What You Didn’t Know About the Homebuyer Tax Credit

So you have either purchased or are getting ready to purchase real estate before the tax credit deadline in April 2010 but the homebuyer tax credit is not as simple or straightforward as you might think.  Here are some nuances that will affect homebuyers who plan to use it.

Need New Appliances? Get Money Back in 2010

The 2010 plan to encourage energy efficiency is the government rebate for appliance buyers. The plan lets people swap their old appliances for new energy-efficient models at very low prices.
 
Here are some things to keep in mind:
·      State plans vary.  Whether you live in Sandy Springs, Atlanta, Lawrenceville, Marietta, Augusta or Macon, check her for the program for Georgia residents: http://energysavers.gov/financial/rebates/state_GA.cfm.

New Affordable Housing Options From Fannie Mae

Fannie Mae has launched several initiatives designed to stabilize neighborhoods and promote purchases by owner occupants and low-income buyers.

Fannie Mae’s “First Look” initiative offers buyers who intend to live in the home, particularly low-income buyers, an opportunity to make an offer during the first 15 days the property is on the market. Investors can only make an offer after the first 15 days have passed.

Buying Foreclosures: How to Avoid a Money Pit

Foreclosures can be good deals for homebuyers, but with 1.5 million of them on the market, shopping carefully is important to guard against walking into a money pit, where you end up paying more for the home do to repairs or other problems.

Here are some tips for anyone navigating the foreclosure market:

**UPDATE on $8,000 Tax Credit

As I have recently blogged about,  FHA-approved lenders can now provide short-term bridge loans to first-time borrowers eligible for the $8,000 home buyer tax credit, which allows buyers to use the tax credit at closing and then they just pay back the loan once the refund is received.  But under guidance issued by the Department of Housing and Urban Development late last week, the loans must be on top of — not instead of — the minimum 3.5% down payment normally required on FHA-insured loans.   So that means the $8,000 can go towards repairs required to close and other closing costs or can go towards your principal payment but you still have to come up with the down payment.