Jun
3
1st Time Home Buyers Tax Credit - OK Towards Closing Costs
Posted by Karen Shaver under For Buyers, For Sellers, For Realty Professionals, General Information
This good news just came in today from the PA Association of REALTORS®!
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HUD: Tax Credit Can Be Used on Closing Costs
FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S.
Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.
Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.
Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.
There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.
In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.
The first-time homebuyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
Learn more about the credit, including how to apply for it this year even if you’ve already filed your taxes, at REALTOR.org.
Source: Robert Freedman, REALTOR® Magazine Online
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Want to find a home before the end of the year? Visit my search site where you’ll find the most up-to-date listings on the market ChesterCountyListings.com. In addition, I’m proud to say this site is secure and free of advertisements. Not looking for a new home yet but would like some real estate information? Visit my website. ChesterCountyHomes.com.
Karen Shaver, REALTOR®
Keller Williams Real Estate
Want to find a home before the end of the year? Visit my search site where you’ll find the most up-to-date listings on the market 
It’s time for the annual Keller Williams Real Estate Coat Drive and I, along with other Keller Williams’ Realtors, will be participating in this worthwhile event. 
Chester County, PA only. You can leave your donations by your front door or next to your mailbox and I will stop by to pick them up. Please help me to make this year’s Coat Drive another big success! 
Fresh paint makes the entire home smell and look new, and can bring sellers top dollar. If your home has chipped paint, exposed wood, or surfaces that looks faded it’s time for new paint. If your carpet is worn, dirty, outdated, or an unusual color, you might consider replacing it.
In 1997, the United Nations named Winnie the Pooh as the world’s Ambassador of Friendship.
The Fourth of July was traditionally celebrated as America’s birthday, but the idea of an annual day specifically celebrating the flag is believed to have first originated in 1885. BJ Cigrand, a school teacher, arranged for the pupils in the Fredonia, Wisconsin Public School, District 6, to observe June 14th (the 108th anniversary of the official adoption of the stars and stripes) as “Flag Birthday”. In numerous magazines and newspaper articles and public addresses over the following years, Cigrand continued to enthusiastically advocate the observance of June 14th as “Flag Birthday”, or “Flag Day”.
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