Category: Mortgage Assistance

Capstar Lending Announces NEW Mortgage Assistance Program!

Capstar Lending is pleased to offer the Travis County HFC Hill Country Home Down Payment Mortgage Assistance Program. This program is for properties located anywhere in Travis County including anywhere within the City of Austin. This is a grant for up to 5% of the loan amount. This assistance can be used for down payment, closing costs and prepaids.

This program is for new or existing homes, 1-4 units detached or attached, condos or townhomes that meet the lender’s requirements. Borrowers must occupy the home as their primary residence.

There is no first time homebuyer requirement for this program and there are no purchase price limits. The loan amount maximum is set by the type of loan program you are applying for. For example, the FHA loan limit for a single family home in Travis County is $305,900.

The maximum income limit for this program is $105,560. This is based on the qualifying income used on the loan application. There is no recapture tax on this program.

Borrowers must have a minimum, middle credit score of 640.

For more information or to apply,please call Todd Kurio, Residential Mortgage Loan Originator. 512 459 2405, NMLS #214411/216616, todd.kurio@capstarlending.com. Capstar Lending, Equal Housing Lender.

This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval.

MCC Program – Texas Mortgage Credit Certificate Program

As you may have noticed, we’ve been blogging a lot lately about mortgage assistance programs that are offered through state housing agencies in Texas. Today, we’d like to introduce you to the Texas Mortgage Credit Certificate Program also known as “MCC Program.”

The MCC Program is a great opportunity for first time home buyers and low to moderate income individuals and families who who wish to buy a home. If you think you may qualify for the MCC Program, don’t hesitate to call us. For now, let’s learn more about this opportunity. Many lenders don’t take the time and effort to participate in these worthwhile programs but we do!

What Exactly Is The MCC Program?

One of the many advantages of home ownership is the fact that the interest you pay is tax deductible. All homebuyers, regardless of income, may take advantage of this mortgage interest deduction feature. If you file itemized returns (which most home owners do) than you can include any interest you pay towards your mortgage (with certain restrictions) in your total itemized deductions. Having an MCC Certificate issued is like “turbo charging” your tax advantage. This occurs because the Texas Mortgage Credit Certificate allows the homebuyer to claim a tax credit against their federal income tax liability for as long as they occupy the home and pay interest.

There is a big difference between a tax credit and a tax deduction. With a tax credit you get to reduce your tax liability on a dollar-for-dollar basis. For example, if your overall tax liability is $5,000 and you have the maximum MCC credit of $2,000 than your total tax bill is reduced to $3,000.

Who Is Eligible For The MCC Program?

Eligibility for the issuance of an MCC is open to individuals and families who meet income and home purchase requirements below:

  • have not owned a home as primary residence in the past three (3) years;
  • meet the qualifying requirements (including income limitations) of the mortgage loan;
  • will use the home as their principal/primary residence. As long as you occupy the property as your primary residence the MCC tax credit will be available to you. You must file IRS Form 8396 with your federal income tax return. The form can be obtained from the IRS web site at www.irs.gov.
  • used primarily in conjunction with the purchase of a home. An MCC Certificate can only be issued on a new refinance if there was an MCC Certificate issued on the original loan.
  • Homebuyer Education required – the homebuyer must complete a Homebuyer Education course prior to loan closing. There are courses that you can attend in your area that your lender can direct you to, or you may complete the course online. Either way, a certificate showing the completion of an approved homebuyer education course is required to close the loan.

There may be other requirements and restrictions, so speak with your qualified lender to determine these.

The MCC program can be used with all types of mortgages. So whether your loan is conventional, FHA or VA the MCC credit is available to go along with it.

Finally, I do want to point out that the Department of Housing and Urban Development (HUD) has designated certain areas as “Targeted Census Tracts.” If you purchase a home in these areas, you do not have to be a first-time homebuyer and income and sales price limits are higher. In addition, there is a potential waiver of the first-time homebuyer requirement for eligible Veterans.

Please see your lending professional for further information on these exceptions.

Other restrictions apply and vary by the state, city or county that administers the program.

How Much Of An MCC Program Tax Credit Can You Receive?

The total tax credit depends on the size of the loan and the interest rate you are paying but the tax credit you receive will be 40% of the annual interest paid. In no case can the tax credit exceed $2,000 per year. However, if you have a credit that exceeds your tax liability for the year you may be able to carry it forward for use in the subsequent years.

Finally, the remainder of the mortgage interest not taken as a tax credit will continue to qualify as an itemized tax deduction. How you decide to take advantage of this savings depends on how you file your taxes. You may choose to take a tax credit or a mortgage interest deduction. Your lender and/or financial adviser will be able to advise you based on your goals and individual tax situation.

MCC Program Fees?

As with any mortgage product there are regular closing costs that are associated with closing your loan. The In addition, there will be an MCC Issuance or Participation Fee of 1% of the total loan amount. Going back to our previous example of a $150,000 loan – you will pay a $1,500 MCC Issuance fee to have the MCC issued. Again, actual amounts will vary depending on your loan size, but the additional MCC fee will be 1% of the loan.

Potential Recapture Tax Due

The MCC program is funded with proceeds from tax exempt Mortgage Revenue Bonds. Since this is a federally subsidized program, you may be subject to a Recapture Tax. The Recapture Tax calculations can be very confusing and the determination of whether you are subject to any Recapture Tax can only be made at the time of sale of your property. Your lender will provide you with a disclosure that will explain the rules for the Recapture Tax.

Please note there are some exceptions provided that result in no tax due. In general, if you sell your home within the first nine years and your income has gone up substantially than you may be subject to this additional tax. General information on Recapture Tax can be found in Section 143(m) of the IRS Code, or by logging on to www.irs.gov.

I hope this has been a helpful recap of the Mortgage Credit Certificate program.

Capstar offers this program through various agencies including the Texas Department of Housing and Community Affairs (TDHCA), Southeast Texas Housing (SETH) and Texas State Affordable Housing Corporation (TSAHC). Tweet this

If you or someone you know might benefit from this program than please email michael.scott@capstarlending.com or call 512-459-2419 for more details. NMLS#216603

The 5 Types Of People Who Qualify For FHA Loans in Texas

Are you one of the lucky 5 types of people who will qualify for an FHA loan? Keep reading to see if you may qualify for an FHA Loan in Texas.

FHA stands for the “Federal Housing Administration” and is a part of HUD, the Federal Government’s “Housing and Urban Development” department. This branch of government insures loans so lenders can offer better rates on mortgage financing. It also comes with some great options for those who need some extra financial help like a low down payment, lower closing costs and easier credit qualifications.

1. First Time Home Buyers

First Time Home buyers love the FHA loan because it allows them to put down a smaller down payment, as little as 3.5% and the seller can pay your closing costs and prepaid fees. Let’s face it, most young people today are struggling with student loan debt and a sluggish economy. Any opportunity to part with less cash is one to be considered! If you already have a property in mind, you should check with your loan officer to see if your desired property would qualify under the program, but typically the maximum number of units the property can have is 4(fourplex).

2. The “Do It Yourself-er”

Do you like to work on home repairs and remodeling?Think you can handle a fixer-upper? If you want to completely customize a home, then an FHA Loan can help you by rolling the total cost of the remodel or repairs into one loan. You can also refinance the cost of the repairs or remodel into a new FHA loan. This type of loan is called a “203k.”

3. The Senior Citizen

There has been a lot of  talk about reverse mortgages lately. The FHA website has a great fact sheet for further reading on requirements here. The basic qualifications are that you must be at least 62 years old, own your home outright or have a very low balance. If this sounds like you, follow the link above to learn more about qualifying and turning your home equity into cash you can use to meet monthly expenses.

4. The Eco-Conscious

Are you worried about wasting energy and would like to make energy improvements?There’s an FHA mortgage for that! Check out the FHA Energy-Efficient Mortgage. This relatively recent (1995) program helps homeowners by enabling them to finance the cost of adding energy efficiency features to new or existing housing as part of their FHA insured home purchase or refinancing mortgage. For more information go to the energy efficient mortgage description on the HUD website.

5. The Mobile Home Owner

There are two types of loans for those who wish to purchase a mobile home or a factory built house. There is one type of loan for people who already own the land that the home is on and another for mobile homes that are or will be located in a mobile home park. You can read HUD’s most recent newsletter titled: The FACTs: HUD’s ManuFACTured Housing Newsletter here.

 

I hope this cleared up questions about qualifying for an FHA loan. If you feel like you may be one of the lucky types of people who will qualify for an FHA Loan in Texas. Don’t wait call or email today!

Capstar Lending does not currently offer all of the loan programs described above but please contact Todd.Kurio@capstarlending.com or call 512-459-2405 for more details. NMLS#216616 Residential Mortgage Loan Originator

Citation: http://portal.hud.gov/hudportal/HUD?src=/buying/loans

 

VA Home Loans : A Slideshare Presentation

I recently shared on social media that the VA Home Loans program is hugely underused. This is partially because the program, which was created in 1944, isn’t promoted as much as it should be. Out of the 16.4 million active service members and military veterans with mortgages, only 12% have a loan guaranteed by the Department of Veterans Affairs. Many Vets simply don’t know about the program and many loan officers don’t think to ask their clients if they’re service members!

I would like to help Vets, and especially Texas Vets, to better understand what they need to know to qualify for VA home loans Texas, as well as their eligibility requirements, limits and the advantages of the program. Take a minute to check out the Slideshare presentation I created that address all these things as well as provide you some resources to start the application process.

 

I hope you enjoyed the presentation and would trust me to serve your VA loan. Please contact me at (512) 459 -2405 or at Todd.Kurio@capstarlending.com today so I can answer your questions and get started.

Home Loans For Teachers: Texas Heros and Home Sweet Texas Home Loan Programs

Capstar Lending participates in the Texas State Affordable Housing Corporation’s Homes for Texas Heroes and Home Sweet Texas Home Loan Programs. Capstar Lending is one of the program’s approved lenders and we’d like to help even more families achieve their dream of homeownership this year.

Who Is Eligible For The Program:

“Texas heros” are great people like teachers, correction officers, EMS workers and firefighters. For the full list of who is eligible, see here. We have received a lot of questions as to what kind of “teachers” are eligible for the program.  The answers may surprise you since the program is very inclusive to those working in Education. You will qualify for the program if you are a “Professional Educator.” This means a full-time, public classroom teacher, teacher aide, school librarian, school counselor certified under Subchapter B, Chapter 21, Education Code, or school nurse. “ (source: http://www.tsahc.org/) If you are uncertain about your eligibility the TSAHC website has an “Official Records” search, where you can look up an educators status by typing in their name which will bring up certification records, if any. You can find that search form here. There are other eligibility requirements and many of your questions can be answered on the TSAHC website. If anything remains unclear feel free to contact Todd Kurio directly at 512-459-2405 or by email.

What The Program Has To Offer

The benefits of the program are as follows: -A 30-year fixed interest rate FHA, VA or USDA mortgage loan -Down payment and closing cost assistance of up to 5% of the loan amount -Down payment assistance is a grant and never needs to be repaid -Available for the purchase of a home or refinance of an existing loan -You do not need to be a first-time homebuyer – See more at: http://www.tsahc.org/homeownership/loans-down-payment-assistance

Where Do I Have To Live To Participate and What Do I Need To Apply?

To participate in the program, you can be located anywhere in Texas, although the income limits will vary by county. Here is a list of income and purchase price limits by county. Beyond these limits the program does not limit you to certain areas or to TSAHC-specific homes. You may choose where you would like to live and the home you would like to purchase. In order to apply, you will first need to attend a homebuyer education course which will teach you about the process of buying a home. It will arm you with knowledge and help you avoid any potential pitfalls. After you attend an education course, you should contact an approved lender to get the process started. Remember Todd Kurio at Capstar Lending is an approved lender. Upon contacting him, you will be guided through the process of eligibility, requirements and necessary paperwork.  You will not need to submit an application through TSAHC, Todd and his team will take care of that for you. Don’t hesitate to call with questions if you are unsure.

Don’t waste another dollar on rent! Take the first step in making your dreams come true by contacting Todd today!  Residential Mortgage Loan Originator NMLS #216616/214411

The 4 Best Mortgage Assistance Programs Available in Texas

Getting approved for a mortgage loan is one of the first steps in buying a home. But for people with past credit problems, income limitations, or other economic hardships, getting a mortgage through traditional routes can be difficult or impossible. This is where mortgage assistance programs can help.

You may have noticed that I have been promoting our mortgage assistance programs more than ever. There are a number of programs available to help everyday people obtain mortgages – programs like Zero Down VA Loans, Zero Down USDA Loans, programs through the Texas Veterans Housing Assistance Program, bond programs such as SETH, and programs through the Texas Department of Housing and Community Affairs. It’s just a matter of figuring out which ones you qualify for and letting us help you get the process started.

Below are the some of the best mortgage assistance programs available for home buyers in Texas.

VA Loans

Most veterans are eligible for a VA assistance, which provides low cost financing and other programs to help veterans build or purchase a home with little to no down payment. VA loans are offered by private lenders but a portion of the loan is guaranteed by the Veterans Administration. This means the lender can offer better terms on the mortgage note, and veterans who otherwise wouldn’t have had enough cash to purchase a home can now obtain financing.

The types of VA assistance available include:

  • Purchase Loan – for building or purchasing a home. No down payment or private mortgage insurance is required.
  • Interest Rate Reduction Refinance Loan (IRRRL) – to refinance an existing VA home loan.

Eligibility for VA assistance depends on your military service, credit score, income, and possession of a valid Certificate of Eligibility (COE). Please call me at 512-459-2405 to learn more.

FHA Home Loans

The FHA home loan program is administered by the U.S. Department of Housing and Urban Development. This program has more flexible debt to income ratios and lower minimum credit scores. It is a perfect resource for first time home buyers who have very little savings, who have had credit problems in the past, or who want to save the extra cash to fix up the home they are purchasing.

FHA loans are offered by private lenders but are insured by the Federal Housing Administration, enabling the lender to offer a better deal that includes:

Low down payments – as low as 3.5% of the purchase price.
Little to no closing costs with seller paid closing costs or lender paid options

There is also additional assistance for first time home buyers available through SETH. Read on to learn more.

Mortgage Grants – Southeast Texas Housing Bond (SETH)

The SETH Single Family Bond Program offers down payment assistance, closing cost assistance, grants, and fixed-rate mortgage financing for buyers in select Texas counties who have a maximum household income of $88,205 (although this amount varies by location).

SETH Program works as follows to help first-time homebuyers purchase a home:

SETH 5 Star Texas Advantage Program – provides a grant of up to 5% of the cost of the home. Repayment of the grant money is not required. Applicants do not need to be a first time home buyer, and the funds may be used for mortgages with fixed 30 year rates. The program is available everywhere in Texas except for El Paso, Grand Prairie, and McKinney.

MCC Program – Texas Mortgage Credit Certificate Program

This program allows buyers to claim a tax credit of up to $2000 for a portion of their mortgage interest payments. The credit can be claimed every year for the life of the loan and helps reduce overall federal tax liability.

To qualify for this program, buyers must:

  • Qualify for a mortgage loan through a lender
  • Have not owned a home in the past three years
  • Meet certain income requirements
  • Agree to make the home their primary residence

All types of mortgages (including VA, FHA, and conventional loans) are eligible for the program. It can be used for new construction or existing dwellings, including single family homes, townhomes and condominiums.. Buyers utilizing this program must complete a pre-purchase homebuyer education course and pay an issuance fee at closing.

If you think you might qualify for one of these programs, don’t hesitate, call me today!
I have a 5-star google rating in customer satisfaction and have the experience servicing all these types of loans . I would like to help you achieve your dream of homeownership.

Please contact Todd Kurio, Residential Mortgage Loan Originator at 512-459-2405 to get started today!

Downpayment Assistance Texas – Grant Program

If you have been waiting to buy a house because you needed to save more for the down payment- Capstar Lending can help.  Capstar Lending thru the Southeast Texas Finance Corp (SETH) is offering Down Payment Assistance (Grant Money) up to 5% of the loan amount.  This grant may be used to fund up to 100% of the borrowers cash to close, including the down payment, closing costs, prepaids, and other related mortgage loan fees and expenses.   This program is for primary residence, owner occupied properties.  Income limit for the borrower on the loan(not family income) is $86,710 for Austin-Round Rock- San Marcos MSA.  This program is based on FHA loan parameters. Maximum purchase price is $250,200.   There is NO first time homebuyer requirement. No federal recapture tax. Find out more information about all our mortgage assistance programs.

NMLS# 216616
Direct Line: (512) 459-2405
E-mail: todd.kurio@capstarlending.com