Thursday, October 29th, 2009
MSNBC reported last night that the US Senate has voted to extend the $8,000 First-Time Home Buyer Tax Credit through April. It still needs to pass vote in the House, but the Senate has historically been the difficult vote to win on spending issues, so it is expected that this will go through. (more…)
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Friday, September 4th, 2009
I just received word that Utah Housing Corp has once again opened the gates to grants for people purchasing new homes. You can find more information on their website.
I’ve heard varying viewpoints on this grant, but I’ve noticed some terrific effects on the economy. The first round of grants cleared out the inventory of existing newly constructed homes and pulled many builders out of the bind. They then had money to put contractors and construction workers back to work, putting money in people’s pockets again. Existing home sales picked up as people saw their friends getting a new home and then decided to purchase a home themselves. In the near future, I expect this increase in home sales will turn the tide of declining home values, particularly those priced under $300k.
I’m excited to see this announcement. If you’re thinking about buying a home, this grant combined with the current $8,000 federal tax credit and the low cost of purchasing a home make it an excellent time to buy.
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Friday, September 4th, 2009
Utah Housing Corp just made its second major announcement of the day. To coincide with the announcement of the Home Run 2 Grant, Utah Housing just announced a new program called Equity Now. Here is a link to Utah Housings information page.
In a nutshell, the program allows buyers to take advantage of the $8,000 federal tax credit at the closing table by giving them a 2nd mortgage of up to 6% of the purchase price of the home. Immediately after closing on their home purchase, the buyer must file an amended 2008 tax return and pay the received funds towards the 2nd mortgage.
I’m extremely excited about the moves Utah’s government is making to boost the housing economy in our state.
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Friday, May 15th, 2009
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.
Put another way, a buyer who qualifies for FHA financing, buying a home for $230,000 would have a normal down payment of $8,050 or 3.5%. The $8,000 government tax credit available until the end of 2009 would now cover all of the down payment (less $50)! Since we are in a buyer’s market and buyer’s closing costs are nearly always negotiated into the purchase price, this means that first time buyers will now be able to get into a home with low interest rates and with little to no down. For a complete explanation and all the details call Kristen at 801-913-7367.
UPDATE: While HUD approved the use of the tax credit as down payment. No banks or lenders are permitting it in their loans.
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Monday, April 27th, 2009
I recently read in an article in REALTOR® magazine that many buyer’s don’t know that they can get an $8,000 tax credit when buying a home. Some buyer’s never heard about the original stimulus, others never got the memo it was updated. Still other’s hear keywords such as “first time homebuyers” and dismiss themselves. Nobody ever looks into it to see that almost everybody qualifies. Don’t let the title mislead you, you would be surprised who qualifies for that $8,000 tax credit.
Time is of the essence, because the stimulus is set to expire December 1, 2009. But that doesn’t mean the government won’t extend that if they find it is making an impact.
First time Homebuyer = someone that has not OWNED a home in the past 3 years. (Own means “been on title to a home”). You can have owned 5 homes in your life and still be considered a first time homebuyer if you haven’t owned in a while.
The other qualifications are minimal. The fact is, the government wants people to do this, so they make it easy to qualify for it. If you are thinking about buying then give us a call, there are some great opportunities right now. If you’re not considering buying, that’s okay, still call us, you might find you can save (and make) some good money by buying now, even in this market. There are some very profitable transactions that people aren’t taking advantage of. But those that move in and gobble them up, are happy they did. Call me today. (801) 859-5887
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Friday, March 20th, 2009
Gov. Jon Huntsman Jr. signed a bill yesterday that will provide $6,000 grants to buyers of newly constructed, never-occupied homes. Upon his signature, he immediately directed the Utah Housing Corporation to begin dispersing grants under the “Home Run” program to buyers who finance a recently constructed home with a 30-year (or less) fixed-rate mortgage and meet other qualifications.
Senate Bill 260 created a fund that will use federal stimulus dollars to provide about 1,600 grants to be distributed through Utah Housing Corporation to home buyers on a first-come, first-served basis.
To apply for the grant, home buyers should work through their lender. Any mortgage lender qualified to make mortgage loans under Utah law can assist home buyers to secure the Home Run grant, but Utah Housing has a list of currently approved lenders. Lenders will work directly with Utah Housing Corporation to apply for the grant money. Examples of qualifying mortgages include conventional, FHA, VA, Rural Housing and Utah Housing loans. Cash buyers should work directly with Utah Housing.
Consumers do not have to be first-time buyers to qualify for the program but incomes cannot exceed $75,000 for singles and $150,000 for married couples. Buyers who qualify for both programs can take advantage of the $8,000 federal home-buyer tax credit as well as a Home Run grant.
“It is up to the states to use the federal stimulus money in a way that truly has a beneficial impact on our economy. This is an immediate stimulus targeted at the weakest area of Utah’s economy,” Huntsman said in a press release. “This investment of $10 million will result in 8,800 jobs in the market and $324 million in wages into our economy. This boost is critical for us to reverse our current position.”
To learn more about program details and how buyers can apply, visit www.UtahHousingCorp.org. Also visit www.UtahHousingFacts.com for information about both the Home Run program and the $8,000 federal first-time home buyer tax credit.
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