Wilmington NC Area First Time Buyers~ Breaking NEWS!
The $8000 Tax Credit for First Time * Home Buyers just got better! !
The U.S. Housing and Urban Development today announced that the Federal Housing Administration (FHA) will now allow home buyers to apply the $8,000 first-time * home buyer tax credit toward the purchase price/closing costs of a FHA-insured home. Housing Secretary Donovan was very hopeful that this new rule action will help to stabilize housing markets by across the country by an increase if future home sales.
New Tax Credit Rules Can Help More Buyers
Originally the American Recovery and Reinvestment Act of 2009 offered First Time Home Buyers a tax credit/refund of up to $8,000. The "old" guidelines allowed this credit to be received as a refund only after the Home Buyers filed tax returns with the IRS. The FHA's new rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to $8000 of the tax credit (which depends on the amount of the mortgage) so that borrowers can apply the funds toward their down payments.
Lower Monthly Payments Possible... Sound good?
First Time Home buyers * using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.
Down Payment Requirements & Guidelines
Remember, Borrowers applying for an FHA-insured mortgage are still required to make a minimum 3.5 percent down payment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today's announcement, lenders can now use the tax credit immediately as additional down payment, or for other closing costs, which can in effect create a lower interest rate & monthly payment. In addition to the borrower's own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the down payment.
Projected Home Sales Expected to Climb with New Tax Credit
According to estimates by the National Association of Home Builders, the home buyer tax credit will stimulate 160,000 home sales, 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing sellers will be able to buy another home because a first-time buyer purchased their home.
Buyer Beware! Scammers are on the Prowl!
Potential buyers should beware that their are all kinds of mortgage scammers out there, ready to pounce on the unsuspecting. It is crucial to consult with seasoned, respected financial services provider. The local Wilmington NC Area mortgage professionals that we recommend have the outstanding reputation, expertise, integrity & diligence, that every buyer deserves, and they are also FHA approved lenders.
Wilmington NC Homes for Sale
Are you ready to go shopping for your Wilmington NC area home with some Governments money? There are some terrific buys out there! Sellers are eager, prices are down, interests rates, according to the experts will not be going lower, and free money will only be available for a few more months!
Want to get moving??? Call us for more details & to see if you would like to team with us to help you achieve your goals! We'd love to show you what your money can buy. You just might be very surprised!
*Remember: definition of first time home buyer is anyone who hasn't owned a home in the past 3 years!
Related Reading: Wilmington NC Home Buyers:: First Time Home Buyers Tax Credit May Help You!
© Ginger Sala, Keller Williams Realty Wilmington NC Real Estate & Relocation Specialist: serves the beautiful Coastal North Carolina areas of Wilmington, Wrightsville Beach, Hampstead, Carolina Beach, Kure Beach, Topsail Island, Surf City & Leland. Wilmington NC Living truly has something for everyone!" Visit our website: CoastHomeNorthCarolina.com for Wilmington NC Area Information, Wilmington NC Schools, Wilmington NC MLS listings! Click here to contact Ginger
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