Showing posts with label First Time Homebuyer Tax Credit. Show all posts
Showing posts with label First Time Homebuyer Tax Credit. Show all posts
Monday, January 11, 2010
December...at Last
To paraphrase Mark Twain…“December. This is one of the peculiarly dangerous months to speculate in housing in. The others are July, January, September, April, November, May, March, June, October, August, and February.”
Last week we read from NAR that pending homes sales were slowing. It was with some trepidation that I opened the IMLS Stats page this morning…boy was I relieved.
December sales were up 24% compared to December ’08. Total sales for 2009 were 5,558 compared to 5,144 in ’08. Overall we increased sales by 8% year-over-year.
Total homes sold in December were 378; compared to 277 in December ‘08. What a difference 12 months and a Home Buyer Tax Credit makes!
Typically sales in December lessen as the year nears end. The volatility in the housing market for the last four years makes it hard to “average the change from November to December. In December ’08, we exceeded November (but November was our worst ever month). In ’07 the December sales were off 23% from November. In ’06 the change was -10%.
December '09 sales were 32% down from October.
Pending sales in December were off only 7% from November. Not the big dip experienced nationally.
First time home buyers continue to drive our market. The announcement of the Tax Credit extension and its expansion to include current homeowners should enable us to continue to move in the positive direction. 48% of homes sold in November were <$160,000. At the same time, inventory in this price range is the lowest it’s been all year.
Median home price jumped up 4% from November to $165,000. For all of 2008, median dropped 9% (comparing January to December).
Inventory fell 6% from November to 3,428 units.
On the less positive side... distressed properties continue to hurt our friends and family. Among all active listings, 49% are either short sales, in foreclosure or REO's. 54% of all November sales were also distressed. As of today, 63% of all pending sales are also distressed.
It wouldn’t be an overstatement to say that without the Home Buyer Tax credit, we wouldn’t be where we are today. And, where we are is in a “very fragile” recovery. This morning’s business report said that our unemployment went up slightly in December; and that thousands more Idahoans had stopped looking for work.
We continue to see “suggestions” that employment in the Valley might be getting incrementally better. Small to medium size employers are making the news for their successes. Our own Micron appears to have reversed the slide they’ve endured over the last 20 months.
No matter the anecdotes, we need our elected officials to work more closely with our Boise Valley Economic Partnership to find creative incentives to bring more jobs to our Valley.
Last week we read from NAR that pending homes sales were slowing. It was with some trepidation that I opened the IMLS Stats page this morning…boy was I relieved.
December sales were up 24% compared to December ’08. Total sales for 2009 were 5,558 compared to 5,144 in ’08. Overall we increased sales by 8% year-over-year.
Total homes sold in December were 378; compared to 277 in December ‘08. What a difference 12 months and a Home Buyer Tax Credit makes!
Typically sales in December lessen as the year nears end. The volatility in the housing market for the last four years makes it hard to “average the change from November to December. In December ’08, we exceeded November (but November was our worst ever month). In ’07 the December sales were off 23% from November. In ’06 the change was -10%.
December '09 sales were 32% down from October.
Pending sales in December were off only 7% from November. Not the big dip experienced nationally.
First time home buyers continue to drive our market. The announcement of the Tax Credit extension and its expansion to include current homeowners should enable us to continue to move in the positive direction. 48% of homes sold in November were <$160,000. At the same time, inventory in this price range is the lowest it’s been all year.
Median home price jumped up 4% from November to $165,000. For all of 2008, median dropped 9% (comparing January to December).
Inventory fell 6% from November to 3,428 units.
On the less positive side... distressed properties continue to hurt our friends and family. Among all active listings, 49% are either short sales, in foreclosure or REO's. 54% of all November sales were also distressed. As of today, 63% of all pending sales are also distressed.
It wouldn’t be an overstatement to say that without the Home Buyer Tax credit, we wouldn’t be where we are today. And, where we are is in a “very fragile” recovery. This morning’s business report said that our unemployment went up slightly in December; and that thousands more Idahoans had stopped looking for work.
We continue to see “suggestions” that employment in the Valley might be getting incrementally better. Small to medium size employers are making the news for their successes. Our own Micron appears to have reversed the slide they’ve endured over the last 20 months.
No matter the anecdotes, we need our elected officials to work more closely with our Boise Valley Economic Partnership to find creative incentives to bring more jobs to our Valley.
Monday, November 2, 2009
Extending the Tax Credit - ALMOST There
The extension and expansion of the homebuyer tax credit is the pending business in the Senate.
After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however. A Senate vote on the underlying bill will occur in the Senate during the week of November 1.
The package will then go back to the House. The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature. The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes. The agreement on the extension and expansion of the credit is as follows:
Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
New anti-fraud limitations are imposed.
The White House has indicated that President Obama will sign the legislation.Call Your Senator >Take Action >Visit www.realtor.org/2009housingtaxcredit >Contacts: Linda Goold, 202-383-1083 Contacts: Samuel Whitfield, 202-383-1131 Contacts: Megan Booth, 202-383-1222
After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however. A Senate vote on the underlying bill will occur in the Senate during the week of November 1.
The package will then go back to the House. The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature. The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes. The agreement on the extension and expansion of the credit is as follows:
Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
New anti-fraud limitations are imposed.
The White House has indicated that President Obama will sign the legislation.Call Your Senator >Take Action >Visit www.realtor.org/2009housingtaxcredit >Contacts: Linda Goold, 202-383-1083 Contacts: Samuel Whitfield, 202-383-1131 Contacts: Megan Booth, 202-383-1222
Tuesday, October 27, 2009
Tax Credit Extention Getting Closer
This just in from NAR...
FROM: NAR President Charles McMillan,
NAR Government Affairs Senior Vice President Jerry Giovaniello
DATE: 27 October 2009
RE: Tax Credit Extension and Expansion
The United States Senate is expected to vote, later today, on a bill to extend Unemployment Insurance benefits. This bill will contain the Dodd - Lieberman - Isakson Amendment to Extend and Expand the $8,000 First Time Homebuyer Tax Credit.
The Extended and Expanded Tax Credit will contain the following provisions:
Amount: $8,000
Eligibility: ALL HOME BUYERS (Step-up buyers will have to have lived in their current home for SEVEN* years to be eligible)
Income Limits: $125,000 for single filers/$225,000 for joint filers
Time Frame: December 1, 2009 to April 30, 2010 plus 60 Day extension if binding contract is in place by April 30, 2010
*The 7 year ownership requirement is designed to lower the "score" or cost of the tax credit. This is still open to change. The Congressional Budget Office is going to "score" the cost of 3 year and 5 year requirements. We are continuing to push for step-up buyers to be required be in their current home for three year period.
NAR will be monitoring the progress and any potential changes to the bill. NAR will send out a notice when the legislation is voted on tonight--regardless of how late into the night or early into the morning the debate continues.
FROM: NAR President Charles McMillan,
NAR Government Affairs Senior Vice President Jerry Giovaniello
DATE: 27 October 2009
RE: Tax Credit Extension and Expansion
The United States Senate is expected to vote, later today, on a bill to extend Unemployment Insurance benefits. This bill will contain the Dodd - Lieberman - Isakson Amendment to Extend and Expand the $8,000 First Time Homebuyer Tax Credit.
The Extended and Expanded Tax Credit will contain the following provisions:
Amount: $8,000
Eligibility: ALL HOME BUYERS (Step-up buyers will have to have lived in their current home for SEVEN* years to be eligible)
Income Limits: $125,000 for single filers/$225,000 for joint filers
Time Frame: December 1, 2009 to April 30, 2010 plus 60 Day extension if binding contract is in place by April 30, 2010
*The 7 year ownership requirement is designed to lower the "score" or cost of the tax credit. This is still open to change. The Congressional Budget Office is going to "score" the cost of 3 year and 5 year requirements. We are continuing to push for step-up buyers to be required be in their current home for three year period.
NAR will be monitoring the progress and any potential changes to the bill. NAR will send out a notice when the legislation is voted on tonight--regardless of how late into the night or early into the morning the debate continues.
Tuesday, October 13, 2009
First Time Home Buyer Tax Credit-Is The End Near?
The National Association of Home Builders today reported that: “Washington turned a sharper focus last week on extending the current $8,000 tax credit for first-time buyers beyond its Nov. 30 expiration date and expanding it to a wider circle of principal home buyers”.
On Oct. 5, White House Press Secretary Robert Gibbs, said that “there has been quite a bit of success” with the home buyer tax credit, and he added that the President is considering extending it to strengthen the economy and create jobs.
NAHB estimates conservatively that the current tax credit has been responsible for some 200,000 additional home sales since early this year, resulting in a net increase of 187,000 jobs. Extending the tax incentive through Nov. 30, 2010 and making it available to all income-qualified purchasers of a principal residence would result in an additional 383,000 home sales and generate 347,000 new jobs in the coming year, according to NAHB economists.
A Meeting in the Oval Office The New York Times reported on Oct. 7 that extending the credit was briefly mentioned in a meeting that day in the Oval Office between President Obama and Democratic congressional leaders Rep. Nancy Pelosi, (Calif.), speaker of the House, and Sen. Harry Reid (Nev.), the Senate majority leader. Congressional aides indicated that a tax credit extension is being viewed as an option for stimulating the economy and job creation and extending it beyond first-time buyers is being considered.
In a statement following the White House meeting, Reid said that, “we need to continue working toward ensuring that more families can stay in their current homes and continue efforts to strengthen the housing market by extending the tax credit.”
The New York Times story also cited warnings from Mark Zandi, chief economist at Moody’s Economy.com, that allowing the tax credit to expire would slow the sales of new homes not facing foreclosure just as sales of foreclosed homes are expected to pick up, which would put downward pressure on home prices.
“The economic recovery will not evolve into a self-sustaining economic expansion and risks unraveling back into recession until house prices stop falling,” Zandi said in an interview.
On Oct. 5, White House Press Secretary Robert Gibbs, said that “there has been quite a bit of success” with the home buyer tax credit, and he added that the President is considering extending it to strengthen the economy and create jobs.
NAHB estimates conservatively that the current tax credit has been responsible for some 200,000 additional home sales since early this year, resulting in a net increase of 187,000 jobs. Extending the tax incentive through Nov. 30, 2010 and making it available to all income-qualified purchasers of a principal residence would result in an additional 383,000 home sales and generate 347,000 new jobs in the coming year, according to NAHB economists.
A Meeting in the Oval Office The New York Times reported on Oct. 7 that extending the credit was briefly mentioned in a meeting that day in the Oval Office between President Obama and Democratic congressional leaders Rep. Nancy Pelosi, (Calif.), speaker of the House, and Sen. Harry Reid (Nev.), the Senate majority leader. Congressional aides indicated that a tax credit extension is being viewed as an option for stimulating the economy and job creation and extending it beyond first-time buyers is being considered.
In a statement following the White House meeting, Reid said that, “we need to continue working toward ensuring that more families can stay in their current homes and continue efforts to strengthen the housing market by extending the tax credit.”
The New York Times story also cited warnings from Mark Zandi, chief economist at Moody’s Economy.com, that allowing the tax credit to expire would slow the sales of new homes not facing foreclosure just as sales of foreclosed homes are expected to pick up, which would put downward pressure on home prices.
“The economic recovery will not evolve into a self-sustaining economic expansion and risks unraveling back into recession until house prices stop falling,” Zandi said in an interview.
Friday, October 9, 2009
Tax Credit Extension Still Un-Certain
This yesterday from DSNews ("new and up-to-date information for the Default Servicing Professional")
White House Won't Commit to Homebuyer Tax Credit; Economists Remain Split
10/07/2009 By: Adam Weinstein
As the clock winds down on the popular $8,000 tax credit for new homebuyers, the White House has remained mum on whether it will be extended, and analysts are at loggerheads over the credit’s impact on housing markets.
The tax benefit for first-time purchasers – an emergency measure that was approved as part of the federal government’s stimulus to the ailing residential housing sector – is set to expire on Nov. 30. But despite appeals by trade advocacy groups to extend the credit, the White House said this week that it hadn’t made a decision on the matter.
The credit “helped the economy” and led to “quite a bit of success,” White House Press Secretary Robert Gibbs told reporters Tuesday. To that he would only had that President Barack Obama was considering an extension of the credit as one of many possible proposals to stimulate economic output and employment.
But some economists say the credit’s effect on the beleaguered housing industry has been exaggerated. Paul Dales, a researcher at Capital Economics, said the policy’s expiration was unlikely to reverse the recent housing recovery. He took issue with a National Association of Realtors study that estimated the tax credit was directly responsible for 350,000 home sales since January – about half the national total sold in that time. In fact, the real figure was closer to 225,000 units, or roughly 30 percent of all sales, Dales said.
“Overall, the government’s initiatives have kick-started the housing market, but they do not explain all of the recovery,” he said. “If we are right in thinking that the tax credit accounts for around 30 percent of the increase in home sales, then around 70 percent must be due to other more longer-lasting factors, such as the plunge in housing valuations and the fall in mortgage rates to historically low levels.”
That hasn’t stopped mortgage and housing groups, like the NAR, from advocating that the credit stay in place. The National Association of Home Builders has gone even farther, lobbying to expand a longer term tax credit to all home buyers.
Congress is expected to begin work soon on a bill to extend the tax credit. Though the potential bill’s fate is unclear, inside sources have told reporters that the likeliest outcome, due to federal budget reservations, is a 6-month continuance of the policy.
White House Won't Commit to Homebuyer Tax Credit; Economists Remain Split
10/07/2009 By: Adam Weinstein
As the clock winds down on the popular $8,000 tax credit for new homebuyers, the White House has remained mum on whether it will be extended, and analysts are at loggerheads over the credit’s impact on housing markets.
The tax benefit for first-time purchasers – an emergency measure that was approved as part of the federal government’s stimulus to the ailing residential housing sector – is set to expire on Nov. 30. But despite appeals by trade advocacy groups to extend the credit, the White House said this week that it hadn’t made a decision on the matter.
The credit “helped the economy” and led to “quite a bit of success,” White House Press Secretary Robert Gibbs told reporters Tuesday. To that he would only had that President Barack Obama was considering an extension of the credit as one of many possible proposals to stimulate economic output and employment.
But some economists say the credit’s effect on the beleaguered housing industry has been exaggerated. Paul Dales, a researcher at Capital Economics, said the policy’s expiration was unlikely to reverse the recent housing recovery. He took issue with a National Association of Realtors study that estimated the tax credit was directly responsible for 350,000 home sales since January – about half the national total sold in that time. In fact, the real figure was closer to 225,000 units, or roughly 30 percent of all sales, Dales said.
“Overall, the government’s initiatives have kick-started the housing market, but they do not explain all of the recovery,” he said. “If we are right in thinking that the tax credit accounts for around 30 percent of the increase in home sales, then around 70 percent must be due to other more longer-lasting factors, such as the plunge in housing valuations and the fall in mortgage rates to historically low levels.”
That hasn’t stopped mortgage and housing groups, like the NAR, from advocating that the credit stay in place. The National Association of Home Builders has gone even farther, lobbying to expand a longer term tax credit to all home buyers.
Congress is expected to begin work soon on a bill to extend the tax credit. Though the potential bill’s fate is unclear, inside sources have told reporters that the likeliest outcome, due to federal budget reservations, is a 6-month continuance of the policy.
Wednesday, June 24, 2009
Making Home Affordable Program
What Should You Do If You Think a Servicer Isn’t Following the Making Home Affordable Program Guidelines
Members have called NAR asking what to do if they think that servicers are not following the guidelines for the Obama Administration’s Making Home Affordable Program for modifying eligible mortgages and refinancing Fannie Mae and Freddie Mac mortgages. Here are the recommended steps to take:
1) First, go to http://www.makinghomeaffordable.gov/, the official Treasury website for the Making Home Affordable Program. At the site, determine whether the loan is owned or guaranteed by Fannie Mae or Freddie Mac by clicking “Loan Look Up” on the ribbon on the top of the home page. Only the holder of the loan is allowed to perform this , so do in the presence of your client or after obtaining their written permission.
If the loan is a Fannie Mae or Freddie Mac loan, call (1) 1-800-7Fannie or (1) 1-800-Freddie, as appropriate, describing the specific inconsistency. Do this whether the issue relates to the refinancing or the loan modification program.
2) Next, if the loan is not owned or guaranteed by Fannie Mae or Freddie Mac you can determine if the servicer is participating in the Home Affordable Modification Program (HAMP) by going to the website and clicking “Contact Your Mortgage Servicer” on the top ribbon. To date, 16 servicers are participating, covering more than 80% of all mortgages.
If the servicer is participating, the first step is to contact the servicer using the phone number or email address listed on the site so you can appeal the issue to a supervisor. Be sure to identify the specific provision of the guidance that you believe is not being followed. If the supervisor cannot or will not correct the problem, call 1-800-7Fannie to report the disagreement. Fannie is administering the program for the Treasury Department and will work to resolve the issue.
Making Home Affordable Program Website (consumer friendly)http://www.makinghomeaffordable.gov/
Site for Detailed Information on Making Home Affordable and Other Government Programshttp://www.financialstability.gov/
Tuesday, June 9, 2009
Fox News Knows Tax Credit Advance
There is still a lot of confusion about the Tax Credit, the FHA program and the IHFA program here in Idaho.
However…Fox News is doing their best to understand and promote it here in Boise. Here’s the link to the story. The video link is at the top of the text piece. http://tinyurl.com/n8uonm
There are some inaccuracies in the story, but overall, I’d give them an A for effort and an A-/B+ for accuracy! The key, I think, is the buyer (supplied last minute, with about 15 minutes notice by ACAR Treasurer Brenda Kolsen, who’s yard sign didn’t make the air) who says “"If we weren't able to use the tax credit we wouldn't have been able to get a house,"…
BTW – NAR published this Tax credit Quiz http://tinyurl.com/n4uscy
See how you do. Be honest…did you really get the “houseboat” question right?
Its up to the REALTOR organization to continue to push the message out…”The tax credit advance is available, right now, in Idaho.” “Yes, some lenders are not participating, but dozens of other lenders, throughout Idaho are. For a list of approved participating lenders go to http://tinyurl.com/ljun4y
FYI – Susan Semba, IHFA, told Miguel Legarreta and me that as of last week almost 800 Idahoans statewide have “reserved” or applied for the tax credit advance!
In Dan Hamilton’s story he mentions the “grant from NAR” to pay the interest for the tax credit advance. We will be sending a press release later today (after we get the NAR quotes) on the program we are calling “Welcome Home Idaho”. Please note that we have received a total of $60,000. We believe that this will allow us to pay off the interest for approximately 200 first time buyers; but that’s not enough! We’d like to try to leverage this $60,000 into $100,000 or more. So far the IMLS has indicated that they want to participate. Also, US Bank has shown some interest. Hopefully the other local associations will be able to identify more partners for the Welcome Home Idaho program.
Contributions to the Welcome Home Idaho fund can be made through ACAR’s REALTORS Community Foundation which is a tax exempt 501c3 foundation. For more information on how to contribute, contact Judy McLaughlin jmclaughlin@adacounty-realtors.com or 2009 foundation President Kit Fitzgerald kitf@redbarnrealestate.com
The above has been posted to our Watercooler blog at http://acarwatercooler.blogspot.com/
However…Fox News is doing their best to understand and promote it here in Boise. Here’s the link to the story. The video link is at the top of the text piece. http://tinyurl.com/n8uonm
There are some inaccuracies in the story, but overall, I’d give them an A for effort and an A-/B+ for accuracy! The key, I think, is the buyer (supplied last minute, with about 15 minutes notice by ACAR Treasurer Brenda Kolsen, who’s yard sign didn’t make the air) who says “"If we weren't able to use the tax credit we wouldn't have been able to get a house,"…
BTW – NAR published this Tax credit Quiz http://tinyurl.com/n4uscy
See how you do. Be honest…did you really get the “houseboat” question right?
Its up to the REALTOR organization to continue to push the message out…”The tax credit advance is available, right now, in Idaho.” “Yes, some lenders are not participating, but dozens of other lenders, throughout Idaho are. For a list of approved participating lenders go to http://tinyurl.com/ljun4y
FYI – Susan Semba, IHFA, told Miguel Legarreta and me that as of last week almost 800 Idahoans statewide have “reserved” or applied for the tax credit advance!
In Dan Hamilton’s story he mentions the “grant from NAR” to pay the interest for the tax credit advance. We will be sending a press release later today (after we get the NAR quotes) on the program we are calling “Welcome Home Idaho”. Please note that we have received a total of $60,000. We believe that this will allow us to pay off the interest for approximately 200 first time buyers; but that’s not enough! We’d like to try to leverage this $60,000 into $100,000 or more. So far the IMLS has indicated that they want to participate. Also, US Bank has shown some interest. Hopefully the other local associations will be able to identify more partners for the Welcome Home Idaho program.
Contributions to the Welcome Home Idaho fund can be made through ACAR’s REALTORS Community Foundation which is a tax exempt 501c3 foundation. For more information on how to contribute, contact Judy McLaughlin jmclaughlin@adacounty-realtors.com or 2009 foundation President Kit Fitzgerald kitf@redbarnrealestate.com
The above has been posted to our Watercooler blog at http://acarwatercooler.blogspot.com/
Monday, June 1, 2009
Bills Introduced to Extend, Expand Tax Credit
Several House members have introduced bills reflecting their support for the homebuyer tax credit and urging that it be expanded and extended. NAR is saluting their efforts, but has not endorsed any particular approach. The bills have differing details, but, taken together, all would have beneficial effects on the housing market. NAR anticipates additional bills in the near future.
The bills introduced so far:
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.
Contacts: Linda Goold, 202-383-1083 Contacts: Megan Booth, 202-383-1222 Contacts: Kenneth Trepeta, 202-383-1294
The bills introduced so far:
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.
Contacts: Linda Goold, 202-383-1083 Contacts: Megan Booth, 202-383-1222 Contacts: Kenneth Trepeta, 202-383-1294
Friday, May 29, 2009
First Time Homebuyer Tax Credit Q & A
First-Time Homebuyer Tax Credit Q & A
*Is the program available to all first-time homebuyers? Yes - the program is available now until December 1, 2009 for qualifying first-time homebuyers. For more information on the tax credit and qualifications click here . The National Association of REALTORS® is actively working to extend the credit through 2010 and permit all purchasers to utilize it.
*Does Idaho have a way for a homebuyer to access the funds for a down payment? Yes - With ACARs encouragement, The Idaho Housing and Finance Association implemented the Tax Credit Advance Loan to access funds at the time of closing. Idaho is one of 10 states offering the advance.
*In Idaho will the REALTOR® Associations pay off interest on the tax credit advance loan? Yes - To help encourage home ownership, REALTORS® Associations in Idaho created the Welcome Home Idaho program. REALTORS® in Idaho have offered to pay off the interest on the tax credit loans to individuals who pay off the loan by the due date of July 1st 2009. The availability of the payoff is on a first come first served basis until the contributed funds are gone.
*Can lenders is Idaho access the tax credit advance loan? Yes - According to IHFA, “any lender making that statement they will not utilize the credit is doing so based on an internal company policy. There is no reason that every approved IHFA lender cannot offer the Tax Credit Advance right now. In fact nearly 800 Idahoans have applied for it since it was introduced in March.” For a list of IHFA approved lenders go to www.ihfa.org
For more information contact:
Miguel Legarreta, Director of Public Policy 208-947-7226 mlegarreta@adacounty-realtors.com
Marc Lebowitz, Executive Officer 208-947-7229 mlebowitz@adcounty-realtors.com
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