$8,000 Tax Credit Still Available

Thanks to the Federal Government's newly implemented First-Time Home Buyer Tax Credit (FederalHousingTaxCredit.com) buyers will be given an $8,000 tax refund with the purchase of their first home. The tax credit creates an amazing opportunity for first-time buyers, thanks in part to the market's extraordinary inventory as well as the current historically low interest rates. With the spring market just around the corner new buyers are in a prime position to utilize the provisional credit, which applies to all purchases that close by December 1st, 2009.

So what can an $8,000 credit do for you? The Federal Housing Administration announced this week that it is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment for FHA financing. Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. Processes have not been established on how these bridge loans will be offered to use as a down payment, however this will allow eligible homebuyers to access the funds immediately at the closing table. We are happy to keep you up to date as more details are announced regarding the FHA financing.

Over the past few weeks we have already seen an increase in market activity. We want to encourage all of our first-time buyers to take advantage of this unprecedented opportunity before it is too late. With the right amount of planning and my extensive knowledge of the real estate market we believe that this is an ideal opportunity for first-time home buyers.

If you are ready to take advantage of the First Time Home Buyer Tax Credit, or want more information regarding market conditions please feel free to contact us at your earliest convenience.