CarolinaMortgageConnection.com

Archive for June, 2009

Beazer Mortgage Corp, the home financing arm of Beazer Homes USA, Inc, has agreed to refund more than 1,500 North Carolina borrowers, including borrowers in Charlotte, NC. The grand total of the agreement is $2.5 million in refunds.

Back last year, Beazer Mortgage Corp was involved in a local scandal with alleged mortgage fraud that ended with Beazer surrendering their North Carolina mortgage license and leaving the state. This also caused a major black eye on the company and impacted other Charlotte home builders.

Mortgage fraud is nothing new, and the news media has taken every opportunity they can to use the term. While today the term “mortgage fraud” is used to practically describe any mortgage that isn’t a conventional mortgage from the 1960’s, the fact is that there are serious cases of mortgage fraud out there.

At least in this case, some home buyers in the Charlotte area will get some help. Although, I doubt it will make a major impact on the economy, local housing market, or for those facing a foreclosure.

Charlotte mortgage rates are rising!

With the economy still a little shaky, but with good news on the horizon, the bond market is gaining traction and that is impacting local Charlotte mortgage rates. The 30 year fixed mortgage rates in Charlotte rose slightly, but are still at all time lows!

This may be a signal of things to come, but with where things are, who knows? I will say this though, Charlotte home mortgage rates are simply amazing right now! And with housing prices having come down, a great selection of homes on the market and these current rates, NOW IS THE TIME TO BUY!

Will Charlotte mortgage rates continue to rise? In the long term, the obvious answer is Yes. But in the short term, expect a little up and down until the economy gets a bit more settled. However, the greatest home buying opportunity in Charlotte is now and time is limited… things will not stay this way forever, so don’t wait.

Get approved for a mortgage in Charlotte today and see where you qualify. Then go find that amazing deal that is just waiting for you!

You have to admit one thing, confusion always seems to abound when the federal government is involved! That’s why it is important to keep connected to professionals that cut through the confusion to help sort things out for you. That is why I am bringing you this update to the new FHA approved first time home buyer tax credit of $8000.

According to the newest Mortgagee Letter from HUD, the $8000 tax credit provided for First Time Home Buyers can be applied towards the purchase of a home using an FHA mortgage. However, this must be clarified a bit. FHA mortgage loans require a 3.5% investment on the buyer’s behalf, and this can not be provided by any third party entity, including the Federal Government! This means that as a buyer, you still need to have your own funds for this 3.5% investment in your purchase!

You can still use gift funds and any other acceptable option provided by HUD and the FHA. However, you can not use the tax credit for the minimum downpayment.

There is another item one should be worried about when using this credit… fraud. There are specific ways to use the credit and get the funds, and in some cases not knowing the difference can result in fraud. I will share more information on that in a future article very soon.

So to summarize, the newest Mortgagee Letter from HUD clarifies that a borrower can NOT use the $8,000 tax credit to satisfy the 3.5% minimal investment for an FHA mortgage loan. It CAN be used as further downpayment on a home, just not for the minimal.