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As printed in the OC Register / Saddleback Valley NewsWritten by Jim E. Flynn, Century 21 Beachside Realtors, Lake Mission Viejo
Feb. 26, 2010
What is a First Time Buyer &
What is a Principal Residence ?Q. We have heard that there is a Mortgage Protection plan for first time buyers like us who would like to try to buy a home but are concerned about losing our jobs, etc. What’s the story?
- Jesse from Mission Viejo.A. Yes, the program was extended from April of last year to December 31, 2010 or when allocated funds have depleted. Funding for this program was made possible by the generous contributions of REALTORS® and supporters of the Housing Affordability Fund. Contributions to the Housing Affordability Fund are tax-deductible.
This program is for first-time buyers like you Jesse who want to enter the housing market but have real concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations. As a Qualifying Buyer you could receive up to $1,500 a month for up to six months in the event of job loss. A qualified co-borrower can also receive a $750 benefit for up to six months to help pay the mortgage.
So, how do you qualify?
Applicants must: Be a first-time home buyer – someone who has not owned property in the last three years (includes co-buyer). Open escrow now and close on or before December 31, 2010 step and get into a property of your own . Getting into your own home will have tax saving benefits also Use a California REALTOR® in the transaction (fee for referral does not qualify) Purchase the property in California, Be a W-2 employee (cannot be self-employed).The demand of the program has been intense and there has been a pre-qualification process that was developed to help you meet the program qualifications to close escrow before Dec. 31, 2010. Your qualified Realtor/Broker can assist you and it is important to submit the application with a copy of the qualifying executed purchase agreement. It is suggested that your Realtor pre-qualify you as a client and your file will be approved pending the receipt of the HUD-1 closing statement indicating the close of escrow for you. So, you question is a good one Jesse and you and other first time buyers certainly need to explore all of the opportunities that may be able to help you make that big.
Q. Jim I was surprised when I was told that because I have been in my home over 2 years I can now qualify for a first time home buyer program and get a $6,500 refund or credit. Is that true?
- Yolanda from Diamond Bar.A. I have had other similar questions and there is some misunderstanding about just who is a first time home buyer. Previously, a first time buyer was a buyer that had never owned their own home. Now, the newest Government definition means that whoever it is that is purchasing a home must have NOT had any ownership in any principal residence for 3 full years. So, sorry, you will need to stay where you are for one more year. For the government's purposes, the principal residence is the home where the tax payer lives most of the time. . & yes, that includes mobile homes, condos and townhomes.
Jim Flynn is an Award winning Realtor with Century 21 Beachside in Mission Viejo.
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Jim
Jim E. Flynn
CalBRE license #: 01215480
Phone: (949) 463-0739