Tax credit Can Be Used for Down Payment! May 12, 2009
Daily Real Estate News May 12, 2009
Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
"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 down payment," Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says 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.
If you are ready to make that move, lets start now and move in before December 1, 2009.
In addition to the following note, some localities are offering additional incentives to purchase a home in specific areas. Not all have first time buyer requirements. contact me for further details.
Is it time to buy?
Pete Kelzenberg, Broker
April 21, 2009
For a buyer, who does not have to first sell a home, it may be the best time in decades to do so. You may be waiting for the "bottom of the market", which will be uncertain until that time has passed. Or you may be watching what happens in Washington in regards to stimulating the economy and the housing market. Tax breaks for home buyers are getting a lot of attention. An $8000 tax credit for first time home buyers was part of the recent stimulus package. Each resulting purchase takes a home off the market without putting another in its place.
Regarding the credit: Who can claim it? In general, you can claim the credit if you are a first-time homebuyer. You are considered a first-time homebuyer if:
You purchased your main home located in the United States after April 8, 2008, and before December 1, 2009.
You (and your spouse if married) did not own any other main home during the 3-year period ending on the date of purchase.
If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
Main home. Your main home is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence."
Waiting for the right time or considering a home purchase? With the warming weather comes the spring buying season. Now might be the time to start some window shopping. Or step it up a notch and visit some homes to see whats out there in your price range.Search for homes online here or at other sites.They all draw from the same data base. Or contact me to help with that search. When you are ready, let me know and we can discuss the next steps and arrange a few hours to visit some homes.. You will have a pleasant time and be that much further ahead when you decide the time is right to jump in and purchase your first or next home.
Before continuing, know and rest assured that your inquires and submissions here (beyond the self search) are monitered and addressed by myself, a licensed Real Estate broker or another agent at Afton Realty. Responses will not be immediate, as they need to be researched. However, they are usually returned, within 24 hours. If you leave a phone number (it´s not required), you should only receive one follow up call to ask "Did you receive the information you requested?" That's it, until you say "I have a question...."
Afton Realty is a full time, full service independent real estate firm working in cooperation with other firms, large and small, via the Multiple Listing Service (MLS). The MLS is independent of any brokerage and serves as the central data base for home listing information to be shared among members. Use of this site will access those listings in Wisconsin and Minnesota subject to our MLS rules.
Prefer not to continually search for the newest lisings? Take an extra few minutes to get a daily search set up for you. Fill out the easy form below and an agent will review your criteria and set it up for you. Then, just watch your in box as the information comes to you. (Home search help).
Click the box above and fill out the form with some basic details of your home. A licensed Real Estate Agent, will review and complete your analysis and email the results to you.
What is your current home worth? For an, agent assisted, online evaluation: Fill out the form; Home Price Opinion. To keep it simple, you may contact me by phone or email with an address and brief description. I will communicate by email untill you ask me to call.
Rest assured that we are not a high pressure company.You will find that the agents at Afton Realty will not bother you with phone calls.If you leave a phone number (its not required), you should only receive one follow up call to ask "Did you receive the requested information?"That´s it, until you say "I need you..."
You may expect emails specific to the information you ask for and an occasional informative email addressing current housing or neighborhood topics. If you find the information is not useful or it no longer applies, you may easily opt out. Your phone calls, however will always be answered directly or returned promptly.
Find more answers via the links on this page.When you have questions or need more details, call or send an email to discuss your situation:
