Frederick County Homebuyer Assistance on the way

Homebuyer Assistance is on its way for Frederick County. The Neighborhood Conservation Initiative receive only half of what the originally applied for, but half is way better than nothing at all. Here are some of the details emailed to me by the County. Give me a call if you are ready to see what you can buy in today’s market.

Frederick County Homebuyer Assistance Loan Programs

Department of Housing and Community Development (DHCD)

520 North Market Street

Frederick, MD  21701

APPLICATION FOR ASSISTANCE WITH DOWN PAYMENTS AND CLOSING COSTS

The following are applicable to all programs:

• A ratified sales contract must be submitted with the application.
• House price caps may exist depending on funding source (e.g., FHA, USDA, CDA, Fannie Mae).
• Loans have 0% interest and are deferred.
• The home must be the primary residence and in Frederick County.

• DHCD prepares and records lien documents to secure repayment to the BOCC.  The lien documents are recorded after settlement with DHCD and disbursement of the funds.
• The lien documents require repayment on: 1) the earlier of the sale, refinance or transfer of title on the property; or 2) when the property is no longer the primary residence of the owner.
• Income limits apply to all programs and are a percentage of the Washington area median income (AMI) limit set by the U.S. Department of Housing and Urban Development (HUD) and updated annually.

Programs may be used together, if applicable.
Neighborhood Conservation Initiative (NCI)

1. Have a total gross income at or below 120% HUD AMI.
2. Purchase a foreclosed home.
3. Purchase a home in a ZIP code area of 21701, 21702, 21703 or 21716.
4. Complete a 16-hour homeownership education and counseling program through the Frederick Community Action Agency (FCAA); 8 hours before settlement.
5. Obtain a home inspection and home warranty.
6. Have an Energy Audit completed before settlement (provided by FCAA).

Homebuyer Assistance Program (HAP)

1. Have a total gross income at or below 70% of the Washington AMI.
2. Be a first time homebuyer.

American Dream (used with USDA mortgage only)

1. Household income is subject to income, credit, and affordability criteria of the HOME program and USDA.
2. Be a first time homebuyer.
3. Purchase a home located outside of Frederick City in a rural area of the county as determined by USDA.
4. Use the USDA determination of house price limits.
5. Complete a homeownership counseling program.

Government release new website Making Home Affordable

If you are looking to modify your loan or refinance your mortgage, the government created a new tool to help you.  The problem with some home owners is that they make the payments months in and month out, but it keeps getting harder as the economy continues to strain every dollar they have.  The Making Home Affordable Program is suppose to make that easier.  Since today is the first day, we will have to wait to see how successful it really is.  Some programs that have been created are only “feel good” programs to make the public think that home owners are being saved.  Most programs only affect a very small portion of the the troubled home owners.

The other home owner this is trying to help is the ones that cannot make the payments on a consistent basis.  The idea is to help you to re-modify the loan and lower your payments.

Everyone wants to make their home affordable today.  We really need to stop the bleeding first.  I just hope this really helps owners stay in their home and not go to foreclosure.   Click the website and see if you qualify. Let me know how it works out for you.

On Edit:

I went through the website for the loan modification section and it qualifies you based on a few questions.  Then it tells you to make sure you have the following documents and information available;

CHECKLIST

• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
• Your most recent income tax return.
• Information about your savings and other assets
• Information about your first mortgage, such as your monthly mortgage statement.
• Information about any second mortgage or home equity line of credit on the house.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on all your other debts such as student loans and car loans.
• A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.

It then tells you to contact your mortgage servicer.  It also directs you to the original preforeclosure help website call “Hope Now“  Obvisouly with the bail out of the lenders by taking over 750 billion dollars of bad loans by the government, they are allowing the banks to work a little stress free on their notes that they service.

Bailout help on the way

Many homeowners are under water and it is encouraging to see progress being made on the Bailout plan.  AIG is really pissing upsetting people off with their latest antics.  I just don’t get how CEOs justify this while the business is under water.  How do you plan these parties?  “John, THE check came in…Great, off to Arizona, see you in a week!” Last time I received a windfall it wasn’t spent on a party, it paid the bills.

Back to the consumer side of things; it looks like money from the bailouts will help with loan modifications.  I hope that the loans are modified to current market values.  This will keep home owners in their home.  They have to stop the bleeding at the ground level so that it can filter back into the local economy.  You hear too many stories where people are just getting by and only purchasing the bare minimums.

There are places that you can start looking for help before losing your home to foreclosure.

• FHA Hope Program
• FHA Hope Program – application
• HUD Fact sheet on FHA Loans
• Frederick Community Action Agency
• 1-877-462-7555 or www.mdhope.org
• Last resort – Short Sale

Talk to one of the many councilors available to you to discuss your options.  Frederick and the State of Maryland are available to help you.

Have a great day.

People are not the only ones displaced by foreclosures

I took a trip to the Animal Control building the other day after someone told me about the increase in the amount of animals there. Not only have families had to give up their homes, but also their pets. Not all rentals allow pets and even in financial trouble, people do the right thing and offer them up for adoption. I can’t say that is true of all the animals there, because some were rescued from abandoned homes. Animals left to fend for themselves with no one to care for them. The housing situation is bad enough. These animals just want a new home.

I have two dogs of my own (one right from this shelter) and I know if my wife and daughter read this article, we will have more. So, I am begging you to spread the word and help these animals. I don’t have room for anymore. There is no more room on my bed for another dog and I am allergic to cats. I don’t need a bunny or another hamster.

If my words don’t do it for you…maybe this will…

You can contact Frederick County Animal Control at 301-600-1546 or stop by 1832 Rosemont Ave. While you are at it, fill out this application so you don’t waste any time. (don’t forget your checkbook)

Feel free to share this with others, the link, the presentation, the application…share your home with one of the many animals there too.

And by the way…if you don’t live in Frederick, I am sure this is happening at a shelter near you too.

Really… this should be the easiest fix to the Housing Crisis.

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