$8K tax credit and City Closing Cost Help

Carefully floating today.... Bonds ticketed down the last few days so slight increase in rates but we are seeing them ticket slightly up so far today.

Few updates today!

•1) IRS released on March 18^th that First Time Home Buyers that want to take advantage of the $8K tax credit for purchases in 2009 but have already filed or will not close before the April 15^th tax deadline have options:

•a. File amended 2008 tax return if already filed

•b. Get an extension which is good for 6mns than file

•c. File now amend later

•d. Claim the tax in 2009

Here is the IRS release http://www.irs.gov/newsroom/article/0,,id=205416,00.html I have a full flyer on this credit so contact me if interested.

•2) We are all aware of the State Budget and how it is affecting our local schools. Many of you go to the various marketing meetings where you have heard the School Superintendents talk about the budgets cuts they will have to make and the probability of a parcel tax to be instituted.

We have stepped up to help! Cherry Creek Mortgage 2009 School Support Program. For every loan Cherry Creek closes in 2009 we will donate $200 in the name of the borrower to the school, either public or private, of the borrower's choice. The money can be designated to go to a specific class, sport, or other activity or just to the school as a whole. We are very excited about this because Cherry Creek knows how important our schools are.

•3) City closing cost assistance programs. There are a lot of City/County assistances out there for buyers to help pay for closing costs. Here is just one.

City of Dublin made a presentation yesterday at the Housing Opportunities Counsel Meeting yesterday at Bay East. Here are just some highlights of the program:

•1) First Time Home Buyers for a primary residence

•2) Income limits are set at 120% of the Area Median Income

•3) Eligible for up to 10% of the sales price

•4) Funds can only be used for closing cost but can be used to buy down the rate

•5) Buyer must have 3% of their own funds going into the down payment

•6) Max sales price is $632,500

•7) Must be a home in Dublin

The terms are a 30 year fixed deferred loan payable upon sale of the property or possibly due at a refinance (case by case).

Current interest rate is 3.5% which accrues over the life of the loan.

At time of sale Dublin will either get the amount given plus the accrued interest or 10% of any appreciation whichever is great.

Now I know the Equity Sharing is a bit of a stickler and is being re-visited by Dublin. However the program is still very viable in that they can get up to 10% of the purchase price to help them buy a home.

Equity will be slow growing for awhile.

Dublin has $300K available right now to this program.

If they don't use it by June of this year they lose it. $500K was allocated to the program for this year I think we would all like to see programs like this stay around so keep it in mind.