Foster City, CA (PRWEB) July 15, 2009
Shoprate.com spokesperson Liz Freeman recently attended the National Association of Real Estate Editors (NAREE) conference in Washington, D.C. to discuss hot-button housing issues with politicians, journalists and fellow mortgage professionals. While sessions ranged from "The Future of Mortgage Banking" with Senator Barney Frank and other committee leaders to "Fixing the Home Foreclosure Mess" with FDIC Chair Sheila Blair, a lot of the buzz surrounded the $8,000 tax credit now available to first-time homebuyers.
"Shaun Donovan (HUD Secretary) spoke about the credit extensively," Freeman said. "Initially, about ten states set up programs to allow homebuyers to collect their anticipated housing credit upfront and use it toward their down payments, effectively making zero-down loans available again. HUD allowed this at first (according to its May 29 announcement), but then determined that zero-down loans were too risky. Donovan, referring to HUD's recent preclusion of sellers paying buyers' down payments, stated that, 'Eliminating third-party seller-funded down payments will save taxpayers $2.5 billion.'"
However, Freeman indicates that it's not all bad news for those with limited funds.
"You can apply the $8,000 towards your down payment but only after you come up with the required 3.5 percent minimum. So you can use it to make a bigger down payment or for closing costs, but not to get into a house with nothing down. Each state or approved program operates their 'bridge loans' differently, and there are costs involved there, too."
Freeman recommends another alternative for longer-term financial security.
"Get your 3.5 percent down payment together, then find a motivated seller (not difficult in many markets) to pay your closing costs," Freeman said. "Collect your $8,000 tax credit and save it -- that fund may rescue you from foreclosure or bankruptcy in the future."
About Liz Freeman: Liz Freeman is the primary spokesperson and finance expert for Shoprate.com. She has over a decade of mortgage lending experience and writes for several industry publications. She graduated with High Distinction from the University of Nevada with a degree in financial management and minors in accounting and economics. Freeman provides the insider's view into mortgage pricing, presenting applicants favorably and honestly, explaining mortgage disclosures, spotting shady practices, dealing with credit issues, and overcoming obstacles like unexpected title or property problems.
About Shoprate.com: Shoprate.com is a trusted resource where consumers can compare mortgage rates, read expert advice and analyze data before making financial decisions. The site's renewed focus on high quality content and usability has allowed Shoprate.com to become an online leader in mortgage, home equity and refinancing information.
To schedule an interview with Liz Freeman, call Jessica Austin at 479-452-0019.