Homebuyer Tax Credit

Homebuyer Tax Credit Friday May 29, 2009
Tax Credit can immediately help thousands of Florida First Time Homebuyers to buy a home. 

FHA plan will stimulate Florida Home Buyer sales and help stabilize housing market

WASHINGTON – Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 Florida First Time Home Buyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today’s action will help stabilize the nation’s housing market by stimulating home sales across the country.
The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to “monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FL FHA Loans-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA’s new mortgagee letter, visit HUD’s website.
“We believe this is a real win for everyone,” said Donovan. “Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation’s housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we’re doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”
Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today’s announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower’s own cash investment, FL FHA Loans allows parents, employers and other governmental entities to contribute towards the downpayment. Today’s action permits the first-time homebuyer’s anticipated tax credit under the Recovery Act to be applied toward the family’s home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit. Florida Mortgage

Orlando Mortgage Rates

Gateway Capital Mortgage Corporation is an Orlando Mortgage lender who can help finance your new home or help refinance your current mortgage. We can offer a florida mortgage for FHA, VA, Jumbo, Super Jumbo, USDA, and more!

Finding mortgage help can be hard to find when purchasing a new house for the first time. Picking the right house can be a great task, but you will need to have the right mortgage to go with it. With our guidance, you’ll be able to find the help you need to finance your new house. We can provide a smooth loan transaction with great mortgage rates, and low closing costs. From application to decision, we’ll hold your hand to guarantee your satisfaction. As a Florida FHA lender we can provide a mortgage program with a low down payment of 3.5%, and seller paid closing costs of up to 6%.

We also can refinance your current mortgage to a lower payment or lower rate. We will provide full disclosures to make sure there are no surprises before closing or at closing. We make it worry-free to reduce your current rate, and your current monthly payment. Our professionals will help guide you with the best Florida Refinance Rates, and will provide you with the mortgage information that will suit your needs. All refinance on primary homes are provided with a 3 day right of rescission.