There has been much to do over the impending stop of the $8,000 first time home buyer tax credit. The tax credit is a incentive incentive that was set to expire on December 1st 2009.
The tax credit allowed first time home buyers acquiring their primary residence with a florida va mortgage to receive a tax credit of up to $8,000. With the expiration of the program many feared that purchase sales would slow and a market increase would be greater delayed.
Initial word are that the Senate has not only approved an extension of the first time home buyer tax credit, but an increase that would permit current home owners to also be eligible for a tax credit on a new house purchase as well even using Florida Hard Money Cash Out!
Sources within the Senate have hinted that there is a preliminary agreement to continue the so called “first time home buyer tax credit” until the end of April 2010. In addition they intend to expand the program to include a tax credit of up to $6,500 for home buyers that already own a house. The senate sources leekedthat one stipulation on current homeowners looking to purchase a new home and get the $6,500 credit is that they must have lived in their primary residence residence for the last several years.
It appears they will attempt to attach this new home buyer tax credit extension to the unemployment extension bill. It’s still unclear as to when the extension will arise for a vote, but this primary report is incredibly positive news for the housing market.
Many families have already been able to purchase a owner occupied home and take advantage of the first time home buyer tax credit. This 5 month extension and expansion will allow countless thousands more to benefit from it as well.
One point of concern for many home owners is not being able to access the tax credit early and use it as part of the down payment on their purchase. While HUD has allowed the use of the tax credit as down payment, financial institutions as we have seen all too often, have not gotten on board with it and widely ban the use of the tax credit for down payment. Third parties had been advancing borrowers loans to use as down payment in some reported cases. This is still not widely accepted by financial institutions and borrowers have had to wait until tax time to receive their credit.
If you have been in the time frame to buy a loan it looks like you will have until the end of April to get a Government incentive to do it!
Showing posts with label 8000 tax credit. Show all posts
Showing posts with label 8000 tax credit. Show all posts
Saturday, November 7, 2009
Sunday, September 20, 2009
$8000 Incentive Finishes December 1st 2009
One of the biggest reasons driving florida mortgage lender home owners into the first time home buying market has been the Federal $8000 tax credit incentive for florida fha loan.
This program has been a big advantage to first time home buyers (technically classified as anyone not having owned a home in the last 3 years) that had previously been on the fence wondering when the market was going to hit bottom.
With the recent Federal Reserve Treasury Secretaries announcement that the recession is nearly over, we think it’s wise to point out that this market has probably reached it’s bottom. There has been over a year for buyers to buy up some of the rock bottom priced foreclosed homes on the market. New construction has not even played a factor in the home market since late 2007.
Now the first time buyer incentive is ending as of December 1st of 2009. Since economic indicators are beginning to appear optimistic it is not likely that this program will be extended past the December ending.
This means that any persons looking to take advantage of the $8000 tax credit must close on their transaction before December 1st. Since it can take often 30 days for the loan process on Government loan programs, that means anyone looking to take advantage of the $8000 tax credit needs to be under contract by November 1st of 2009. That is only six weeks from now!
If you have been waiting for home prices to come down… we STRONGLY urge you to act now so that you can claim your $8000 tax credit this year! Time is running out very quickly.
Financing rates are still VERY low, below 5% today. If you have been looking at purchasing a home in the near future or know someone who has been, please have them act now to ensure they get their $8000 tax credit.
This program has been a big advantage to first time home buyers (technically classified as anyone not having owned a home in the last 3 years) that had previously been on the fence wondering when the market was going to hit bottom.
With the recent Federal Reserve Treasury Secretaries announcement that the recession is nearly over, we think it’s wise to point out that this market has probably reached it’s bottom. There has been over a year for buyers to buy up some of the rock bottom priced foreclosed homes on the market. New construction has not even played a factor in the home market since late 2007.
Now the first time buyer incentive is ending as of December 1st of 2009. Since economic indicators are beginning to appear optimistic it is not likely that this program will be extended past the December ending.
This means that any persons looking to take advantage of the $8000 tax credit must close on their transaction before December 1st. Since it can take often 30 days for the loan process on Government loan programs, that means anyone looking to take advantage of the $8000 tax credit needs to be under contract by November 1st of 2009. That is only six weeks from now!
If you have been waiting for home prices to come down… we STRONGLY urge you to act now so that you can claim your $8000 tax credit this year! Time is running out very quickly.
Financing rates are still VERY low, below 5% today. If you have been looking at purchasing a home in the near future or know someone who has been, please have them act now to ensure they get their $8000 tax credit.
Wednesday, May 20, 2009
Downpayment Assitance on FHA Loans using 8000 tax credit
In what could be a huge boost to the housing market, HUD Secretary Shaun Donovan’s has decided to allow florida mortgage company to use the $8,000 home purchase credit to help cover their down payment and closing costs on Florida FHA mortgage loans.
One of the biggest challenges for first time home buyer is saving up enough money for a downpayment on their home. The FHA program in particular requires the borrower to come to closing with 3.5% of the purchase price as their downpayment. Often borrowers have to borrow these funds from work to supply home buyers with short-term or “bridge loans” of up to 10% of the purchase price, up to the amount of the $8,000 tax credit.
Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.
More information about these programs can be found on the National Council of State Housing Agencies Web site at www.ncsha.org/section.cfm/3/34/2920.
Previously, the home buyer would have been unable to access the home purchase credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS. Until then they borrowed the funds from family and friends with the understanding that they would be able to pay it back after they filed their income taxes.
The next step is to see how florida fha-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions of the loans. NAHB encourages lending institutions to act promptly to put these provisions into place.
To qualify for the first time home buyer credit, first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Buyers can take the credit on their 2008 or 2009 income tax return.
Information about the details of exactly how this program will be rolled out are still forthcoming. We do know that there are many states such as Missouri that are already offering some type of bridge loan program utilizing the first time home buyer credit for down payment assistance.
For further information on the $8,000 first time homebuyer home purchase credit and how you can use it to help you get an FHA financed loan with no money down please either call us immediately at 800-871-2636 or apply online at http://www.fivestarsmortgage.com and a representative will go over your information with you in detail.
One of the biggest challenges for first time home buyer is saving up enough money for a downpayment on their home. The FHA program in particular requires the borrower to come to closing with 3.5% of the purchase price as their downpayment. Often borrowers have to borrow these funds from work to supply home buyers with short-term or “bridge loans” of up to 10% of the purchase price, up to the amount of the $8,000 tax credit.
Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.
More information about these programs can be found on the National Council of State Housing Agencies Web site at www.ncsha.org/section.cfm/3/34/2920.
Previously, the home buyer would have been unable to access the home purchase credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS. Until then they borrowed the funds from family and friends with the understanding that they would be able to pay it back after they filed their income taxes.
The next step is to see how florida fha-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions of the loans. NAHB encourages lending institutions to act promptly to put these provisions into place.
To qualify for the first time home buyer credit, first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Buyers can take the credit on their 2008 or 2009 income tax return.
Information about the details of exactly how this program will be rolled out are still forthcoming. We do know that there are many states such as Missouri that are already offering some type of bridge loan program utilizing the first time home buyer credit for down payment assistance.
For further information on the $8,000 first time homebuyer home purchase credit and how you can use it to help you get an FHA financed loan with no money down please either call us immediately at 800-871-2636 or apply online at http://www.fivestarsmortgage.com and a representative will go over your information with you in detail.
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