Out and About Yukon and OKC

$8000 TAX REFUND SLOW TO COME TO YOUR MAILBOX

First time home buyers are investing throughout the country in their new homes. What drives this rush is the US Government offer of a $8000 tax refund, of course. But if you count on getting it soon I think you should start exercising patience...and put your plans on hold.

Here is a link to the full article from Realtor - I thought you might be interested to read it yourself.

Where is the refund?

With smiles,

Bo in Yukon

  I was just waiting for a couple of days to make sure that this  announcement wouldn't be changed - as it was the last time.

FHA approved lenders are allowed now to issue so called 'bridge loans' that will allow the first time home buyers to use the funds to:

• cover their closing costs
• buy down their interest rate
• or put down more than the minimum 3.5 percent (the funds cannot be used to cover the minimum 3.5 percent). In short what it means is that the 8K cannot be used toward the downpayment of 3.5 percent.

Due Diligence
FHA expects that entities purchasing tax credit assets will employ appropriate due diligence
measures including, but not limited to:

• Require the homebuyer to draft and provide the IRS form 5405 “First-Time Homebuyer Credit.”
• Contact the borrower’s employer and review pay stubs to confirm there are no outstanding garnishments.
• Review the homebuyer’s credit report to ensure there are no unpaid student loans, or other obligations that could be offset against the credit.
• Validate that all of the eligibility requirements for the tax credit are fulfilled
• Review previous tax returns and IRS tax assessment letters, if any, to determine that the borrower does not have unsettled obligations to the IRS

If you need more information or if you want to receive the IRS form:

call me at 405.812.1572 or email me: Bo@Okla-OK.com

Well, we still don't know what is going on exactly...but from what I just recently read in the Inman New the $15K homebuyer credit cut is definitely in compromise.

The proposed Big 15K tax credit was stripped from 789 billion economic stimulus package and is headed for a vote this coming Friday, which is tomorrow.

Instead, the compromise bill is calling for $8,000 tax credit and it will eliminate the need for repayment requirement which is attached to the present bill of $7500.

In a proposed form the tax credit will pertain to first-time homebuyers - those who have not owned the principal residence in the last three years.

The credit will be available through the November 30th of 2009.

The compromised version of the bill will cost taxpayers closer to $6.6 billion over 10 years period which is a savings of nearly $30 billion.

The elimination of the repayment provision is good news...we will attract more interest even with this program and it is attractive to the consumer. Let us hope that after the bill passes the lending institutions will join the revitalizing effort and start lending the money.

Also, the bill will reinstate the $729,750 loan limit in high-cost areas for Fannie Mae, Freddie Mac and FHA Loan gurarantee programs.