Real Estate Investors Beware of the New Rules affecting you in 2010.
Here are the summaries of some very important new law which affect California real estate consumers and you must know:
1.New loan limitation in effect: Conforming: $417,000 and under, – still keep the same
Non-conforming $729,750 – for Bay area especially, metropolitan high-cost area. Up to this amount the
Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee”.
Jumbo – over the non- conforming limit.
And the rates are still at fantastic lows. – Please call for details.
2. First-time home buyer tax credit
$8,000 tax credit from Federal government if you are the first-time home buyer (no owning home in the past three years), income (single filing$125,000, joint filing $225,000). You have to be in contract by April 30, and complete the transaction by Jun 30. Home owners who live in their current residents for the past five years will also qualify for this tax incentive program for $6,500. Property value is capped at $800,000.
3. REO Buyers can select escrow & title.
4. Loan Brokers must be licensed.
5. No more advance fees on Loan Modifications.
6. Effect Friday, Jan. 1, mandate a standard, three-page Good Faith Estimate that urges consumers to shop around for the best loan and helps them compare lenders’ offerings
Please feel free to send an email or call me for more info and details.