besim’s posterous

Sandy city has created a new program that will provide low- and moderate-income home buyers with a $5,000 incentive for buying a new home in the city. The funds, which can be applied to down payment and closing costs, are in the form of an interest-free loan that becomes a grant after the home buyer has lived in the property three years. 

Sandy plans to provide 10 loans to buyers of existing, never-occupied homes, and another 10 to buyers of to-be-constructed homes. The properties must be within Sandy city limits, must be "single-family dwellings," including townhomes and condos, and must not have purchase prices exceeding $305,000. Household incomes must be below certain limits to qualify, but the program is open to both first-time and repeat buyers.

Funding for the program comes from a portion of the tax revenue collected from the commercial buildings around City Hall, said city spokeswoman Trina Duerksen. If successful, the program may receive additional funds after the original 20 loans are awarded, she said. So far, all 20 loans are still available.

To learn more about the program qualifications and to access the application, click here.

Take $12,000 + Off the Total Cost of Your Brand New Home!

September 4th, 2009

$4,000 UTAH STATE HOME RUN GRANT
Highlights of the $4,000 Home Run Grant Include:

1. For newly constructed homes only.
2. You can use the $4,000 for a down payment.
3. Income limits are $75,000 per year for a single and $150,000 per year for a married couple.
4. This can be used in addition to the Federal Tax Credit of $8,000 for first time home buyers - and now buyers can also use the $8,000 for a down payment!
5. For a limited time only, you must act now.

$8,000 FEDERAL TAX CREDIT
Highlights of the $8,000 Tax Credit Include:
1. Available only to first-time home buyers
2. Available only between Jan 1, 2009 - Dec 1, 2009
3. Does not require repayment
4. Is claimed on a tax return and reduces your tax liability. If your credit is more than your tax liability, your unused credit will be issued as a check to you

Who is Eligible
The law defines a first-time home buyer as a buyer who has not owned a home during the past three years. All U.S. citizens who file taxes are eligible to participate in the program.

Income Limits
Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income (MAGI) is less than $75,000. For married couples filing a joint return, the income limit doubles to $150,000.

Effective Dates for the Tax Credit
First-time home buyers would receive a $8,000 tax credit for the purchase of any home on or after January 1, 2009 and before December 1, 2009. To qualify, you must actually close on the sale of the home during this period.

What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

Submitted by Tim Harris on July 1, 2009 – 7:58 pm

First Time Home Buyer Credit

First-Time Home Buyer Tax Credit Anticipation Loans Stuck In The Gate

I’m curious to know whether any banks or lenders are offering loans against the $8,000 tax credit.  Nobody knows the source of these funds.  Like Hope For Homeowners, the FHA hasn’t ironed out all of the details; will this be an ignored solution?

 

The short answer is “Yes.  This will be an ignored opportunity, like Hope For Homeowners“.

The long answer is that the new HUD Secretary, Shaun Donovan, stuck his foot in his mouth by not checking with lenders before HUD issued the directive.  Cut the guy some slack, though.  His prior job, as NYC Housing Czar, dealt less with lenders than it did with developers and Federal agencies.  He probably thought he could “will” loan guidelines by fiat instead of collaborating with participating lenders.  He’s a bright guy so I doubt we’ll see the same mistake again.

The current law provides for the first-time home buyer tax credit to be offered to buyers who complete their purchase prior to November 30, 2009.  This means that properties should be in escrow by Labor Day to be certain the deal closes in a timely manner.  Frankly, HUD-approved lenders don’t see value or profit in this short window of opportunity.

There is talk about increasing the first-time home buyer tax credit to $15,000 and enacting it for a one year period.  Should that happen, and HUD issues an updated mortgage letter allowing that credit to be “monetized” through a loan, there might just be a large enough market for the lenders to find a solution.

If you’re frustrated that the HUD-approved lenders won’t play ball, understand that legislating loose loan guidelines is how we got into this whole mortgage mess.  Anytime the Government mandates lenders to make risky loans, it’s a recipe for disaster.

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When do I need to purchase to qualify?

Federal Tax Report
Bills Introduced to Extend, Expand Homebuyer Tax Credit

• H.R. 2562: Ron Kind (D-WI) and 3 bipartisan cosponsors. The bill extends the tax credit through December 1, 2010, but limits the extension to individuals who served for 3 months or more in the military during 2009.
• H.R. 2606: Eddie Bernice Johnson (D-TX). The bill expands the credit to all purchasers, not just first-time purchasers. The bill extends the credit through December 31, 2010. Her bill also eliminates the repayment feature that applies to the $7500 2008 tax credit.
• H.R. 2619: Kenny Marchant (R-TX). The bill makes the credit available to all purchasers and also extends the credit through June 30, 2010. The bill also provides a temporary $3000 tax credit that has the effect of refunding the closing costs associated with refinancing a mortgage, so long as the refinanced amount was no greater than the outstanding balance on the mortgage being refinanced.