Tucson By Choice!: NATIONWIDE Stimulus Money To Purchase Primary Residence. 22% Second Mortgage. Zero Interest Rate. Call Your REALTOR! (2 of 3 posts)

NATIONWIDE Stimulus Money To Purchase Primary Residence. 22% Second Mortgage. Zero Interest Rate. Call Your REALTOR! (2 of 3 posts)

EDIT:  ANY FORCLOSED HOME THAT IS VACANT.

 

My featured post this morning provided the particulars for Arizona's allocation of the HUD NSP1 funds, but money has been allocated NATIONWIDE for this program.  The program likely can benefit YOU.

MISCONCEPTIONS THAT COULD KEEP YOU FROM BENEFITING

  1. Misconception #1:  Since this is a HUD program, the eligible properties have to be HUD owned
    FALSE!
      The properties must be foreclosed and vacant.  That's it.
  2. Misconception #2:  We don't have many foreclosures in our neck of the woods, so there's probably nothing in it for me. 
    FALSE!
      Every state, and the territories (see map below) has an allocation of money for this program. 

 

Click the link below the map (on the left) to check it out for your State, county and/or city.

Map of the United States

CLICK HERE TO view list of states

Here's a link to the first post:

Stimulus Money To Purchase Primary Residence. 22% Second Mortgage. Zero Interest Rate. Call Your REALTOR! (1 of 3) - 07/25/09 05:33 AM
The details are below.  This is the first program I've seen that really, really helps do two things:
Get foreclosures out of circulation and off the market. Stimulate buyers to buy now. HUD's Neighborhood Stabilization Program provides for 22% of the purchase price to be subsidized with a ZERO interest second ... (25 comments)

Comment balloon 16 commentsMike Jones • July 25 2009 01:43PM

Comments

Mike, thanks! Kate

Posted by Kate Kate about 9 years ago

Mike, this is such great information for Buyers right now. I'm really trying to help get the word out that there are programs that are good buyers!

Posted by Connie Harvey, Realtor - Nashville TN Real Estate (Pilkerton Realtors) about 9 years ago

Connie,

It certainly is; thanks for commenting.

Kate,

You're welcome!  Thanks for reblogging!

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 9 years ago

Mike,

Way to keep giving and sharing Unclel Mike!

Posted by Kevin Wood,, Tucson, AZ Realtor (Keller Williams Southern Arizona) about 9 years ago

I have a few buyers checking into this program to see if they can get in on it. One concern I have is that it is only $20M - if the typical benefit is $25-30,000 it seems like the money will be gone in the 1st 700-800 homes. That is less than 1 week of sales in ARMLS in Phoenix. Even looking at only foreclosures it is less than aweek. I suspect the money will all be gone almost instantaneously. . . .

Posted by Eric Lee, e-PRO, SFR - Phoenix, AZ (Realty Executives) about 9 years ago

Mike,

This time I did the post first then added it here:

 

What is the effect of a 22% LTV second at 0.000% APR/interest rate?

Some of you may not know the affect of blending two mortgages on the affective/experienced interest rate of the total loans.

To blend the rates, to determine the actual cost of the money borrowed do the following.

First determine the loan amounts in dollars.

Sale Price $200,000.00

3.5% down payment $7,000.00

Second Mortgage 22% LTV $44,000.00

First 64,5% LTV $149,000.00

Total loans $193,000

Second is 22.8% of the total loans.

First is 77.2% of the total loans.

Now blend the rates by multiplying the individual rates (expressed as a decimal number) by their percentage of the loan (expressed as a decimal number). IE:

First at 4.5%. O.045 X 0.77.5 = 0.0374 or 3.474%

Second at 0.0% 0.000 X 0.228 = 0.000 or 0.000%

Total cost of the money interest rate/experience cost of the total loan 3.474%

With the first at 5.000% the number is 3.860%.

At 5.500% it's 4.250%.

At 6.000% it's 4.632%.

At 6.500% it's still only 5.020%.

Of course it would be better to blend the APR's, but the effect will be just as dramatic!

Think about this! The first is an FHA loan so the seller can probably pay up to 6% of the buyers closing cost! The first is an FHA loan so most of the down payment and can probably come from family! A consumer can potentially buy these discounted homes (REO's) with as little as 1% out of pocket and only two months reserve!

Trey Thurmond's blogg today Mixed Reports Add To Confusion On the State of Real Estate

ask what we think of the market. I think the immediate market is one of great opportunities! I think thinking people should be buying! Thinking home owners should get every loan concession they can! It never hurts to ask. Investors should be investing! For surly buying today is better than renting tomorrow!

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) about 9 years ago

Hi Mike

Very useful information.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 9 years ago

Thanks Mike I'll check it out I have a buyer that might fit right into this program.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) about 9 years ago

Terry,

I wish you success!

Lou,

Thanks!  I'll see you on your blog.

Bill,

That's useful; thanks!

Eric,

You're right; it's not a lot of money.  I hope you get a transaction or two done through the program.

Kevin,

Ditto my comment to Eric!

Mike in Tucson

 

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 9 years ago

Actually I looked at the page you linked to and it says $39M for Phoenix & $9M for Maricopa COunty so that is a little better than I thought. I have no idea where I came up with $20M. . . .

Posted by Eric Lee, e-PRO, SFR - Phoenix, AZ (Realty Executives) about 9 years ago

Eric,

I said $20mm in my first post; that's the number I wrote down when taking the state training as a lender for the program.  I might have been off by $100 million.  LOL

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 9 years ago

When are you going to post part three?  I want to send links to people...  I heart Mike in Tucson!  ;)

Posted by Doreen McPherson, Phoenix Arizona Real Estate ~ (Homesmart ~ Scottsdale ~ Tempe) about 9 years ago

Doreen,

Look for Part 3 this weekend.  Thanks for the support!!

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 9 years ago

Mike, I totally depend upon good loan officers like you for information that helps my clients.  Thanks!

Posted by 1 ~Judi & Don Barrett & Chassy Eastep - Integrity, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) about 9 years ago

Mike,

Can you do some "blog training" while we are here? How did you import the map of the U.S.?

Thanks,

Patrick

Posted by Patrick Randles (Nova Home Loans) about 9 years ago

Patrick,

Right click on the map above.  Choose "save picture as..."  Save it to your computer desktop, and then import it using the little green tree icon.  Stop by my cube any time to ask questions.  I'm glad to help with Active Rain questions any time.

Judi,

Thanks for the vote of confidence!

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 9 years ago

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