Financing
FINANCING YOUR AUCTION PURCHASE
While most auction sales are NOT contingent on financing, most Sellers will accommodate
buyers using lenders. There are still many programs available to secure financing
for a real property purchase.
According to the Mortgage Banker’s Association and government related sites, now
is a good time to buy because of the tax credits.rs.
First Time Home Buyer Tax Credit – Extended Through April 2010
Congress and President Obama renewed the $8000 Tax Credit for ‘First Time Eligible
Homebuyers’ who purchase a home and enter the purchase contract by April 30, 2010,
and close by June 30, 2010.
The definition of being a ‘first time home buyer’ means that you have not owned
a home in the past 3 years and there are certain income limits.
Single filers with incomes up to $145,000 and joint filers with incomes up to $245,000
qualify for reduced credits
Limited to homes with a purchase price of $800,000 and below
Move Up Buyer Tax Credit – New
There is a tax credit of up to $6,500 for qualified ‘move up’ buyers who have lived
in their current residence at least five years and purchase a new home. The tax
incentive is limited to homes with a purchase price of $800,000 and below.
Other Loan Programs
Aside from conventional financing, many government agencies such as Housing & Urban
Development (HUD), Federal Housing Administration (FHA), Veteran’s Administration
(VA), and the U.S. Department of Agriculture (USDA) have other loan programs:
• FHA 203 (B) – 97% financing on eligible buyers / properties
• FHA 203 (K) – 96.5% financing of home and planned renovations on eligible
buyers / properties
• FHA 203 (H) – 100% financing for victims of natural disasters on eligible
buyers / properties
• VA Loans – 100% financing for eligible buyers / properties
• HUD Housing Choice Vouchers – some public housing agencies offer vouchers
for eligible buyers / properties
• USDA Loan Guarantee Program – 100% financing on eligible buyers /
properties
The above information was provided by the Mortgage Bankers Association and government
related website and we do not guaranty the accuracy of such information. Please
ask your loan officer for specifics on these and other loan packages. If you do
not have a loan officer, we have included a list of some below. The below lenders
are not affiliated with Williams & Williams, nor do we receive a referral fee for
your use of them if you so choose. We are simply providing this list as a means
to assist you in your efforts to obtain financing and we make no representations
or warranties as to the performance of these companies or their abilities to provide
lending services. Please be advised that the Contract for Sale at Auction is not
contingent on financing, therefore any failure to close on the transaction by the
closing date will be deemed as a breach (if Seller, in their sole discretion, refuses
to extend the closing) and the Seller would be entitled to keep your deposit. Please
inform any lender you contact of your closing deadlines.