If You've Been Thinking of Buying a Home Now May be the RIght Time
If
A sy A syndicated article that was published in the Oregonian in the Homes and Rentals section prompted me to “get down” and do some serious research.
In th In the article by Tom Kelly, (6-7-09) he said as of May 29, 2009, the $8,000 federal tax credit can be used as “the down payment or closing costs” for buyers who apply for mortgages
insur insured by the Federal Housing AdAdministration before Dec. 1, 2009.
TTh There are a number of incorrect facts in this newspaper article, to the best of my knowledge, and someone please let me know if I am incorrect. The information changes daily.
I wa I was in attendance at the PMAR HOWNW Committee Meeting this morning and we were part of a phone call by Roberta Ando from U.S. Department of Housing and Urban Development
in w in which she stated that the information was correct. However, it will take a third party to put this together such as a lender.
A good resource for a first time homebuyer to investigate all the different options is: http://www.HOWNW.com There are some excellent loans, some for 100% in which the first time homebuyer
can can purchase a property with no money down. There are designated areas which tend to be more rural but not all of the areas are rural.
1. T 1. The $8,000 cannot be used as a down payment or for closing costs, except in some states where the legislature has created a fund where the buyers can utilize this money through a vehicle
such such as a promissory note to be paid in the near future. Oregon and Washington do not have this legislation in place. The states that I’ve found are:
Utah Utah (a $6,000 credit), Idaho, Colorado, Delaware, Kentucky, Missouri, New Mexico, Ohio, Pennsylvania and Tennessee.
2. T 2. The link to verify or research these resources: http://www.ncsha.org/section.cfm/3/34/2920
3. 3. 3. A home must purchased by December 1, 2009. This means that when the right home is identified it should be an absolute minimum of 45 days before this deadline.
You The purchase must “close” which means purchased and recorded in the city county records. That means you should put a purchase offer in place by October 15. Why 45 days you ask?
Mos Most first time homebuyers will be obtaining FHA or conventional loans. What could happen if everyone waits until October to buy a house? What if all those new homebuyers
wait wait until almost the deadline to get their loan processed and in underwriting? There will not doubt be over loaded mortgage resources and some one will be disappointed. I’ll bet money on this log jamb!!!
4. Y 4. You don’t need an FHA loan to qualify for the tax exemption. Conventional loans will work just fine. You do need to be a first time homebuyer (anyone who has not owned a home in 3 years).
Wh Where do you get the money if you don’t have the 3-1/2% down payment?
1. A 1. Anyone can give you the money! There are no restrictions on this. If you know a kind hearted relative or friend this would work.
. Th The seller of the home cannot give you the money as in the past with certain programs such as Ameridream. The seller cannot be a part of this equation.
You You could pay the wonderful angel back when you get the refund at a later date.
2. C 2. Change withholding exemptions. Depending on what tax bracket you are in you can change the exemptions so a very small amount of taxes will be withheld. These withholding taxes should equal
the tt the tax credit you will receive of $8,000. Having less taxes withheld will help you save much faster. There is still 4-5 months left!!!
3. B 3. Beg borrow or steal this down payment money to get a house this year before December 1!!! Home prices are at 2004 levels (in the Portland – Metro area), interest rates are at a 45 year low and no one knows
if thi if this tax credit is going to be extended past December 1, 2009. (You know I'm not serious about stealing)!
4. G 4. Get preapproved now with a good mortgage broker. It’s never too early to start planning! And if you start now – you’ve got plenty of time.
5. G 5. Summer time is a great time to look for a house. There is ample light in the morning and evening and this gives you extra time to look!!!
6. T 6. The mortgage and housing industry helped get us in this economic mess we’re in. Do your part to help get us out………………buy a house and get paid for it in the process!!! Whooo hoooooo!!