$8,000 Tax Credit Used for Closing Costs & More July 1, 2009
Posted by Kelly in : Resources , add a commentFollowing up on my previous post …
On May 29th, NAR announced FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans.
Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
According to senior HUD officials, the loans can’t be used to cover the minimum 3.5 percent.
Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.
There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.
In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.
The first-time homebuyer tax credit was enacted last year – and improved upon earlier this year – to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
Learn more about the credit, including how to apply for it this year even if you’ve already filed your taxes, at www.REALTOR.org.
As always, we’re available to answer your questions, or assist you in finding your perfect Big Island “first home” … just contact us.
$8000 1st Time Homebuyer’s Tax Credit – Easy Overview July 1, 2009
Posted by Kelly in : Resources , 1 comment so far
We’ve had lots of questions regarding the new $8000 first time homebuyer’s tax credit, so I wanted to provide the basic overview:
If you know anyone who qualifies as a first time home buyer, they may be eligible for a large tax credit in 2009. The new stimulus bill, the American Recovery and Reinvestment Act, signed by President Barack Obama on February 17, 2009, updates the previous First Time Home Buyer Credit of 2008.
Some important changes include:
- No repayment for the 2009 credit if you do not sell before 3 years
- Maximum credit increase from $7,500 to 8,000 or 10% of the purchase price of the home (whichever is smaller)
- Qualifying dates include homes bought between January 1, 2009 and before December 1, 2009
- First time home buyer is defined as someone who has not owned a principal residence in 3 years
- Income limits apply, but those earning more than the limits may qualify for a reduced credit
The income restrictions are based on the Adjusted Gross Income (AGI) on your tax return.
Income restrictions include:
- Individuals/Single Head of Household – income no more than $75,000
- Married couples filing Joint return – income no more than $150,000
The 2009 First-Time Homebuyer Tax Credit is claimed on IRS Form 5405 and filed with your 2009 federal tax return. Tax forms can be found at www.irs.gov.
**UPDATE** As of May 29th, first time home buyers can use the credit toward closing costs and more. Read all about it here.
Kawainui Estate – Just Listed! July 1, 2009
Posted by Kelly in : Featured Listings , add a comment
Kawainui Estate is a custom residential oasis perched above Kawainui Stream, centered at the base of Mauna Kea and overlooking the cobalt blue Pacific. Spectacular views all the way to the southern most point of Hilo Bay! Casual yet elegant island oasis with over 13,000 sq. ft. under roof.
The main house, with views of the Pacific, offers rooms for entertaining, a separate wing for guests or children, and a swimming pool that invites you to take a midnight dip (go ahead – there are no neighbors to watch!). Built-in custom Koa furnishings made by an island artist for this home. The master bedroom, guest wing and office have air conditioning. Imagine yourself sitting poolside sipping a mai-tai.
A Tiki Bar sits overlooking Kawainui Stream and the Pacific Ocean, a perfect site to sit with friends and enjoy the tropical ambiance.
The “Tea House”, which doubles as a guesthouse, sits amidst a Japanese garden and koi pond. The barn, with a tissue culture lab and 3 parking stalls, is ideal for the serious farmer or orchid/fruit enthusiast.
Feel the warmth of the sun. Watch the palm trees swaying in the gentle trade winds. Ahhh… island life at its best!
For full details, images and a virtual tour see www.KawainuiEstate.com.
