Home buyers that are putting down 5% for their loan, NOVA Home Loans will require minimum trade lines on the buyers credit report.  A trade line is a credit reference that reports to the credit bureaus.  An example of a trade line is  a credit card or loan that reports the payment history to the credit bureaus.  NOVA will require for buyers who have greater than a 24 month rental/housing history a minimum of 2 trade lines that have been opened for more than 12 months. For rental/housing history that is 12-24 months 3 trade lines that are opened for 24 months will be required and for rental/housing history that is <12 months we will require 4 trade lines that have been opened for 24 months.  Last week, our Mortgage Insurance partners increased the maximum debt to income from 41% to 45%.  This opens up more buyers to conventional loans with 5% down payments who also have credit scores greater than 720.

NOVA Home Loans offer s Escrow Hold Backs for minor repairs to buyers who are buying homes form sellers who are not willing or able to make necessary repairs.  Many ‘bank owned” properties that have minor repairs that are needed to be completed for the property to qualify for financing are not being purchased because the seller is not or cannot perform these repairs.  NOVA Home Loans will allow for the costs of the repairs to be held by escrow.  These repairs cannot be financed into the cost of the loan.  The money that is needed for the repairs must come from the buyer or seller.  Qualified bids must be received from licensed contractors and the work MUST be done within one week after closing.  NOVA Home Loans must approve the escrow hold back and will require 120%-150% of the cost of the repairs to be held in escrow.  After the repairs are completed the licensed contractor will be paid and any overages will be returned to the buyer.  NOVA will approved escrow hold backs on a case by case base.  Escrow hold backs are only available for loans approved by NOVA and where the repairs are required by the appraisal or termite report for VA loans.  This is not a 203k loan.  The Escrow Hold Back is an excellent tool for buyers who want to buy homes that need minor repairs.  In today’s market this can provide the financing for homes that are a great value.

Home Buyers Tax Credit is ending on April 30th 2010, but did you know that it is extended for active duty military personnel?  Active Duty Military Personnel have until April 30th, 2011 to be in a purchase contract and must close by June 30th, 2011 to take advantage of this Home Buyers Tax Credit.

On a personal note,  I have made a personal commitment to join NOVA Home Loan by supporting the Boys and Girls Club of Tucson.  I will personally donate $20.00 to the Boys and Girls Club of Tucson on every loan that I close. For more information about the Boys and Girls Club of Tucson, please visit www.bgctuc.org .