1) White Hose Press Secretary Robert Gibbs on extending the First-Time Home Buyers Tax Credit – Will it be extended? Read Jay’s post and see if you can figure it out.
2) I swear I was only looking at Realtor.com – Porn ads on the Realtor’s website?
3) Barcamp or bored camp? – What do barcamps need to do so they do not become stagnant.
4) How to buy a bank-owned home – WOW this is dead on!!! Great job Kris!
5) REBlog World is coming up: 10 reasons to go – If you go look me up, I will be there.
Video Post 8: The $8000 first time home buyer tax credit is coming to an end. Unless there is an extension soon, the program is set to expire on December 1st. That means you should really have an accepted contract by mid October. If you need any more information on the $8000 first time home buyer tax credit e-mail Dean Ouellette.
1) IDX is dead – here’s why – Now that most real estate websites have IDX does that make it less effective for you?
2) What you won’t learn by watching tv – Justin McHood talks about how to get the best deal on your next mortgage.
3) Fight in Congress looms on tax break for home buyers – With 40% of all homes sold this year qualifying for the tax credit, can the housing market complete it’s recovery without an extension of the credit?
4) Comparing website apples to website oranges – Don’t look at the expense of a new website to what it cost to build your old one, times have changed.
5) 5 things about blogging I didn’t know 359 days ago – After a year of blogging, RERockStar talks about what he has learned to make blogging effective.
1) Don’t hate me because I’m a real estate agent – A look at one reason the general public may not like real estate agents. Russell Shaw has a great response in the comments section.
2) Economists see housing bottom by 2010 – Most economist seem to agree the housing bottom is getting close if not already here.
3) How to calculate your mortgage payment using spreadsheet formulas in Excel, Numbers and Google Docs – Dan Green shows you how to set up a spreadsheet to run monthly payments.
4) Understanding the short sale addendum or SSA – A closer look at the short sale addendum and how it effects buyers and sellers as it appears in California, your state may be similar or completely different.
5) Even though much of the current real estate “news” is really just hype, there can still be food reasons for you to be in the market – Greg Swann takes a look at how the market may be on an artificial high because of the $8000 tax credit.
1) 3 reasons you should stop wasting your time online and call an agent instead – Most people start out looking for houses online, but that does not mean they shouldn’t seek the help of an agent to help them find their home.
2) Home selling strategies: Listings needs words that match buyers searches – You mean buyers don’t Google “custom home with majestic views?” PropertyNut has some good free classes on just this subject too.
3) First time home buyers NAR numbers – Almost half of all sales right now are first time home buyers, more reason to consider extending the first time buyer tax credit.
4) Thoughts on the NAR IDX enhancement group – For those of you who have been following the IDX/scrapping controversy, here is a must read by Jay.
5) Google Reader helps you blog more efficiently – Some good ideas on using Reader to help with your site that I had never thought of.
1) Looking for a struggling real estate agent who wants to be a free video blog guinea pig – If you have wanted to add video to your blogging, but not sure what to do this may be a chance for you to do so.
2) Why I think the $8000 tax credit will be extended – I tend to agree it will be extended.
3) VA loans offer 100% financing – If you served in the military you really should consider using a VA loan. I have personally used them for myself in the past and believe they are a great deal.
4) Another internecine debate: Home search registration – Because this topic has not been debated enough over the last 72 hours.
5) Lookie loo or genuine buyer – how do you tell? – There are a lot of buyers out there in today’s market, how do you tell the real ones from the tire kickers?
Top 5 real estate posts of the day for 7/22/2009 [Read more...]
One of the most common questions that I have had in the last few weeks is “I heard that you can now use the 8000 tax credit for your down payment, is this true?”
And my official answer to that question has been “Wait and see. Nothing is official yet.”
The wait is now over.
On Friday, HUD issued a Mortgagee Letter that outlined the rules regarding “using the 8000 tax credit for your down payment” — which has also been referred to as “monetizing the tax credit”.
Across the US, experts are predicting that the 8000 tax credit will spur up to 160,000 new home sales — and more than just a few of those 160,000 people will be right here in Arizona. Now, with the new rules that have been established, you no longer have to wait to use the 8000 tax credit for new home buyers for closing costs or part of a down payment, there is a process to use it immediately.
According to Reuters:
The National Association of Home Builders estimates that the $8,000 first-time homebuyer credit will stimulate 160,000 home sales across the United States — 101,000 purchases from first-time buyers and another 59,000 purchases by existing homeowners who sold dwellings to first-time buyers.
According to CNN Money:
On Friday, the U.S. Department of Housing and Urban Development (HUD) announced that first-time homebuyers using FHA-approved lenders can now get an advance on the $8,000 tax credit created by the stimulus package and apply it toward their down payments or closing costs.
“We believe this is a real win for everyone,” said HUD secretary Shaun Donovan in a speech before the National Association of Homebuilders (NAHB). “Families will now be able to apply their anticipated tax credit toward their home purchase right away. What we’re doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”
Some of the more popular questions from people here in Georgia about the monetization of the tax credit include “How much does it cost” and “can I use the tax credit for my down payment?” Here are the answers to those two popular questions as well as some resources that you can use to get any other questions that you may have:
Can You Use The Tax Credit For Your Down Payment?
Yes, — but you cannot use the tax credit to cover the first 3.5% of your down payment, you must come up with that on your own or have it gifted to you from a blood relative.
Once you come up with the initial 3.5% down payment that is required by FHA, if you would like to use the 8000 tax credit to add to that down payment, that is allowed.
How Much Does It Cost To Get “Monetize” The Tax Credit?
In my opinion, HUD did a nice job of outlining a reasonable fee structure for people who wanted to monetize the tax credit. According to the Mortgagee Letter:
Any costs attendant to the purchase of the tax credit are to be nominal and discounting the anticipated credit to cover the costs and expenses of the transaction must be reasonable and disclosed to the homebuyer. In FHA’s view, fees and costs that total more than 2.5% of the anticipated credit are considered excessive. (Example: $6000 to be refunded, with all fees and costs discounted, borrower should receive not less than $5850.00 for sale of tax credit.)
I am sure that there will still be plenty of questions about the tax credit – and the best way to get those questions answered is to speak with a loan officer at a FHA approved lender – they should be able to answer your questions.
Official Mortgagee Letter 2009-15
New Home Buyer 8000 Tax Credit Down Payment: Answers To Questions
8000 Tax Credit Questions and Answers
Top 5 real estate post of the day 6/1/2009 [Read more...]
Top 5 real estate posts for Thursday 5/14/2009 [Read more...]
