FAQ's

What is "Expanded HAP"?

How do I apply?

Will the application packages be handled in a first come first served manner?

What rights do I have if I am not satisfied with decisions made regarding Expanded HAP?

 What are the specific eligibility requirements for Permanent Change of Station (PCS)?

• owned home prior to July 1, 2006.
• have PCS orders dated between February 1, 2006 and September 30, 2010
• be reassigned to a new duty station or home port outside a 50-mile radius of the member's former duty station or home port. The orders must specify a report-no-later-than date of on or before February 28, 2010. These dates may be extended to September 30, 2012 at the discretion of the DUSD(I&E) based on availability of funds.
• suffered at least a 10% home value loss between July 1, 2006 and date of application for Expanded HAP benefits for the county/parish/city in which the primary residence is located, and
• 10% decline of personal home value loss from the date of purchase to date of sale.

Will my Expanded HAP benefits be taxable?

 Who pays the closing costs when the government purchases a home under the Expanded HAP?

Will I have to bring any money to closing?

If I rent my house before I sell it, will it impact HAP benefits?

Will HAP assign me to a realtor?

No, it is the responsibility of the homeowner to find their own realtor.  HAP recommends finding a local realtor familiar with the HAP process.  In San Diego, the Trident Realty Group is owned by two former Marine Corps Captains and has helped over a dozen local military with their HAP transaction.  You can contact them at 858.756.9287 or email at:  TridentRE@gmail.com

Governor Arnold Schwarzenegger proposed and extended tax credit as a portion of his job creation initiative to help bolster the real estate market in California.  The new tax credit will be for first time home buyers that purchase their home between May 1st and December 31st this year.  

The tax credit is for 5% of the purchase price up to $10,000. 

The bill increases the original $100 million dollar cap to $200 million to be provided as a credit to those looking to purchase their first home this year. The tax credit was originally designed to be available for buyers that were purchasing new homes and has been opened up to new and existing homes.  For more information regarding the tax credit please go to the State of California Franchise Tax Board .

The Veterans Administration announced that zero-down loan limits for VA-guaranteed mortgages will be reduced to $437,500 in San Diego County. The high-balance VA jumbo mortgage program started in 2008 and allowed for zero down loans up to $697,000. As prices declined, that number was reduced to $593,750 for 2009. 

Median prices across Southern California stabilized in 2009 in response to the high balance loan program, foreclosure stays, and home buyer tax credits. San Diego County's median price rose from $323,000 in October 2008 to $325,000 in October 2009. It is anticipated that the 2010 VA loan limit should facilitate approximately 75% of the sales prices for 2010. 

2010 VA loan limits in Southern California: 

San Diego $437,500 

Los Angeles $593,750 

Orange $593,750 

Riverside $417,000 

San Bernardino $417,000                                                                       

Department of Defense Homeowner's Assistance Program (HAP)has been expanded through the American Recovery and Reinvestment Act of February 2009. HAP covers Wounded Warriors/Ill, Surviving Spouses, BRAC and Service Member Homeowners on PCS. Qualifications are not income or rank based- however, time and date criteria exists. A list of the qualifications for HAP are available here.

Final Rule- UPDATE 2/20/2010- Comments on the Interim Rule closed January 15th, 2010. Office of the Secretary of Defense should be publishing Final Rule as soon as Pentagon and OMB review. Under consideration is a change to the way the 10% decline in market value is determined, an increase to the maximum PFMV qualified for benefits and closing costs not previously covered (like HOAs).

**If you have not applied because you felt you were disqualified by current rules by a narrow margin- PLEASE send in an application. Personnel have stated that applications give them basis for rule change requests.

To view the Rule-
Go to: www.regulations.gov
At keyword or ID type in the docket number: DoD-2009-os-0090
Tax Status- Congress passed legislation to make HAP benefits tax free for Federal purposes on November 5th, 2009. You will want to assure your state has a law automatically aligning with Federal law, or that State legislature followed suit in passing its own law.

Application Receipt- Army Corps of Engineers is processing applications for Expanded Homeowner's Assistance Program. You will receive a letter confirming receipt of your application with the assigned number. Applications will process in chronological order of permanent transfer date as members obtain sale contracts on their properties with qualified buyers.

Offer Letter- This letter will be forwarded to you after an offer is submitted on the property in the case of a PRIVATE SALE AUGMENTATION. A copy of a sample offer letter from Savannah available here.

Entitlements Letter-You must request this letter once your application is confirmed received for government ACQUISITION. This serves as proof your application has been deemed qualified to receive benefits. It gives you the numbers you need to determine how much you are expected to bring to the table for close in an acquisition. For Sacramento sample entitlement letter click here.

Government Contract- If you have applied for Government Acquisition you will then receive two government contracts. One is between Service member Seller and the U.S. Government. The second is between the U.S. Government and the Buyer. Sample can't be posted as the draft keeps changing. 

For more info: email: danchapman@me.com