Posted: November 6th, 2009 | Author: admin | Filed under: First Time Buyer | Tags: Extension, FHA, Tax Credit | 1 Comment »
Buynow101, November 5Th 2009. First time home buyer tax credit is now very close to being extended, while delayed for a couple of weeks senate has now cleared away to allow for the extension and expansion of first time home buyer tax credit.
Although President Obama has indicated that he will sign it, the amended bill is not yet law until he does.
As well as extending the tax credit for first-time home-buyers, the bill also adds a small tax credit for move-up home buyers who have lived in the home for 5 of the past 7 years. The bill will also increase the income limits for home buyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.
First time home buyer tax credit will allow a first time home buyer a tax credit of 10% (up to $8000) on the purchase of a new home by April 30 2010.
First time home buyers a buyer who have not owned a home for 3 years. Buyers may purchase houses or condos and do not have to repay the credit as long as the keep the property for three years.
The tax credit is claimed on the buyer’s federal tax return to reduce liability. The buyer will get a refund check if the credit is more money that the taxes owed.
Now is a great time to buy real estate and take advantage of the great incentives and opportunities in the Real estate market.
For information about Miami estate real estate visit Miami Real Estate Investment
Posted: June 25th, 2009 | Author: admin | Filed under: First Time Buyer | Tags: $8000, FHA, Home Buyers, Tax Credit | No Comments »
What you should know about the FHA plan to allow home buyers to use the $8,000
Tax credit
Home buyers across Florida can take advantage of a Federal Housing Administration
program that allows qualified first-time home buyers to use the $8,000 tax credit
up front to help with the purchase costs of a FHA-insured home.
Details of the FHA plan include:
- FHA now allows its lenders to provide a short-term bridge loan to qualified home
buyers for the purpose of accessing the federal $8,000 tax credit at the
closing table. While the loan cannot be used to cover the minimum, FHA-required
down payment of 3.5 percent, it will allow home buyers to use the federal
tax credit in one of three ways:
- Home buyers can use the $8,000 tax credit to make a larger down payment above
the FHA-required 3.5 percent; they can use the tax credit to cover closing
costs; or home buyers can use the $8,000 tax credit to buy down their
interest rate.
- Therefore, qualified home buyers applying for FHA-backed financing with an FHA-approved
lender that offers a bridge-loan program can use that loan to bring down
the immediate costs of buying a home significantly; however, they would
still have to come up with the minimum 3.5 percent down payment – which
is the buyer’s personal stake in their Florida dream home.
- Other resources are available for buyers who need help with the 3.5 percent down
payment, including the Florida Housing Finance Corporation, many local
government agencies and nonprofit lenders.
- In addition, Florida has approved $30.1 million for its new Florida Home buyer
Opportunity Program, which will help first-time home buyers with down
payment assistance through its own tax credit bridge loan program, once
it’s established. County housing administrators will operate the program
under the authority of the Florida Housing Finance Corporation. The Florida
program is separate from what the U.S. Department of Housing and Urban
Development offers through the FHA program.
More About the FHA Program
Did You Know?
The federal home buyer tax credit is expected to stimulate 160,000 home sales
across the U.S. – of that number, 101,000 will be first-time buyers who
will receive the credit, according to estimates by the National Association
of Home Builders. An additional 59,000 existing homeowners will be able
to buy another home because a first-time buyer purchased their residence.
Given FHA’s current market share, it’s estimated that thousands of families
will be able to purchase a home by using the anticipated tax credit for
their purchase, along with an FHA-insured mortgage.
Consider the Source.
Home buyers should beware of mortgage scams and carefully compare benefits and
costs when seeking out tax credit bridge loan programs. Programs will vary
depending on the organization offering the services. Borrowers should consider
which program make sense for them, as well as what company offers the most
suitable and affordable option.
Keeping Track.
For every FHA borrower helped 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 officials say they will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.
NOTE: This document is for informational purposes and should not be construed as tax or legal advice.
For specific advice on their own tax situation, consumers should always consult a qualified tax professional.
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