Federal Tax Credit Used as Down Payment

At last week’s NAR Mid-Year Conference in Washington, HUD Secretary Shaun Donovan, said that the Federal Housing Administration (FHA) is going to permit its lenders to allow home buyers to “monetize” the $8,000 tax credit for first-time home buyers, to be used as a down payment. In his remarks to Realtors, Secretary Donovan indicated that details of this plan will be released shortly. This is an excellent move that further aids first-time buyers in their pursuit to purchase real estate as many first timers simply have not saved enough money to afford the lender required down payments. See the rest of the federal tax credit used as a down payment article.

If you liked this post, you may also like:
First Time Home Buyers Tax Credit Explained
Nashville Mortgage Rates Still Under 5%
Nashville Short Sales and Foreclosures
HUD Releases New FHA, Conforming Loan Limits – Home Sales Stable

Nashville Tax Assessment Reappraisal Deadline

This article entitled “Reappraisal review deadline nears” appeared in the Tennessean on May the 10th, 2009. The author is Jenny Upchurch:

“Property owners in Davidson County can get an informal review of their new appraisal values through Friday. But the assessor’s office urges folks to make requests as soon as possible so the office can have time to fully weigh the information.

Values are adjusted every four years, and reassessment notices were mailed out last month. If an owner disagrees with the valuation, there are appeals. See the entire Nashville tax assessment deadline story.

If you found this post helpful, you might also like:
Nationally Pending Home Sales Are Up
Nashville Real Estate Market Report February 2009
Nashville Housing Inventory Declines
Home Prices Slide in Nashville Area
Home Sales for Nashville, TN – December 2008

Real Estate Market Boosted by First Time Buyers

The National Association of REALTORS (NAR) says over 50 percent of March’s home sales were tied to first-time buyers, many of whom snapped up foreclosed homes and other distressed properties. Experts believe getting first-time buyers off the sidelines to take advantage of historically low interest rates and federal tax credits will reduce the glut of homes on the market and spark a recovery…see the full real estate market boosted by first time buyers article.

If you found this post helpful, you may also enjoy:
Another Tax Credit for First Time Home Buyers
Real Estate Slump End in Sight?
The Gulch in Nashville Featured in USA Today
Luxury Rental Property in Nashville, TN

Another Tax Credit for First Time Home Buyers

Earlier this year, Congress passed the American Recovery and Reinvestment Tax Act of 2009 (”2009 Tax Act”). In division B, Title I, Section 1006, there is a provision for a First Time Homebuyer Tax Credit (Form 5405) up to $8,000 or 10% of the purchase price. This act provides for an exception for principal residences purchased between January 1, 2009, and November 30, 2009, which enables a first time homebuyer to receive the tax credit with no repayment required if…read the rest of the tax credit for first time home buyers story.

If you liked this post, you might also like:
First Time Home Buyers Tax Credit Explained
Foreclosure in Historic East Nashville
New Construction Homes are Smaller
New Commercial Real Estate Services For Investors

First Time Home Buyers Tax Credit Explained

First Time Home Buyers – $8,000 first-time home buyers (or if you have not owned a home in 3 years) tax credit for qualified home purchases in 2009. This tax credit is specifically designed to encourage prospective home buyers to get off the fence.

What is the tax credit?

  • Does not have to be repaid, it is a true credit
  • Is fully refundable
  • Will remain in effect until Dec. 1, 2009 so that consumers can utilize it during the critical summer and fall home-buying months
  • Allows tax credit home buyers to participate in the mortgage revenue bond program
  • Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds

Other Key components that the legislation will create:

  • Help home borrowers by restoring the higher 2008 FHA, Fannie Mae and Freddie Mac loan limits through the end of this year (the limit will return to $729,750 from the current $625,500 in the highest cost markets, and will also rise in many other areas because the 2008 maximums were based on a more generous formula and, for most areas, higher median prices)
  • Temporarily allow exchange of Low-Income Housing Tax Credit allocating authority for tax-exempt grants and it appropriates $2 billion in HOME funding for affordable housing projects
  • Provide up to a 10-year deferral of tax due to business debt restructuring
  • Expand the net operating loss carry-back period from two years to five years for small businesses (businesses with average gross receipts of no more than $15 million over the prior three years) for losses arising in tax year 2008
  • Extend the 25C existing home remodeler credit through the end of 2010, increase the credit rate from 10% to 30%, raise the lifetime cap from $500 to $1,500 and expand the set of qualifying property
  • Provide an Alternative Minimum Tax patch for tax year 2009
  • Increase bonus depreciation and Section 179 small business expensing for business investment in 2009

This tax credit is available to you whether you purchase your property at a real estate auction, through a Realtor or on the private Nashville real estate market.

If you enjoyed this post, you may also like:
5 new rules for Nashville home buyers
Nashville Market Update
Taking Nashville’s Real Estate Temperature

Speak Your Mind

*