Gwinnett County HOMEStretch Funds are Depleted

Hello all,

Gwinnett County has advised that HOMEStretch funds have been depleted and that 2010 funds will be awarded when the big budget is passed by congress and HUD dispenses them. Additional candidates for HOMEStretch down payment assistance funds will be added to a waiting list. The Gwinnett Neighborhood Stabilization Program funds remain available for use with rehabbed, county-owned properties. Please call today for a free list of homes available for purchase using Gwinnett NSP funds of up to $22,500 or the various other programs available to purchase Metro Atlanta Homes.

A Down Payment Assistance Snapshot for the GA First Time Home Buyer

Here’s a snapshot of some of the various active Georgia Down Payment Assistance Programs to help the GA first time home buyer determine which program will work for them. Funds are provided through a soft second mortgage (an interest and monthly payment-free mortgage) that is forgiven after a set period of ownership and the borrower is still eligible for up to $9,800 in federal tax credits. Most programs are restricted to those whose incomes are at 80% of the average median for their household size while others are offered at 100% of the average median for the household size. See the flier to the left of the screen for details, restrictions and more.

• State of GA First Time Home Buyer Program – Branded Georgia Dream, the state offers soft second mortgages of up to $10,000 to be used to toward the down payment and closing costs on the purchase of single family homes, townhomes, condominiums and more. The borrower must be a Georgia First Time Home Buyer (has not owned a home in the past three years) and must use the first mortgage offered by the state.

• The Atlanta First Time Home Buyer Program – The Atlanta Development Authority offers down payment assistance programs to the Atlanta First Time Home Buyer who is looking to buy within Atlanta City Limits. Qualified borrowers may buy eligible properties using one of or combining a few programs:

o Opportunity Down Payment Assistance Program (ten percent of the purchase price up to $252,890),

o the Atlanta Affordable Homeownership Program ($10,000 toward the purchase price up to $252,890),

o Vine City/English Avenue Trust Fund Program (ten percent of the purchase price up to $15,000)

o Beltline Affordable Housing Trust Fund (Up to 20% of the purchase price up to $$252,890)

• Gwinnett Down Payment Assistance – Branded HOMEStretch, Gwinnett County offers the eligible Georgia First Time Buyer up to $7,500 toward the purchase of single family homes, town homes and condominiums built after 1977.

• Dekalb Down Payment Assistance – Dekalb County offers up to $8,000 in down Payment Assistance to be used toward the purchase of single family homes.

• Neighborhood Stabilization Programs (NSP) - Municipalities are buying foreclosed properties within their areas of greatest need (areas hit hardest by foreclosures), rehabbing them, returning them to the market and then offering soft-second mortgages of up to $22,500 to be used toward the down payment and closing costs. Both the state (temporarily) and some local municipalities allow NSP Funds to be used by borrowers who have identified foreclosed properties within those areas to be used toward down payment assistance. If you are NOT working with an agent, please call for a list of Gwinnett and Henry County NSP properties.

• HUD $100 Down Program – Granted, this is not a traditional down payment assistance program, but owner-occupant borrowers may be eligible to purchase a HUD-owned home for as little as $100 down. Up to one-thousand dollars in earnest money may be still be required, plus the inspection fee, and there may be instances when more than $100 will be required (i.e. multiple bids, etc.), but this program also provides a pathway to home ownership to those with little money for the down payment AND there are no income limits.
  

Other Georgia Down Payment Assistance Programs are available to the GA first time home buyer at various times throughout the year, but the funds do run out, so be sure to return to this blog frequently for updates. Again, if you are not working with an agent, please visit the GA First Time Home Buyer Blog call today for more information.

The blog is kind of stale

Yes, I know. There's just simply not been anything of much worth to report regarding down payment assistance.

Just a few comments

• The City of Atlanta has recently introduced a first mortgage product at low rates of interest that is available to qualifying borrowers for use with their other down payment assistance programs.
• The Interest Rates on Georgia Dream 30-year fixed FHA Products, while still higher than those on the open market, have been falling, so that option may now be more attractive than in the past
• The NSP Programs continue to roll out across the different metro area counties
  

All of the programs described on the fliers to the left of the screen at remain active and more will arrive in 2010. Also, remember that buyers will have to be under contract by April 30, 2010 and close by June 30th to benefit from the tax credit. The search process has been taking some time, so don't wait until it is too late to begin your search for a property.

Come back often. Meanwhile, all my best for a happy holiday season and a prosperous 2010!

The Tax Credit has been extended

It’s official. President Obama signed a bill into law on yesterday that extended and broadened the reach of the housing tax credit beyond first time home buyers. Specifically, those interested in the benefit must close on their transactions by no later than the new tax credit expiration date of June 30th 2010. Eligibility has also been expanded to include single person households with incomes up to $125,000 and families with household incomes up to $225,000. While first-time home buyers are still eligible to claim up to $8,000 in tax credits, those who have owned and occupied a home for five of the last eight years may also now claim up to $6,500 on the purchase of a home.

Please come back often as more details are made available.

Restored Gwinnett County NSP Properties Now Available

Gwinnett County is among a few municipalities who have rolled out their NSP Down Payment Assistance Program. Qualified buyers using this program may qualify for up to $22,500 in down payment assistance for the purchase of Gwinnett County-owned, rehabbed properties. The funds are provided as a soft second mortgage that accrues no interest nor requires any monthly payment for the life of the loan, and is completely forgiven if the buyer remains in the home for fifteen years. According to the program guidelines, a qualified buyer is one who meets the income limits and is either:

• A first time home buyer (having not owned a home in the previous three years) or,
• Is employed by a government unit, educational unit or healthcare provider, or
• Is a surviving spouse of a military serviceperson or public protector (first-time home ownership status not required), or
• Is a single parent (first-time home ownership status not required)

Attendance at a HUD-approved, eight-hour home buying class is required prior to closing. In addition, the borrower must use a mortgage with a fixed interest rate, must occupy the home as their principal residence and must contribute at least one-percent of the purchase price toward the transaction.

About the properties
Properties available for purchase through this program were bank-owned homes located primarily in central and south Gwinnett County. They were purchased by the county, completely restored, priced below market value and then returned to the market. Because the county is also facilitating the down payment assistance program, the purchase process should be fairly seamless for informed, qualified home buyers.

The county intends to purchase up to 100 homes, but only a few are currently available. See the flier to the left of the screen at AtlantaDownPaymentAssistance.com for the details about the Gwinnett County NSP program, including the income limits and more. If you are not currently working with an agent, please call for a free list of available properties and HUD-approved counseling agencies at (678) 775-2677. Please leave a message and your call will be returned.

Solomon Greene
REALTOR® / HUD-Certified Affordable Housing Counselor – Keller Williams Realty Atlanta Partners

An Enhanced Federal Tax Credit is on the Horizon

The senate has reached an agreement to extend and enhance the existing federal tax credit of up to $8,000, but the bill has not yet passed. Once passed, the bill will have to go to the house who is also in support of the extension. Upon passage, some of the exciting changes:

• A tax credit of up to $8,000 would then be available to first time home buyers who signed sales agreements by the end of April 2010 and planned to close by the end of June 2010.
• Raise the household income limits to $150,000
  
• A tax credit of up to $6,500 would also be available to repeat buyers who have owned their current homes for at least five years

There are other details to be considered, so this not yet a done deal, but it appears that progress is being made.

Down Payment Assistance for Flood Victims

Have you heard the news? There’s good news for those looking to buy homes in areas affected by the recent floods. The Georgia Dream “Plus” Program is now available to you!

But Wait, There’s More!
Home Buyers in these areas Do NOT have to be first time home buyers, but they must use the program’s first mortgage, and those interest rates have recently gone down significantly!

Purchase price limits:
Catoosa, Chattooga, Crawford, Dooly, Houston, Peach, Stephens, Taylor and Walker - $250,000

Carroll, Cherokee, Cobb, Dawson, Dekalb, Douglas, Fulton, Gwinnett, Heard, Newton, Paulding and Rockdale - $300,000

Higher Household Income limits:
Catoosa, Chattooga, Crawford, Dooly, Houston, Peach, Stephens, Taylor and Walker

1 or 2 persons $73,000
3 or more persons $85,000

Carroll, Cherokee, Cobb, Dawson, Dekalb, Douglas, Fulton, Gwinnett, Heard, Newton, Paulding and Rockdale

1 or 2 persons $86,000
3 or more persons $100,000

Read the flier to the left of the screen at the Atlanta Down Payment Assistance Blog. If you are not currently working with an agent, please call today for more information.

Solomon Greene
REALTOR® / HUD-Certified Affordable Housing Cousnselor - Keller Williams Realty Atlanta Partners
(678) 775-2677