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Archive for the 'Mortgage and Finance' Category
Financing options for Colorado Springs Military — VA Loans are the best!
Are you a military member or a veteran?
Are you moving to Fort Carson? Schriever AFB? Peterson AFB? Air Force Academy?
Related Articles:
- How do I get a down payment for Homes in Colorado Springs?
- Credit score explanation
- Financial Do’s and Don’ts
- Local lenders vs. a National lender
With your VA Guaranteed Home Loan benefit you can still obtain a loan with no down payment and a fixed interest rate that is as good as or better than a conventional mortgage rate. Let’s start with some of the basics about VA loans.
What is a VA Guaranteed Home Loan?
Some people have the misconception that the military is the organization loaning the money. Not true. Your VA Guaranteed Home
Loan will be made by a private lender, such as your bank or a mortgage company of your choosing that has VA lending approval.
The guaranty means the lender is protected if you fail to repay the loan. This is also why you will not have to pay private mortgage insurance (PMI). Normally, a lender would require a down payment and/or PMI to obtain a loan.
For even more facts about VA Guarantee Home Loans in Colorado Springs, go the web site for the United States Department of Veteran Services.
You still must meet loan requirements
If there are items in your credit history that are derogatory, you can be denied a loan even though you have your Certificate of Eligibility. The VA cannot demand a lender make a loan to you that would violate their lending practices.
Lenders also must comply with the VA rules and policies when it comes to income and credit standards. Just having the benefit is not enough, you must be credit worthy and have the correct debt to income ratios.
Is a VA Appraisal the same as an Inspection?
No, these are not the same thing. Read the rest of this entry »
Local lenders vs. a National lender
Choose your lender wisely
Related Articles:
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
- Marriage and Mortgages FAQ’s
- How do I get a down payment for Homes in Colorado Springs?
- Why do I have to pay mortgage insurance?
- 26 criteria used to determine interest rates
If you are trying to buy a Colorado Springs home with FHA or VA financing, choosing a nationwide bank or lender can raise red flags
for the seller and the Listing Agent. In theory, the nationwide banks may seem to offer the best pricing and best closing costs; but not being local can cause problems.
- Even if you have a letter from the national lender saying you are pre-approved, the house still needs to appraise.
- I’ve heard from some of other Realtor friends that some of the national banks (who don’t have a local office) are using appraisers who are not local and who may not understand the prices and the market trends in Colorado Springs.
- Even if the appraisal does come in at or over the contact price, some of the larger lenders are requiring second, even third appraisals.
- Also, some of the larger nation-wide lenders don’t assign one key contact to your account. Hence, if you have a question, you may be transferred to a person in a call center, and sometimes the call center isn’t even in the U.S. No problem if your loan doesn’t incur any challenges, but if you run into any problems you want one consistent person to talk to to get answers from.
- If you use a local lender, you can walk in their office and talk to a live person. Sometimes that can make the difference in getting a loan.
If you decide to choose a lender that is a nationwide bank or lender, you won’t necessarily have a bad transaction. But there are advantages to staying local.
For a list of Colorado Springs Lenders and banks, contact Kathy at KTorline@msn.com
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Kathy (719-287-1049) KTorline@msn.com
FHA loans and Condos — important to know the rules
Colorado Springs Condominiums
Search for Colorado Springs Condominiums
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- New rules make condo buying harder
- Colorado Springs Home — Is a Condo or a Townhome right for you?
- Do you know what your townhome insurance covers?
Have you heard about the HRAP/DELRAP system? It lists condo developments that meet eligibility requirements set the Federal 
Housing Administration.
If you are interested in a purchasing a Colorado Springs Condo, your ability to get an FHA loan will depend on an “approved” rating by HRAP/DELRAP system.
DELRAP stands for Direct Endorsement Lender review and Approval Process and the rules aim to prevent risky loans. There are a variety of reasons that a complex may be labeled “rejected”:
- More than 15% of homeowners in a development are delinquent on the HOA dues (This could be the result of homeowners in foreclosure)
- One investor or entity owns more than 10 percent of the project
- Less than 50% of the project is either sold or owner occupied
- More than half of the homeowners have FHA loans
You can go to HUD’s web site, and search for information on specific communities, you can even search by zip code. I’m not sure that the database is fully populated, so some developments that deserve a “rejected” rating may still be added.
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Kathy (719-287-1049) KTorline@msn.com
FHA Loan Changes
FHA Loan Changes
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
Related Article:
Did you know that in 2009, the Federal Housing Administration (FHA) insured nearly 30% of the single-family mortgage market and that more than 50% of all first-time home buyers used FHA programs? I haven’t been able to find any facts to support this, but I think 
number if lower for homebuyers in Colorado Springs, as many of the military population relocating to Colorado Springs use VA Loans to finance their purchases.
As of April 5, 2010, FHA loans changed their upfront mortgage insurance premium from 1.75% to 2.25% of the loan amount. Additionally, an annual MIP (mortgage insurance premium) of 0.55% of the loan is charged on a monthly basis. These measures are intended to help the FHA better manage its risks, while continuing to provide affordable, responsible mortgage products. The annual MIP is automatically eliminated when the loan amount is reduced to 78% of the original purchase amount.
There have been several other changes including a reduction in maximum seller contributions from 6% down to 3%.
Another change is that new borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. Borrowers with less than a 580 FICO score will be required to put down at least 10%.
If you want to read the complete Press Release from HUD, here a link to the article.
If you enjoyed reading this article, why not Subscribe to be notified of the next one?
Kathy (719-287-1049) KTorline@msn.com
Financial Do’s and Don’ts
Credit Do’s and Don’ts
You have finally decided to buy a Home in Colorado Springs. You have a lender and are now pre-approved.
Below you will find a reminders of DO’s and DON”Ts to do before you buy your Colorado Springs dream house.
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
Related Articles:
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
- Credit score explanation
- 26 criteria used to determine interest rates
DO’s
- DO continue making your mortgage or rent payments
- DO stay current on all your existing credit card accounts
- DO keep working at your current employer
- DO continue living at your current residence
- DO continue to use your credit as normal
DON’Ts
- DON’T make a major purchase (car, boat, fur, jewelry, etc.)
- DON’T apply for a new credit card
- DON’T transfer any balances from one credit card account to another
- DON’T pay charges offs without discussing it with your lender
- DON’T pay off collections without discussing it with your lender
- DON’T buy any furniture on credit
- DON’T close any credit card accounts
- DON’T change bank accounts
- DON’T max out or over charge on your credit card accounts
- DON’T consolidate all your debit into 1 or 2 credit cards
- DON’T take out a new loan
- DON’T finance an elective medical procedure
- DON’T pay off any loans or credit cards without discussing it with your lender
Waiver on flipping is good for the local Colorado Springs economy
Waiver announced on 90 day flipping
Related Articles
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
- How do I get a down payment for Homes in Colorado Springs?
- Credit score explanation
The 90 Day Flipping rule has been lifted for at least 1 year starting February 1, 2010. HOWEVER, it’s important to keep in mind that it is 
not completely free from all stipulations. Here’s a link to the actual Waiver on the HUD web site; which gives the conditions of the waiver.
What does this mean to the Colorado Springs First Time Home buyers?
It means that buyers who are going to buy a property with a FHA loan financing can do so without having to wait for 90-days from the date of the last purchase of that property in order to purchase it.
As an example: A home was purchased by an Investor on November 15, 2009 and the investor fixed up the property. With the previous 90-day rule, a buyer who was using FHA financing would have to wait 90-days from the 11/15/09 date in order to go into contract on this property. The new rule is waiving the 90 day period.
What does this mean to Colorado Springs Real Estate Investors?
It means that investors can buy and flip properties and not worry about waiting 90 days to get the property sold. Although conventional and cash purchases were not affected by the 90-day rule, the majority of homes are now being financed by FHA. This moratorium will help homes sell quicker; which means investors can then move on to the next property!
Who Else Does it Affect?
Many of the homes that the banks are foreclosing on are in bad shape and need repaired and updated to make them more attractive to Colorado Springs First Time Home Buyers.
I think this change in the guidelines will help Colorado Springs foreclosed homes sell faster, which in turn helps the local economy. It’s estimated that on an average a home buyer spends an additional $8000.00 on a house after they purchase it, which certainly also stimulates the economy.
Wouldn’t you much rather have a homeowner in your neighborhood vs. a foreclosed empty house?
If you enjoyed reading this article, why not Subscribe to be notified of the next one?
Kathy (719-287-1049) KTorline@msn.com
Tax Credit for military personnel
Tax Credit for military personnel
Must Read Posts:
- Government and Military are #1 employers in El Paso County
- Relocate to an Award Winning City in the Colorado Rockies
- Relocating, it’s all about the schools
- High Altitude Tips
- Moving to Colorado Springs, check out Zip Skinny
Military families stationed at Fort Carson, Peterson AFA, Schriever AFA, and the U.S. Air Force Academy and other military installations in the Colorado Springs Since Colorado Springs will be glad to learn that 
the First Time Home Owner Tax Credit has some wonderful additional benefits for the military. Here’s some of the highlights:
- Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. Read the rest of this entry »
Where do I find a loan to buy a distressed property?
Want to buy a Colorado Springs Foreclosure, check out FHA 203K Loans –
Related posts:
- 10 things to know about Colorado real estate
- One way to find a good home inspector
- 11 things to ASK about when buying a new home in Colorado Springs
- Top 5 Remodeling projects
- Free local money for home improvements
- Federal Tax credit available for remodeling
With foreclosures at an all time high in the Colorado Springs area, it’s a perfect time to pick up a good deal on a home. BUT, the challenge is that many of these homes need work and many buyers don’t know they have options on loans that can help them purchase the property as well as still have money for the work that needs to be done. One of the best programs around is the FHA 203K Loan. It provides a great way to buy a distressed property and to still have money to get the repairs done. Let’s start with some of the basics.
What type or properties are eligible?
- A one to four-family dwelling that has been completed for at least one year, including townhouses and condominiums
- The program can also be used to convert a one-family dwelling to a two-, three-, or four-family dwelling
Where can I get more details?
-
The HUD web site has more information than you probably ever need to know, but it’s worth reading the highlights on the web site. There is also a great section about FHA 203K Loans on the FHA web site.
What type of Improvements are eligible in the FHA 203K Streamline?
-
Repair/Replacement of roofs, gutters and downspouts
- Repair/Replacement/upgrade of existing HVAC systems (When and why should I replace my furnace?)
- Repair/Replacement/upgrade of plumbing and electrical systems
- Repair/Replacement of flooring, tiling and carpeting
- Remodeling, such as kitchens and bathrooms
- Weatherization, including storm windows and doors, insulation, weather stripping
- Purchase and installation of appliances, including free standing ranges, refrigerators, washer/dryers, dishwashers and microwave ovens
- Repair/replace/add exterior decks, patios, porches
- Window and door replacements and exterior wall re-siding (Colorado Springs home Improvement — it’s all about the windows)
- Basement finishing and remodeling
- Basement waterproofing
- Septic System and/or well repair or replacement
- Lead-based paint stabilization
- Accessibility improvements for persons with disabilities
The next post will include a step-by-step guide of the application process.
Kathy (719-287-1049) KTorline@msn.com
7 ways to avoid identity theft
1 in 10 will be the victim of ID theft this year
Identity theft is one of the fastest growing crimes in Colorado and in the US.
Must Read Posts:
- Credit score explanation
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
- Why do I have to pay mortgage insurance?
- 26 criteria used to determine interest rates
Here’s my top 7 tips to avoid identity theft
-
Mail: Have it delivered to/from the post office. Don’t have mail delivered to your home mailbox; especially if it is unsecured
- Social Security number: Never carry your social security card with you. Be very cautious about giving it out.
- Receipts: Take all your ATM and gas receipts with you. Don’t leave them at the gas station or at the ATM machine.
- Statements and credit card solicitations: Don’t just throw them away, shred them.
- Bar codes: Remove the bar codes from magazine and shred them.
- Credit report: Monitor your report on an annual basis at www.annualcreditreport.com
- Electronic Keypad signatures: Put the date at the end of your signature when you are signing on an Electronic keypad. (This will keep your signature from being stolen and used again.)
Remember, Knowledge is Power
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To find out more information about buying or renting a home in Colorado Springs or Manitou Springs, call ….
Why do I have to pay mortgage insurance?
Colorado Springs Vintage Homes is happy to feature a great article by
Harry Venik with Adams Mortgage, LLC in Colorado Springs
Related Articles:
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
- Will VantageScore Bring Consistency?
- Colorado Springs Mortgages — tips for consumers on points
- Marriage and Mortgages FAQ’s
- How do I get a down payment for Homes in Colorado Springs?
Why Pay Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) is required by most lenders when a borrower puts less than 20% down on a purchase loan. Paid for by the borrower, PMI not only protects the lender from foreclosure, it also enables many buyers to qualify for loans and purchase real estate when they couldn’t have otherwise. On January 1st, 2007, legislation went into effect making Read the rest of this entry »
26 criteria used to determine interest rates
Colorado Springs Vintage Homes is happy to feature a great article by
Harry Venik with Adams Mortgage, LLC in Colorado Springs
Related Articles:
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
- Will VantageScore Bring Consistency?
- Colorado Springs Mortgages — tips for consumers on points
- Marriage and Mortgages FAQ’s
- How do I get a down payment for Homes in Colorado Springs?
When it comes to buying a home in Colorado Springs, consumers can no longer shop for a mortgage based simply on lowest interest rate quotes. Today’s Colorado Springs home buyer needs good advice from an experienced, educated mortgage professional who has the consumer’s best interest in mind.
For consumers, this means beware of anyone who quotes you an interest rate over the phone or the Internet without asking anything about you, your family, your finances or your lifestyle. Besides market conditions, your mortgage rate is based on Read the rest of this entry »
How do I get a down payment for Homes in Colorado Springs?
Colorado Springs Vintage Homes is happy to feature a great article by
Harry Venik with Adams Mortgage, LLC in Colorado Springs
Related Articles:
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
- Will VantageScore Bring Consistency?
- Colorado Springs Mortgages — tips for consumers on points
- Marriage and Mortgages FAQ’s
Colorado Springs Home Buyer’s Down Payment FAQs
With today’s combination of lower home prices, some of the lowest interest rates the industry has ever offered, and 
the $8000 tax incentive for first-time buyers, buying a home in Colorado Springs has never been so attractive. The only real hurdle left for many Americans is coming up with a down payment. With this in mind, we’ve put together some of the most frequently asked questions we get about down payments in today’s market.
Q. Are there any no-down payment programs left?
Yes. While it’s true that most of the popular no-down payment programs disappeared in the wake of the subprime mortgage collapse, there are still two longstanding government-backed programs that offer mortgages with no down payment: the USDA Rural Development Program and the VA Loan Program.
A USDA Guaranteed Loan is a Read the rest of this entry »
What is allowable for VA Seller Concessions?
VA Loans – Part II
Must Read posts: 6 BIG advantages of VA loans
For a Free Colorado Springs Relocation Guide, Email Kathy Torline at KTorline@msn.com
Must Read Article: 6 BIG advantages of VA loans
One of the biggest areas of confusion about VA loans is the Seller Concessions. In the recent class I was in where the instructors were from the Denver VA office, they did a great job of explaining what can and what can’t be used as 
part of Seller Concessions.
VA Mortgages have a limit of 4% of the Appraised Value that the seller can contribute to a buyer on a VA purchase without it being considered excessive. For VA purposes, a seller concession is defined as anything of value added to the transaction which the buyer pays no additional amount and which the seller is not customarily expected to pay. Some examples of concessions include seller payment of the following:
- Buyer’s VA funding fee
- Buyer’s prepaids (Taxes and Insurance) Read the rest of this entry »
7 important things to know about FHA Loans
Colorado Springs Vintage Homes is happy to feature a great article by
Harry Venik with Adams Mortgage, LLC
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
Related Articles:
The Advantages of FHA Loans
The following are a just a few of the recent changes that have made FHA loans a more attractive option again for some consumers looking to buy a new home or refinance an existing one:
(1) Congress passed the Stimulus Act of 2008. During the recent housing boom, home values sur
passed FHA loan limits in many regions of the US. The recent enactment of this important legislation, however, increased FHA loan limits up to $729,500 in many high-cost regions of the US through the end of the year. FHA loan limits vary by county; current limits for El Paso County $ 325,000(1unit ), $ 416,050 (2units), $502,900 (3units), and $ 625,000 (4units).”
(2) The FHA has changed its appraisal and fee negotiating guidelines. In the past, many sellers steered clear of FHA loans because the appraisals were too strict and certain fees were non-negotiable. The FHA has greatly loosened these guidelines to make it easier for both buyers and sellers. Read the rest of this entry »
Shop for a Lender like you shop for a house
The following information is the second in a series of Buyer Tips to provide tips for both the first-time homebuyer and the most experienced homebuyer. The goal is to help the consumer to become better educated about purchasing real estate in Colorado Springs and the surrounding area.
For a FREE Buyer’s Guide, Email KTorline@msn.com
Tips #2 – 6
2. Consult a mortgage lender prior to looking at homes. Lending requirements seem to be changing daily, so make sure and know your mortgage options and what you qualify for. Don’t wait until you find a home to get pre-qualified.
As a Colorado Springs Realtor, this is probably one of the biggest mistakes I consistently see made by all home buyers. It’s important to know in advance what you are qualified for. If you qualify for $150,000; don’t look at houses that are worth $250,000; you’ll just get discouraged and disillusioned. It’s similar to looking at a Lexus SUV, when you can really only afford a Nissan SUV.
3. Shop around when it comes to mortgage lenders, as rates and closing costs can vary vastly between lenders. The “Best Rate” isn’t always Read the rest of this entry »
New help for Colorado homeowners facing foreclosure
f you are interested in a short sale, It’s important to utilize a Colorado Springs Real Estate Agent that specializes in Pre-foreclosures, Foreclosures, and Short Sales; and has a successful and ethical track record. Call Kathy Torline – Nordstrom, 719-287-1049.
Governor Ritter is expected to sign a new bill approved by the state Senate that will give 
homeowners facing foreclosure an 90 day window to try and work out a way to keep their homes. The bill would require the state to post a notice on the doors of foreclosed homes no later than 15 days after the foreclosure notice is delivered. The homeowner would then have five days to contact the state’s foreclosure hot line (1-877-601-hope) and set up an appointment with a foreclosure counselor. If the homeowners can prove they have income then the lender will be required to meet with them to try and work out a payment plan.
During the next 90 days, foreclosure proceedings would be suspended, although the homeowner would have to keep paying 2/3 of the mortgage payment. Mortgage brokers support the plan as they’re more interested in saving the investment than taking possession of the homes where it would show up as bad debt and that doesn’t help the lenders.
This new bill would certainly help many Colorado homeowners though not everyone would benefit. If the homeowner has no income due to a loss of a job, and they have no ability to repay the mortgage, there’s no help for them in this bill . The lenders are only required to meet with these homeowners, not come to an agreement with the owners, but many are willing to try, given all the foreclosed homes they’re carrying on their books.
Must Read posts:
Kathy (719-287-1049) KTorline@msn.com
New rules make condo buying harder
Colorado Springs Condos — just got harder to buy
Search for Condos in Colorado Springs
Fannie Mae has instituted new rules when it comes to giving loans for condos. If the building is brand new, they want to make sure there 
are enough owners to pay for maintenance and preserve the value of the property. These new rules are designed to protect the buyers and lenders but they could also make it harder for the owners to sell them.
Fannie Mae will only guarantee mortgages in new or newly converted condos if 70% of the units are sold or under contract. That 70% could be hard to reach if buyers cannot get financing. In older units, Fannie Mae will not guarantee a mortgage if more than 15% of the other owners are delinquent on the HOA fees.
Fannie Mae wants to reduce the risk for lenders and protect buyers from Read the rest of this entry »
Top 5 VA Loan Myths
Guest Blogger — Marry Ann Daniell
Search for Homes in Colorado Springs
It was only a year ago that I started blogging on an wonderful site, ActiveRain, which is an amazing resource for 
Realtors and anyone else involved in the Real Estate Industry. It’s has a wealth of information; and the most wonderful thing is that fellow Realtors all over the world share information with each other.
Since Colorado Springs has a high military population with both active duty and retired personnel, I thought this article would be helpful to share with our readers. Our military installations in the Colorado Springs area include: Fort Carson Army Base, the Air Force Academy, Peterson AFB & Schriever AFB, Cheyenne Mountain AFS and NORAD.
I’m very pleased to sh
are this article written by Mary Ann Daniell, a Realtor in Fort Hood Texas. I contacted Mary Ann and she gave me permission to share this article. You can contact her in Fort Hood at her Office Phone: (254) 547-4165 x 230, or send her an email at maryann@maryanndaniell.com. If you are ever looking for information on Fort Hodd, make sure and contact her.
Hope you enjoy her article!
One of the best benefits of the VA Guaranteed Home Loan is that you can purchase your home with no money down. Most buyers know this about the loan program, but there’s also plenty of misinformation floating around out there, too.
Some common misconceptions buyers often bring up during their search for financing:
VA Loan Myths
- I have to apply to VA for my VA loan
- I am already APPROVED for a VA loan since I am active duty military
- VA Loans can take 90 days to close
- I must have my Certificate of Eligibility in hand
- VA Inspects the home for defects before I buy the house
Here’s a quick clarification of these points about VA loans:
I have to apply to VA for a VA Loan – Not True!
You apply for a VA loan through a lender who is approved by VA to Read the rest of this entry »
USDA has money to lend for home buyers in rural areas of Colorado!
Are you searching for a home in Colorado that’s perhaps a little out of the way? Perhaps an area like Peyton or Rush (even parts of the Springs may qualify). Do you have a good credit rating but lack a big down payment? (only requirement is $100 down). Perhaps you only make a small amount of the median income in the area, which might prevent you for qualifying for a conventional
USDA has MONEY to lend for home loans
loan. There’s help out there for you in the form of a USDA (United States Department of Agriculture) home loan! That’s right, the USDA has a home loan program geared to help people with a low to moderate income purchase homes in rural areas (you may also be surprised at what rural means). These loans are backed by the US government and unlike FHA loans, USDA loans do not require the borrower to qualify for monthly mortgage insurance premiums.
To see if you qualify based on the income limits, visit Colorado USDA office adjusted income limits which can provide you the limits based on the county that you want to purchase your home in.
USDA loans offer competitive rates and also allow seller concessions to be used towards closing costs. There’s no Read the rest of this entry »
New FHA limits increased again for 2009 in El Paso County
FHA has new loan limits
One of our favorite guest writers, Harry Venick sent me an email yesterday stating that the FHA has increased the loan limits for El Paso County!
According to Harry, “FHA loan limits have been increased for 2009 again: El Paso County $ 325,000(1unit ), $ 416,050 (2units), $502,900 (3units), and $ 625,000 (4units).”
Harry Venick is a Sr. Loan Officer with Adams Mortgage, LLC. He can be reached at (719) 955-3674 or his cell is: (719) 338-3879.
If you’ve been holding off because you haven’t been able to get a large enough loan with the FHA, it might be a great time to revisit Read the rest of this entry »
Tax credit Part II
Colorado Springs Vintage Homes is happy to feature a great article by
Bryan Yaninek with Castle & Cooke Mortgage, LLC
Here are some of the top questions complied and answered by the National Association of Mortgage Brokers, the National Association of Realtors and tax advisers!
Part II of Tax Stimulus Explanation
Is it a tax credit?
Part I of the article explained they called it a “tax credit” because you get the tax credit money upfront, but it really was an “interest-free” loan which is paid back for the next 15 years or upon the sale of the home (within 3 years of purchase). The “payback” is based upon the balance owed and not the entire tax credit received.
The next set of rules applies if a home is purchased between January 1 and December 1, 2009. It is a true tax credit and does not have to be repaid. However, if the home is sold within 3 years of the purchase date, the entire tax credit has to be paid back.
How the Dollar Amount of Tax Credit is Figured
Simply calculation here: 10% of the home’s purchase price or a maximum of $8000. A tax credit can be claimed regardless if they obtain a mortgage, a tax-revenue mortgage or the buyer paid cash when purchasing the home.
Potpourri
For home buyers who do not want to wait until the end of the year to claim their tax credit, they should consider filing a W-4 form with their employer, decreasing the amount withheld for federal taxes. They may not get a check at the end of the year, but it will increase the dollar amount of their paycheck.
Another option for FTHB’s is to borrower the dollar amount of the expected tax credit from a relative (usually a parent) and pay it back when the tax credit is received. It could be used towards down payment and closing costs and FHA and VA will allow it. Be sure to check with the lender and the documentation required.
This is more complicated than it seems on the surface. Always, always, always, refer to your tax advisor!
If you enjoyed reading this article, why not Subscribe to be notified of the next one?
Other posts by Bryan Yaninek:
- 5 things you need to know about FHA Mortgages
- What the current lending market means to you as a home buyer or a seller
- Tax Credit — Who is a first time home buyer?
Bryan Yaninek is affiliated with Castle & Cooke Mortgage, LLC, a Licensed Mortgage Broker in the state of CO Department of Real Estate.
For more information, please call 719-457-2200.
Kathy (719-287-1049) KTorline@msn.com
Tax Credit — Who is a first time home buyer?
Colorado Springs Vintage Homes is happy to feature a great article by
Bryan Yaninek with Castle & Cooke Mortgage, LLC
Here are some of the top questions complied and answered by the National Association of Mortgage Brokers, the National Association of Realtors and tax advisers!
Part I of Tax Credit Explanation
Who is Considered a First-Time Home Buyer?
There are other scenarios to consider! This one is easy; anyone who has not owned a home within the last 3 years. If they sold a home 3 years ago, the date on the HUD 1 is the determining factor.
- For a married couple, if one person owned a home within the last 3 years and the other did not, they don’t qualify for the tax credit.
- However, if an unmarried couple jointly buys a home, and one person owned a home (within 3 years) and the other did not, they can “designate” the tax credit to that person who will be able to claim it on their individual tax return. This rule also applies for parents Read the rest of this entry »
Marriage and Mortgages FAQ’s
Colorado Springs Vintage Homes is happy to feature a great article by
Harry Venik with Adams Mortgage, LLC
Related Articles:
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
- Will VantageScore Bring Consistency?
- Colorado Springs Mortgages — tips for consumers on points
Marriage and Mortgages FAQs
Q: Could one spouse’s bad credit negatively affect the other?
A: If a couple is applying for credit jointly, say for a loan or credit card, then yes. One person’s lower score can negatively impact the interest rate the couple will be offered. This is because every borrower has three credit scores, and lenders use the lowest “middle” credit score of the two borrowers. We have seen many situations in the past in which one borrower was dropped from the application – but only if the lower score belongs to a non-working spouse. This can create a serious issue, however, if the income is needed in order to qualify.
Q: Can one spouse’s low score negatively Read the rest of this entry »
10 Questions to ask when getting a Mortgage Loan
Colorado Springs Vintage Homes is happy to feature a great article
by our Newest Guest Blogger
Jessica Peterson with Lending Ladies
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
10 Things to ask when Getting a Mortgage Loan
We know that buying a home is a big and important decision. Selecting a good Loan Officer is a key part 
of your financial success. You will find our way of finding a good Loan Officer may be different from other blogs or postings. I am seeing quite a few blogs or posts that are saying the same thing and I find the questions do not really pertain to finding a good Loan Officer. Also, I find it interesting to learn that a company is selling the data.
What we have below did not come from any source that we paid for but comes from the heart and after being in the industry for a long time. At LendingLadies.com, we find character and experience plays a large part in finding a good Loan Officer. Therefore our questions are based upon that. If someone is a smart and truly caring person, they will end up being a good Loan Officer. It does not mean that everyone will agree with us, but some of you will. Please see our suggested list of questions to ask below. As always, LendingLadies.com encourages you to ask us the questions below.
Please pass this along to anyone who will be obtaining a loan in the future.
- Do you guarantee your fees on a Good Faith Estimate? Read the rest of this entry »
What are the credit consequences on a short sale?
Part VII in Short Sales Series for Colorado Springs Home Owner’s
Related Previous Posts:
- Colorado Springs Homes, 4 things to know about a short sale – Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options – Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale – Part III of Short Sales Series
- The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
- How long does it take to do Colorado Springs Short Sale? – Part V in Short Sale Series
- Are there tax ramifications to a Colorado Springs Short Sale – Part VI
Are there any credit consequences to a Short Sale?
As I continue to do more and more Short Sales for home sellers in Colorado, I frequently get asked this question. It’s a fairly simple answer, as the moment a home owner get 30+ days behind on their mortgage payment, the bank will probably report this information to the credit bureau. When a late payment is reported; it does have a direct affect on your credit.
It’s also important to note that when the actual Short Sale is completed, many lenders will report that the account was “paid in full for less than the full amount.” A credit report may also be marked as “settled.” Each lender has a different way of reporting that a Short Sale was done, but this seems to be the most common language that is seen. Read the rest of this entry »
Buying a Home in Colorado Springs, manage your most valuable asset! Part VI
Colorado Springs Vintage Homes is happy to feature a great article
on Managing Your Credit Score – Part VI
Anza Goodbar, President of Clearview Mortgage 
Previous Posts by Anza:
- Tips for Colorado Springs Consumers – what is identify theft?
- Want to buy a home in Colorado Springs, manage your most valuable asset!
- Buying a Home in Colorado Springs, manage your most valuable asset! Part II
- Buying a Home in Colorado Springs, manage your most valuable asset! Part III
- Buying a Home in Colorado Springs, manage your most valuable asset! Part IV
- Buying a Home in Colorado Springs, manage your most valuable asset! Part V
Now that you understand the individual components of your credit score and how they factor into your total score, let’s talk about what you can do to increase your score.
How to build your credit score:
You may be young and just starting to build a credit history, you may have been married and all of the credit history was in your husband’s name or you may have experienced difficulties in your past that have caused blemishes on your credit report.
The first step is to pull a tri-merged report to verify it is accurate. For this example, let’s say everything reporting is correct. You may not have a score because you have not applied for credit in the past. It may be difficult for you to obtain credit Read the rest of this entry »
Buying a Home in Colorado Springs, manage your most valuable asset! Part V
Colorado Springs Vintage Homes is happy to feature another great article
on Managing Your Credit Score – Part V
Anza Goodbar, President of Clearview Mortgage
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
Previous Posts by Anza:
- Tips for Colorado Springs Consumers – what is identify theft?
- Want to buy a home in Colorado Springs, manage your most valuable asset!
- Buying a Home in Colorado Springs, manage your most valuable asset! Part II
- Buying a Home in Colorado Springs, manage your most valuable asset! Part III
- Buying a Home in Colorado Springs, manage your most valuable asset! Part IV
- Buying a Home in Colorado Springs, manage your most valuable asset! Part V
Your Credit and You!
Let’s take a look at the final category that impacts your credit; the type of credit you use.
Types of Credit Used:
While this area has a lesser impact on your credit score, it is still important. The credit reporting formula is complex and takes many factors into consideration when calculating your score. It looks at the types of credit you have, the number of accounts you have and the mix of accounts.
There are two basic types of credit:
- Revolving
- Installment
Revolving credit is a credit card, a retail account Read the rest of this entry »
What are points and when should you pay them?
Colorado Springs Vintage Homes is happy to feature a great article by
Harry Venik with Adams Mortgage, LLC
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
Related Articles:
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
- Will VantageScore Bring Consistency?
What Are Points and When Should You Pay Them?
Points are up-front fees paid to obtain a better interest rate on a loan. One point equals one percent of the loan amount. A lower interest rate may result in a lower monthly payment, but it is important to consider how long you intend to be in the loan, and to compare current rates to historical market trends.
If you take out a $300,000 mortgage and decide to pay one point, this translates into an up-front closing cost of $3,000. Paying a point up front saves $100 a month but it will take 30 months to recuperate the cost of that point. If you decide to refinance or sell the home before the 30-month mark, Read the rest of this entry »
Pre-Qualification or Pre-Approval, which do you need to buy a home?
Pre-approval or Pre-qual?
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
Colorado Springs home buyers should be pre-approved (or at least pre-qualified) for a home loan BEFORE looking at homes for sale.
Not only is it good for you, as you know how much you can afford according to the lender; but, its good for the seller as the buyer can include the “pre-qual” or “pre-approval” letter in with the contract which shows the seller that the buyer is serious enough to obtain the first steps in the lending process.
A Pre-Qualification for a loan is the 1st step toward home buying. It means that a lender has looked briefly at your credit score and income and determined that you have the potential to be approved for a loan. Read the rest of this entry »
Buying a Home in Colorado Springs, manage your most valuable asset! Part III
Colorado Springs Vintage Homes is happy to feature a great article
on Managing Your Credit Score – Part III
Anza Goodbar, President of Clearview Mortgage
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
Your Credit and You!
If you’ve been following along with me, you are beginning to see that you have control over your credit score. Let’s continue our journey and look at how the longevity of your open accounts can impact your score.
Longevity of Credit Accounts:
This is a relatively easy category. It has a smaller weight than the other categories we’ve explored. This category basically works by the tracking the length of open credit accounts. The longer time period you keep an account in good standing, the Read the rest of this entry »
Avoid Foreclosure, Know Your Options!
Do you own a home in Colorado Springs?
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
Ask for help before foreclosure starts — don’t stick your heard in the sand!
Short Sales — Part II of Short Sale Series
When many homeowners are in financial trouble and not making their house payments, they go into denial. They are embarrassed, and they hope that the situation will go away. The problems usually won’t solve themselves. The fact is that the sooner a home owner faces up to the situation the better. There are option out there!
I typically meet pre-foreclosure homeowners after they’ve already missed several payments and they’ve heard something about short-sales. Maybe it’s been from a friend, maybe from the news, or maybe from their lender.
One of the first steps I do is to refer them to some of the local and national hot-lines that are now available to help home owners. I want to make sure they are as educated as possible about their options before they decide to list their home as a short-sale. I also Read the rest of this entry »
Manage your most valuable asset! Part II
Colorado Springs Vintage Homes is happy to feature a great article
on Managing Your Credit Score – Part II
Anza Goodbar, President of Clearview Mortgage
Your Credit and You!
Now that you have an idea of the factors that impact your credit, let’s take a look at the next category.
Amount Owed:
The amount of money you owe also factors into the information your lender evaluates. It is important to demonstrate you know how to use credit wisely and you are not credit dependent. It is never wise to have balances on revolving accounts that exceed 70% of your allowable limit. It is best to not exceed 50%.
You can manage this in a couple of ways. First, pay off the balances on your revolving accounts monthly. Second, know Read the rest of this entry »
Manage your most valuable asset! Part I
Colorado Springs Vintage Homes is happy to feature a great article
on Managing Your Credit Score
Anza Goodbar, President of Clearview Mortgage
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
In today’s tumultuous market, your most valuable asset is your tri-merged credit or FICO score. Your credit report is the primary tool potential lenders will use to rate your credit worthiness or Risk Factor. There are three primary credit reporting agencies: TransUnion, Equifax and Experian. Credit scores may vary as all creditors do not necessarily report to each agency.
Each credit report is comprised of 5 weighted components:
- Payment History 35%
- Amount Owed 30% Read the rest of this entry »
Will VantageScore Bring Consistency?
Colorado Springs Vintage Homes is happy to feature a great article
on Credit Scores submitted by
Harry Venik with Adams Mortgage, LLC
Search for Homes in Colorado Springs
Related Articles:
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
- Will VantageScore Bring Consistency?
- Colorado Springs Mortgages — tips for consumers on points
- Marriage and Mortgages FAQ’s
- How do I get a down payment for Homes in Colorado Springs?
VantageScoreSM Solutions, LLC, is a joint venture between the three powerhouse credit scoring bureaus, Experian®, Equifax, and TransUnion®. Launched in March 2006, VantageScore has two very ambitious goals:
- To reduce credit score inconsistencies across the three companies
- To help consumers better assess and interpret their credit scores.
In the past, credit scores could vary significantly across these three companies, creating Read the rest of this entry »
Credit score explanation
10 Things to Understand About Your Credit Score
Search for Homes in Colorado Springs
As lenders have continued to become more selective in issuing loans,
It’s more important than ever to understand your credit score
(1) What is a credit score?
• It’s a 3 digit number, the higher the number the better
• It is a statistical equation, and used to assess credit risk
• It’s used to see who qualifies for a loan and what type of interest rate they qualify for
• It’s the determining factor on whether you can obtain financing, and at what cost
(2) What is used to determine my credit score?
• Some of the information included in determining a credit score are: Read the rest of this entry »
5 things you need to know about FHA Mortgages
Colorado Springs Vintage Homes is happy to feature a great article
on FHA Loans by
Bryan Yaninek with Castle & Cooke Mortgage, LLC
If you enjoyed reading this article, why not Subscribe to be notified of the next one?
Here are the 5 things you need to know about the new changes for FHA loans:
1. One single down payment requirement of 3.5% for all purchases
2. Closing costs/prepaids are Read the rest of this entry »
Tips for Colorado Springs Consumers – what is identify theft?
Get a Free Market Analysis on your Home, Email KTorline@msn.com or call 719-287-1049
Colorado Springs Vintage Homes is happy to feature a great article
on Identify Theft from
Anza Goodbar, President of Clearview Mortgage
What is identity theft? Identity theft occurs when someone uses your personal identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes. It is estimated that nearly 9 million US citizens have their identities stolen each year.
In today’s world, your credit score may be one of the most valuable possessions you have. A good credit score can Read the rest of this entry »
