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Good morning: I thought I’d take a minute to give you an update on some of the rumors out there about new down payment programs available for first-time homebuyers.  Today it appears to be a combination of bad news and good news.

TAX CREDIT FOR DOWN PAYMENT

The bad news is that it appears FHA is no longer willing to let buyers use their tax credit for their down payment.  On Monday, Federal officials reversed an earlier decision to allow first-time homebuyers to use the $8,000 tax credit to borrow the down payment on a home.  Just last week, HUD had told the National Association of Home Builders that they would let banks and local governments offer short-term bridge loans to cover the down payment for first-time buyers eligible for the tax credit.  However, Monday’s announcement means that plan is off the table.

Hopefully the discussion on this topic isn’t over and there may be another change of heart.  In the meantime, looks like this isn’t an option.

WASHOE COUNTY HOME CONSORTIUM

I’ve been in contact with the City of Reno and it does look like they, in conjunction with the City of Sparks, are working on a down payment assistance program for homebuyers.  It looks like there will be income restrictions on this program, but the details have not been released yet.  I was told to look for something mid June to early July.  Rest assured I’ll send out an update when I know more.  I anticipate this program will look like the Lyon County Home Consortium which I have access to for buyers looking to buy in Lyon County.

I hope this information is helpful.  As always, I’m here for any questions you or your buyers may have.  Have a great day!

Ron’s comments:  “Wow, as if the sub 200 Reno home market needs more fuel put on it, it is already white hot.  Buyer’s are getting schooled heavy under 200 with multiple offers.  I wish them luck so they can sneak in the door hopefully with increasing prices and interest rates, they need to react quickly.  The market in the sub 200 has just went through a nice bounce up with some investors making decent 40% returns in a few months.  We hope to add some more Buyer Agent’s to get through the log jam of first time buyers and California investors out there.  I am still not sure if this is a head fake (recovery under 200K) but it walks like a duck……..So far all my offers have been countered out of my model or I got bumped with multiple offers.  I will continue to write offers weekly to purchase Reno homes in this once in a lifetime opportunity.”

Stephanie Hanna

Home Loan Advisor

Platinum 1st Mortgage, LP

5525 Kietzke Lane, Suite 201

Reno, NV 89511

c: 775 762 9114

f: 775 746 8551

w: www.stephaniehanna.com

Filed under: LOAN INFORMATION