On Monday, May 11th, HUD posted Mortgagee Letter 2009-15 which explained that “Federal, state, and local governmental agencies and nonprofit instrumentalities of government, FHA-approved nonprofits, and FHA-approved mortgagees may provide short-term or “bridge loans– secured only by the anticipated tax credit due the homebuyer as collateral.”

Immediately the letter was removed from the site. However, we have a copy of HUD Mortgagee Letter 2009-15.

It is not clear if HUD has changed its policy or if the letter will be back. As of early May 18th, the letter has not been re-posted on the HUD Mortgagee Letter site.

If the policy is to allow state and non-profit groups to use the $8,000 first-time buyer credit created by the Obama Administration as a downpayment, then such purchasers would be able in many cases to buy a home with nothing down or close to it.

For instance, FHA requires 3.5 percent down. If a home is purchased for $225,000 the downpayment would be $7,875. Closing costs would be extra, but in today’s market it might be possible to get a seller to pay some or all of the closing costs because the FHA allows a 6-percent “seller contribution” from owners. Please speak with lenders and real estate brokers for specifics.

Stay tuned — we’ll follow up as more information becomes available.

Will HUD Allow FHA Loans With No Money Down? is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

Technorati Tags: 15, 2009, down, FHA, HUD, letter, money, mortgagee, no

The catch is that monthly payments are higher, and not everyone can qualify for 15-year financing for that reason. The second catch is that high monthly payments can be a big problem if you lose your job or run into financial difficulties.

An alternative works like this: get a 30-year loan where you have the right to prepay in whole or in part at any time and without penalty. Then make additional prepayments so that you wind up with a 15-year loan.

Because monthly payments are lower than with 15-year financing, it should be easier to get a 30-year loan.

For details and rates, speak with loan officers and real estate brokers.

What are the pros and cons of 15-year mortgage loans? is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

Technorati Tags: 15, interest, loan, mortgage, preapay, year