Helping Home Buyers afford a New Home

The $790 billion American Recovery and Reinvestment Act signed into law by President Barack Obama in February gives first-time home buyers an exciting incentive to enter the housing market-an $8,000 tax credit. Under the new provisions, there is no repayment requirement as long as the buyer remains in the home for three (3) years. For many 2009 purchasers, the new guidelines will mean more money in your pockets come tax time.

Pay particular attention to the timeline: All purchases must take place between Jan. 1, 2009 and Dec. 1, 2009.

Additional Programs available to homebuyers

Depending on where you live many counties have additional incentives - Cobb County has the ‘Cobb County Neighborhood Stabilization Program (NSP)’ program. This is a down payment assistance program that can give you, the buyer, up to $20,000 to assist in buying a home. And you do not have to pay it back, if you complete the guidelines set fort in the program.

Eligibility Requirements

Neighborhood Stabilization Program will help workforce individuals and families realize the dream of home ownership. Buyers may receive contributions for down payment assistance, closing costs, a deferred second mortgage, as well as education on homeownership. In order to be eligible, the buyers must:

1. Be a U.S. citizen, qualified alien or a non-immigrant.
Family Size Maximum Income

1 $59,800
2 $ 68,350
3 $ 76,900
4 $ 85,450

2. Be able to qualify for a mortgage.

3. Attend an 8-hour HUD class.

4. Home must be your primary residence.

5. Meet income qualifications. See chart.

As I mentioned, there are other programs available in counties throughout Georgia. Fulton County, Paulding County, DeKalb County, Etc. In fact, if you have questions about such programs, please contact our office e-mail at information@milicki.com or call 770*874*2022, and we will be happy to assist you in getting the information you need.

We will continue to inform you of other programs that can assist you in getting the best possible deal on real estate. Check our blog regularly!!!

Anita C. Young,
Milicki & Associates
anitayoung@milicki.com
www.Milicki.com

Tax Credit Can Be Used for Down Payment

"Tax Credit Can Be Used for Down Payment"

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment. Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

"We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan says. He says FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. "I do think we have some early signs that the market overall is stabilizing," Donovan says. "Since January, we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."

Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely."We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy," said NAR President Charles McMillan. "We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond."

Source: NAR

For more information, you can contact us at www.milicki.com or 770-874-2022.