Charlotte Mortgages

Charlotte Mortgage Loans|New Tax Credit for First Time Homebuyers

Charlotte Housing Market may benefit from a new tax credit for first time homebuyers.

The House passed a bill this week that many have called the “Housing Rescue” bill.  The legislation is 700 pages so I will give you a few bullet points to save time!

• $300 Billion authorized for FHA to refinance risky loans to a fixed rate
• $7500 tax credit for first time homebuyers (read more below)
• Elimination of Down Payment Assistance programs for FHA (no more zero down)
• FHA down payment requirement raised from 3% to 3.5%
• Fannie Mae and Freddie Mac can access “unlimited” credit from Uncle Sam

Overall the bill does some good things, but might slow down certain markets.  Approximately 1/3 of all FHA mortgages are done with DPA (down payment assistance) programs.  These programs take 3% of the purchase price from the seller of a property and give it to the buyer for their down payment.  Some argue that this artificially inflates the home’s value, but the home still has to appraise for the total price. 

Although I agree this change will reduce loan defaults in the future, I think it could slow an already slow market in some areas.  They could have accomplished the same thing by keeping DPA programs and just adding restrictions for less qualified buyers. 

The tax credit for first time homebuyers has a few twists too.  It is reduced for people with incomes over $75,000 and couples over $150,000.  It is also more like a no-interest loan becuase the IRS recaptures this “credit” over the next 15 years…. always a catch!

The Senate votes to finalize this bill Saturday so STAY POSTED!

Myers Park Mortgage is a HUD approved lender that offers FHA and VA (Veteran) loans, conventional and Jumbo loans for Charlotte area real estate.  We lend in NC, SC, TN, VA, GA, and IN, but specialize in the Charlotte Metro. (Lake Norman, Concord, Harrisburg, Matthews, Mint Hill, Pineville, Monroe, Fort Mill, Lake Wylie, Gastonia)

Call today to apply at 980-721-7478 or APPLY ONLINE.