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On March 20, the Senate passed by a vote of 73 to 26 its amended version of the House-passed FY 2013 continuing resolution (CR), H.R. 933. On March 21, the House also passed, by a vote of 318 to 109, the amended version of the CR. The bill now goes to the President for his signature. The FY 2013 Agriculture appropriations bill included in the CR includes language to allow any area that was eligible for rural housing programs at the end of Fiscal Year 2012 to remain eligible until the end of FY 2013. For rural housing programs, the bill provides:

$24 billion for the Section 502 unsubsidized guaranteed loan program, equal to its FY 2012 enacted level.

This is great news for communities who have depended on zero down financing in thousands of areas across the United States and feared that many such areas would be ‘axed’ from the Eligibility Map.

Just like for this homebuyer who purchased a home in Sun City, CA with absolutely not a dime out of pocket, the USDA Guaranteed Rural Housing program remains a favorite!

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Private Mortgage Insurance (PMI) is a necessary evil when you borrow more than 80% on a Conventional loan. But in 2007 the Govt. passed the Mortgage Forgiveness Debt Relief Act which allowed PMI to be tax deductible if you fit certain income criteria.
Unfortunately that Rule expired in 2011 which meant in 2012 homeowners couldn’t write off PMI as a tax deduction.
Well, the good news is that The American Taxpayer Relief Act of 2012 extended the 2007 Rule , even making it retroactive so folks who paid PMI in 2012 could go back and claim it on their tax returns when filing in 2013!
Secondly, the (qualified) deduction is extended through 2013 (again subject to some restrictions).
What To Do? :
(i) make sure you speak to your Tax Advisor about including MI as a deduction for tax year 2012 when you file this year.
(ii) If you’re considering FHA financing, think again and speak to your Loan Officer about how to go Conventional with cheaper PMI than FHA.

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Good news, the recent USDA change of Eligibility areas was deferred until March 27, 2013. This means the geographic areas which had been singled out to be eliminated from eligibility for RD502 financing, will remain eligible until at least April 2013.
Here’s the entire Notice from the USDA from September, 2012.

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VA Loan
VA Loan

The answer is yes! (As long as the penalty is included in the max allowable concessions by Seller on a VA loan).

This is great news for Homebuyers who are Veterans of the Armed Forces.

With Interest rates being as low as they are and house prices as affordable as they are compared to recent times, many Veteran homebuyers are held back just by the stiff penalties for breaking a  Rent-Lease.

 

The Seller can not only pay that penalty but it can be safely disclosed on the Closing Statement.

Pass on the good news!

 

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