The City of Grosse Pointe Park is offering a grant program to assist home buyers with the purchase of new and restored homes within the NWTIFA District which represents residences located between Jefferson Avenue & Mack Avenue, and between Beaconsfield and Wayburn.
1.) Amount. This program will provide 10% of the purchase price, up to a maximum of ,000 for non-City owned properties and up to 15% to a maximum of ,000 for City-owned properties. This amount will be disbursed at the time of closing.
2.) The Grant. The grant is provided only for owner occupied proerty and to be used by the participant for a down payment or any other mortgage related expense. Such grant funds are retained by the homeowner and repayment is not required as long as the owner occupies a City-owned residence for a period of 10 years. Otherwise such funds will be reimbursed ath teh time of sale at an amount discounted by 10% for each year the unit is occupied by the homeowner. For non-owned City-owned property the grant required repayment at the time of sale without any interest charges.
3.) Eligibility. Employees, full or part time, and retirees of: the Grosse Pointe School System, Grosse Pointe Park City Employees, and Grosse Pointe Public Safety Officers. 4.) Property Covered. New condominiums, new single family homes, and retored homes in the area bounced by Mack & Jefferson on Wayburn, Maryland, Lakepointe, and Beaconsfield streets. To review further details and see a brochure of City-owned homes, please contact: Chuck McInnery (248-840-9054) or Kathy Willmer (313-822-4379)
What does the new Homeowner Affordability and Stability Plan mean to homeowners? Full details and eligibility requirements will be released on March 4, however, Obama's plan is based on the following four elements:
Making refinancing help available to up to 5 million homeowners who have mortgages through Fannie Mae or Freddie Mac.
Providing new incentives to lenders to modify the terms of sub-prime loans at risk of default and foreclosure
Incentives to lenders to keep mortgage rates low for millions of middle class families looking to secure new mortgages
Additional reforms designed to help families stay in their homes.
For more information, see these PDFs from whitehouse.gov:
The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to ,000 applied to reduce their debt by the end of that period.
While you cannot apply for assistance until March 4, homeowners who would like to prepare for applying should gather the following materials:
Information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources
Your most recent income tax return
Information about any second mortgage on the house
Record of payments on each of your credit cards if you are carrying balances from month to month, and payments on other loans such as student loans and car loans.
The Obama administration released its long-awaited plan to stem foreclosures on 2/17/09. It's organized into three categories:
1.) Help for home owners making their payments but at risk of default and foreclosure.
Home owners with a Fannie Mae or Freddie
Mac loan would be eligible to refinance as long as their mortgage
doesn't exceed 105 percent of the home's current market value.
Currently owners need to have at least 20 percent equity. Potential
impact: 4-5 million households.
2.) Help for home owners already in default and in need of loan modification.
For lenders that voluntarily agree to lower
a borrower's payment so that it makes up no more than 38 percent of the
borrower's income, the government would share the cost of lowering the
mortgage burden to 31 percent of income. Incentives to lenders to
participate include a id="bd" class="narrow fs3",000 payment.
Borrowers can receive up to id="bd" class="narrow fs3",000 as an
incentive to stay current on their new mortgage. Still in the works is
a proposed provision that would allow bankruptcy judges to require loan
modification (known as a cramdown) as part of a household's
restructuring. That provision requires legislation by Congress.
Estimated potential impact: 3-4 million households.
3.) Doubled resources to Fannie Mae and Freddie Mac.
To encourage investors to buy the secondary
market companies' mortgage-backed securities, the government explicitly
backstops them to up to 0 billion, twice the current amount.
The plan does not provide help to investors
or to home owners who are in trouble with a second home, nor does it
apply to homeowners whose mortgage is part of a private-label mortgage
security that is not backed by Fannie Mae or Freddie Mac.
"The administration's proposed plan,
combined with provisions like the ,000 first-time home buyer tax
credit in the just-enacted American Recovery and Reinvestment Act, will
help minimize foreclosures, shrink housing inventory, stabilize home
values, and move the country closer to an economic recovery," says NAR President Charles McMillan.