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Last Chance to Buy, Close and Qualify for $8,000 Tax Credit
October 7th, 2009 11:17 AM
While many of you are fully aware of the $8,000 Federal Tax Credit for purchasing and closing on a home purchase by November 30, 2009; most of you who have not yet purchased, completed inspections and appraisal by today your at risk of not being able to complete all the mortgage details and close by 11/30/09.

At our weekly business meeting today in our office, our Watson Mortgage Loan Officer informed us that any loan applications made after November 6th will probably have great difficulty in closing on time for the tax credit. As a result of the incredible surge in buyer activity there is a developing backlog of qualified home inspectors, appraisers and title examinations and review which are now causing a delay in completing closing. Last month, we felt 30 days was sufficient time to apply for and close on a transaction. Today, however, we are recommending at least 45-50 days completing the process.

Buyers who want to meet the tax credit deadline need to get into the market immediately. Select a very experienced real estate professional who is most familiar with the neighborhoods you are interested in, gain a referral to an experienced mortgage loan officer from the area and begin the look. This is no time for an “online lender” or an “out of area lender” to trust your loan to. Time is of the essence and immediate action is needed.

Your real estate professional can provide you some proven “tools” to help you make the best and informed decisions regarding the entire process. Before you select the home of your dreams you must enter the process well informed of the current and real values of the neighborhoods you are considering. Know in advance, your total acquisition costs which include the purchase price, closing costs, prepaid expenses and down payment requirements of your lender. Demand a GFE (Good Faith Estimate) from your lender upfront so you can know all costs associated with this purchase and understand all associated costs.

There are some still great buys out there today but the steals of a prior market are behind. Don’t miss the incredible buying opportunity with unbelievable mortgage rates. Find a great Realtor, ask, listen and make good decisions. Know full well what a property is worth in “today’s market” before your make an offer. Know what you are willing to pay and win.

Don Shamblin, Realtor, CRB, GRI
Vice President
Watson Realty Corp
www.WatsonRealtyCorp.com
Posted by Watson Realty Corp at 12:00 AM
Posted by Paula M. Carlson, P.A. on October 7th, 2009 11:17 AMPost a Comment (0)

HUD: Tax Credit Can Be Used on Closing Costs
October 13th, 2009 11:56 AM
U.S. Department of Housing and Urban Development (HUD) just announced today that it will allow home buyer tax credit loans to be used on closing costs. FHA-approved lenders got the go-ahead from HUD to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can’t be used to cover the minimum 3.5 percent, according to HUD officials.

Therefore, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.

There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.

In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.

The first-time homebuyer tax credit was enacted last year to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Contact me for more information about the credit, including how to apply for it this year even if you’ve already filed your taxes.

Posted by Paula M. Carlson, P.A. on October 13th, 2009 11:56 AMPost a Comment (0)

Washington Report: Preserving Homes and Communities Act
October 5th, 2009 7:59 AM
Capitol Hill housing and mortgage lobbyists were buzzing last week about an aggressive new legislative proposal that could put tens of thousands of financially-stressed home owners into loan modifications, even if their lenders and loan servicers had to be dragged kicking and yelling to the negotiating table.
Full Story: http://realtytimes.com/rtpages/20091005_washingtonreport.htm
Posted by Paula M. Carlson, P.A. on October 5th, 2009 7:59 AMPost a Comment (0)
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