HVCC
HVCC seems to be de-railing quite a few transactions lately. Buyer wants to buy a house. Seller wants to sell a house. Buyer and seller agree to a price. Appraiser says house is worth fifty thousand dollars less than what buyer and seller agree on.
Now what?
Well, either the deal falls apart or buyer has to be able to bring an “extra” 50,000 in cash to closing becasue you can’t finance it.
I have been looking and looking for someone who had something positive to say about the new HVCC rules, but so far I haven’t really found anyone in the business who says “it is working”. However, I have seen quite a few petitions being circulated to get HVCC overturned.
8000 Tax Credit Monetization
I am still searching for a way that first time home buyers can “monetize” the first time home buyer tax credit here in Arizona. Today, I at least found a lender who will allow it to happen:
Wholesale lender Taylor Bean Whitaker, has sent this note out to the clients about the first-time home buyer credit: “HUD recently released Mortgagee Letter 2009-15 regarding the use of the First-Time Home buyer Tax Credit. The program provides up to $8000 tax credit to qualified first-time home buyers. Although the program allows certain entities covered by Section 528 of the National Housing Act to use their current authority to offer tax credit advances with second liens, TB&W will not provide the second lien. The Second Lien must be provided by an FHA approved non-profit agency or Federal, State, or Local government agency or instrumentality. Use and approval of the first-time home buyer tax credit is the responsibility of the entity providing the secondary financing. All documentation must be submitted to the entity providing the secondary financing. TB&W will only approve the use of the secondary financing being provided by the approved entity. TB&W will begin to accept this type of secondary financing immediately.”
(h/t Rob Chrisman)
I guess finding a lender who will allow this to happen is the first step — now we just need to find an organization who is actually helping people turn their tax credit into funds that can help cover closing costs. Realtors will likely be looking to surety bonds to minimize risk.
Arizona Mortgage Rates
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Churches qualify as non-profits correct? So if your church was willing to provide you the secondary loan, could you use Mr. Whitaker’s program for buyers and have the church provide the bridge loan?
HVCC is obsurd. Attorney General Cuomo should have the courage to correct this law. The industry to check and balances and oversite, however this doesn’t work. If people followed the rules that were in place we should not of had a problem to begin with.
Seems a bit crazy when the buyer and the seller both want a sale, maybe there should be no further intervention, then everybody would be happy.
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