Tag Archives: mortgage

$8,000 tax credit can be used as down payment

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100% financing is no longer available , inside the city limits, but this is close enough! While it is not immediately available, it is coming very soon.  The eight thousand dollar tax credit can be applied to down payment.  Keep in mind that when using this money, you have to stay in the home for at least three years.

From www.REALTOR.org

WASHINGTON, May 12, 2009
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the
Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.
Donovan’s remarks came in an address to several thousand Realtors® gathered this morning at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the Realtors® Midyear Legislative Meetings & Trade Expo here.
Secretary Donovan said that important changes, which the National Association of Realtors® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Here is a summary of the Tax credit

First Time Homebuyers lets get a move on it!

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I am just here at the office thinking of how INCREDIBLE the new stimulus tax credit is going to be this year.  The new provisions state that you can get up to 8000.00…and here is the kicker.  You DO NOT have to pay it back!!!! Last years version, which was 7500, must be paid back over the course of 15 years starting in 2010.  So, if you were really were hesitant to purchase a home due to closing costs, down payment, etc.  Fear not!  Here is a chance to have that money from your savings replenished.  FREE!!  Here are some other provisions :

  • Will help home buyers in high-cost markets by extending the FHA, Fannie Mae and Freddie Mac loan limit of $729,750 through the end of 2009.
  • Allows state housing finance agencies to help buyers at closing by advancing the credit as a loan using proceeds from tax-exempt bonds.
  • Extends the tax code section 25C credit for energy-efficient home improvements through the end of 2010; increases the credit rate from 10 percent to 30 percent; raises the lifetime cap from $500 to $1,500; expands the list of eligible improvements.
  • For 2008 operations, expands the net operating loss carryback period from two years to five years for small businesses (businesses with average gross receipts of no more than $15 million over the previous three years).
  • Temporarily allows exchange of Low-Income Housing Tax Credit allocating authority for tax-exempt grants and appropriates $2 billion in HOME funding for affordable housing projects.
  • Provides a “patch” for the Alternative Minimum Tax for tax year 2009.
  • Increases bonus depreciation and section 179 small business expensing for business investment in 2009.
  • Increases New Markets Tax Credit allocating authority for 2008 and 2009.
  • Delays for one year—from 2011 to 2012—the start of the three percent government contractor withholding requirement.