Soon, that $8000 will be available at closing
Soon, 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. Shaun Donovan, HUD Secretary said yesterday,
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 downpayment.
This is not really news, yet.
Details haven’t been worked out yet. That’s why I say soon. I will get details to you when they are ready. We’ll see how the bureaucracy plays out on this one, but it could make things easier for people who are already in a position to buy. Depending on how much red tape will be involved, this change could take away the biggest flaw in the $8000 tax credit: that the credit is tied to income tax filings.
As I have said before, I do not think the $8000 credit turns non-buyers into a buyers. I think it will ease the path for those who were planning to buy anyway.
If you are still confused about the $8000 credit, here are some resources: a video with a tax accountant: and a one-page summary.
Would-be buyers, does having the $8000 available at closing make a difference to you?
Comment
Permalink
Email
Having $8000 only benefits us if we can afford to buy a home in the first place. However, prices are still too high and/or homes are in poor condition and $8000 does not even come close to making up the difference.
Maybe in most of the rest of the country where you can buy a 2000+ sq ft SFH for $200K, would $8000 be helpful. But here, prices of homes are more like $500 - $600K for less than 2000 sq ft that need $50 - $100K of improvements to bring it up to date.
If they were handing out $20K ... that might make me think more about buying now. That would pay for most of an IKEA kitchen.
Another form of a Downpayment Assistance Program. This one is publicly funded and therefore, will use public funds as a sales tool. I wonder if any lenders will charge fees or interest?
Buyers can get a better discount by simply waiting while prices continue to plummet.
What are the chances that Congress will renew the 2009 tax credit into 2010?
spot on Nick, 8k is not even worth thinking about given the depreciation rates you will see over the next several years. Who cares about an 8k tax credit if prices in your "typical" home price range are dropping 3k per month. Same goes for low rates, who cares if I can borrow at 5%, when my underlying collateral value is in free-fall? Sometimes the smartest thing to do is to just sit tight and watch the slow-motion train wreck.
Great. One in 6 FHA borrowers are now delinquent, and the government decides now is the time to offer payday loans.
This blogger might want to review your comment before posting it.
Recent Posts
browse this blog
by categoryINside Boston.com