8000 tax credit
There has been much contention over the impending expiration of the $8,000 first time home buyer tax credit. The tax credit is a motivator incentive that was set to expire on December 1st 2009.
The tax credit allowed first time home buyers acquiring their owner occupied with a florida fha loan to receive a tax credit of up to $8,000. With the demise of the program many feared that house sales would drop and a market come back would be even more extended.
First notes are that the Senate has not only agreed to an extension of the first time home buyer tax credit, but an add on that would allow current home owners to also be eligible for a tax credit on a new home purchase as well even using Florida Hard Money!
Sources within the Senate have indicated that there is a beginning agreement to extend the so called “first time home buyer tax credit” until the end of April 2010. In addition they likely will expand the program to include a tax credit of up to $6,500 for home purchasers that already own a home. The senate sources saidthat one sticking point on current homeowners looking to acquire a new home and get the $6,500 credit is that they must have lived in their primary residence residence for the last five years.
It appears they will try to attach this new home buyer tax credit extension to the unemployment extension bill. It’s still foggy as to when the extension will arise for a vote, but this primary report is incredibly positive news for the housing market.
So many families have already been able to purchase a primary residence home and take advantage of the first time home buyer tax credit. This five month extension and expansion will allow virtually thousands more to benefit from it as well.
One point of frustration for many home owners is not being able to access the tax credit early and use it as part of the down payment on their home buy. While HUD has agreed to the use of the tax credit as down payment, lenders as we have seen very often, have not gotten on board with it and widely ban the use of the tax credit for down payment. Third parties had been fronting borrowers loans to use as down payment in some reported cases. This is still not widely accepted by banks and borrowers have had to wait until tax time to receive their credit.
If you have been in the mind frame to get a mortgage (http://www.fivestarsmortgage.com) it looks like you will have until the end of April to get a Uncle Sam fund to do so!
Full article: http://www.fivestarsmortgage.com/
