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Posts tagged Tax Credit
HUD Clarifies The First Time Homebuyer Tax Credit
Jun 1st
HUD Clarifies Tax Credits
Borrowers still need 3.5% of own funds
The U.S. Department of Housing and Urban Development has clarified how tax credits under recently passed legislation can be monetized in home purchase transactions.
HUD Secretary Shaun Donovan today told a group of directors for the National Association of Home Builders that the $8,000 first-time homebuyer tax credit created under H.R. 1, the American Recovery and Reinvestment Act of 2009, can be applied toward the purchase of properties securing loans insured by the Federal Housing Administration, a news release said.
Donovan originally announced the monetization of the tax credit earlier this month.
The recovery bill became law in February.
The tax credit is not available until the borrower files a U.S. income tax return. But with today’s action, HUD will allow FHA borrowers to obtain secondary financing up front from state Housing Finance Agencies and certain non-profits.
“Today’s action will help stabilize the nation’s housing market by stimulating home sales across the country,” the statement said.
However, the funds cannot be applied toward the 3.5 percent down payment required from the borrower. But the funds can be applied toward “their down payment in excess of 3.5 percent of appraised value or their closing costs.” Funds used for discount points can help reduce interest rates.
In addition to the borrower’s own cash investment, the 3.5 percent can be contributed by parents, employers and other governmental entities.
Donovan noted that today’s actions differ from seller-funded downpayments — which were “a vehicle for abuse.”
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A call for a 90 day foreclosure Moratorium
Oct 14th
As part of several steps for short-term economic recovery, Democratic nominee Barack Obama has proposed a 90-day moratorium on home foreclosures.
On Monday, the Senator from Illinois also called for a two-year tax break for businesses that create new jobs and allowing people to withdraw up to $10,000 from their retirement accounts without any penalty through 2009. He also proposed a $3,000 tax credit for each full-time job created by a business.
The foreclosure moratorium would only affect banks that are participating in the federal bailout, according to the proposal.
To qualify, homeowners would have to demonstrate good-faith efforts towards paying their mortgage.
“We need to give people the breathing room they need to get back on their feet,” said Obama.
New Enviromentally-Friendly Brokers Organization Launched
Oct 8th
By James Comtois
“NEWPORT BEACH, CA-A new organization has been launched to help homebuyers get a jumpstart on green living. The Green Buyers Broker Organization, a group of Realtors, environmentalists, green building suppliers and mortgage brokers, said it will rebate real estate commissions to help home owners conserve water, power and avoid toxic chemicals in the home.
Green Buyers Broker researches all possible incentives and tax rebates for each homebuyer’s local area. A portion of the real estate sales commission will be applied toward the purchase of green home improvements designed to save energy and ultimately money by reducing utility costs.
“My goal is to promote solar energy and educate buyers on conserving the earth’s valuable resources,” said Steve Bender, founder of The Green Buyers Broker Organization. “If you are buying a home, it is the perfect time to change your habits. If you buy a home through our network, we will help you implement that change by connecting you to environmentally conscience organizations and manufacturers of energy friendly products.”
Charities can benefit if they refer buyers to the network. This aspect of the program drives interest from within environmentally conscience organizations and promotes a unique synergy to the products that make green living a reality.
The Green Buyers Broker Organization wants to make it easy for homebuyers to be green the day they move into their new home. Homebuyer options include solar panels, tank-less water heaters, water saving showerheads and other environmental products.
The new company cited an example of how its method works with purchasing a home in Southern California. For a home valued at $1 million in Los Angeles, Orange or San Diego County, Green Buyers Broker will purchase the following at close of escrow: A two kilowatt Suntrek Photovoltaic Solar System and Evolve showerheads with Smart flow technology would be installed in every shower.
The homebuyers would also receive a one year supply of Begley’s Best cleaner and Living with Ed Book” and a complimentary copy of “Green ‘n’ Easy Living.”
4. A detailed inspection and report with suggestions on how to use your GBB credit listed below from ECO ConsultingLA.
Additionally, the Green Buyers Broker Organization will offer a $2,500 budget to help move with green products, purchase energy efficient lighting, programmable thermostat, low flow toilets, smart switches, tankless water heater and energy star appliances.
According to the company, $1,000 will be donated to the referring non-profit charity or the homebuyer can choose to help Rebuild Greensburg Kansas Green (to which the Green Buyers Broker Organization will donate $2,000). The homebuyer would also receive a $2,000 federal tax credit until December 31st.
The Green Buyers Broker Organization offers rebates in all 50 states and Canada.”
Not only can you learn how to purchase a home and live “Green”, you can also learn how to “Make It Yours, Free and Clear!”