Malibu California Real Estate Update: New Rules for First Time Homebuyer Tax Credit!
Just in!
The US Department of Housing and Urban Development has released a letter today regarding all eligible for the First Time Home buyer Tax Credit of $8,000 as defined in The American Recovery and Reinvestment Act of 2009 (Recovery Act).
The letter goes on to give information on how the credit work and the latest update, per FHA defining its position, allowing it to be used towards the downpayment requirement for a home.
This is achieved through several different ways – through a secondary lien on a property for the amount of the credit, this would mean that when the borrower received their credit check they use it to pay off the secondary lien. Another method discussed is the Purchase of a Tax Credit – this means that an entity can purchase the credit (subject to regulated fees and conditions) – this entity could be a local government organization, Federal or State level organization or private company. FHA will carry out strict due diligence on every organization.
These new guidelines are definitely welcome allowing first time home buyers to take advantage of the credit in the most flexible way. Additionally, this document clears up any uncertainty and creates a structure to deal with the process.
In 2008, 41% of all home purchases were made by first time homebuyers. In the first quarter of 2009, that
number was 53% (according to NAR).
Being the leading Real Estate company in Malibu, rest assured that we will keep you informed through our blog. Subscribe to our blog using our RSS feed. (Click here!)
If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.
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June 9th, 2009 at 11:18 pm
[...] had this to say: “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market…[as] buyers must finalize their purchase by November [...]
September 16th, 2009 at 11:35 am
[...] the nation as in the areas around Malibu there have been a rise in the number of first time homebuyers thanks in part to the $8,000 ta…t as well as the more affordable prices and low fixed rate mortgages options [...]
September 28th, 2009 at 10:55 am
[...] the $8000 first time homebuyer’s tax credit coming to an end soon, (see this great countdown clock to see how many days are left!) if you are a first time homebuyer [...]
September 28th, 2009 at 11:01 am
[...] NAR are trying to get congress to extend the program a few months into 2010 or beyond to really help…! As the current deadline for the credit looms, potential homebuyers need to complete a contract, satisfy any contingencies, secure financing and go to closing all by November 30th. FHA, who have played a crucial role in helping first time homebuyers secure financing, are strengthening their financial position with tax payers money to ensure that its insurance remains in place therefore it seems to make sense that congress could take advantage of the situation and extend the program to help the market in the longer term. [...]
December 28th, 2009 at 6:57 am
[...] condo associations are managing their affairs well to minimize the risk to borrowers and lenders. First time home buyers are generally thought of as the primary market for FHA financing. There is something to that, but in [...]