Read more about the pilot programs at http://blogs.wsj.com/developments/2012/01/12/six-questions-on-foreclosure-to-rental-programs/.

With most lenders requiring borrowers to put down at least 20 percent as a down payment – unless using an FHA or VA loan, or purchasing mortgage insurance – the best holiday gift some people might receive would be help with a down payment on a house.

Making sense of the story

• According to a survey by Trulia, the biggest barrier to buying a home these days is saving for the down payment.  The survey, conducted over the summer, found that 51 percent of renters said coming up with money for the down payment was preventing them from buying, while 35 percent identified qualifying for a mortgage as the stumbling block.
• Under federal tax law, each individual is permitted to give money or valuables worth up to $13,000 to a single recipient in a calendar year.  A married couple could jointly bestow up to $26,000 a year per recipient.
• According to one financial planner, there also is the option of lending a relative or close friend the money for the down payment, or the closing costs, then forgiving the loan in a future year.  The recipient would have to pay interest on the loan until it was forgiven, at which point it would become a gift.
• Another way to help with the down payment is to pay other expenses, such as tuition, thereby freeing up money to make a home purchase.  Gifts for educational or medical expenses are not subject to taxes, as long as they are paid directly to the educational or medical institution.
• However, prior to giving the money, gift-givers should consider their own financial picture, and they should make sure the recipient is responsible and not behind on other payments that could be subject to debt collection.

Read the full story
http://www.nytimes.com/2011/12/04/realestate/mortgages-help-with-a-down-payment.html?_r=1&ref=realestate

Changes are in store for the way reverse mortgages are processed that might make it more difficult for some borrowers to qualify.

Read the full story
http://blogs.smartmoney.com/encore/2011/11/22/new-barriers-to-reverse-mortgages/

The Appraisal Institute issued the form as an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for mortgage lending purposes. Used by Fannie Mae, Freddie Mac, and the Federal Housing Administration, Form 1004 is completed by appraisers to uphold safe and sound lending. Currently, the contributory value of a home’s green features is rarely part of the equation.

The Appraisal Institute’s addendum allows appraisers to identify and describe a home’s green features, from solar panels to energy-saving appliances. Form 1004 devotes limited attention to energy efficient features, so green data usually doesn’t appear in the appraisal report, or it is included in a lengthy narrative that often is ignored.

More info

According to an email from Bank of America, conventional loans that exceed the permanent loan limits will now be required to use non-conforming programs.

Barring Congressional action, the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum.  The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee.  Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.

C.A.R. will continue to provide information as it becomes available.