Uncle Sam wants to help the First-Time Homebuyers
The U.S. Housing and Urban Development Secretary Shaun Donovan on May 29 announced the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 first-time homebuyer tax credit toward the purchase costs of an FHA-insured home. He said this action will help stabilize the nation’s housing market by stimulating home sales across the country. The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit up to $8,000 for purchasing their first home. Families can access this credit after filing their tax returns with the IRS. The new announcement detailed FHA’s rules allowing state Housing Finance Agencies and certain non-profits to “monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. You may visit the HUD web site to learn this new rule.Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent down payment on the purchase of their home. Now the lenders can use the tax credit as additional down payment, or closing costs, which can buy down the interest rate. In addition to the borrower’s own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the down payment. This action permits the first-time homebuyer’s anticipated tax credit under the Recovery Act to be applied toward the family’s home purchase right away. The Administration’s homebuyer tax credit is estimated to stimulate 160,000 home sales across the nation -101,000 of will be first-time buyers to receive the credit. .Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary. This news source came from the SILVAR (Silicon Valley Association Realtors) Friday Fact.
If you or someone you know is thinking of buying or selling property in Santa Clara County ( sunnyvale, Cupertino, Saratoga, Moutain View, San jose..), California please contact Grace Keng, REALTOR® at 408 799-8887
Fair Housing and Equal Opportunity
Comments
Great issue! Keep writing more articles. In addition, please have your readers to go one step further and
READ: http://bit.ly/1t1m7s
Thanks!
The housing market WAS sick. The crash in prices IS the "recovery". Things are returning to an affordable normal and that's a good thing! Prices will fall back to where they should be, tracking inflation like they did between 1890 and 1990; the only question is how much tax-payer money is burned up trying to cushion the inevitable fall.
Good Job Grace!
Contact your Congressperson/Senator.
This is very simple to submit, then need to hear from us !
http://takeaction.realtoractioncenter.com/campaign/hbtc/exdwex5rqjxmbi6w
if you need any help or support please don't hesitate to contact me at http://www.FHAMortgageLoan.com
Let this idea die. Let the market work. Fire those in congress and I mean from both parties. In my state the republicans susie collins and olympia snowe need to be replaced. They both voted fiscally very irresponcibily. I considered that to be both of their resignations. Here is hoping 2010 finds that for olympia ( a republican) and the others democrat and republican who voted to endanger our economic future. Remember, all we need to do is to vote to show them we accept their resignations, like virginia and a couple other states can do tomorrow.
(update) ok. it passed. Now the home buyers bribe has been expanded to cover more people. For me it only means one thing. I wait a longer time to buy. After this dies prices will drop even more. This is no help to buyers who have a downpayment. It is no help to those who use it as a downpayment and are in over their heads.
The elections all showed how unpopular the dems are getting. All were defeated except the one who faced an independant candidate. The independant got 45% of the vote. Although the democrat won who would have believed that an independant could get 45% of the popular vote? To me it shows that the democrats agenda is failing.
All that these programs have really done is to make housing MORE expensive for everyone. That kind of help, I can live without.