The Federal Tax Credits Blog

Posts Tagged ‘fha’

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

Question: 667 Fico score, chances of being approved for mortgage?

My credit score is 667 and I make approximately $23,000/year. I am looking to buy a house in foreclosure in Indiana for approximately $40,000-$60,000. What are the chances I’d be approved for a mortgage based on my Fico score and income?

Due to my low income, if approved for a mortgage, I would qualify for down payment assistance and an interest free loan up to 20% of the home cost, as well as the tax credit on next year’s taxes so I’m hoping I have a shot at getting approved.

By the way, I have found several houses in this price range that I’m interested in.

Answer: Your score is good, but as you indicated the loan is not based solely on your FICO. Different types of loans have different requirements, Conventional, FHA, VA etc. They will look at who you owe, how much you owe, how much you pay out each month. Taking your income, minus your current monthly pay out and 30% of what’s left over is considered affordable average standard (what you can afford to pay on a mortgage) Take in consideration, home insurance and taxes when figuring the bills you will pay out with a mortgage. Your FICA and risk factor based on these figures will also help the bank or financial institution set your interest rate as well. Good Luck!

Answers to mail that runneth over

By Michelle Singletary The Washington Post Throughout the year, I receive hundreds of e-mails and questions by way of my regular online discussion from people hoping for an answer to their most pressing personal finance issues. I can’t possibly answer every one.

$8,000 in YOUR Pocket and Down Payment Assistance

Its good news for those who are looking for a second mortgage refinance, as this is probably the best opportunity for you. You can refinance and choose a fixed rate 2nd mortgage, variable equity line of credit or a 30-year fixed rate mortgage. This is a very good time to go in for a mortgage refinance as the interest rates on second mortgages are on an all time low! There is still time to lock in a great home mortgage refinance rates that can potentially save you hundreds or thousands of dollars. With the low interest rates and reduced monthly payment, you will finally have the opportunity to use the money you save to make your financial dreams come true.

By getting a second mortgage loan gives you the freedom to change your adjustable rate mortgage into a fixed rate equity loan with fixed mortgage terms. When you refinance, it can save you thousands of dollars a year in interest if you choose to refinance and get cash out with a FHA mortgage that lets you to borrow up to 95% of loan to value. Make sure that you don’t miss this golden opportunity as interest rates could shoot up any time. Out of the extra cash that you save with a cash out refinance you can go in for consolidating all your credit card debt or make home improvements in order to add more beauty and value to your home. A Refinance Second Mortgage could prove to be your ultimate home financing solution which can help release all your financial tensions. Following are some essential points through which a 2nd mortgage refinance can assist your financial conditions:

So, make a wise decision and go in for a refinance to lead an anxiety free life. There are also options like bad credit mortgage refinance if you have imperfect credit or a mortgage loan modification if you are looking to modify the terms of your loan, just make sure that you don’t take too long as interest rates might start shooting up any time soon.

Reverse mortgages let owners tap equity

John Spencer Sr. came close this fall to losing the Lancaster rowhouse he’s lived in for the past 27 years to a sheriff’s sale for unpaid property taxes. ”I got quite a few notices, and it was down to the wire,” the 81-year-old homeowner said.But instead of having to move in with one of his …

Mitch Milat on FHA Tax Credit for Down Payment