$8000 Homebuyer Tax Credit Update – Grand Rapids Real Estate

 

$8000 Home Buyer Tax credit Gets a Little Jolt

$8000 Tax Credit According to Realtor.org, the HUD (U.S. Department of Housing and Urban Development) secretary has announced that the FHA(Federal Housing Administration) is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a downpayment.

This is excellent news for our Grand Rapids Real Estate market. Local home buyers are already taking advantage of the federal tax credit and this latest incentive will encourage potential buyers to take the next step. “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,” Donovan said. According to Donovan, the 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.

Here are the recent modifications to the 2009 First Time Homebuyer Tax credit. Click Here for Details.

  • It has increased from $7500 to $8000 but it is capped at 10% of the purchase price.
  • It is no longer a loan, it is a true credit to home buyers but the buyer must remain in the home for 3 years.
  • It is STILL only for “first time” home buyers, which is defined as someone that hasn’t owned real estate in the last 3 years.
  • It is applicable for anyone that buys or has bought 1/1/2009 and 12/1/2009, extending the date from 7/1/2009.
  • Full credit is available to those making $75,000 or less or $150,000 for joint filers.

For more information on the Grand Rapids Real Estate market, visit me online at GRRealEstateInfo.com or contact me any time.

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2 Comments

  1. Posted May 14, 2009 at 1:30 pm | Permalink

    This is great news. I will have to check on the realtor.org to find out the latest. The Washington State legislature had already passed a plan to allow the credit to be applied towards a down payment, but nothing has been put in place as of yet.

    http://www.eastsiderealestatebuzz.com

  2. Posted May 14, 2009 at 1:48 pm | Permalink

    Hi Debra, this will only help IMO! I like it.

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