Tax Credit being offered on FHA Loans to First Time Home Buyers

Have you heard about the tax credit recently created to help first time home buyers or buyers that have not owned a home in over 3 years. This is only on FHA (Federal Housing Administration) loans and according to the secretary of H.U.D., home buyers will be allowed to use the $8,000 first-time homebuyer tax credit towards their DOWN PAYMENT on purchases financed by FHA loans. FHA will allow approved lenders, nonprofits, and government agencies to advance the funds in the form of interest free bridge loans that buyers would use for down payments. Buyers would repay the loans after they receive their tax refunds. More information is to come from FHA soon.

If you are interested in this new tax credit or have questions regarding real estate send me a email/comment and I will work to answer your question.

Federal Rate Cut felt Globally

How do you think that the USA will react over the Federal Reserve cutting the rates by 0.5 percent to its all time lowest level of 1.5 percent in over four years. This drop is an attempt to try and improve the lending that keeps the U.S. economy moving forward.

Bank of America, Wells Fargo and other banks cut their prime rate by half a point to 4.5 percent, also the lowest in more than four years, after the Fed announced its decision early Wednesday.

For millions of Americans, the Fed’s cut means borrowing money becomes less expensive. Home equity loans, credit cards and other floating-rate loans all fluctuate depending on what the Fed does.

Following in step with USA, Central banks in England, China, Canada, Sweden and Switzerland and the European Central Bank, South Korea, Hong Kong and Taiwan also cut rates.

Today, the market (Wall Street) closed at its’ lowest since 2003 even though the Fed cut rates on Wednesday. Globally people are hoping for an upward change in the markets on Friday.

FHA & Down Payment Assistance Update..More people can qualify

FHA and Down Payment Assistance Update :

The California Federal Judge has ruled in favor of the Down Payment Assistance Programs. This is definitely Great news especiallay since Hud has been trying to have the Down Payment Assistance programs ruled against by the Federal Judge, however, the Judge has ruled against Hud and for the Down Payment Assistance programs. Hud has now been stopped from ruling against the DPA’s permanently, Safe at last!.

Another issue that is good for buyers and was approved is the FHA Loan amount has now increased to $271,050.00 for Harris and surrounding counties. This will give buyers more options when deciding on which loan option to take FHA, VA, or Conventional.

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