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Mortgage Credit Certificate for Columbus first time home buyers

Ohio Mortgage Credit Certificate for Columbus first time home buyers

MCC stand for Mortgage Credit Certificate

How does the OHFA (Ohio Home Finance Agency) MCC (Mortgage Credit Certificate) work? 

From their site:

"Homebuyers who qualify for the program receive a Mortgage Credit Certificate from OHFA, which can be used to reduce their household's tax burden every year for the life of their mortgage loan. With an MCC, a percentage of what you pay in mortgage interest (20, 25, or 30%) becomes a tax credit that you can deduct dollar-for-dollar from your income tax liability. The remaining 80, 75, or 70% of your mortgage interest continues to qualify as an itemized tax deduction, as long as you have sufficient tax liability. The MCC Program cannot be used in conjunction with OHFA's First-Time Homebuyer Program."

Is MCC (Mortage Credit Certificate)  just for first time home buyers?  NOT necessarily...

First time home buyer (not owned their primary residence for 3 years)

OR

Buying in a targeted area

OR

Veteran with an honorable discharge

MCC (Mortgage Credit Certificate)  has been around forever...

In the early 90's I had a client campout overnight... in line to be quailfied to receive the OHFA MCC (Mortgage Credit Certificate.)  Thank goodness you don't have to do that anymore.  

An antiquated aspects to the MCC program....

MCC uses 1980 Census info to determine what are target, and non target... areas.  

OHFA - Mortage Credit Certificate  - Participating Lenders

Real Living Mortgage - June Zepp 614-825-8806

or

Arlington Bank - Brian Hitchcock 614-486-9174

Mortgage

Grants for Grads  - OHFA

Do you use birth control? 

 

 

 

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This post provided by Maureen McCabe of Real Living HER

Contact 614.388.8249

Website: MaureenMcCabe.com

Search Columbus mls online


email: MaureenatMaureenMcCabe.com   @

Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

Non Member comments occasionally closed due to heavy spam! 


 

0 comments • Maureen McCabe Columbus Ohio real estate • May 25 2010 12:34PM

$8000 First Time Home Buyers Tax Credit - the movie

More a short cartoon than a movie - Up to $8000 First Time Home Buyers Tax Credit - the movie

Brought to you by Maureen McCabe Real Living HER -Worthington   you gotta love this little cartoon about the first time home buyers tax credit which is currently available.   At the end they refer you to WAHOMEOWNERS.com which is Washington State....

 

If you are looking for info about Ohio homes... and a mortgage to buy one before the First Time Home Buyer Tax Credit goes away....  contact me.


 

 

My Mortgage recommendations

 

 

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This post provided by Maureen McCabe of Real Living HER

Contact 614.388.8249

Website: MaureenMcCabe.com

Search Columbus mls online


email: MaureenatMaureenMcCabe.com   @

Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

Non Member comments occasionally closed due to heavy spam! 


 

5 comments • Maureen McCabe Columbus Ohio real estate • September 09 2009 08:13PM

Columbus first time home buyers - a step by step guide II

Maureen McCabe Real Living HER - Columbus first time home buyers where do you want to live?

Find an area.... in Central Ohio.

This may be part  II or part I  of a step by step guide to finding your first home depending on how you look at it.

Columbus mapping puzzle

This is the second in a series for first time home buyers but I believe this is step one.   Where do you want to live?

Columbus first time home buyers - Where do you work? 

Where do you work?  How long a commute is acceptable to you?  We are lucky in Central Ohio to have very short commutes for a city of this size.

Columbus first time home buyers - Do you need to consider school district 

Are schools a concern?  Are you presently living in a Central Ohio School District? Do you have children in the school district and want to buy in that school district?  Are you trying to stay within the boundaries of a particular elementary, middle or high school?  Remember within the school district the schools for a particular residence  can change year to year.

New to Central Ohio? Are you relocating to Central Ohio and need to find the best school district for your family?  

Places to look include the State of Ohio Department of Education, School Matters from Standard and Poors or other online resources (link to Central Ohio Districts above.)

Columbus first time home buyers - walking

Walkabilty  - Some areas of Columbus are more walkable than others.  Clintonville and many City of Worthington neighborhoods stand out as very walkable neighborhoods in comparison to some "car dependent" areas.

Walk Score

Parks  -  Is proximity to a city park or recreation facility important?  Do you want to live close to one of Central Ohio's Metro Parks?  Or a city park?

Nearby attractions and amenities,  what do you need nearby shopping, restaurants, a theater?  Do you need to be near a community or private pool, or near the bike path?

Columbus first time home buyers - concerned with crime?

Sadly crime is one thing to think about. The City of Columbus provides information to CrimeReports.com

Not all of Columbus' suburbs do. Additional information can be had from the local police.  More about CrimeReports.com Columbus how safe is the neighborhood

Columbus first time home buyers - how much home can you afford?

You love the area where you live now... and you see some For Sale signs on homes you'd love to look at... you've even browsed online... but how much can you afford?   If you have New Albany tastes on a ________* budget you are not alone.  You fill in the blank.  Beechwold? Clintonville? Graceland area? Northeast Columbus? Northwest Columbus? Westerville?  Worthington? Zooland?  Gahumbusville?

That brings us to step 2 which I recently covered, link in the list below.  If you believe you would like to buy your first home in the area I serve, I'd love to hear from you.  Contact me.  My offical Real Living profile says: 

"Locations Served:
Clintonville, Columbus, Dublin, Grandview, Hilliard, Lewis Center, Powell, Upper Arlington, Westerville, Worthington "

We could only pick 10...  Gahanna got left off the list. And of course Minerva Park and Riverlea...are so itty bitty and maybe covered by saying Westerville and Worthington respectively.

I work out of the Worthington office.

The Columbus first time home buyers series

  1. Find WHERE you want to live <--- we are here
  2. Find an agent <---Columbus first time home buyers - a step by step guide to buying a home
  3. Find a mortgage loan officer
  4. Find a home
  5. Find the terms that make the home yours
  6. Find out about the home
  7. Found it?  Inspected it?  Financed it?  Close it and move on in

* If you don't know where you want to live how can you find someone to help you live there? Purchasing real estate is about "Location, Location, Location...."

Stay tuned for  Step 3 in the Columbus first time home buyers series find a mortgage

find out how much you can afford

 

Search for homes - Maureen McCabe Real Living HER Worthington

 

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This post provided by Maureen McCabe of Real Living HER

Contact 614.388.8249

Website: MaureenMcCabe.com

Search Columbus mls online


email: MaureenatMaureenMcCabe.com   @

Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

Non Member comments occasionally closed due to heavy spam! 


 

0 comments • Maureen McCabe Columbus Ohio real estate • August 16 2009 10:08AM

Columbus first time home buyers - a step by step guide to buying a home

Sign saying Condo For Sale call your RealtorColumbus First Time Home Buyers

One step in finding a home is to find YOUR agent. 

If you are looking to buy your first home, single family home or condo "CONTACT YOUR REALTOR®"

The thing that may confuse you is that there are so many agents.... you call the number on the sign.  Is that licensed real estate professional YOUR agent?

You go through an open house and meet someone and call for more information, is that person YOUR agent? 

You set up 10 showings in the Clintonville neighborhood with 10 different agents.  Are all 10 people showing you homes your agent?

The agents will each provide you with a Consumers Guide to Agency Relationship.  The guide and the agent will tell you how their brokerage works. They will tell you if they can be your agent and what their relationship to the seller is.

The image is a sign at a Worthington Condominium, it says "CONTACT YOUR REALTOR"

When you call on listings to schedule an appointment one of the first things often asked is "Are you working with a REALTOR®."  I usually say "Are you working with an agent?"   What's the difference? A REALTOR® is a member of NAR, a national trade organization for  the real estate industry.  I don't know if we have real estate professionals in Central Ohio who are NOT REALTORS®.

How do you make someone YOUR REALTOR®?  Or your agent?

Real Living's Advice about finding an agent -  Remember Real Living is not just in Central Ohio or just Ohio.  They are in many other states so their advice sometimes has to be vague.

Real Living's Steps to Buying

My advice about finding an agent - MyRealLiving sign up

  1. Find an agent who works in the area you are interested.    
  2. Find an agent who you are comfortable with. 
  3. Find out how they work, if that works for you find your first house. 

This is the first post in a series for Columbus First Time Home Buyers - a step by step guide to finding a home.

  1. Find WHERE you want to live
  2. Find an agent  ****
  3. Find a mortgage loan officer
  4. Find a home
  5. Find the terms that make the home yours
  6. Find out about the home
  7. Found it?  Inspected it?  Financed it?  Close it and move on in

While it is the first post in the series this  is the second step.  I skipped "Step 1" didn't I?

You are smart.  There's no putting one past you.  We skipped step one in the series.  We are going to have to go back and do step one next.   Stay tuned.

The market I work in is mainly the north side of Columbus and Southern Delaware County.

Maureen McCabe Real Living HER Worthington

 

 

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This post provided by Maureen McCabe of Real Living HER

Contact 614.388.8249

Website: MaureenMcCabe.com

Search Columbus mls online


email: MaureenatMaureenMcCabe.com   @

Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

Non Member comments occasionally closed due to heavy spam! 


 

2 comments • Maureen McCabe Columbus Ohio real estate • August 13 2009 06:31AM

Columbus $8000 Countdown Clock - first time home buyers

Real Living HER Website has clock now.   Sometimes. The Columbus $8000 countdown clock!

Want an extra $8000 button from Real Living HER website Thursday

Thursday August 6, 2009

I saw the Real Living HER $8000 countdown clock  first on Thursday.  Friday morning the countdown clock  was missing.  Sometime Friday the countdown clock on Real Living HER  was back and I thought I got a screen shot of it...  114 days.   Saturday morning the clock is again MIA. 

So are there 114 days left?  or 113 days left?

When the $8000 countdown clocks is visible it says:

"Time is running out for first time buyers to take advantage of the first-time homebuyer tax credit"

When I next see the Columbus $8000 countdown clock I will try to grab a link to it and to the Real Living information for first time home buyers and edit this post.  It is on the front page of the Real Living HER website... sometimes.

 

Real Living HER the $8000 Countdown Clock is missing

Columbus  $8000 Countdown Clock is MIA again

See the Peace of Mind ? 

See the MyRealLiving 2.0?

See the white space under MyRealLiving 2.0 ??? That is where the Columbus $8000 countdown clock will be.  Or is sometimes.  It sits there ticking down the time to the second that you have to be in your first time home. 

If I am not mistaken the Real Living HER countdown clock is set for December 1, 2009.

It takes time to buy a home, it takes time to close on that home.  I have seen estimates that first time home buyers need to be in contract at the end of October to be sure they will be closed and eligible for the $8000 dollars.  Others say that is too late with recent RESPA changes you need to be in contract in mid October.

How is the inventory of homes  in the area you want to live in?  It's a buyers market right?  Plenty of houses for everyone right? 

Guess again. 

Time's a wasting.

Yeah... the clock is on Real Living too... not just the Real Living HER (Columbus Ohio ) site... so buyers in other markets served by Real Living can count down how much time they have to buy their first home, but real estate is local.   The Real Living countdown clock also seems to either sleep in late and not show up for work early...  white space where it belongs on that site too today.

I am sure the longer the Real Living  $8000 countdown clocks are on the job the more dependable they will become. 

The Columbus $8000 countdown clock links to some info from my brokerage about the first time home buyer tax credit. 

Whether or not you see the clock the time is still running....

Here are my humble attempts to make the whole thing clear to first time home buyers..

First Time Home Buyer Tax Credit - the chart

Could you use an extra $8,000?  

$8,000 First Time Buyer Tax Credit Check Received

Edit:  After a couple of days and a comment on Facebook about it ... you can see it if you use IE.  I mostly use Firefox, so it is not there when I look at the Real Living and Real Living HER sites. 

If you need to keep an eye on the Columbus $8000 Countdown Clock, use Internet Explorer. 

Maureen McCabe Real Living HER Worthington

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This post provided by Maureen McCabe of Real Living HER

Contact 614.388.8249

Website: MaureenMcCabe.com

Search Columbus mls online


email: MaureenatMaureenMcCabe.com   @

Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

Non Member comments occasionally closed due to heavy spam! 


 

0 comments • Maureen McCabe Columbus Ohio real estate • August 08 2009 07:41AM

Ohio college grads - your wish is our command

Ohio

Edit Update Grants for Grads - OHFA

...the state of Ohio's (command.)

Ohio college grads or students surveyed wished for a state grant for a down payment on a house....

Ohio college students reportedly said:  "more students would stay put if there was a state cash grant for a down payment on a house or a state income tax credit for those who stay in-state for ten years."

Stay in Ohio rather than relocate to another state according to a survey that was published in mid June 2009... In an article on NBC4i.com 2009 Amy Basista of NBC 4 in Columbus Ohio wrote  "College Grads See Little Future In Ohio"

Ohio College grads or students working to become Ohio college grads... have their wish! Ohio college grads - a carrot for you 

According to the study from Thomas Fordham Institute  money for a grant for Ohio college grads to buy their first home was their second choice:

Thomas B. Fordham Institute -  Survey a link to a Power Point or .pdf of the 26 page results of the survey.

It was an online survey of 811 sophomores, juniors,and seniors.  The survey was conducted earlier this year in February and March 2009.

Ohio State University students made up 40% of the 811 students surveyed.  Other students surveyed were at   Case Western Reserve, Kent State University, Miami University, Oberlin College, Ohio University and the University of Dayton.

Ohio college grads stay tuned for info from OHFA about the grant for Ohio college grad home buyers.

Central Ohio college grads looking for your first home in the future? 

Search with Maureen McCabe Real Living HER - Worthington

 

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This post provided by Maureen McCabe of Real Living HER

Contact 614.388.8249

Website: MaureenMcCabe.com

Search Columbus mls online


email: MaureenatMaureenMcCabe.com   @

Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

Non Member comments occasionally closed due to heavy spam! 


 

0 comments • Maureen McCabe Columbus Ohio real estate • July 22 2009 06:14AM

Don’t Wait-Only 138 Days to Claim Your Share of the Tax Credit

Claim your share of the First Time Buyer Tax Credit

This is a Re-Blog of a  post from Cindy Jones in the Washington DC area... pricing is a bit more affordable in Central Ohio. Real estate is local but some of this is universal information and time frames. We don't use the term "ratified" in Central Ohio but I believe Cindy's point is that if you are buying a home that is not a short sale or a bank owned property you can get in contract more quickly.    The good news is we do have homes in many neighborhoods that are NOT short sales or banks selling homes they've foreclosed on.  Homes you can negotiate with a "normal" seller relatively quickly.

Keep in mind supply of housing varies greatly from neighborhood to neighborhood in Central Ohio. 

You'd think from listening to the national media that there is a huge supply of housing in every neighborhood.  Guess again.

More for Central Ohio First Time Home Buyers:

First Time Home Buyer Tax Credit - the basics

First Time Home Buyer Tax Credit - income limits 

 

Via Cindy Jones-Northern Virginia Real Estate & Military Relocation Services (RE/MAX Allegiance #1 RE/MAX Company in the World):

Don't Wait To Start Your House HuntThe rush is on.  The deadline for purchasing a home using the $8000 tax credit is November 30, 2009.   You might be surprised to find out how quickly the remaining days left to take advantage of the "free" money from the government will click away.

Let's take a look at how you might use up your time remaining.

Before you even head out the door to look at houses you need to have made contact with a lender and start the pre-approval process.  The further you get along in this process before you get in a car to look at a home the better.  For timing we will say that this process will take you a week because you are super organized and have all of the documents on hand that your lender needs.  (7 Days Gone)

Now you are ready to actually head out and look.  With lower inventory (below $250,000) than a year ago, it would be realistic to think that it will take you 30 days to find a house.   Then there is the contract ratification process.  If you are lucky and you have focused on seller owned properties you may be able to get a ratified within 7 days.  (37 Days Gone)

With the new appraisal rules (HVCC) and the new lender rules (HERA) going into effect you can expect that getting your final loan approval will be 30-45 days.  For our calendar we will take the longest number just to be safe. (45 days Gone).



How are we doing so far?  Looks like we have knocked 89 days off the calendar leaving 49 days left until the deadline.  Whew looks like you have plenty of time to get this done.

Wait we forgot to add in the days that FHA is going to require for a second appraisal (it is happening more and more) or the processing time at the settlement company.  So let's pad those 89 days with an extra 7 to be on the safe side.  Now we have taken a total 96 days off the calendar.  Leaving you 42 days to move in and enjoy your new home. 

If you take longer to find a home, if the lender takes longer to approve your loan or you think you want to buy a short sale....then you may have waited to long!

Are you still thinking about whether the market might decline a bit more making your dream home just a bit more affordable?  Or are you waiting for the interest rates to come down to 4.5% again?   If you are then every day you wait is one less day that you have to deal with any issues in your schedule.  If you are serious about buying a new home this year and are eligible for the $8000 tax credit then time is of the essence.  Don't sit on the fence much longer or you may find yourself looking at the calendar on December 1st and wondering what you were waiting for.

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This post provided by Maureen McCabe of Real Living HER

Contact 614.388.8249

Website: MaureenMcCabe.com

Search Columbus mls online


email: MaureenatMaureenMcCabe.com   @

Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

Non Member comments occasionally closed due to heavy spam! 


 

0 comments • Maureen McCabe Columbus Ohio real estate • July 15 2009 08:56AM

Get Ready - Homebuyer Credit About to Expand!

 

Could it happen?  Will it happen this time?

This is a Re-Blog of a post written by Dawn  Maloney in Hudson Ohio.

Thanks Dawn!

 

Via Dawn Maloney, CDRS Elite (RE/MAX Commitment):

What would happen if the 1st Time Homebuyer Tax Credit was for $15,000 instead of $8,000?

What would happen if the credit was available to EVERYONE, not just first time buyers?

What if it were retroactive to Jan. 1, 2009????

It looks like we are about to find out:

Bloomberg's story here...

Wall Street Journal reports here...

Will it loosen up the really good inventory because homeowners could move up?

What would happen to prices?

Will it bring out more buyers?

Or will it all still stall due to JOBS?

What do you think? It looks as if this time, the $15,000 Homebuyer Credit will succeed. It has bi-partisan support. Tell your representatives in Washington how you feel about it right away. This may be in effect in the next 60 days.

I'm for it!

RE/MAX and Dawn Maloney = Success For YOU!

We don't merely sell real estate.

We increase peace-of-mind. We increase wealth.

We make you happier.

Dawn's cell: 330-990-4236
Email: dawn@dawnsold.com

Dawn Maloney is affiliated with www.LuxuryHomes.com

Dawn Maloney has earned the CDRS Elite Designation and is a licensed Short Sale Instructor.

My cell, 330-990-4236 is where you start if you wish to prevent foreclosure.

A foreclosure stays with you forever. A short sale goes away in a few years.

There is help.

Doing okay? Great! If you know of someone who needs information, please pass on my name.

Find Dawn Maloney on trulia.com

 

All content ©2006-2010 by Dawn Maloney, REALTOR® unless otherwise noted.

 Dawn Maloney, REALTOR® | RE/MAX Commitment | (330) 990-4236 | www.DawnSold.com

"Distinguished by Service"

http://www.DawnSold.com

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This post provided by Maureen McCabe of Real Living HER

Contact 614.388.8249

Website: MaureenMcCabe.com

Search Columbus mls online


email: MaureenatMaureenMcCabe.com   @

Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

Non Member comments occasionally closed due to heavy spam! 


 

0 comments • Maureen McCabe Columbus Ohio real estate • June 12 2009 07:46AM

$8,000 FIRST TIME BUYER TAX CREDIT - CHECK RECEIVED !!!!

 

Sheldon Neal  an agent in New Jersey shares a first time home buyer tax credit check... buyer closed "last month."

 

Via Sheldon Neal ~ That British Agent ~ Bergen County NJ (Bergen County, NJ - RE/MAX Real Estate Limited):

 

 

 

This is an actual check from one of my First Time Buyers who bought a home last month, and immediately filed his 2008 tax return - which he had already filed an extension for - and this week received the above check !

 

... before his home purchase, his return was going to give him a refund of approximately $4,000 !!!! ... as you can see, he qualified for the tax credit, and received $8,000 additional dollars from the government for buying his home.

 

@@@ FOR FURTHER INFORMATION - BE SURE TO CONSULT YOUR ACCOUNTANT TO SEE IF YOU CAN RECEIVE THIS YOURSELF @@@

 

Per the IRS.gov website, you may qualify to receive this credit if you meet the following qualifications:

"... qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase."

 The credit itself:

  • Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
  • Applies only to homes used as a taxpayer's principal residence.
  • Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
  • Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

 

So if you were considering buying a home this year - be sure to talk to your accountant as you may also qualify to get $8,000 extra dollars for buying your first home !

 

ALSO: Be sure to check out a post  from respected Loan Officer Jeff Belonger explaining how you may be able to receive an 'up front loan' for this credit to use towards closing costs or additional downpayment over your mandatory 3.5% payment on your FHA loan !

@@@PLEASE NOTE: ALL INFORMATION ABOVE DEEMED RELIABLE PER THE IRS.GOV WEBSITE, HOWEVER IS SUBJECT TO CHANGE AT ANY POINT ON ANY DAY ! - CONSULT YOUR TAX ACCOUNTANT BEFORE EXPECTING ANY PORTION OF THIS CREDIT.

@@@@ UPDATED: BELOW IS THE FORM NEEDED TO FILE FOR THIS CREDIT IF YOU QUALIFY - YOUR ACCOUNTANT SHOULD HAVE IT AND WALK YOU THOUGH IT ! GOOD LUCK !


Follow Sheldon on these sites below !

                                           

 

 

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This post provided by Maureen McCabe of Real Living HER

Contact 614.388.8249

Website: MaureenMcCabe.com

Search Columbus mls online


email: MaureenatMaureenMcCabe.com   @

Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

Non Member comments occasionally closed due to heavy spam! 


 

0 comments • Maureen McCabe Columbus Ohio real estate • May 30 2009 08:33AM

$8,000 First Time Homebuyer Tax Credit - Approved by FHA/HUD 5-29-09 - But buyer BEWARE !!!

 

Believe me if I knew of a local lender who was telling the story to buyers I'd be linking to them or Re-Blogging their content. 

I got back from an appointment to see this on ActiveRain. 

Nothing in my mailbox from local lenders but maybe they are spreading the word to buyers directly. 

This is from Jeff Belonger a lender in New Jersey.  

Buyer Beware you can NOT use the tax credit for downpayment.  Read Jeff's post:

EDIT Comments have been disabled by the author

comment on Jeff's blog!

Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans (Infinity Home Mortgage Company, Inc):

Tax credit for first time homebuyers

 

 

BUYER BEWARE of Tax Credit

 

The first time homebuyers tax credit of $8,000 has been approved by HUD for all FHA loans. But don't get too excited too quickly. If you get a chance to read the mortgagee letter, ML 2009-15, it states that you can't use this tax credit for the required down payment of 3.5%.

HUD originally put out mortgagee letter 2009-15 on May 12th, but was rescinded the next day. Please read about that here : $8,000 tax credit rescinded by HUD. For some reason, it was prematurely placed on HUD's web site, but apparently wasn't finalized. Now we have a new version and if not read correctly, you could be putting misinformation out there. So what does the new mortgagee letter state?

 

 

 

Here is the positive part about the tax credit. You can receive the first time homebuyers tax credit upfront, but not through the IRS.  This would be illegal. Please read : It's illegal to receive your tax credit before you close on your home.  Buyers - BEWARE, please read that, because too many people are saying that you can get the money directly from the IRS prior to closing. The IRS & HUD both say no!!!

So how can you receive this upfront?  It can be given to you as a second or a silent second from any Federal, State, or local agencies, and any FHA mortgagee or any FHA approved non-profit organization.  People, in layman's terms, this is already acceptable by HUD's standards, except for the lender that is now able to give the monies upfront in a form of a 2nd mortgage. Another terminology is that this can be an advance loan from any of the entities mentioned above.

 

 

 

Summary :  Essentially, this means that the entities mentioned above, are purchasing this tax credit on your behalf and giving it back to you. The short version of this is that you can use some of the money from the $8,000 Tax Credit as your down payment, but after you put down the first 3.5% of that down payment. Meaning, you have to come up with 3.5% of your own money still. With FHA loans, it can still be a gift from a relative/family member.  It also can come from non-profit or government agencies to be used as your initial down payment, but not used through the tax credit. Overall, the tax credit that is advanced, can be used for all closing costs. But you can't receive monies back at closing. 

And again, keeping in mind, it's illegal to receive this tax credit upfront directly from the IRS. There is more verbiage in the mortgagee letter 2009-15 , but the main point is that you have to have 3.5% of the downpayment yourself, before you can use the tax credit that would be 'loaned' to you.

 

 

THOUGHTS??? - Well, in all honesty, how does this truly help? What is the gov't thinking here? As a buyer, I would still need the initial 3.5% of my monies for the down payment. Again, needing money to buy. I know some of you are for this fact, that buyers should have skin in the game. But keep in mind, this was not the true demise to our foreclosure mess. We need to sell houses to keep this economy going.  Just my opinions and food for thought.  thanks

 

 

My Series on the First time homebuyers $8,000 tax credit - Everything you need to now, from start to finish - What's allowed and what's not allowed :

 

 

 

follow Jeff Belonger on Twitter

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- Mortgages -

 

Experience & Knowledge at its BEST !!!

 

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For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!

Copyright © 2009 by Jeff Belonger

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This post provided by Maureen McCabe of Real Living HER

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Website: MaureenMcCabe.com

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Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

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2 comments • Maureen McCabe Columbus Ohio real estate • May 29 2009 01:41PM