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The program provides $14,000 to eligible borrowers purchasing foreclosed properties in eligible areas. Funds are in the form of a second mortgage lien with no interest and no monthly payments, also known as a soft second. The lien is released over a period of five years and six months. That means if you stay in that house for 5 and a half years, you don't pay it back. Funds may be used for required repairs and/or down payment assistance.

This program began April 1, 2009 and all funds must be used by June 30, 2010.  If you are a first time home buyer, get the most for your money and purchase before December 1, 2009 for an additional $8,000 federal tax credit.  There is another tax credit for all GA Home Buyers regardless of what you buy or your income for buying a home between June 1 and November 30th, 2009.

How to Apply:

All buyers must receive eight hours of in-person home buyer education/counseling provided by a HUD-approved housing counseling agency. Courses are not available on-line.

Contact a Georgia Dream participating lender for pre-qualification and to begin the mortgage loan process. Yes, good credit is still important here.  Call me for a recommendation on a participating lender.

Can I buy a home anywhere in Georgia?
No. You must purchase a foreclosed property in an area of greatest need which means an area that has a large inventory of foreclosures. Counties in metro Atlanta are included in this. For counties outside metro Atlanta please click here.

Are there income limits?
Yes and these limits are before taxes. For the counties of Dekalb, Cobb, Fulton and Gwinnett the income limits are as follows:

• Household of 1   $59,800
• Household of 2   $68,350
• Household of 3   $76,900
• Household of 4   $85,450
• Household of 5   $92,300
• Household of 6   $99,100
• Household of 7   $105,950
• Household of 8   $112,800

For all other counties, please check www.dcaloans.com.

Are only first time home buyers eligible for the Georgia Dream NSP program?
Applicants do not have to be first-time home buyers and can own other real estate. However, the applicant must owner occupy the NSP financed property as his or her primary residence within 60 days of closing. Any rental income generated from the ownership of other real estate would have to be counted as household income for NSP qualification purposes.

If I am a first time home buyer and I use the Georgia Dream NSP do I still qualify for the federal first time home buyer $8000 tax credit?
Yes, if you purchase a home prior to December 1, 2009.

Can I use other down payment assistance with this program?
No, unlike the traditional Georgia Dream down payment programs, the Georgia Dream NSP cannot be combined with other down payment assistance programs.

Once again, The Castles By Chrissy Team is your local expert on the best way to buy a home, get financing, and have a smooth transaction.  If you have additional questions about this credit or other related home buying questions, please call us today.  I look forward to helping you take advantage of these credits in 2009!

Sincerely,

Chrissy Neumann
#1 Top Producing Team KWFA 2008
404.925.5335
Fax 404.529.4529
www.CastlesByChrissy.com

Is it Better to Remodel Now or Buy a New House?

A lot of home owners have seen the value drop in their neighborhood and are thinking it would be much better to just renovate their bathroom/kitchen/ master suite, etc versus taking a "loss" on selling their home.  Surprisingly, though, keeping up a home may cost you up to four times its purchase price. Is it smarter just to buy another home? Quite possibly, especially when real estate values are as low as they are right now.  Here's how to make an informed decision.

The emotional answer could very easily be "NO" - most of my past clients said it cost more money in marital counseling than if they just bought a new home! :) All joking aside, there are the financial reasons to take into account.  

At first glance, there seem to be plenty of cost advantages to staying put and renovating. You can avoid the costs of selling your home, buying a new one and moving, which can drain away 10% or more of the value of your home each time you change abodes.

However, you need to consider the costs of maintenance, repairs and updates. These are far more than most homeowners realize.

The high cost of keeping up with the Joneses

If you are considering holding on to your property and you are not a committed "do-it-yourselfer", you might be no better off than had you rented all those years. The cost of repair and renovation bills can easily overwhelm your profit.

Meanwhile, if you are a move-up buyer you could be leagues ahead if you snagged a new or fully remodeled house in this down market.

What are the real costs involved?

An architect or contractor can help give you a ballpark on a remodel, and help point out some ways to save money.

• The out-of-pocket costs of construction (any savings or other funds you plan to devote to the cause).
• The cost of any financing (usually your monthly payments multiplied by the time you plan to remain in the house).
• If you're adding on rather than renovating, the cost of higher utility bills, bigger homeowner's insurance premiums and greater property taxes from your additional space.

When computing the costs of moving, consider:

• Real estate commissions, closing costs and moving, which typically equal 10% or more of the house you're selling.
• The cost of the new, presumably bigger mortgage, multiplied by however long you plan to be in the house.
• The cost of higher utility bills, bigger homeowners insurance premiums and greater property taxes over the same period.
• Any new furniture, window treatments, landscaping or other the years.