RobertRange.com: Reno and Sparks Real Estate

Most lenders are backpedalling with regard the using the $8,000 tax credit as downpayment. The following was released last week from PHH Mortgage (one of the nations largest direct lenders):

"With regard to Conventional Conforming loans, both Fannie Mae and Freddie Mac have initially indicated that funds from a ‘tax credit anticipation loan’ (a loan that is secured against the first-time homebuyer tax credit) would not meet their criteria for consideration as borrowed funds secured by an asset. As such, a tax credit anticipation loan would need to be treated as a personal unsecured loan which is not an acceptable source of funds for down payment, closing costs, or reserves. Although the GSEs continue to have discussions as to whether tax credit anticipation loans would be permitted under other circumstances, no formal decisions have been made to allow this as an acceptable source of funds.

With regard to FHA loans, HUD recently issued Mortgagee Letter 09-ML-15 Using First-Time Homebuyer Tax Credits on May 29th which outlined the parameters under which tax credit advances could be offered with second liens or the tax credit could be purchased by an approved mortgagee, non-profit organization, or governmental agency."

Summary - Median sales price is down to $190,000 (down 5%) for Greater Reno-Sparks area based on 473 transactions (up 17.1%). Total number of active listings down to 3,145 for entire area.