For those who are currently looking to buy a home the tax credits will last until the end of April to have a house under contract with a closing day before the end of June. You will need to check with your accountant to make sure you qualify before you count on the tax credit. Your Realtor and Loan Officer have jobs to do and can give you general rules. Your accountant knows your situation and the IRS rules and is the best person to ask to clarify the tax credits.

The problem is that lenders don’t lend on what you plan to do but on what you did over the past two years. That means the financials you are turning over to them are most likely the worst you have had in the decade thus a refinance is not an option for you. What you can do is request a home loan modification through the Loss Mitigation Department of the company who is servicing the loan. This is not a slam dunk either as you have to show hardship; loss of job, income, etc. and you do have to qualify for this as well so be prepared to show financials, bank statements, etc. just like you do when getting a loan.

Though this can be time consuming, it is worth the effort of you are in a position where you are really struggling to pay your mortgage. You can also approach the company who is servicing your second and do the same thing. These sometimes go through Loss Mitigation and sometimes not depending on how large the institution is. The key is to stick with it and not let anyone bully you. You are in a temporary situation and that will change in time.

The mortgage company has to have some time to establish if they can help you and they will want you to pay your mortgage on-time. If you wait until you cannot pay then they look at you differently and your choices change. That’s not to say they can’t help but it does make it harder for the investor to want to help if they think you will go into foreclosure anyway. You have to think like the investor and think what would make since to you? After all, you did sign a paper that said you would pay the mortgage and they really want you to be able too as well.

This program is for those families who need help with down payment and closing costs in order to get into a home and you can get a grant up to 4%.  You will need to have a job that shows income and W-2’s over the last two years as well as one years tax return or own a business that has at least two years of tax returns showing income to qualify.  There are income restrictions, depending on how many people are living in the home and location, so do check with your lender before you move forward.

The current rate can change at any time so check with your lender to find out what the rate is today.  This loan is a 30 year fixed and has a requirement that you must go through the Home buyer Education class.  Again, check with your lender to get a full explanation of the recapture tax as well as the best loan of this type, be it FHA, VA or conventional.