the bank followed Fannie Mae’s policy of giving second lien holders about 10 percent of the second mortgage balance in a short sale. Now when it holds the second lien, BofA will accept 5 percent of the net proceeds of the short sale, Sunline says. When it is the first lien holder, it will offer 5 percent to the holder of the second lien.Sunline says home owners considering short sales should contact the bank within five days of getting an offer on the home and expect its cooperation as long as the offer is within the range of other sales in the area and the borrower can demonstrate financial hardship.

I'm thinking more banks should follow this lead...

Use the $8000 Tax Credit for your Down Payment!

That's right! FHA has just announced a new use of the first time tax credit!!

HUD Secretary Shuan Donovan announced at the National Association of Realtor Summit that FHA will allow the first time home buyer credit (Up to $8000) to be used for down payment at closing. According to Donovan, the FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table. More details will be coming but check with your lenders...this is what our economy and industry need so we can give our buyers some more positive information. Stay tuned for more info....