Tax Credit Proposal Is Improved & Getting Closer

Tax Credit Proposal Is Improved & Getting Closer

There apparently is an agreement on the details of an expanded and extended credit.  No vote has occurred yet.  The issue is now caught up in Senate procedural matters.  However, there is optimism that it will be resolved this week.  The provision would still have to be passed by the House. 

Below are the details of the new tax credit program.

•·         First-time homebuyers will continue at $8,000  -- same definition as current law.

•·         Tax credit for "move up" purchasers will be up to $6500

•o        Must have used previous home as a principal residence for 5 of the 8 previous years.

•·         Income limits increased and are the same for first-time and "move up" purchasers : $125,000 for single filers/$225,000 for joint filers

•·         Limitation on eligible home prices has been increased to $800,000

•·         Time Frame:    December 1, 2009 to April 30, 2010 plus 60 day extension if binding contract is in place by April 30, 2010

•·         Anti-fraud measures have been added

HVCC Amendment

AS you remember this is the law that prohibits commissions mortgage personal not to have anything to do with the ordering of the appraisal. An amendment has been added to H.R. 3126, "Consumer Financial Protection Agency Act of 2009", and approved by the House Financial Services Committee.  The provision, if enacted into law, would effectively "terminate" the HVCC program and permit mortgage brokers to select appraisers.  This provision is a long way from becoming law.  In fact, we would put the odds of it becoming law at less than 5% today.  We expect the fundamental provisions of the HVCC program will remain intact.  There may be some modest tinkering but we would be very surprised if production staff  (be they brokers or retail loan officers) are able to select the appraiser.

Hope this helps you!

This blog was posted by Steve Brown of Gold Financial Services, universal City, TX. Gold Financial Services is a full service mortgage banking firm with a wide variety of conventional and government loan products, including Texas Veterans Land Board assistance program.                                                         www.mortgagesbysteve.com  (210)862-2885    sbrown0007@aol.com