Q: Where can I learn about federal housing tax credits?
A: The National Association of Realtors® explains the basics of the extended and expanded first-time homebuyer tax credit here; information about how to get the tax credit here; how to use the credit here; and how to apply the credit to your 2009 tax return here. The National Association of Home Builders provides answers to frequently asked questions about federal housing tax credits here. Watch their video on YouTube here. The Internal Revenue Service provides 10 Important Facts About the Extended First-Time Homebuyer Credit here and I have posted those facts under the What's New(s)! tab. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.
Q: What do I need to know about today's Montana real estate markets?
1. All real estate is local.
2. A house is a place to make a home, not just a buck.
3. Now is a good time to buy.
4. Realtors® add value to your real estate transaction.
5. Location has never mattered more.
Q: What is a Title company?
A: Davis Title Company, L.L.C. of Biloxi, Mississippi provide an excellent answer to this question on their website, www.davistitle.net, as follows:
Buying or selling a home is, for most people, the largest financial endeavor they will ever undertake. You need to secure the professional services of a title company to efficiently and accurately handle this complex transaction.
The title company will do an "abstract of title" which means searching the real estate records in the county where that particular piece of property is located. An abstract will (1) determine the legal owner of the property; (2) reveal any mortgages, liens, judgments, or unpaid taxes that will have to be satisfied before the property is conveyed; and (3) detail any existing easement, restrictions, or leases that affect the property.
After the abstract is completed, the title company will issue a "title opinion letter", or if a title insurance policy is to be issued on the property, it will prepare a "Commitment of Title Insurance" to the lender and/or the prospective buyer. The title opinion letter and the title insurance commitment will each set forth all things that need to be completed or problems that need to be corrected before the purchaser can receive "clear title". The title insurance company will complete all the necessary documents and will undertake the steps necessary to correct any problems. Once these things are done, there parties are ready to exchange paperwork and "close" the deal.
The purpose of the closing is to sign and exchange all the documents necessary to convey title, secure the lender, and deal with collateral issues such as leases, rights-of-way, etc., and to explain in a orderly manner the costs to each party. This is done by preparing a closing statement or what is referred to in the industry as a "HUD 1". The closing statement will include the mortgage lender’s charges, documentation fees, the payoffs to release any existing mortgages, proration of city and county taxes, real estate commission fees, survey fees, and any other costs associated with the deal.
At closing, the title company will collect the purchase money funds from the buyer and lender as well as the settlement costs from each party. With these funds, the title company then pays all of the expenses of the transaction, pays off any existing mortgages, and pays the seller the net proceeds of the sale. All of this is done in accordance with the HUD 1 settlement statement.
After the closing, the title company will record the legal documents (deed, mortgage, assignments, etc.) at the county courthouse and return the original documents to the correct party. New owners receive their deed which should be stored in a bank lock box or other secure location. The lender receives the original mortgage documents which they hold until the loan is paid in full. Once the loan is paid, the lender will "release" their lien against the property at the courthouse, and will forward the original mortgage documents to the home owner. This is when the homeowner can enjoy the "burning of the mortgage" ceremony.
A: Michaelson, Connor & Boul Inc. posted an answer to this question on their website,
www.mcbreo.com, as follows:
There are three main types of FHA Financing:
203(b) Regular FHA Loan - Listed as “IN”
If the Property does not have any mandatory repairs FHA will insure the Loan hence the classification of “IN”
203(b) - Repair Escrow - Listed as “IE”
When a property has less than $5000 in repairs to bring it up to Minimum Property Standards, FHA will insure the loan provided the repairs are completed by the Buyer or the Buyer’s agent within 90 days from the date of Closing.
It is a cost to the Buyer that the Buyer can finance and add the amount to the mortgage.
The Lender monitors and keeps the funds in an escrow account for disbursement on completion of repairs to the Lender’s satisfaction.
203(k) - Rehab Loan - Listed as “IK”
When the property has more than $5000 in Minimum Property Standards repairs to be done
The Lender must obtain an Inspection report from an approved 203(k) consultant and a new appraisal
Contact any mortgage company familiar with FHA Guidelines for the various programs.