Not what it appears to be
The best financing program for first time home buyers is through the California Housing Finance Association (CAHFA). The loan program is not available to every first time home buyer but most who do meet the guidelines can obtain a fixed rate loan at 5.75 percent for 35 years.
Think a “first time home buyer” is someone who has never owned a home? Nope, the federal definition of a first time home buyer is anyone who has not owned a home in the last three years. That logic by the federal and state governments escapes me. If I owned a home and sold it in 2003 and made a million bucks on the sale I could still qualify for a tax-payer subsidized interest rate loan. In fact, if I had spent all my proceeds from my house sale in 2003 and didn’t have any funds for a down-payment or my closing costs the state of California will loan me both at a below market rate.
Yesterday I had some folks who have owned a mobile home for several years. They wanted to sell their mobile in the mobile home park and buy a home more attached to real estate. They obviously were not first time home buyers since they currently own a home right? Or, maybe they were. Is a mobile home considered a home by the federal or state housing agencies?
Nope, it is considered personal property. The mobile home is not attached to real estate. It is registered by DMV and mobile home owners do not pay property taxes to the county but space rent. Subsequently, they qualify for this low interest first time buyer program.
Finding the right loan program to fit a buyer’s specific requirements requires the skills of a detective. Finding the very best loan program is an art form requiring knowledge and patience. Most borrowers and several mortgage brokers have no idea of the number of loans available and their many variations. A good detective will constantly ask questions until he is satisfied with the answers, so will a good broker. When dealing with the federal and state housing agencies all is not what it may appear to be.
Think a “first time home buyer” is someone who has never owned a home? Nope, the federal definition of a first time home buyer is anyone who has not owned a home in the last three years. That logic by the federal and state governments escapes me. If I owned a home and sold it in 2003 and made a million bucks on the sale I could still qualify for a tax-payer subsidized interest rate loan. In fact, if I had spent all my proceeds from my house sale in 2003 and didn’t have any funds for a down-payment or my closing costs the state of California will loan me both at a below market rate.
Yesterday I had some folks who have owned a mobile home for several years. They wanted to sell their mobile in the mobile home park and buy a home more attached to real estate. They obviously were not first time home buyers since they currently own a home right? Or, maybe they were. Is a mobile home considered a home by the federal or state housing agencies?
Nope, it is considered personal property. The mobile home is not attached to real estate. It is registered by DMV and mobile home owners do not pay property taxes to the county but space rent. Subsequently, they qualify for this low interest first time buyer program.
Finding the right loan program to fit a buyer’s specific requirements requires the skills of a detective. Finding the very best loan program is an art form requiring knowledge and patience. Most borrowers and several mortgage brokers have no idea of the number of loans available and their many variations. A good detective will constantly ask questions until he is satisfied with the answers, so will a good broker. When dealing with the federal and state housing agencies all is not what it may appear to be.
posted by Ken Calhoon at 8:28 AM
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