Comments on: Housing and Economic Recovery Act of 2008 http://crosslandteam.com/blog/2008/07/30/housing-and-economic-recovery-act-of-2008/ Austin Real Estate Blog Wed, 08 Feb 2012 19:40:44 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Gordon Baker http://crosslandteam.com/blog/2008/07/30/housing-and-economic-recovery-act-of-2008/#comment-33511 Gordon Baker Thu, 11 Sep 2008 05:31:17 +0000 http://crosslandteam.com/?p=482#comment-33511 For some good reading on DPA which may come back in a modified form, go to Bloodhound Blog. Very interesting reading demonstrating how the politicians are in the middle of everything. For some good reading on DPA which may come back in a modified form, go to Bloodhound Blog. Very interesting reading demonstrating how the politicians are in the middle of everything.

]]> By: Amy Daniewicz http://crosslandteam.com/blog/2008/07/30/housing-and-economic-recovery-act-of-2008/#comment-33155 Amy Daniewicz Wed, 10 Sep 2008 04:49:55 +0000 http://crosslandteam.com/?p=482#comment-33155 Hi Steve, I've been looking into this as well with our upcoming home purchase. It turns out you can get the rest of the $7,500 as a refund if you don't owe that much on your taxes. They also say you can decrease your withholding in 2008 (up to $7,500) in anticipation of getting the credit/loan in 2009 when you file. Of course, if you don't end up claiming or qualifying for the credit, then you'll owe that money back and possibly interest/fees. Read more about the details on this site: www.federalhousingtaxcredit.com :) Amy Hi Steve,
I’ve been looking into this as well with our upcoming home purchase. It turns out you can get the rest of the $7,500 as a refund if you don’t owe that much on your taxes. They also say you can decrease your withholding in 2008 (up to $7,500) in anticipation of getting the credit/loan in 2009 when you file. Of course, if you don’t end up claiming or qualifying for the credit, then you’ll owe that money back and possibly interest/fees. Read more about the details on this site:
http://www.federalhousingtaxcredit.com
:)
Amy

]]> By: Steve Crossland http://crosslandteam.com/blog/2008/07/30/housing-and-economic-recovery-act-of-2008/#comment-22872 Steve Crossland Thu, 31 Jul 2008 16:55:43 +0000 http://crosslandteam.com/?p=482#comment-22872 We just had to turn down an offer with Down Payment Assistance on one of our listings yesterday. Buyer was asking for $4,700 back in seller closing costs (para 12(A)1b on the TREC contracts) and participating in the <a href="http://www.thegenesisprogram.org/buyers_faq.cfm" rel="nofollow">Genesis Program</a>, for which the offer stated the seller would need to contribute an additional $5,315. After talking with the lender and buyer's agent to ask "what about the appraisal?", I found that the home would have to appraise for an amount that included the give-backs, so we were not able to work with the offer. Buyer had wanted the seller to simply reduce the price by the $10K, which the seller won't do. Had this worked though, the buyer would have been purchasing with a true zero down deal. I don't like zero down buyers. They are weak from a final loan approval standpoint, regardless of a pre-approval letter, and have no money to work with on inspection repair issues. The Genesis program apparently expires Oct 1st and will no longer be available. Steve We just had to turn down an offer with Down Payment Assistance on one of our listings yesterday. Buyer was asking for $4,700 back in seller closing costs (para 12(A)1b on the TREC contracts) and participating in the Genesis Program, for which the offer stated the seller would need to contribute an additional $5,315.

After talking with the lender and buyer’s agent to ask “what about the appraisal?”, I found that the home would have to appraise for an amount that included the give-backs, so we were not able to work with the offer. Buyer had wanted the seller to simply reduce the price by the $10K, which the seller won’t do. Had this worked though, the buyer would have been purchasing with a true zero down deal.

I don’t like zero down buyers. They are weak from a final loan approval standpoint, regardless of a pre-approval letter, and have no money to work with on inspection repair issues. The Genesis program apparently expires Oct 1st and will no longer be available.

Steve

]]> By: austin mls http://crosslandteam.com/blog/2008/07/30/housing-and-economic-recovery-act-of-2008/#comment-22858 austin mls Thu, 31 Jul 2008 16:30:13 +0000 http://crosslandteam.com/?p=482#comment-22858 Killing DPA is smart for the long run. However, there are going to be some builders getting crushed on it in the short run. A Pulte rep was quoting in the AZ Republic as stating that 9 out of 10 buyers in outlying areas of PHX use DPA. Good luck with that. Killing DPA is smart for the long run. However, there are going to be some builders getting crushed on it in the short run. A Pulte rep was quoting in the AZ Republic as stating that 9 out of 10 buyers in outlying areas of PHX use DPA. Good luck with that.

]]> By: anonymous http://crosslandteam.com/blog/2008/07/30/housing-and-economic-recovery-act-of-2008/#comment-22836 anonymous Thu, 31 Jul 2008 13:51:42 +0000 http://crosslandteam.com/?p=482#comment-22836 There are two other noteable inclusions to HR3221: Provision for the IRS to track payments (via Credit Cards and instruments like PayPal) : http://housingdoom.com/2008/07/24/why-is-there-a-provision-for-the-irs-to-track-credit-cards-in-the-housing-bill/ Home sales exclusion rule for capital gains and 2nd/vacation homes is changing as well: http://calculatedrisk.blogspot.com/2008/07/housing-bill-change-to-home-sale-tax.html Interesting changes, considering this is supposed to be a bailout bill. I also like the fact that they killed DAP (down payment assistance), which will hopefully keep unqualified buyers from buying in the future. The $7500 credit is interesting. I want to see how it is implmented, and hope that it won't become the new DAP when trying to get a buyer into a house. -Anon There are two other noteable inclusions to HR3221:

Provision for the IRS to track payments (via Credit Cards and instruments like PayPal) :
http://housingdoom.com/2008/07/24/why-is-there-a-provision-for-the-irs-to-track-credit-cards-in-the-housing-bill/

Home sales exclusion rule for capital gains and 2nd/vacation homes is changing as well: http://calculatedrisk.blogspot.com/2008/07/housing-bill-change-to-home-sale-tax.html

Interesting changes, considering this is supposed to be a bailout bill. I also like the fact that they killed DAP (down payment assistance), which will hopefully keep unqualified buyers from buying in the future.

The $7500 credit is interesting. I want to see how it is implmented, and hope that it won’t become the new DAP when trying to get a buyer into a house.
-Anon

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