First Time Home Buyer? Don't Miss Out On The Tax Credit!

Directly From My Lenders Mouth!

Mike Meena

Augusta Financial

661-290-2970

We have been touting a first-time buyer tax credit for over a year now that helps buyers qualify for loans and it also gives them a TAX CREDIT in addition to the normal tax write off.  The maximum loan amount in Los Angeles, Orange and Ventura Counties is $585,713.00 and it can be used on FHA, Conventional, VA and USDA loans.  A first-time buyer is defined as someone who has not owned a property in 3 years.  You would be eligible if your household income meets the following criteria:

• LA County $108,120.00 for a 1-2 person household and you can earn up to $126,140.00 if you have a household of 3 or more people.
• Orange County $125,160.00 for a 1-2 person household and you can earn up to $146,020.00 if you have a household of 3 or more people.
• Ventura County $119,880.00 for a 1-2 person household and you can earn up to $139,860.00 if you have a household of 3 or more people.
• call  for other county limits

Now to the good part!  A buyer that is buying a property for $470,000.00 with 3.5% down using FHA financing that meets the criteria above will get a mortgage credit of approximately $335.00 per month.  They will also get their usual write off in addition to the mortgage credit.  So this buyer will get to write off $16,000.00 instead of the usual $20,000.00 and the $4000.00 they don't write off will be a tax credit!  The other great thing about this is the $335.00 mortgage credit will reduce their debt-to-income ratios which will allow them to qualify easier! 

So if you have a first-time buyer and they are saying, "Oh no, my payment is too much," then you throw the following info at them:

$470,000.00 Purchase Price 3.5% down rate 4.375% (5.54APR) No Points
 

Principal and Interest	$2301.85
Property Taxes	$490.00
Homeowners Insurance	$90.00
Homeowners Association ???	$0.00
PMI	$326.56
Total Payment =	$3208.41

Here is how this breaks down in a nutshell: $3208.41 - $335.00 = $2873.41.  Just this little tax credit makes a 4.375% rate look like a 3.09% interest rate! 

YES the money is a straight TAX CREDIT!  Not a tax deduction!  A TAX CREDIT!  This will help a lot of buyers, that could not qualify before, qualify now!  The fee is $300.00 and it is the best deal running out there!  Please let me know if you have a first-time buyer that is struggling to qualify or crying about higher interest rates! 

Interest rates rose a little more over the last week.  The 30-year mortgage has had 101 months below 5% in the past 60+ years!  I hope these help you if you are shopping around:

• 30-year fixed conventional 1st Mortgage with 20% down - 4.750% (4.813 APR). Loan amounts up to $453,100.00 = $2363.58
• 15-year fixed conventional 1st Mortgage with 20% - 4.250% (4.352 APR). Loan amounts up to $453,100.00 = $3408.57
• 5/1 ARM 1st Mortgage -  20% down - Fixed for 5 years and then becomes variable - 4.125% -  (4.276 APR) Loan amounts up to $453,100.00 = $2195.95
• 7/1 ARM 1st Mortgage - 20% Fixed for 7 years and then becomes variable - 4.375% - (4.528 APR) Loan amounts up to $453,100.00 = $2262.26
• 10/1 ARM 1st Mortgage - 20% Fixed for 10 years and then becomes variable - 4.375% - (4.528 APR) Loan amounts up to $453,100.00 = $2262.26
• 30-year fixed 1st Mortgage FHA loan 3.50% down - 4.375% (5.539 APR). Loan amounts up to $453,100.00 = $2301.85 + $326.56 PMI = $2628.41
• 30-year fixed 1st Mortgage VA loan 0% - 4.375% (4.318 APR). Loan amounts up to $453,100.00 = $2262.26
• 30-year fixed 1st Mortgage Jumbo loan 20% down - 4.625% (4.639 APR). Loan amounts up to $3,000,000.00 = $15,424.19

All of the above are based on a 740 credit score.  Rates are subject to change without notice.

If you have any questions, don't hesitate to contact me directly at 661-510-5370 or call Mike Meena at 661-290-2970.