[Ed. Note. — The following email was sent to me by Lisa Fleck, a Senior Mortgage Planner at Indymac Bank. Lisa’s email details recent changes to the Nevada Housing Bond Program – a first-time homebuyer’s assistance program.]
I had an opportunity to attend some additional training with the NV Housing first-time homebuyers programs and there have been some great recent changes that really help your buyers.
The biggest recent impact is the increase of income limitations in Washoe County. For a family of 1-2 people, this includes anyone (children, mother-in-law, brother who can’t get a job) who will be living in the home, the maximum allowable income is $83,400. For a family of 3 or more the maximum income is $97,300. These are very generous income limitations
As long as you will not have more than $5,000 in liquid assets (checking, savings, etc) after the close of escrow you qualify for a $10,000 down payment assistance 2nd at a below market rate. This does not include retirement funds, only liquid funds. So, if you have $5,000 in checking after your closing but 100K in your retirement account you can still get the 10K.
There is an issue of potential recapture tax but the numbers show that less than .1% of the loans that have been funded, approx 14K plus loans, have ever resulted in recapture tax. This is an education piece that needs to be thoroughly explained to borrowers but it is not the 500 lb gorilla that it appears to be.
Lastly, we have up to now had only one organization teaching two first-time home buyer classes per month. Effective immediately a Las Vegas outfit is holding webinar classes at local real estate offices which will make the required education piece more accessible to everyone.
Please go to the website, www.nvhousing.state.nv.us to learn more about the program.
If you have any questions please let me know.
Lisa
P.S. Did you know that as of [March 12th] Countrywide ceased all wholesale operations? This is similar to Bank of America’s move about 5 months ago and since B of A is in the process of buying Countrywide this move makes sense. Basically Countrywide is no longer a resource for brokers to originate loans, including NV Housing Bond Programs. Please be very clear that Countrywide Retail is alive and originating in their local branches.
How much money do I need » Blog Archive » Nevada Housing Bond Programs
[…] Nina Sahu wrote an interesting post today onHere’s a quick excerptIt details recent changes to the Nevada Housing Bond Program – a first-time homebuyer’s assistance program.] I had an opportunity to attend some additional training with the NV Housing first-time homebuyers programs and there have been … […]
SkrapGuy
Is it just me, or does anybody else think that perhaps it ought not to be public policy to expend public funds to assist people that don’t even have $5,000 in liquid bank accounts to buy a house?
With all due respect to the American Dream, should people who don’t even have $5,000 in the bank really be buying a house? Isn’t this the kind of thinking that got us into this mess?
How many people who don’t have $5000 in the bank have a retirement fund worth $100,000?
MikeZ
With all due respect to the American Dream, should people who don’t even have $5,000 in the bank really be buying a house? Isn’t this the kind of thinking that got us into this mess?
Exactly.
John Newell
I agree that a homebuyer should have liquid assets in excess of $5k in most situations, but the program restriction is that the buyer cannot have more than $5000 in liquid assets at the close of escrow. I don’t believe that there is a restriction on the amount of liquid assets available prior to escrow. If a buyer with liquid assets in excess of $5k wants to obtain the low interest $10k second loan, then he/she must first put any liquid assets in excess of $5k toward the purchase of the home (or toward the costs). Or put another way, the buyer does not have to have less than $5k in liquid assets before buying the house, but rather he/she must have less than $5k immediately AFTER the purchase. The policy rationale is to make sure buyers use their own assets first, if such assets are available.
On the Sidelines
I am curious where Lisa (Sr Mortgage Planner (?) for IndyMac Bank) gets her information regarding Countrywide Wholesale ceasing operations as of March 12?
As a licensed Mortgage Agent working for a Nevada Licensed Broker I find it appalling that she is passing on erroneous information for this blog. It is even more disturbing that the information was not confirmed prior to being posted here.
Our office has uploaded and received approvals on (2) FHA loans to Countrywide Wholesale just this week and it is only Tuesday uhm, March 25.
knilmemia
Looks like you are a true pro. Did ya study about the subject? lol