$8,000 fast cash for first-time homebuyers

[real estate wrangler]

As part of the stimulus package, Congress created a refundable first-time homebuyers tax credit in hopes of helping on-the-fence buyers to take the home-purchase plunge. But buyers couldn't collect the $8,000 credit until tax time, rather than at closing time - when it's needed.


Now the U.S. Department of Housing and Urban Development is planning to change that. The agency is working on a plan that will allow Federal Housing Authority-approved lenders to provide buyers with the tax credit cash up front.


I think that's great news, there's nothing like money now. There are so many little things at closing that cause the cost of buying a home to grow and grow.

Click Here is the link to the entire story

[Casa]

The cliff note version of the story goes like this...

"The mechanics of the new program, according to NAHB economist Robert Dietz, allow lenders to purchase tax credits from the buyers and then collect the rebate from the IRS. Homebuyers must still come up with FHA's mandatory downpayment of 3.5% on their own, but they can use the tax credit to lower their principal balance and save on monthly payments."

This is more help for the slowly improving market, you only have until late fall to claim this $8,000 free bee, however income requirements apply.


Click here for the entire story.

[workhard]

Hi. this is informative


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[bryanhalda]

Housing prices are cheap. Accessibility is at a record high. And the market is replete with problematic properties is looking for a buyer.

But there is one big obstacle for many first time house hunters looking to take market: cash advance payments. The typical first time buyer only saved enough to cover 4% of the purchase price, according to the National Association of Realtors.

As part of a package of incentives, Congress created a refundable tax credit for the first time homebuyers in the hope of helping at-fence buyers to take home to get a step. But buyers could not raise the $ 8000 tax credit for the time, rather than at the close - if it's needed.

Now the Ministry of Housing and Urban Development plans to change this situation. Agency is working on a plan that would allow the Federal Housing Authority approved lenders offer buyers a tax credit in cash up front.

"We all want the FHA to consumers access to a tax credit when they close on their loans back, that money can be used as an initial contribution," said Shaun Donovan, HUD secretary in his speech last Tuesday to the National Association of Realtors.