FEDERAL PROGRAMS 2015-09-03T17:22:23+00:00

FEDERAL TAX CREDIT

If you’re buying your first home, a Mortgage Credit Certificate (MCC)  could save you thousands of dollars by reducing the amount of federal income tax you owe.
Unlike an income tax deduction, an MCC is a dollar-for-dollar credit against your federal income tax liability:

  • The credit is equal to 20 percent of the annual mortgage interest you pay.
  • The remaining 80 percent may still be taken as a tax deduction.
  • The MCC is effective for the life of your mortgage, as long as you live in the home.

If you obtain and use a MCC and then sell your home in the first nine years of homeownership, you may be subject to the federal recapture tax.

You can apply for a Mortgage Credit Certificate through any approved participating lender, we recommend Bob Quarforth with George Mason Bank.

Questions About the MCC Program? Contact us at info@novahouseandhome.com or 703-353-1531 or register on the RIGHT for a home buying seminar.

 

FHA LOANS

FHA loans have been helping Virginians become homeowners since 1934. The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.  This is a great program and allows many buyers to purchase their first home.

There are lots of reasons to ask your lender for an FHA loan instead of taking a conventional loan. FHA loans have many benefits and protections so why not take advantage of them! FHA loans are:

For Everyone – FHA isn’t just for a first time buyer.  Anyone can qualify for one and you could have many FHA loans in your lifetime.  One caveat, you can only have one FHA loan at a time – unless you meet one of the exemptions.

Offers Higher Loan Amounts – It used to be that FHA was always low on their loan amounts.  Currently, the maximum FHA loan amount depends on your Metropolitan Statistical Area or MSA. Talk to Bob Quarforth at George Mason Mortgage to determine your loan limit.

Easier to Qualify – Since FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements so its easier for you to qualify.

Less than Perfect Credit – Even if you have had credit problems, such as bankruptcy, its easier for you to qualify for an FHA loan than a conventional loan.

Low Downpayment – FHA requires a low 3.5% downpayment.  The money can come from a family member, employer or grant program (check with your NoVa House and Home Agent to discuss which programs fit your needs.  Most other loans don’t allow this.

Costs Less – Many times, FHA loans have more competitive interest rates because the loans are insured by the Federal Government. Always compare an FHA loan with other loan types.

Helping You Keep Your Home – FHA has been around since 1934 and will continue to be here to protect you when the others walk away. Should you encounter hard-times after buying your home, FHA has many options to help keep you in your home and avoid foreclosure.  There is more to buying your home then the monthly house payment!

Buying your first home can be overwhelming. Let us help!  Register on the RIGHT for a home buyer seminar.

 

FHA 203K LOANS

The FHA 203K program is designed to assist homeowners with financing both the purchase of a home and the cost of rehabilitation with a single mortgage. This is geared towards those buying houses that need modernization or more comprehensive repairs. Through this Section 203(k) insurance, homeowners are also allowed to refinance an existing mortgage for home rehabilitation.

The process of modernizing or repairing a home can be a costly and complicated process. In order to acquire improvement loans homeowners must take on loans with short repayment terms, high interest rates, and a balloon payment. The Section 203(k) can help borrowers and lenders alike with insurance on single, long-term, fixed or adjustable rate loans — this can cover both the acquisition and restoration of a property. These loans save borrowers time and money as well as protect the lenders with insured loans.

The cost of rehab on any house must be at least $5,000 to qualify and the home needs to be at least one year old. The rehab can range from minor to complete reconstruction. The value of the property must also fall within the FHA mortgage limits for the surrounding area. Register for a homebuying seminar on the RIGHT to learn more.

 

VA LOANS

There are over 27 million veterans and armed services personnel eligible for VA financing.  VA loans are not exclusively for first time home buyers, but this terrific federal program will help many finance their first home.  One of the many benefits to using a VA loan is it’s truly a zero down payment required program!

The process begins with gaining your Certificate of Eligibility from the VA. Your lender may also be able to help you obtain this online. Your eligibility can be used more than once, but you can only have ONE VA loan at a time.

A few of the other benefits include rates that are usually more favorable than conventional financing.  There is no requirement for monthly mortgage insurance, though you will have something called a “funding fee.”  And best yet, the maximum mortgage with VA is the same as the conforming conventional limits.

 

USDA RURAL DEVELOPMENT PROGRAM

This program helps approved lenders provide low and moderate income families with the chance to own proper, safe and sanitary housing in rural areas. This program promotes financial prosperity with property ownership — this leads to community growth and thriving life in rural areas.

Qualified applicants are given the opportunity to rehabilitate, modernize, relocate, or even completely build a dwelling in eligible rural areas. This program offers a 90% loan note guarantee to those lenders who are approved — this helps diminish the risk of extending 100% to qualified rural homebuyers.

In order to qualify, applicants must meet income eligibility requirements and seek a property in an eligible area, they must be a US Citizen, they must be able to qualify for a loan and must meet all program obligations.

Email, call or attend a home buying seminar to learn more about these federal programs.

 

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