The Federal Tax Credits Blog

Posts Tagged ‘down’

Question: Do they do a credit check on you to qualify you for the $8000 tax credit as a down payment for a new home?

There is a new neighborhood of new homes, they say that if you qualify for the $8000 tax credit, that you could use that as a down payment so I will put $0 down. Will they (not the IRS but the ones that are gunna sell us the home) do a credit check on me and my husband?

Answer: They have to do a credit check, not for the $8,000, but because they have to finance the rest of the apartment value. They are letting you use the $8,000 as down payment, which is fine. The $8,000 is for first time buyers, which I believe you are.

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IN THE CIRCUIT COURT OF THE FOURTH JUDICIAL CIRCUIT, IN AND FOR NASSAU COUNTY, FLORIDA Case No. 2010 DR 104 Division: B Steven William Phelps, Petitioner, and Sebastian Otte, Respondent.

Get your $8,000 tax credit NOW!

For people belonging to the middle class, managing a tax debt problem has always been a challenge. The circumstances become even worse when the debtors are unable to pay off their IRS taxes. In addition, it gets worse when the IRS starts adding up penalties upon the outstanding tax amount. In such circumstances, one ought to think about tax debt settlement alternatives to lead a stress free life, in addition to repaying the IRS tax debt. There are some alternatives available for you to settle your IRS debt, which can be easily availed through the help of a good tax professional. The options are discussed below:

Offer in compromis

Offer in compromise (OIC) is generally a contract between a taxpayer and the Internal Revenue Service to resolve the taxpayer’s tax liabilities, and to pay less than the total IRS amount due.

Tax penalty standards

At times one fails to pay off the taxes on time, and IRS starts imposing penalties as well as fines to your net taxable amount. Generally, these fines and penalties are not calculated without taking in to consideration the individual’s state of affairs, nor think about the reasons the debtor couldn’t pay off the taxes in time. Any IRS debtor can avail IRS tax relief if he or she has a valid reason to avoid the penalties.

IRS payment plans

It’s the best possible alternative for people who are looking to avail IRS tax debt relief without affecting the credit history or ratings. It provides a chance to reimburse the IRS debts in the form of flexible repayments over a period. However, one needs to keep in mind that in most of the cases, the debtor might be paying all the penalties and interest while redeeming the IRS dues.

203k Rehab Loan – New York FHA Loan to Renovate and Improve Property Owners’ House, Condo, or a Mixed Use Property

Great Northern Mortgage Corp., a correspondent lender approved by the Federal Housing Administration, offers assistance to apply for a New York FHA loan that allows to receive one low interest mortgage to finance improvements in your house, condo, or a mixed use property. (PRWeb May 12, 2010) Read the full story at http://www.prweb.com/releases/203k_Rehab_Loan/Great_Northern …

What we know and don’t know about using the $8,000 tax credit for down payment assistance

Question: 1st time home buyers credit as a down payment?

Ok. Ive read on numerous news websites that HUD is going to allow first time homebuyers to use the credit that they were going to recieve after purchasing a house as a downpayment instead..

http://www.digtriad.com/money/your_money/article.aspx?storyid=124351&catid=248

http://rismedia.com/2009-05-16/hud-action-allows-home-buyers-to-use-8000-tax-credit-for-downpayments-on-fha-insured-loans/

but then i read on two diffrent websites that the idea has been recsinded and scrapped.

http://www.boston.com/realestate/news/blogs/renow/2009/05/not_so_soon.html

SO MY QUESTION IS, WHICH IS IT? Is this going to come into fruition or should i continue to keep saving every red cent i recieve???

Answer: A tough question in deed. I just bought my first house (about 2 weeks ago). I spoke with my CPA and he said that we could file our 2008 taxes and claim the credit – even before we closed on the house but that it wouldn’t be entirely ethical, so, we didn’t. We have since closed on the house and we need to amend our 2008 taxes in order for the government to recognize that we purchased the house and then they should send it.

My mortgage banker on the other hand swore up and down that we could get the credit before closing to apply it towards our downpayment, but I wouldn’t trust her over my CPA.

In my opinion, you should absolutley be able to use that money towards the downpayment, but unfortuantely I don’t think you can.

203k Rehab Loan – New York FHA Loan to Renovate and Improve Property Owners’ House, Condo, or a Mixed Use Property

Great Northern Mortgage Corp., a correspondent lender approved by the Federal Housing Administration, offers assistance to apply for a New York FHA loan that allows to receive one low interest mortgage to finance improvements in your house, condo, or a mixed use property.

What can you do with the $8000 Tax Credit?

Question: Can the $8,000.00 tax-credit be used for a down payment on a FHA morgage loan?

Answer: HUD just came out with a new FHA mortgagee letter (2009-15) which gives lenders the opportunity to start developing “bridge loans” to get you the money prior to closing, then you pay it back.

There are still some problems with it though:
– it cannot be used for “down payment” only for closing expenses and pre-paids. That means you still need to get your own 3.5% down payment.
– The lender cannot balloon the note (get it all paid off at once) any sooner than TEN YEARS! This should have been structured as a 90 day bridge at most.
– If the lender wants to collect payments on it from the first month, the payments must be included in the debt-to-income calculations. This will kill alot of deals.
– To avoid the DTI calculation inclusion, no payments can be required for 36 months – the $8k will be long gone by then!
– Lenders cannot charge more than a 2.5% fee for the loan, so on $8,000 that’s about a profit of two-hundred-dollars.
– It will be ALOT of paperwork to do this extra loan – and some people will end up not paying it back.

Bottom line: Obama’s team will get much good publicity for “giving the green light” for it to happen. Even though it won’t happen. At least not yet.

In the end, it shouldn’t happen – it will increase our downward spiral of foreclosures. The government should not be adding to the lists of people who “own” houses with nothing invested in them, and with zero track record of being able to live within their means. It will “boost” the economy for a small while, but will ultimately add to the economic problems.

District receives $1.3 million from state

The Metcalfe County Board of Education recently accepted an offer from the Kentucky School Facilities Construction Commission.

$8000 Tax Credit to be used as downpayment

Question: Can the $8,000 tax credit for first-time homebuyers be used for closing costs?

I’ve put in an offer on a house which has been accepted and wonder whether the 8,000 tax credit can be used for down payment or closing costs and fees that are associated with the loan and inspection process. If so, how do you apply for that.

Answer: At the present time you will not be able to use the tax credit toward closing cost. There has been talk of doing something like that but I don’t think that has passed. Among other issues refunds related to these credits take some time to receive. Don’t plan on a refund to your 2008 return until at least 12 weeks after closing and your having filed an amendment.

Tax-Free Shortage May Repeat Muni Debt Outperforming Treasuries

Dec. 31 (Bloomberg) — Tax-exempt bonds may return more than Treasuries for a second straight year, paced by the biggest increase in taxable state and local issues as U.S. income tax rates are poised to rise in 2011.

Toledo OH Real Estate_Ask Dede_14_tax credit down payment use