TIME TO BUY
FHA plan will stimulate new home sales and help stabilize housing market
WASHINGTON - Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today's action will help stabilize the nation's housing market by stimulating home sales across the country.
The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.
Great opportunity for 1st Time Home Buyers to Buy!
~Angel Lynn~
3 comments:
This is a great tax credit and, overall, probably a great time to buy.
I will say though that there are signs that the worst is yet to come in employement and foreclosures. And, let's look at California, they have no money in 14 days.
This depression that is here and getting worse, was predicted by many smart economists.
However, I would say that the best time to buy over the last several years, would be now...I just think in about a year or so, we will see further "good deals." Just a hunch!
What is the definition of first time home buyer? If someone owned a home 2 years ago but now rents, can they qualify?
This is great information for the Sacramento area. Very informative. Keep up the great work.
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