Home Loans page 89

can banks make you pay a home mortgage loan early?

Can I get a home loan if I have been working out of the country for the last 4 years?

Should we pay down or Mortgage or invest?

First Time Homebuyer - No Money Down and ... (Is this wise?)?

Barney 'n Barry are at it again, plundering Fannie/Freddie with 125% home value loans: HOW MUCH MORE LOOTING?

Where would we be if Obama, Barney Frank & other Libs had not pushed to give unqualified illegals home loans?

Did Obamas Community Reinvestment Act of giving home loans to unqualified minorities cause the current crisis?

Did George Bush create a law regarding interest rates for home loans?

Who gives the lowest rates on home loans?

Here's my situation, I live in Missouri and I'm going to buy a house in Missouri sometime this year. I'll have around $12,000 saved and the $8,000 credit would put me at $20,000 which is 20% of a $100,000 house which is my self-imposed limit. I also want a 15 year loan. Problem is, the $8,000 credit can only be applied after purchase of a house as I understand it, so it can't be used as a down payment. So I'm trying to figure out my options, this is what I've come up with so far: 1. Take out a loan with only 12% down payment and immediately make a $8000 payment to get rid of PMI charges. This way the only thing I lose is a slightly higher interest rate and a month or so of PMI. 2. Take out one of Missouri's First time home-buyer advances. But to my understanding, they are only for around $6k of the 8k total and you have to take out a specific loan (30 year) to get it. Is that what I'm looking at? Any other options? I'm also aware I could have all of my taxes withheld for this year, but that would take too long and not accumulate near enough for $8000 as I've already passed up 3 months. Details on the Missouri Tax Credit Advance: MHDC makes a second mortgage to the homebuyer at the time of closing worth up to 6% of the home purchase price or a maximum of $6,750, which is used to cover downpayment and closing costs. The tax credit advance loan is paired with MHDC financing for the first mortgage in the form of a safe 30 year, fixed rate mortgage (both mortgages must be applied for through a participating lender). The homebuyer then files for the federal tax credit and uses the credit refund to pay off the MHDC tax credit advance loan. If the tax credit advance loan is paid off by the designated deadline (no later than June, 2010), the homeowner pays no interest other than a modest servicing fee. If the tax credit advance loan is not paid in full by the deadline, principal and interest payments to repay the loan over 10 years begin automatically. I was under the assumption that you could claim this tax credit on your 2008 return, through an ammendmant to be paid this year.

Yes, the 8000 is a TAX CREDIT for your 2009 income tax return. Therefore, best case scenario is that you will not get the money until Feb 2010. 1. Why would you take out a loan with 12% down if you can "immediately make a $8000 payment"? Don't you know that in order to get rid of PMI in most cases you have to refinance your mortgage? That means you will have to pay closing costs all over again. 2. If you qualify for this one.......TAKE IT! You will still get the $8,000 in addition to this advance.

I could be wrong but as I have heard that it's not $8000 towards any payment.. it's UP TO $8000 credit on a tax return... I would do more research if i were you.

There's a lot to cover here. The $8000 credit will be issued in the form of an income tax refund. So you won't immediately get the credit. You'll get it next year when you file your taxes. If you don't usually get a tax refund, change your withholding to make sure you get the entire $8000 and not have some of go towards paying your 2009 taxes. I would suggest you take whichever choice 1, 2, or there may be a 3rd that offers you the lowest interest rate and term that you want 20 or 30 year mortgage. Then when you get the credit, apply the $8000 or whatever your tax refund is to the principal only of your mortgage. This will help you to take some years off your mortgage without refinancing.

You are able to amend your 2008 return to receive the credit sooner. However, it usually takes 12 weeks for it to be processed and refund sent out, so be aware of that. Also, I don't believe you need to refinance in order to drop PMI as another posted stated. For loans originated after July 1, 1999, Congress enacted legislation requiring PMI cancellation when the loan-to-value ratio drops to 78 percent.