The folks in DC continue to conjure up ways to help make home buying more affordable and get people involved in buying and selling homes. At a session today at the National Association of REALTORS Mid-year Meetings in Washington, DC, Shaun Donovan, Secretary of the Us Department of Housing and Urban Development (HUD) revealed a new policy to give first time home buyers easier access to money to purchase a home.
Tax Credit for First Time Home Buyers to Be Available at the Closing of Their Home
Today’s announcement will allow first-time home buyers to use the $8,000 tax credit available to them when they file their taxes to be applied toward the downpayment of their home at closing. This is great news for first time buyers that may not have a lot of money saved up for a downpayment but otherwise qualify for home ownership and a home loan. Currently, this program will only be available for loans backed by the Federal Housing Administration, or FHA.
Donovan mentioned other indicators that the housing markets are stabilizing. While some of this may be positive thinking and cheerleading, there are strong signs that the Denver real estate market is doing well, especially in the core areas. At the same session in Washington, DC, Jay Brinkman, with the Mortgage Bankers Association, warned that the Federal Reserve is supporting the current mortgage market and low rates and that a long term strategy must be developed once the Federal Reserve can’t continue supporting the mortgage market.
What Does the Current Home Loan and Mortgage Market Mean to You?
Great question and we’re definitely practicing what we preach. While buying activity has noticably picked up in our business this season, we’re also refinancing our own house to take advantage of the current low rates that will be impossible to sustain in the long-run
Learn More About Buying a Denver Home or Condo Today
Is this good news for you? Contact us today to learn more about buying a Denver home or condo!
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I know from the questions we receive that many first-time buyers lack the typical down payment needed to buy. So this effort will go a long way toward spurring the housing market. It will be interesting to see what happens with the number of FHA loan apps over the next few months. Great info and post.
Thanks for your comment. It looks like this has been rescinded today and first time home buyers won’t be able to use bridge loans on their tax credit toward a downpayment. We’ll report on this as it develops! Best, Derec