My Financial Healthcheck

For those First Time Homebuyers who are taking advantage of the $8,000 tax credit, don’t expect to spend the money very quickly.  On November 6th of last year the rules changed, no move e-filing, so your return could take up to four months to process. Now buyers must file documentation with their return, including proof of residency, a signed mortgage statement and drivers license.  The number of homeowners in trial mortgage modifications rose to 787,231 at the end of 2009, the President’s plan called for helping some 4 million homeowners…and Washington thinks they can run the healthcare system???  The FHA is increasing the premium they charge for it’s upfront mortgage insurance from 101.75% to 2.25% and is looking into increasing the monthly ongoing premium also.  For a individual borrowing $200,000 the fee increase will cost $1,000.  The new policy also will reduce the amount of money sellers can provide to homebuyers at closing to 3%, down from 6%, of the home’s price.  Expect the next change this year to be the need for a larger down payment and the need to better credit scores.