May 14, 2009 10:51pm: HUD has saved the day. Well, okay, it saved it for a day. It’s gone
now, recinded, at least for now. Everything that you have been reading
about yesterday, about FHA/HUD putting out mortgagee letter 2009-15, it’s no longer there.
100% Financing Back?
My friend, David Podgursky in Florida reported yesterday in his Boyton Beach Blog:
This essentially means that anyone looking to buy a home for $229,000 or under can essentially have their entire 3.5% down payment covered by HUD!! … or (drumroll) – 100% FINANCING IS BACK
Details of how this will happen are still to come, but this is good news to the many first time home buyers in Western New York.
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 first time home buyers tax credit as a down payment.
Previously, most first time home buyers wouldn’t receive the funds until after they filed their tax return, and that deterred some first time buyers 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 first time 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. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at “The Real Estate Summit: Advancing the U.S.Economy,” at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the the first time home buyer tax credit through short-term bridge loans. This will allow eligible first time home buyers to access the funds immediately at the closing table.
Other Solutions for Today’s Market
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.”
Read Also: RealtyUSA announces Job Loss Protection Plan
The morning session included a panel discussion that was moderated by CNBC’s Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve home ownership and real estate development, stimulate the economy, and protect the nation’s taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.
“Right now the Federal Reserve is the market,” said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. “What will be the effect when the Fed stops buying?” Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.
Read Also: Buyer Assistance Programs in Western New York
“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.”
The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo.During the week ending May 16, more than 8,500 REALTORS® will attend meetings,visit lawmakers and inspire action on Capitol Hill.
For more information on how to apply for your $8000 first time home buyer tax credit, here is a link to the IRS website to download and print your IRS form 5405.
Thinking of selling purchasing a Western New York home? Call Colleen Kulikowski at (716) 743-5297 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home, just fill out the form below. View additional WNY Market Area Statistics here.
