Released January 15, 2010
HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
A Measure to help bring stability to home values and accelerate sale of vacant properties
WASHINGTON - In an effort to stabilize home values and improve conditions in communities where
foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that
will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed
properties. The announcement is part of the Obama administration commitment to addressing
foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood
Stabilization Program grants to local communities and nonprofit housing developers to combat
the effects of vacant and abandoned homes.
"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means
of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented
opportunity to fulfill its mission by helping many homebuyers find affordable housing while
contributing to neighborhood stabilization."
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller
for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of
recently foreclosed properties.
"This change in policy is temporary and will have very strict conditions and guidelines to assure that
predatory practices are not allowed," Donovan said.
In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties
to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage
insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of
sellers to allow contracts from potential FHA buyers because they must consider holding costs and
the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.
The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned
properties, bank-owned properties, or properties resold through private sales. This will allow
homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize
neighborhoods and communities.
"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying
affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our
borrowers, especially first-time buyers, to take advantage of this opportunity."
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise
extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory
practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting
borrowers, this waiver is limited to those sales meeting the following general conditions:
1. All transactions must be arms-length, with no identity of interest between the buyer and seller
or other parties participating in the sales transaction.
2. In cases in which the sales price of the property is 20 percent or more above the seller's
acquisition cost, the waiver will only apply if the lender meets specific conditions.
3. The waiver is limited to forward mortgages, and does not apply to the Home Equity
Conversion Mortgage (HECM) for purchase program.
Specific conditions and other details of this new temporary policy are in the text of the waiver,
available on HUD's website.
Tuesday, January 19, 2010
Tuesday, January 5, 2010
WELCOME 2010
Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell to 96% from 114.3% in October, but is 15.5% higher than November 2008 when it was 83.1%.
Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”
Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
The Pending Home Sales Index in the Northeast dropped 74.4% in November but is 14.7% above a year ago. In the Midwest the index fell to 82.0% but is 9.2% higher than November 2008. Pending home sales in the South fell to an index of 97.8%, but are 14.7% higher than a year ago. In the West the index declined to 124.6% but is 21.4% above November 2008.
Yun projects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.
“Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade,” Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.
Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010. But the tax credit impact in the first half of the year and expected job growth impact in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010.
Washington, January 05, 2010, The National Association of Realtors®, “The Voice for Real Estate”
Friday, November 6, 2009
Home Buyer Tax Credit Extension
Congress passed two measures for the housing market on November 5, 2009!
The first time home buyer tax credit deadline was extended to loans purchased on or before May 1, 2010, and closing by July 1, 2010. For first time home buyers the credit will remain at $8000, and all other home buyers could be eligible for up to $6500. The income limits to qualify for the credits was increased as well, to allow more buyers to qualify, and hopefully boost the move up and move down buyers. This will also hopefully move some inventory in the higher priced homes that have been very hard to sell all this year.
For current home owners looking to cash in on this credit, they must have owned their current home at least 5 years. The tax credit is available for the purchase of principal homes costing $800,000 or less. Purchase of second homes or vacation homes are ineligible. The credit will be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
Congress also voted to extend the higher conforming loan limits for Fannie, Freddie and FHA loans. These limits are set at 125% of the average home price in your area, up to a high limit o$795,000. You have to check your county limits to determine the actual high price limit for your area. This will have the greatest impact on states like California, Washington, and the Northeast where average home prices are substantially higher than most of the country. But, this is good news for home buyers in those areas who would otherwise have to finance home purchases with "jumbo" loans which typically have much higher rates.
The first time home buyer tax credit deadline was extended to loans purchased on or before May 1, 2010, and closing by July 1, 2010. For first time home buyers the credit will remain at $8000, and all other home buyers could be eligible for up to $6500. The income limits to qualify for the credits was increased as well, to allow more buyers to qualify, and hopefully boost the move up and move down buyers. This will also hopefully move some inventory in the higher priced homes that have been very hard to sell all this year.
For current home owners looking to cash in on this credit, they must have owned their current home at least 5 years. The tax credit is available for the purchase of principal homes costing $800,000 or less. Purchase of second homes or vacation homes are ineligible. The credit will be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
Congress also voted to extend the higher conforming loan limits for Fannie, Freddie and FHA loans. These limits are set at 125% of the average home price in your area, up to a high limit o$795,000. You have to check your county limits to determine the actual high price limit for your area. This will have the greatest impact on states like California, Washington, and the Northeast where average home prices are substantially higher than most of the country. But, this is good news for home buyers in those areas who would otherwise have to finance home purchases with "jumbo" loans which typically have much higher rates.
Wednesday, October 14, 2009
JD Powers Award
J.D. Power and Associates Ranks Coldwell Banker Highest in Home Seller Satisfaction
SANDY, Utah – September 24, 2009 – Coldwell Banker Real Estate LLC ranked highest among real estate companies in satisfying home sellers according to the recently released J.D. Power and Associates 2009 Home Buyer/Seller Study.
The independently administered study measured customer satisfaction of homebuyers and sellers among the largest national real estate firms. The study incorporates more than 3,100 evaluations from 2,801 respondents who bought or sold a home between April 2008 and June 2009. The survey was fielded between April and June 2009.
“This recognition is a testament to the brand’s legacy as an industry leader, our commitment to innovation and, above all, our powerful network,” said Dan Christensen, president of Coldwell Banker Residential Brokerage in Utah.
“With unsurpassed local knowledge, expertise and work ethic, we at Coldwell Banker have always felt that our network of professionals is the greatest in the industry, and we’re pleased J.D. Power and Associates recognized it,” he added.
J.D. Power and Associates examined four factors in the home-selling experience including: agent, marketing, office, and package of additional services. Among home sellers, Coldwell Banker Real Estate ranked highest with a score of 815 and performed particularly well in all four areas.
Coldwell Banker Real Estate also ranked particularly high in the home-buyer segment. The brand ranked second with a score of 801 on a 1,000-point scale, performing particularly well in the office factor.
About J.D. Power and Associates Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on home building and home improvement, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit www.JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About Coldwell Banker Residential Brokerage
Coldwell Banker Residential Brokerage, a leading residential real estate brokerage company in Utah, operates 12 offices with about 900 sales associates serving the communities of the greater Wasatch Front. The company offers residential and commercial brokerage, corporate relocation and mortgage services. Through its internationally renowned Coldwell Banker Previews® program, the company is widely recognized for its expertise in the luxury housing market. Coldwell Banker Residential Brokerage, online at HYPERLINK "http://www.utahhomes.com/" www.UtahHomes.com, is part of NRT LLC, the nation’s largest residential real estate brokerage company. NRT, a subsidiary of Realogy Corporation, operates Realogy’s company-owned real estate brokerage offices. For more information, please visit "http://www.UtahHomes.com" www.UtahHomes.com or call 801.563.8700.
Thursday, October 8, 2009
Newcomers to Provo!
"The [most moved to area] college towns where students and education professionals help welcome outsiders. Among the places in America that have welcomed the most newcomers in 2008, three are home to major colleges and universities: Raleigh, N.C., Provo, Utah, (home to Brigham Young University, one of the country's largest private colleges), and Austin, Texas, home to the University of Texas at Austin.
"If there are lots of newcomers, it's easy to make friends; there's a sense of vibrancy there," says William Frey, a senior fellow at the Brookings Institution. "Places that don't have a lot of new migrants tend to be older and more stagnant. They're also more close-knit."
Intellectual centers like the above-mentioned college towns, however, reliably attract new residents because universities are large, relatively stable employers--and a steady flow of students keeps the population young.
"You have an educated population, and you have a large youthful population," says Alexander von Hoffman, senior fellow at the Joint Center for Housing Studies at Harvard University. "These places retain people after they've graduated, and attract like-minded people."
Published by Forbes.com
10/01/2009
"If there are lots of newcomers, it's easy to make friends; there's a sense of vibrancy there," says William Frey, a senior fellow at the Brookings Institution. "Places that don't have a lot of new migrants tend to be older and more stagnant. They're also more close-knit."
Intellectual centers like the above-mentioned college towns, however, reliably attract new residents because universities are large, relatively stable employers--and a steady flow of students keeps the population young.
"You have an educated population, and you have a large youthful population," says Alexander von Hoffman, senior fellow at the Joint Center for Housing Studies at Harvard University. "These places retain people after they've graduated, and attract like-minded people."
Published by Forbes.com
10/01/2009
Wednesday, September 9, 2009
Home Sales Up! Summer 2009
Wasatch Front home sales up for second consecutive month
Sales of existing Wasatch Front homes were up for the second consecutive month, rising 4 percent in July, while Utah County sales increased by a whopping 22 percent, according to statistics released by the Utah Association of REALTORS® Aug. 25, 2009.
In July, Salt Lake, Utah, Davis, Weber and Tooele County REALTORS® sold 2,352 single-family homes, townhomes and condominiums compared to the 2,261 properties sold in July 2008. In Utah County, REALTORS® sold 566 existing homes compared to the 465 homes sold last year.
The statistics mirrored figures released by the National Association of REALTORS® that said U.S. home sales were up 5 percent in July compared to July 2008. On a monthly basis, U.S. seasonally adjusted home sales increased 7 percent, the first time in five years that sales increased for four months in a row.
Along the Wasatch Front, sales were down 6 percent from June to July; however, the decrease was expected because sales are traditionally slower in July and the Utah statistics are not seasonally adjusted.
The median price of homes in the five-county area in July was $205,000, down 6 percent from last year. In a separate report, the Federal Housing Finance Agency said Utah home prices decreased nearly 12 percent for the second quarter.
Sales of existing Wasatch Front homes were up for the second consecutive month, rising 4 percent in July, while Utah County sales increased by a whopping 22 percent, according to statistics released by the Utah Association of REALTORS® Aug. 25, 2009.
In July, Salt Lake, Utah, Davis, Weber and Tooele County REALTORS® sold 2,352 single-family homes, townhomes and condominiums compared to the 2,261 properties sold in July 2008. In Utah County, REALTORS® sold 566 existing homes compared to the 465 homes sold last year.
The statistics mirrored figures released by the National Association of REALTORS® that said U.S. home sales were up 5 percent in July compared to July 2008. On a monthly basis, U.S. seasonally adjusted home sales increased 7 percent, the first time in five years that sales increased for four months in a row.
Along the Wasatch Front, sales were down 6 percent from June to July; however, the decrease was expected because sales are traditionally slower in July and the Utah statistics are not seasonally adjusted.
The median price of homes in the five-county area in July was $205,000, down 6 percent from last year. In a separate report, the Federal Housing Finance Agency said Utah home prices decreased nearly 12 percent for the second quarter.
Tuesday, September 8, 2009
Home Run 2 Grant
FREQUENTLY ASKED QUESTIONS ABOUT HOME RUN 2 GRANTS
*What is the $4,000 Home Run 2 Grant?
The Home Run 2 Grant is a mortgage assistance program that grants $4,000 to home buyers who wish to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.
*How is Home Run 2 different from the first Home Run program?
The first Home Run program, which ended in June 2009, provided a $6,000 grant to eligible home buyers. Home Run 2 provides a $4,000 grant. The first program required that homes be ready for occupancy upon closing. Home Run 2 buyers have two additional options. They can purchase a home that is contracted for construction or partially finished and contracted for completion. Homes that have been previously occupied do not qualify.
When a Home Run 2 Grant Commitment is issued, if the Eligible Home is fully constructed, the Commitment expires 10 calendar days after the date of issuance (unless that day falls on a weekend or holiday and then it is the following business day). If the Eligible Home is somewhere in the construction process, the Commitment expires on June 30, 2010.
All other aspects of the program are materially the same as the first Home Run program.
*Who is eligible to receive a $4,000 Home Run 2 Grant?
• Home buyers who did not receive a $6,000 grant under the previous $6,000 Home Run Grant Program.
• Home buyers (any person taking title) must meet the following income restrictions:
o Single person, maximum income, $75,000
o Married couple, maximum income, $150,000
o If more than one unmarried person is taking title to the Eligible Home, each such single person is subject to the $75,000 income limit.
o Income calculations will be determined by the Adjusted Gross Income as verified by the Approved Lender using the 2008 IRS Federal Income Tax transcript obtained directly from IRS or from an authorized third-party vendor.
• Home buyers must occupy the purchased home as a primary, permanent residence.
• If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.
• The Home Run 2 Grant Program is effective only for home purchases closed after a Home Run 2 Grant Commitment has been issued for that specific transaction. The grant funds may not be issued for homes purchased prior to obtaining the Home Run 2 Grant Commitment.
*Can Cash Buyers qualify to get the Home Run 2 Grant?
Yes. Cash Buyers must contact Utah Housing directly. Cash Buyers, like all other Buyers, must obtain a written Home Run 2 Grant Commitment prior to closing.
*What property types can be purchased with a $4,000 Home Run 2 Grant?
Eligible property types include single-family detached homes, condominiums, planned unit developments (PUD), twin homes, town homes and manufactured homes permanently affixed to a foundation.
*What type of loan can a home buyer use to purchase the home?
If a home buyer needs a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less. Loans may be obtained from any Approved Lender. Examples of qualifying loans include:
∗ Conventional loans
∗ FHA, VA, or Rural Housing loans
∗ Utah Housing Corporation loans
*How does a home buyer apply for a $4,000 Home Run 2 Grant?
Apply for a grant through an Approved Lender. Approved Lenders are the key link between a home buyer and the Home Run 2 Grant. The Approved Lender assists a home buyer to provide necessary information to secure the grant commitment from Utah Housing Corporation. A home buyer does not work directly with Utah Housing Corporation (unless the home is being purchased for cash).
*Do I have to be a first-time home buyer to get a Home Run 2 Grant?
No. Home Run 2 Grants are available to all home buyers (all persons who take title) whose maximum income is $75,000 for singles, $150,000 for couples and, if more than one single person takes title, the $75,000 limit applies to each such single person.
*Can the $4,000 Home Run 2 Grant be combined with the new $8,000 federal tax credit?
Yes, if home buyers meet the independent criteria of both the federal government and the Home Run 2 Grant programs, they may take advantage of both. The $4,000 Home Run 2 Grant is available to both those who are first-time home buyers as well as those who previously owned a home. The $8,000 federal tax credit is available only to first-time home buyers.
*How many Home Run 2 Grants are available to home buyers?
A total of approximately 1,950 grants of $4,000 each will be available. Only one grant can be used for the purchase of each home and can only be issued to persons who did not obtain a grant under the previous $6,000 Home Run Program. Home Run 2 Grants are distributed on a first-come, first-served basis to fully-qualified home buyers. The approximate number of remaining grants is posted at all times on Utah Housing web page at www.utahhousingcorp.org.
*Is the Home Run 2 Grant taxable?
The Home Run 2 Grant will probably be taxable as income under federal and state tax laws. Utah Housing does not provide any tax advice regarding the taxability of the Home Run 2 Grant. If Utah Housing receives a favorable ruling from the Internal Revenue Service that a Home Run Grant is not taxable, Utah Housing will post the ruling on its Website (www.utahhousingcorp.org) and a home buyer should review the ruling in connection with the preparation of their tax return(s).
*If I have additional questions, who do I contact?
Contact Heidi Alldredge, Realtor for Coldwell Banker at 801-434-7008.
Important Note: Buyers should make sure that they work closely with a Realtor and an Approved Lender for the Home Run 2 Grant Program to ensure that required materials are submitted in a timely manner, but not prematurely.
When a Home Run 2 Grant Commitment is issued, if the Eligible Home is fully constructed, the Commitment expires 10 calendar days after the date of issuance (unless that day falls on a weekend or holiday and then it is the following business day). If the Eligible Home is somewhere in the construction process, the Commitment expires on June 30, 2010.
*Steps to obtain a Home Run 2 Grant:
1. Buyer signs a contract to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.
2. Buyer applies for mortgage loan through an Approved Lender and Approved Lender obtains all required Home Run 2 documentation and written loan underwriting approval.
3. When all required Application materials have been obtained, Approved Lender submits a Home Run 2 Grant Request to Utah Housing and receives from Utah Housing a Home Run 2 Grant Commitment authorizing the Grant for the Buyer.
4. The purchase closing is scheduled at a title company. As soon as closing documents have been signed, the title company faxes required documents to Utah Housing so that it can request that the Escrow Agent send a wire of $4,000 to the closing.
5. The Home Run 2 Grant Commitment must be dated on or prior to the date shown on closing documents.
*What is the $4,000 Home Run 2 Grant?
The Home Run 2 Grant is a mortgage assistance program that grants $4,000 to home buyers who wish to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.
*How is Home Run 2 different from the first Home Run program?
The first Home Run program, which ended in June 2009, provided a $6,000 grant to eligible home buyers. Home Run 2 provides a $4,000 grant. The first program required that homes be ready for occupancy upon closing. Home Run 2 buyers have two additional options. They can purchase a home that is contracted for construction or partially finished and contracted for completion. Homes that have been previously occupied do not qualify.
When a Home Run 2 Grant Commitment is issued, if the Eligible Home is fully constructed, the Commitment expires 10 calendar days after the date of issuance (unless that day falls on a weekend or holiday and then it is the following business day). If the Eligible Home is somewhere in the construction process, the Commitment expires on June 30, 2010.
All other aspects of the program are materially the same as the first Home Run program.
*Who is eligible to receive a $4,000 Home Run 2 Grant?
• Home buyers who did not receive a $6,000 grant under the previous $6,000 Home Run Grant Program.
• Home buyers (any person taking title) must meet the following income restrictions:
o Single person, maximum income, $75,000
o Married couple, maximum income, $150,000
o If more than one unmarried person is taking title to the Eligible Home, each such single person is subject to the $75,000 income limit.
o Income calculations will be determined by the Adjusted Gross Income as verified by the Approved Lender using the 2008 IRS Federal Income Tax transcript obtained directly from IRS or from an authorized third-party vendor.
• Home buyers must occupy the purchased home as a primary, permanent residence.
• If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.
• The Home Run 2 Grant Program is effective only for home purchases closed after a Home Run 2 Grant Commitment has been issued for that specific transaction. The grant funds may not be issued for homes purchased prior to obtaining the Home Run 2 Grant Commitment.
*Can Cash Buyers qualify to get the Home Run 2 Grant?
Yes. Cash Buyers must contact Utah Housing directly. Cash Buyers, like all other Buyers, must obtain a written Home Run 2 Grant Commitment prior to closing.
*What property types can be purchased with a $4,000 Home Run 2 Grant?
Eligible property types include single-family detached homes, condominiums, planned unit developments (PUD), twin homes, town homes and manufactured homes permanently affixed to a foundation.
*What type of loan can a home buyer use to purchase the home?
If a home buyer needs a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less. Loans may be obtained from any Approved Lender. Examples of qualifying loans include:
∗ Conventional loans
∗ FHA, VA, or Rural Housing loans
∗ Utah Housing Corporation loans
*How does a home buyer apply for a $4,000 Home Run 2 Grant?
Apply for a grant through an Approved Lender. Approved Lenders are the key link between a home buyer and the Home Run 2 Grant. The Approved Lender assists a home buyer to provide necessary information to secure the grant commitment from Utah Housing Corporation. A home buyer does not work directly with Utah Housing Corporation (unless the home is being purchased for cash).
*Do I have to be a first-time home buyer to get a Home Run 2 Grant?
No. Home Run 2 Grants are available to all home buyers (all persons who take title) whose maximum income is $75,000 for singles, $150,000 for couples and, if more than one single person takes title, the $75,000 limit applies to each such single person.
*Can the $4,000 Home Run 2 Grant be combined with the new $8,000 federal tax credit?
Yes, if home buyers meet the independent criteria of both the federal government and the Home Run 2 Grant programs, they may take advantage of both. The $4,000 Home Run 2 Grant is available to both those who are first-time home buyers as well as those who previously owned a home. The $8,000 federal tax credit is available only to first-time home buyers.
*How many Home Run 2 Grants are available to home buyers?
A total of approximately 1,950 grants of $4,000 each will be available. Only one grant can be used for the purchase of each home and can only be issued to persons who did not obtain a grant under the previous $6,000 Home Run Program. Home Run 2 Grants are distributed on a first-come, first-served basis to fully-qualified home buyers. The approximate number of remaining grants is posted at all times on Utah Housing web page at www.utahhousingcorp.org.
*Is the Home Run 2 Grant taxable?
The Home Run 2 Grant will probably be taxable as income under federal and state tax laws. Utah Housing does not provide any tax advice regarding the taxability of the Home Run 2 Grant. If Utah Housing receives a favorable ruling from the Internal Revenue Service that a Home Run Grant is not taxable, Utah Housing will post the ruling on its Website (www.utahhousingcorp.org) and a home buyer should review the ruling in connection with the preparation of their tax return(s).
*If I have additional questions, who do I contact?
Contact Heidi Alldredge, Realtor for Coldwell Banker at 801-434-7008.
Important Note: Buyers should make sure that they work closely with a Realtor and an Approved Lender for the Home Run 2 Grant Program to ensure that required materials are submitted in a timely manner, but not prematurely.
When a Home Run 2 Grant Commitment is issued, if the Eligible Home is fully constructed, the Commitment expires 10 calendar days after the date of issuance (unless that day falls on a weekend or holiday and then it is the following business day). If the Eligible Home is somewhere in the construction process, the Commitment expires on June 30, 2010.
*Steps to obtain a Home Run 2 Grant:
1. Buyer signs a contract to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.
2. Buyer applies for mortgage loan through an Approved Lender and Approved Lender obtains all required Home Run 2 documentation and written loan underwriting approval.
3. When all required Application materials have been obtained, Approved Lender submits a Home Run 2 Grant Request to Utah Housing and receives from Utah Housing a Home Run 2 Grant Commitment authorizing the Grant for the Buyer.
4. The purchase closing is scheduled at a title company. As soon as closing documents have been signed, the title company faxes required documents to Utah Housing so that it can request that the Escrow Agent send a wire of $4,000 to the closing.
5. The Home Run 2 Grant Commitment must be dated on or prior to the date shown on closing documents.
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