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05-13-2009, 01:41 PM
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Real Estate Agent
Status:
"Leaves, too many leaves..."
(set 21 days ago)
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Join Date: Jul 2008
Location: Huntington
1,900 posts, read 857,306 times
Reputation: 436
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Update on $8,000 Tax Credit for First Time Home Buyers
On Tuesday, May 12, 2009, Shaun Donovan, Secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
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05-13-2009, 01:51 PM
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Senior Member
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Join Date: Apr 2008
Location: Long Island NY
229 posts, read 145,380 times
Reputation: 98
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Outstanding!
This is a wonderful thing for 1st time buyers. They should offer this all the time! Too bad I'm not ready to buy yet......... 
Thanks for the update ! |
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05-13-2009, 01:53 PM
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Senior Member
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Join Date: Apr 2009
619 posts, read 209,326 times
Reputation: 78
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They used the 8 grand I paid in closing costs to refi my mortage! 
Sorry, i'm just bitter.  |
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05-13-2009, 01:54 PM
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Pls email me controversy instead of posting. Thks.
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Join Date: Jul 2006
Location: Nassau, Long Island
3,423 posts, read 1,372,237 times
Reputation: 692
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Too bad there's nowhere on Long Island where $8,000 would be anywhere near enough for a downpayment. If you don't already have a lot more money that that saved ... pfffft! You will get nowhere. LOL. Great for flyover country (aka the real america) of course!
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05-13-2009, 02:12 PM
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Senior Member
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Join Date: Jan 2009
910 posts, read 294,369 times
Reputation: 67
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This is one big joke....
$8k crap....
1st time buyers should realise this....
If more buyers are thinking of buying a house because of this, it will drive up the sale price a little simply because there is competition because of more buyers... this is exactly what the policy was implemented for.... so lets say a house that would have sold for 300k may sell for 305k because of that.... what just happened ? you gave the 5k out of your 8k to the seller.... so you got 3K.... still good ? Lets see the 5K that you got hit with is the extra loan that you have to take out now.... and over 30 yrs you pay about 4K interest on it.... so whats your net gain you ask ?
Its 3K - 4K = negative 1K !!
And buyers are jumping the fence to grab the $8K credit... wow !!
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05-13-2009, 02:12 PM
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Senior Member
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Join Date: Apr 2009
402 posts, read 136,972 times
Reputation: 19
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Is this credit just for 1st time home owners? I thought there was some talk of changing this to primary home so some can use it to trade-up homes.
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05-13-2009, 02:18 PM
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Senior Member
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Join Date: May 2009
256 posts, read 88,821 times
Reputation: 150
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Quote:
Originally Posted by I_Love_LI_but
Too bad there's nowhere on Long Island where $8,000 would be anywhere near enough for a downpayment. If you don't already have a lot more money that that saved ... pfffft! You will get nowhere. LOL. Great for flyover country (aka the real america) of course!
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Not so fast, the 8K would be enough for the down payment on a $266,000 FHA loan at 3% down. If a buyer could scratch together 5K down and negotiate the closing costs into the price they're ready to close on a 433K house with only putting up 5K out of pocket... |
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05-13-2009, 02:26 PM
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Senior Member
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Join Date: Jan 2009
910 posts, read 294,369 times
Reputation: 67
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Quote:
Originally Posted by Burb
Not so fast, the 8K would be enough for the down payment on a $266,000 FHA loan at 3% down. If a buyer could scratch together 5K down and negotiate the closing costs into the price they're ready to close on a 433K house with only putting up 5K out of pocket...
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I agree to a certain extent with your statement.
FHA needs 3.5% min these days.... regardless, if you are buying a sub 300k house then the 8k will go a long way towards closing FHA loans. 300k for a house probably will get you a pigeon hole on LI though ! |
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05-13-2009, 02:28 PM
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Senior Member
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Join Date: Apr 2009
619 posts, read 209,326 times
Reputation: 78
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Bottom line is the gov't is giving you 8 grand. It would be foolish not to take it.
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05-13-2009, 02:29 PM
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Senior Member
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Join Date: Aug 2008
2,303 posts, read 999,096 times
Reputation: 244
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Quote:
Originally Posted by scottzilla
Bottom line is the gov't is giving you 8 grand. It would be foolish not to take it.
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...the govt is giving you 8 grand to buy a house that will lose value and that you will pay hundreds of thousands in interest on. It's not quite so easy as "here's some free cash!!" |
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