Sedona Arizona Real Estate – HUD Releases Important Update on First Time Homebuyers $8,000 Tax Credit
Stop the presses! This just in…
The US Department of Housing and Urban Development has released a letter today regarding all eligible for the First Time Home buyer Tax Credit of $8,000 as defined in The American Recovery and Reinvestment Act of 2009 (Recovery Act).
In 2008, 41% of all home purchases were made by first time homebuyers. In the first quarter of 2009, that number was 53% (according to NAR).
The letter proceeds to give information on how the credit works and the latest update, per FHA defining its position, allowing it to be used towards the downpayment requirement for a home.
This usage of the tax credit toward the downpayment is achieved through several different ways – through a secondary lien on a property for the amount of the credit, this would mean that when the borrower receives their credit check they use it to pay off the secondary lien.
Another method discussed is the Purchase of a Tax Credit – this means that an entity can purchase the credit (subject to regulated fees and conditions) – this entity could be a local government organization, Federal or State level organization or private company. FHA will carry out strict due diligence on every organization.
These new guidelines are definitely welcome allowing first time home buyers to take advantage of the credit in the most flexible way. Additionally, this document clears up any uncertainty and creates a structure to deal with the process.
We will bring you more detail as it is released! Make sure to read a copy of the letter in full (click here!)
If you have decided that you would like to own a home in Sedona as a full time resident or part time then contact Claudia Ault and her team in downtown Sedona.
For a complimentary search of the Sedona MLS and access to all property currently on the market in Sedona AZ, visit www.claudiaault.com. For the best in Sedona Real Estate service and knowledge, contact Claudia Ault at 928-301-3016.
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August 6th, 2009 at 11:14 am
[...] the level of inventory has also fallen by 23% as buyers are snapping up homes! Also, with the first time home buyer tax credit many buyers who have previously only rented are dipping their toe into the market. The national [...]
September 16th, 2009 at 1:20 pm
[...] course the Arizona Real Estate market, like many others across the nation has seen a rise in the number of first time homebuyers thanks in part to the $8,000 tax credit as well as the more affordable prices and low fixed rate [...]