Charlie Musarra/ Kathy Renken

The National Association of Home Builder's is stating that the banking industry is making it extremely difficult for builders of single-family homes to obtain credit for their financing needs. Lack of funding will continue put a damper on new home sales recovery.

Lenders are cutting off loans for viable new housing projects and producing unnecessary foreclosures and losses to builders of single-family homes.

Even with the extension of the $8,000 first-time home buyer tax credit, the banking industry credit crunch threaten to halt any positive developments that the housing market in coming months. Single-family home builders who build several homes a year are finding that it is impossible to obtain loans, even thou they have been in good standing prior to this newly created credit crunch. In effect, putting these home builders out of business.

A majority of home builders have stated that the availability of credit for single-family construction loans worsened in the second quarter of 2009 and looks as if it will continue on the downward spiral for the upcoming months.

A majority of new home builders stated that construction of single-family project are being put on hold until such time as the banking industry changes the deteriorating credit conditions being imposed by the banks.

There seems to be a conflict of who is responsible for the tightening of credit to home builders. The federal banking regulators state that they haven't instructed banks to stop making loans or to tighten the requirements. The banks state that they are following the guideline set by the federal banking regulators. A catch 22 situation.

The National Association of Home Buildersrs believe that regulators and lenders should provide more meaningful rules and processes which would provide residential construction borrowers who have loans in good standing by providing flexibility on re-appraisals, loan modifications and perhaps more leewayon loans to give builders time to complete and sell their inventory.

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CNN said that the House of Representatives passed legislation today to extend and expand the current first-time homebuyer tax credit. The House action follows the Senate's approval on Wednesday and we anticipate President Obama will sign the bill in very short order.

The bill extends the current $8,000 first time homebuyer tax credit (which was due to expire at the end of November) through April, 2010. It also includes a tax credit of up to $6,500 for qualified move up buyers and increases the borrower income limits for both credits to $125,000 for individuals and $225,000 for couples.

Homebuyers will qualify for the full credit as long as they have entered a binding contract by April 30, 2010 and they close the transaction by June 30, 2009. The tax credit is limited to homes with a purchase price of $800,000 and below.. The bill also includes anti-fraud language that gives the IRS the authority to do greater oversight during the processing of the return.

In addition, the legislation waives the recapture provision for members of the armed forces who are called on extended duty. These members of our military and uniformed services, who are out of the country for at least 90 days, will also be eligible to use the tax credit upon their return through April 30, 2011.

The extension and expansion of this tax credit is a major legislative victory for MBA and its single family members, and culminates months of MBA advocacy activity (along with some allied trade associations) working to educate policymakers on the critical role the credit has played in stabilizing the housing and mortgage markets

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This 3 BR, 2 Ba, 1864 square foot home has been reduced to $298,900. Fabulous curb appeal with steps up to front entry. Rear entry garage. Unobstructed views from the front porch of the mountains and golf course. Uupgrades include stacked cabinets, under counter lighting, Jenn-Aire appliances, executive height vanities, cabinets/sink in laundry room, pocket doors, plantation shutters, vinyl windows, granite counters, tiled and screened back porch, custom master closet, fountain in the back yard. Quality throughout. You will love it!

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