Grace, Home Buyer in 60805

Recently heard that the $8000 first time home buyer tax credit can be used as a down payment if you get an

Asked by Grace, 60805 Tue May 19, 2009

FHA loan. Where can I find Real estate brokers etc. who would have some knowledge of this in chicago, illinois. Looking to buy my first home this summer.

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Grace, unfortunately, the $8,000 credit (as a downpayment) has been rescinded (for the moment). To be clear... the credit is still available... but cannot be used as a downpayment at the closing, and is only accessible through your tax return (which could be amended to include your new purchase).

It was announced last week, and rescinded the next day... and was only available as an interim loan through FHA if you were getting an FHA loan. But it was questionable, as to whether it would work anyway... because FHA guidelines state that you CANNOT receive more than 3.5% of your down payment from anywhere other than the buyer (so they would have had to over-ride themselves) ...

plus... many lenders have their own "overlays" that tell them how they will function... and sometimes those overlays will not allow such a boon.

btw... you don't need a Real Estate agent who understands this aspect... (although it's nice)... what you need is a "lender" who understands it. That's much more important. Here in the Chicago area, most Realtors don't get dramatically involved in your finances... we leave that up to your lender.
2 votes Thank Flag Link Tue May 19, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
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Just completed a GRI course today on that very subject(well,financing) and the bottom line as of today is that since this is a federal program,the states will have no discretion. it's a no-go as of today and will only be a realty if the fereral govt. passes this program.
1 vote Thank Flag Link Wed May 20, 2009
To be honest Dana that's what bothers me about this being thrown about for homebuyers. The suggestion that someone should hurry up and buy because of it seems more like a "come on" than real "expertise".

If it's for real, Great! I've heard different things about some states working on something also. But everyones seems to say, later, over there, I heard, they said. I think advice or announcements from those claiming "expertise" should be far more helpful or accurate than that when it suggests people should buy or puts out the hope to some that now they might be able to.

If the public learns it's just one more positive spin that never existed or just a gamble for them I do not think it's going to be a good thing for those in the industry. Better safe than sorry for the industry at this time and far more effective in gaining Trust by being Open/Honest about why people are asking this question in the first place.

The Industry wants Trust and the Consumer can only give that based on what they see and hear. If they give that Trust then a corner may be turned, but the #1 Question remains and has to be "Why" would they give that Trust at this time. It has to be based on more than the industry saying it "deserves" it.

They need to know they can trust the industry in general just as your cllients know they can trust you. They know they can trust you for a reason, you won't BS them to futher your own agenda.
1 vote Thank Flag Link Tue May 19, 2009
We already know Louisiana is not doing this.
1 vote Thank Flag Link Tue May 19, 2009
We were told this morning that FHA has given the states permission to loan this money as sort of a bridge loan which will be repaid after the credit is received. not all states are doing this & not all lenders are doing it either but it is certainly worth checking into.
1 vote Thank Flag Link Tue May 19, 2009
Grace, here's some info for you on the whole Tax Credit for Down payment thing...
http://activerain.com/blogsview/1075899/using-first-time-hom…
http://activerain.com/blogsview/1077766/nar-you-silly-old-go…
http://activerain.com/blogsview/1074376/false-info-flying-ar…
There are many more.....
Some seem to wish to use this "information" as bait to troll for clients and because this type of thing happens I would suggest verifying information especially that based on "expertise" before making any decisions that could have an affect on a large financial decision.
Become informed and weed out the Professionals from those with an RE License.
Dunes
1 vote Thank Flag Link Tue May 19, 2009
Unfortunately the announcement that the $8000 could be used as down payment was premature & has been rescinded.It may come to pass at some later date.
1 vote Thank Flag Link Tue May 19, 2009
I did find this............ http://www.ncsha.org/section.cfm/3/34/2920
0 votes Thank Flag Link Wed May 20, 2009
It could be good news, it will be interesting to see which states and if they move quick enough to make anything happen or if the IRS agrees.
0 votes Thank Flag Link Tue May 19, 2009
Hi Grace, I have the modified first-time hombuyers tax credit as of February 2009 and would be happy to email it to you! I am a realtor in Evergreen Park right in your backyard! Feel free to visit my website at http://www.deniseamraen.com for more information. I just got back from tour and we have a lot of inventory in the village. I hope to hear from you soon!
Denise Amraen
Prudential Biros Real Estate
708-237-7778
0 votes Thank Flag Link Tue May 19, 2009
Grace,
I would be glad to help you. I have lenders who can help you over the phone or online for FREE. I also have an awesome email program that sends AVAILABLE listings to your email address that fit your criteria. All I need is your criteria. A FHA loan requires 3.5% down, and that can be taken from your 401 K without penalty to buy your first home, or gifted from a family member etc. You will get $8000 if you buy a home that is $80,000 or more and do not have to pay it back unless you sell your home within 3 years of purchasing it. The government has decided to allow the $8000 to be used as a downpayment, however, right now the lenders are in the process of figuring out how to do it. Until then,( which gives us time to find your home) they have not figured how this is going to work as of yet. Probably by the time we find the home you are interested in purchasing, they will have this all worked out. If so, you will only need $1500 to buy a home, $1000 for earnest money and the rest for the inspection ( which has to paid up front). I am very good at getting the seller to pay the closing costs with creative financing, so contact me and I will explain how. The best thing is that the seller pays my commission so my services to you are FREE! I have references so you can also check my website, http://www.CarmensHomes.com or email me at trulia@CarmensHomes.com or call my cell, 708-533-0515. I look forward to hearing from you. You won't be sorry you contacted me!

Carmen Keslin
Remax 10 In the Park
708-533-0515
Web Reference: http://www.CarmensHomes.com
0 votes Thank Flag Link Tue May 19, 2009
Grace,
I am not sure if they passed it completely yet, but call my friend Bill Chu at American Chartered Bank and he should be able to help you with the question or to prequalify you. His number is: 708-203-2258.

Mark Karambelas
Baird and Warner
847-989-2710
0 votes Thank Flag Link Tue May 19, 2009
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