The Delaware State Housing Authority (DSHA) is committed not only to providing adequate housing to Delaware residents but also to improving their quality of life. Take for instance the program we reviewed in our previous post: the Delaware Mortgage Assistance Program, which invests $650,000 of state tax dollars to the rehabilitation and renovation of low income homeowners.

Other programs sponsored by the DSHA that promote the quality of life of its clients are the Live Near Your Work program and the Delaware First Homebuyers Program.

The Delaware Live Near Your Work Program

This program is designed to encourage workers to buy homes close to their places of work, more precisely, within three miles of them. This has all kinds of positive effects for workers, employers, the neighborhoods and the environment. The program provides a maximum $3,000 grant to qualifying buyers, which can go towards paying for downpayment and closing costs. The grant is shared between the state government, the employer and the local government where the neighborhood is located. If you are interested in this program, you must first convince your employer to contribute $1,000 towards the program. The State and the local government that manages the neighborhood of your new home will match that contribution to a total $3,000.

You can start your application by contacting your human resources officer, to see if your company participates in this program. Then contact an approved housing counselor and a realtor to guarantee the home you choose complies with the programs requirements.

Please find below the list of companies that currently offer this program to their workers. If your company doesn’t, you can always encourage them to.

To qualify, a property must be less than $378,000 if in New Castle, less than $228,625 if in Kent and less than $337,500 if in Sussex. It must be within 3-miles of your main place of employment. The DSHA provides a map to program applicants to help them select an eligible home.

You must also confirm the jurisdiction where you work is participating in this program. Currently the jurisdictions of Wilmington, Milford and Georgetown are supporting this program.

Employers who participate in the LNYW program.

• Aloysius, Butler & Clark
• Aramark (at Wesley College)
• City of Milford
• City of Wilmington
• Decrane Aerospace/ Pats Aircraft Completions
• Dover Housing Authority
• Horizon House of Delaware, Inc.
• Latin American Community Center (LACC)
• Mona Lisa Restaurant
• Neighborhood House, Inc.
• Perdue Farms, Inc (Georgetown & Milford)
• Seawatch International
• St. Francis Hospital
• Town of Georgetown
• University of Delaware
• Wesley College
• West End Neighborhood House
• Westside Family Healthcare
• Wilmington Friends School

First Time Homebuyers Program.

This program offers first-time buyers up to $888,470 in 30-year fixed-rate low-interest mortgages. The mortgage amount available will depend on the county you live in and the neighborhood you plan to move in.

Eligibility depends on your income and the area you choose to buy your first home in. If you buy a home in a targeted area with a higher rate of foreclosed and abandoned homes, the program will allow you to apply for a bigger mortgage. Click here for more details on this program.

The Delaware State Housing Authority does not only provide assistance to purchase and protect your home from foreclosure, it also helps homeowners maintain their homes in good repair and carry out necessary investments on their property. This assistance is provided through the Housing Rehabilitation Loan Program. This article, the second in our series on the mortgage assistance of the State of Delaware, provides detailed information on the Housing Rehabilitation Loan Program (HRLP).

The Program

The program offers low-interest (as low as 3 percent) loans of up to 35,000 dollars to low-income and medium-income homes who want to improve the safety and conditions of their home. The loans have a maximum term of 15 years.

To apply for this program, you must also contact a housing counselor. Explain your circumstances and that of the house so the authority can assess the urgency of your case.

How to Qualify

To qualify for a HRLP you must approach one of the Delaware Local Administering agencies. These include the: Dept. of Real Estate and Housing in Wilmington, the NCC Community Development in New Castle, the Kent County Dept. of Planning and the Sussex County Housing Authority.

The review board will assess your application and decide about your eligibility based on your income and local region. For instance, if you live in New Castle County, Kent and Sussex counties you income must not exceed $70,800 and $62 ,650 respectively.

If you are a tenant and wish to qualify for an improvement law, you also have the option of investing in your home. The maximum income for tenants applying for this program is $62,650 for New Castle County and $55,840 if you live in New Castle County.

Property Features

For a property to qualify for a HLF loan it must require modifications to make it accessible to people with  disabilities or require repairs to meet the Delaware State Housing Code.

If you have more questions about this program, click here or call 302.577.5001. A DSHA customer care officer will provide any extra information you need.

The Delaware State Housing Authority has received numerous awards and recognitions due to their commitment to their community and achievements in the housing sector. These awards include the 2010 Agency Award for Leveraging the Delaware Housing Partnership to fund the Second Mortgage Assistance Loan Program and the 2010 Agency for Program Excellence for the Housing Opportunities for Persons with AIDS in 2003. In our next article we will look into these and other programs the DSHA has made available to the citizens of Delaware.

Connecticut Mortgage Help

If you are thinking to buy a home in Connecticut and you have a low to medium income family, the Connecticut Housing Finance Authority has a number of mortgage assistance programs you should consider before committing yourself to another lender. The CHFA is a non-profit mortgage insurance provider which is committed to helping low and medium income families take their first step in the property ladder.

The CHFA provides mortgage programs to help you buy a house, pay the downpayment on a home, rehabilitate and renovate a property, as well as enabling tenants to become homeowners. This article will provide general information on the main programs provided by the CHFA as well as explaining how you can apply for further information.

Homebuyer Mortgage Program

The CHFA’s flagship first-time homebuyer program is the Home Mortgage Program. It provides Connecticut residents who are purchasing a home for the first time with 30-year fixed low interest rates (currently 3.875 percent). Applicants must meet CHFA income limits to qualify. However, certain areas targeted by the CHFA do not require buyers to meet income limits. Click here for more information on this program.

Downpayment Assistance Program

The Downpayment Assistance Program is designed to help you pay for the expenses associated with buying a home, such as a downpayment and closing costs. The CHFA offers these loans at lower interest rates than conventional commercial loans. Usually, the CHFA will match the interest rate offered by your main mortgage provider and in some cases will even improve on it. Successful applicants must prove they have the necessary income to pay for their main mortgage and downpayment assistance loan. Applicants can combine a Homebuyer Mortgage Program loan with a Downpayment Assistance Program loan. Loans range from $3,000 to a maximum 25 percent of your home’s purchase price. Click here for more information on this program.

HERO Program

The HERO Expansion program helps stabilize neighborhoods by encouraging first-time buyers to invest in areas with a high density of foreclosed and abandoned homes. The program provides buyers with low-interest (currently 3.875 percent) 30-year fixed-rate mortgages. You can own another property and apply for the HERO program but you must agree to live in the new home as your primary address and you cannot sell a HERO program within the first 5 years of purchase without approval from the CHFA. For more information on this program click here.

UR HOME

The Urban Rehabilitation Homeownership Program (UR HOME) is a similar program to the HERO program. Its goal is to encourage buyers to invest in areas which have fallen into disrepair by granting low interest rate mortgages and zero-interest home-improvement loans. Click here for more details on this program.

Government Mortgage Help prides itself as a useful mortgage assistance tool that focuses on the positive, on the solutions available to homeowners instead of focusing on the scams and less than reputable vultures that prey on those in financial difficulties. Fear mongering, although a great way of grabbing headlines, rarely provides practical help. However, sometimes we must descend into the underworld of loan modification and foreclosure prevention programs to warn homeowners about the risks of so called loan modification agencies and foreclosure avoidance agents.

If you want to learn how you can save your home from foreclosure, read our article: Is Foreclosure Knocking at Your Door? Fight Back, which is based on research provided by the Federal Deposit Insurance Corporation.

After the credit bubble burst in 2007 and new species of real estate consultant arose overnight throughout the United States: unethical foreclosure rescue and loan modification operators. These self-appointed experts come under a variety of names, such as foreclosure consultants or mortgage consultants. They prey on financially challenged households who are desperate to save their homes from foreclosure.

These consultants and their companies claim to have the “secrets” to assist homeowners and help them refinance or modify their mortgage, repair their credit or reduce their mortgage balance. The truth, of course, is they simply want to convince you to follow their bad advice so they can take your money or even your home.

Sadly, the scams associated with these “foreclosure rescue agencies” are too many to mention. They include getting you to sign off the deed to your house to the agency so they can better “fight off” the foreclosure process, asking you to make your mortgage payments through them, or they might even suggest you stop making payments altogether and use your money to pay for their services.

Be safe, be smart. If a deal seems to good to be true, assume it is. Avoiding these agencies is easy. Only deal with non-profit housing counseling agencies certified by the Housing and Urban Development Department. These organizations are sponsored by federal funds and will have your best interests at heart. Click here to find a housing agency near you.

If you think you have already fallen into a foreclosure rescue scam, you can still find help. Contact your local police station and explain your situation. If you need a lawyer and can’t afford it, click here to find free legal services in your area.

Free, accurate and useful information is available. You do not need to pay for it. Please find below a list of reliable (and free) resources you can use.

FDIC Foreclosure Prevention Website
www.fdic.gov/consumers/loans/prevention
(877) ASK-FDIC or 877-275-3342

Government-sponsored Mortgage Modification and Refinance Programs

• Making Home Affordable
  www.makinghomeaffordable.gov/

Foreclosure Mitigation Assistance and Counseling

• U.S. Department of Housing and Urban Development
  www.hud.gov/hopeforhomeowners/index.cfm or www.hud.gov
  (800) 569-4287
• Homeownership Preservation Foundation
  www.995hope.org
  (888) 995-HOPE
• NeighborWorks America
  www.findaforeclosurecounselor.org/
  or www.nw.org/network/home.asp

Report Foreclosure Scams

• Federal Trade Commission
  www.ftccomplaintassistant.gov/ or www.ftc.gov/bcp/menus/consumer/credit/mortgage.shtm
  (877) FTC-HELP or (877) 382-4357
• State Attorney General Contact List
  www.naag.org/attorneys_general.php
• State, County and City Consumer Protection Offices
  www.consumeraction.gov/state.shtml

On January 10th, 2011, the Obama administration launched a new financial assistance website called MyMoney.gov as part of their National Strategy for Financial Literacy for 2011. Tackling the financial crisis from an educational perspective may seem like a long term project but research shows financial education, or more precisely the lack of it, is at the heart of the financial problems of many homeowners.

According to a poll by Freddie Mac on 2,031 American homeowners published by FDIC, the Federal Deposit Insurance Corporation, six in 10 homeowners wish they understood the terms and details of their mortgage better.

MyMoney.gov brings together the know-how and expertise of 20 Federal agencies and Bureaus to fill this gap in our collective financial education and help you make smart financial choices. In doing so it deals with a wide variety of financial issues we should all be interested in. Issues such as managing debt and credit, saving and investing, getting insured, knowing your consumer rights, designing a spending plan, managing debt and credit, getting a loan and dealing with mortgages.

In order to help spread the word we have prepared a series of articles focused on supplying and commenting on the help and information provided by the government on the subjects of mortgages and debt management.

We will pick the best tips related to the mortgage and home loan industry. Here are some of the themes we will cover.

Looking for a mortgage? Learn How to Find the Best One for You.

• This article is based on research provided by the National Credit Union Administration will help you understand the basic of the mortgage industry. It shows us that a mortgage is a consumer product, just like a car or a computer, and as such the terms are negotiable. Learn how comparing mortgages and negotiation with lenders can save you thousands of dollars.

5 Tips for Shopping for a Mortgage.

• Based on information provided by the Board of Governors of the Federal Reserve System this article selects the five best tips you should consider when looking for a mortgage.

Is Foreclosure Knocking on Your Door? Fight Back

• Learn how mortgage modification programs can help you overcome the risk of foreclosure and save your home. The research for this article is provided by the Federal Deposit Insurance Corporation.

Your Foreclosure Prevention Toolkit

• Are you facing foreclosure, part of a public advocacy program for struggling homeowners or do you think you may have evidence of fraudulent behavior by a bank, lender or a “loan modification agency”? This toolkit will provide you with quick access to the resources you need.

The FHA Short Refinance program is designed to help homeowners who are current on their mortgage payments but cannot qualify for a mortgage refinance because their home is underwater or worth less than its mortgage balance.

FHA Commissioner described the Short Refinance Program as a life line the FHA was throwing to help households suffering financial hardships because of the decline in property values. The program has two main goals: to reduce monthly mortgage payments and to provide a safer and more secure mortgage.

For instance, households who are locked in a variable interest mortgage and are already struggling to make ends meet could face foreclosure if the interest rate of their mortgage rises. If they can refinance to a fixed-rate mortgage with a low interest rate, they can protect their mortgage from future hiccups in the economy and guarantee themselves a mortgage they can afford. A fixed-rate mortgage also allows you to budget better because you know how much you need to pay for your mortgage every month.

WHO TO CONTACT ABOUT THE SHORT REFINANCE PROGRAM

If you think you qualify for the government’s short refinance program, you should contact your lender. The program is voluntary and your lender has the last word when accepting or denying your short refinance application.

To qualify for a short refinance program you must have a loan insured by the FHA, have a credit score of 500 or higher, live in the property as your main residence, have an underwater mortgage and be current on your mortgage payments.

The Treasury Department gives lenders incentives for approving short refinance mortgages. However, to receive such incentives the lender must agree to reduce the mortgage balance by at least 10 percent. The refinance mortgage must have a loan-to-value ratio of no more than 115 percent. This means that the mortgage balance of a short refinance cannot be more than 15 percent over the appraised value of the property.

The Short Refinance Option will be open for homeowners until 2012 and could help up to 4 million homeowners improve their financial security and reduce their mortgage payments. Refinancing your mortgage for a lower interest rate can save you thousands of dollars and help you pay off your mortgage early.

However, what if you are a senior resident. Does refinancing make sense for seniors? Our next article will study the refinance programs available to senior residents and analyze which options are more advantageous.

One of the key goals of federal and local authorities for Idaho is to stimulate the housing industry by helping people buy new homes. If you live in Idaho and need mortgage assistance, check the resources below. You could find the mortgage assistance program you need.

Federal Housing Association

The Federal Housing Association, the FHA, has provided over 80,000 Idaho households with the mortgage they need to buy a new home. FHA mortgages are not only there to buy homes. You can also use them to finance the necessary repairs and improvements to your home and increase its energy efficiency. If you are over 62 you can also qualify for an FHA reverse mortgage, which can allow you to have your cake and eat it by giving you access to the equity in your home without having to move or sell it.

Community Action Partnership

A specially endearing mortgage assistance program is provided by Eastern Idaho’s Community Action Partnership. The program allows households in a community to pool their time and resources to build each others homes. There is no need for down payments and mortgage payments vary depending on your income. A typical mortgage payment under the program ranges from $450 to $750 a month, which is often less than what the households previously paid in rent. Household members must contribute 65 percent of the labor needed to build the homes. This helps keep costs down and gives households an immediate equity gain of up to 25 percent of the home’s value.

The Idaho Housing and Finance Association

The Idaho Housing and Finance Association offer financial help to low income households looking to buy a home. Financial help includes long-term, low-interest mortgages and help with downpayment and closing costs. For instance, the Idaho Mortgage Finance Association offers 30-year mortgages with a fixed-rate interest as low as 4.75 percent. Qualifying low-income household can also apply for the Home Down Payment Closing Cost, which offers help with down payment and closing costs. Other households with incomes of up to 140 percent of the area’s median income can apply for a Good Credit Rewards Loan, which offers a flexible, low-interest second mortgage to help pay for down payment costs.

Another Idaho mortgage help program you can apply for through the Idaho Housing and Finance Association is the Tax Credit 2nd Loan program. It provides households with up to 5 percent of the house’s sales price as a soft loan to pay for down payment costs. To qualify you must have a FICO credit score of 640 or more. First-time buyers can receive loans of up to $7,000 while others can apply for up to $6,000.

Idaho was hit hard by the economic downturn that began in 2007 and is still doing its best to pick up the pieces and rebuild its once healthy economy. One of the keys to recovery is the housing industry, which is why state and federal government are combining forces to give Idaho the housing and mortgage assistance its citizens need.

To illustrate, in February 2010 one in every 296 households were facing foreclosure in Idaho. The United States average for that month was 1 in every 418 household. That represented a 23 percent rise from February 2009 and put Idaho in seventh place in the ranking of states with the highest foreclosure rates.

One of the most effective government programs in Idaho has been Obama’s Making Homes Affordable Program, which has helped over 4,100 households save their home from foreclosure. This does not include the thousands of households with underwater homes (i.e. homes worth less than the value of their mortgages) who used the program to refinance their homes and benefit from the low interest rates lenders are offering.

Local government programs have also lent a helping hand by investing resources from the HUD Neighborhood Stabilization Program. Take for example Boise, the capital of Idaho. The local government offered practical mortgage help by buying 25 foreclosed properties before they affected the house prices of the neighborhood. The homes were then repaired, using workers from rehab programs. Already 17 of the homes have been resold and the funds are being used to fund further programs.

Another local program that is having great results is the Homeownership Voucher Program. This program helps workers who are receiving Section 8 rental assistance to change their rental assistance into homeownership assistance and apply for a local NSP home. To qualify you must have a good credit score, a job and little debt. If you qualify, the government can help you buy a new home by assisting with your mortgage payments.

If you are struggling to pay your mortgage, act quickly. There are local and federal programs there to help you, but they will be no good to you if you have already lost your home.

Contact any of the agencies below and ask for help. They will provide free housing counseling and help you plan a way to save your home from foreclosure.

Foreclosure Counseling Agencies

IDAHO HOUSING AND FINANCE ASSOCIATION
P: 877-888-3135
T: 877-888-3135
F: 208-331-4801
E: raulr@ihfa.org
W: n/a
565 W Myrtle
P O Box 7899
Boise, Idaho 83702
- English
- Spanish

NEIGHBORHOOD HOUSING SERVICES INCORPORATED, BOISE
P: 208-343-4065-119
T: 866-914-8335
F: 208-275-0047
E: home@nhsid.org
W: www.nhsid.org
1401 Shoreline Dr.
P.O. Box 8223
Boise, Idaho 83707
- English

MONEY MANAGEMENT INTERNATIONAL, INC. COEUR D’ALENE, ID
P: 800-308-2227
T: 800-308-2227
F:
E: trish.potts@moneymangement.org
W: www.moneymanagement.org
2005 Ironwood Parkway
Suite 216
Coeur d’Alene, Idaho 83814
- English

CCCS OF NORTHERN IDAHO, INC.
P: 208-746-0127
T: 800-556-0127
F:
E: linda.e@cccsnid.org
W: www.cccsnid.org
1113 Main St.
Lewiston, Idaho 83501
- English

COMMUNITY ACTION PARTNERSHIP
P: 208-746-3351-4187
T: 800-326-4843
F: 208-746-5456
E: b.leachman@cap4action.org
W:
124 New Sixth Street
Lewiston, Idaho 83501-1217
- English

POCATELLO NEIGHBORHOOD HOUSING SERVICES, INC
P: 208-232-9468-105
T:
F: 208-232-9231
E: jstone@pnhs.org
W: n/a
206 N Arthur
PO Box 1146
Pocatello, Idaho 83204-1146

Whatever your situation, if you are looking to buy a new home and need mortgage assistance, the West Virginia Housing Development Fund has probably got a program for you. Despite the trying economic situation West Virginia has faced in the last three years, sales of new single-family homes are starting to rise.

One reason for this is the availability of government mortgage assistance for first-time and regular homebuyers. This article will look at two mortgage assistance programs offered by the West Virginia Development fund.

SECONDARY MARKET LOAN PROGRAM

This innovative program is not restricted to first-time homebuyers or low-income households. In fact, there are no income or pricing restrictions. It provides fixed-rate mortgage loans with terms of 10, 15, 20 and 30 years. The Secondary Market Loan program offers loans of up to 97 percent of the sale price and require only a 3 percent down payment. If you qualify for a mortgage insured by the United States Department of Agriculture Rural Housing program, you could get a 100 percent financing on your new home.

To qualify for this generous mortgage assistance program you must purchase a home located in West Virginia. Most properties are eligible. This includes properties which are usually excluded from this type of program, such as modular homes, stick-built homes, condominiums and double-wide mobile or manufactured homes.

If you get a mortgage loan for more than 80 percent of the value of the home you will need private mortgage insurance or qualify for insurance with the USDA Rural Development insurance program. Also, if you qualify for a 95 percent or higher mortgage loan, you will need to take a homebuyer education course.

MOUNTAINEER MORTGAGE CREDIT CERTIFICATE

If you qualify for the Mountaineer Mortgage Credit Certificate you could claim a tax credit of up to 35 percent of the interest you paid on your mortgage. Note that this is a TAX CREDIT not a TAX DEDUCTION. With a tax credit your reduce your tax liability dollar by dollar; your savings do not depend on what tax bracket you are on. In other words, if you have a $1,000 tax credit, you will save $1,000 in your next income tax return. The maximum tax credit you can receive any one year with the Mountaineer Mortgage Credit Certificate is $2,000.

To qualify for this mortgage assistance program the home you claim credit for must be your main residence and your household’s income must be at or below your county’s income and house price limits. Click here for more details on your county’s income and house price limits.

Do you need help with your West Virginia mortgage? Looking for a new mortgage in West Virginia? If you live in West Virginia and need help with your mortgage or need assistance to buy a new home, we have news for you.

Although West Virginia has suffered its fair share of hardship in the last three years, it is beginning to enjoy a modest recovery. The latest figures from the Bureau of Labor Statistics show a 1 percent drop in number of jobs in the construction industry from this time last year. An encouraging statistic when looking at the steep decline in the construction industry in previous years. The manufacturing, leisure and hospitality and information technology industries are all in positive figures, 1 percent, 4 percent and 4.1 percent respectively. Although far from being great news, these figures show a positive trend that points to better times for West Virginia.

For example, in the third quarter of 2010, West Virginia saw an increase of 3.1 percent in the sales of new single-family homes. On the other hand, the sale of existing homes dropped by 2.5 percent from the previous quarter. This mishmash of growth and decline creates an opportunity for homebuyers with the cash and credit scores to overcome stringent bank loan requirements.

To illustrate, prices for residential property are still low in West Virginia compared with the rest of the United States. The median single family home is priced at $129,370, while the median for the United States as a whole is $180,176.

So, if you are in the market for a new home, West Virginia may be the place to look at for a new home.  You are unlikely to get more bang for your buck in a more beautiful setting. The West Virginia Housing Development Fund can provide a helping hand if you are looking for aid with your mortgage. This government sponsored fund provides assistance to first time buyers, reduction of federal income tax and an exciting new Secondary Market Program.

These programs are designed to stimulate the housing industry and help workers, who otherwise couldn’t afford it, find the house of their dreams.

So if you want to benefit from the West Virginia Mountaineer Mortgage Credit Certificate Program, the West Virginia Home Ownership Assistance Program or apply for a 3 percent downpayment mortgage with the West Virginia Secondary Market Program, read on. For a change, we have some good mortgage news for you.