Gov't allows short-term loans for tax credit

By ALAN ZIBEL AP Real Estate Writer

Updated: 05/29/2009 03:26:04 PM EDT

WASHINGTON-Thousands of first-time homebuyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit to pay for some of the costs of buying a home.

The Federal Housing Administration on Friday released details of a plan in which borrowers who use FHA loans can get advances from lenders that let them effectively receive the credit in advance, so they don't have to wait to get the money from the Internal Revenue Service.

Most borrowers will still have to come up with the FHA's required 3.5 percent down payment, unless they work through a state or local housing agency or an approved nonprofit. Ten states have such programs in place, according to the National Council of State Housing Agencies.

But there are many other potential uses, such as for closing costs and fees, or to beef up the down payment beyond the minimum level.

The FHA which insures about a quarter of new home loans, is projected to guarantee about 2.2 million loans in the next budget year.

Any buyer who has not owned a home in the past three years is considered a first-time buyer and eligible for the program. Borrowers can claim the credit by filing an amended 2008 tax return or can wait for their 2009 return.

The change "will present an enormous benefit for communities struggling to deal with an oversupply of housing," Housing Secretary Shaun Donovan said in a statement.

The tax credit was included in the economic stimulus

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package signed by President Barack Obama in February. It is not available to individuals with incomes above $95,000 or couples with incomes above $170,000 and expires Nov. 30.

Real estate agents and homebuilders generally welcomed the change. Jerry Howard, chief executive of the National Association of Home Builders, called it a "great step in the right direction." On Wall Street, shares of such builders as Toll Brothers and D.R. Horton rose on the news.

Still, some real estate agents were concerned that many buyers won't benefit at all if they can't use it for a down payment-a big hurdle for many first-time buyer

According to the CT Post this morning, the petition for a Referendum on the Town Budget fell short of the required number of signers needed. This Referendum would have asked for a reduction in the Board of Education budget for FY2010 of over $2 Million. The budget currently includes a .32 percent or approx a one third of one percent increase over the prior year.

With the Referendum not passing, now all eyes turn to Hartford where the State Legislature is still debating. Recent reports say they will very likely miss their June 3rd deadline for finalizing a budget. Some even say June 30th is in doubt. So this means that the State and every town & municipality may start the next fiscal year either unsure of funding or short on funding...this will impact Towns and Boards of Educations everywhere.

Our State Leaders really need to consider the impact for their inability to reach agreement on the people they serve. Please keep your fingers crossed that they can work things out in the weeks ahead.

Thanks, Mike

After talking with the Fairfield Town Clerk's Office, here is the latest update -

Apparently a series of Referendum petitions have been turned into the Town Clerk's Office. So it won't be until sometime tomorrow (Tuesday) that we know if there are enough certified signatures to force a Referendum....stay tuned!

The Petition must have 1833 certified signers.....so the Town Clerk's office has to first count the number and verify that the signers are registered voters before a determination can be made about the Referendum.

May 18, 2009

Update on Mom and Dad

Hi! It seems I get asked every day how Mom and the Coach are doing. I thought I should take a moment and give everyone an update. They are celebrating some very big milestones this week.

On May 21^st, Mom and Dad will celebrate the 60^th Wedding Anniversary! As you might expect, the Coach came up with a very ingenious way to never forget his anniversary. He got married on his birthday! So on this very same day, Dad turns 88.

Mom and Dad moved out of their home on Nutmeg Lane a few years back. They are now enjoying the easy life in a Condo. You can also reach Dad on email at CoachTetreau@aol.com. We are still trying to get Mom on the computer so if you want to email her, please send it by way of the Coach.

Hope this finds you and your family enjoying this beautiful Spring.

All the best, Mike

Change in Fed Regulations - Use your $8,000 Now!

In keeping up with the latest news, there was been a significant change in one of the Administrations tax credit programs. Yesterday, the Secretary of HUD announced that FHA is going to permit it's lenders to allow home buyers to use the $8,000 tax credit as a down payment when obtaining a government insured mortgage. This is a change in the way that the program had been setup when it arrived as part of the American Recovery and Reinvestment Act of 2009. The law states that qualifying homebuyers may claim up to $8,000 (or $4,000 for married individuals filing separately) on either their 2008 or 2009 tax returns. Before this change, homebuyers would have to wait until they filed their 2008 or 2009 returns to receive the credit. Now, FHA consumers can access the homebuyer tax credit fund when they close on their home loan so that the cash can be used as a down payment.

Stay tuned for more updates coming next week.....