Posted by Donna LaBelle on 6/12/09 3:45pm
Msg #292197

an article in todays paper

says that due to the increase in rates, lender's phones have stopped ringing suddenly.
NOT GOOD

Reply by Gary Boehm on 6/12/09 4:37pm
Msg #292198

an article in todays paper

I know. This is a FRIDAY and I did not get ONE phone call today! In fact I have only done about a third as many signings this month as I have any of the past five months! I hope this is only because it is June but it doesn't look good...

Reply by SharonH/OH on 6/12/09 5:15pm
Msg #292201

I've been busier than usual, but it's been a combination, some purchases, some refinances. One realtor suggested that they are expecting to get really busy with purchases in a couple of months, when the $8000 first time homebuyer credit deadline starts to get closer (Dec 1st). I guess that's assuming they can get a loan, huh?

Reply by Shoshana Roller on 6/12/09 6:37pm
Msg #292206

It's not all that difficult to get a loan

I have one lender who will go down to a 500 credit score. It's sub prime by a different name - FHA.

Reply by MikeC/NY on 6/14/09 10:59pm
Msg #292307

Re: It's not all that difficult to get a loan

"I have one lender who will go down to a 500 credit score. It's sub prime by a different name - FHA."

It's more likely fraud on his part. Last time I checked, FHA guidelines were a minimum credit score of 650 - and that had gone up from 580 about 6 months ago. If you've got someone willing to do it at 500, he's probably not legit and should be avoided like the swine flu - the only way he's going to get a loan to qualify with a 500 score is to seriously fudge the application. Personally, I would shred his business card....

Reply by DonR_NYC on 6/12/09 10:40pm
Msg #292223

People have to be reminded that the $8000 is only available IF they close by and take title by Dec 1, 2009. The credit is actually 10% of the home purchase UP TO $8,000 and applies to houses and Condos (Co-Ops are not included). Also there is an income cap of $75,000 for singles and $150,000 for couples.

Reply by jba/fl on 6/12/09 10:49pm
Msg #292224

So what you are saying then, as everyone drives by the billboards touting the $8,000 for first time buyers, it that it is not always what it seems? My, how could we have known that another little lie would be foisted upon us? Buy a foreclosure for $50K and you would only get $5K? Small print I suppose.

Reply by DonR_NYC on 6/13/09 9:33am
Msg #292247

Forgot to add the link:

www.federalhousingtaxcredit.com/2009/index.html

Reply by C. Wayne Moore on 6/13/09 3:22pm
Msg #292266

Julie! You must read the fine print! LOL! n/m

Reply by MikeC/NY on 6/13/09 7:39pm
Msg #292273

"So what you are saying then, as everyone drives by the billboards touting the $8,000 for first time buyers, it that it is not always what it seems? My, how could we have known that another little lie would be foisted upon us?"

Maybe by paying attention to what the Feds actually say instead of believing what you read in the media?

This was never a secret - the program was always as Don described it: 10% of the purchase price, up to a max credit of $8000, subject to income restrictions. Every mortgage broker, banker, tax accountant and real estate agent knows that. It's not the government putting up those billboards you're seeing - some people just like to play fast and loose with the facts.

It was recently announced that those eligible for the credit can monetize it in the form of a bridge loan so they can use it to cover closing costs - unfortunately, most banks haven't figured out how to do that yet, and by the time they do the credit will probably expire...

The good news is that there is pending legislation that will extend the credit beyond 12/1/09, increase the max amount to $15,000, and make it available to all buyers rather than just those who haven't owned a home in three years (definition of a "first-time buyer". Whether it will pass or not is anyone's guess.

Reply by Elizabeth Soliday on 6/14/09 8:49pm
Msg #292300

And don't forget you have to keep the house for a certain amount of time or you have to pay it back (3 years I think).

Reply by DonR_NYC on 6/14/09 10:35pm
Msg #292305

Some states have already or are considering having their own first time buyers tax credit as well.

Hey Mike: According to one of the agents in my office, who is also a tax preparer, NYS is considering one that will also include Co-ops. Which is good considering 50% of my buyers are looking for Co-ops.

Reply by MikeC/NY on 6/15/09 9:51am
Msg #292316

"Hey Mike: According to one of the agents in my office, who is also a tax preparer, NYS is considering one that will also include Co-ops. Which is good considering 50% of my buyers are looking for Co-ops."

That would be very nice, because we have a surprisingly large number of co-ops out here also, and there's not much incentive for the buyers. Of course, with the current circus going on in Albany and the legislative session ending in a week, the chances of ANYTHING being passed are slim to none at this point. What a bunch of tools...

Reply by Linda_H/FL on 6/15/09 10:19am
Msg #292320

But that would only apply to your State Income tax, correct? The $8K federal credit still wouldn't apply to co-ops...which IMO stinks...money spent is money spent and co-op buyers should be entitled to the same benefits as condo and home buyers (and yes I understand the difference - my Mom owned a co-op for 45 years)..

Reply by MikeC/NY on 6/15/09 3:01pm
Msg #292353

I agree that co-op owners are getting a raw deal - they can't get an FHA mortgage either. The only logic I can see behind that is that, even though they're spending money, they're not buying any real property. Not that I agree with it, because IMO they are buying an interest in it, but that may be splitting hairs.