HUD: Tax Credit Can ONLY Be Used On Closing Costs
May 29, 2009
FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.
Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.
Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent down payment.
There remain many sources of assistance for buyers needing help with the 3.5 percent down payment, including many state and local government agencies and nonprofit lenders.
In addition, some state housing finance agencies (Now includes Texas) have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their down payment. These programs are separate from what HUD announced today.
The first-time home buyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
Full details can be found at http://www.hud.gov
Relocation.com Announces Best Cities for a Fresh Start Rankings
May 21, 2009
With the unemployment rate climbing as the national economy sags, more people are searching for communities that offer greater economic opportunity and a better standard of living. To help, Relocation.com, the leading online consumer resource for moving services, has compiled its list of “Best Cities for a Fresh Start.”
Unlike many lists that focus solely on the economy, Relocation.com took a wide-ranging look at factors that would appeal to someone looking for a fresh start: city ‘popularity’ based on consumer requests for moving quotes to move to that city; economic-growth prospects; home affordability; and the strength of a community as reflected by volunteerism rates.
Austin achieved the top spot with its high ranking on each of those criteria. Buoyed by a vibrant tech community and anchored by government institutions such as the University of Texas and the state capitol, Austin ranked in the top 10 for popularity, job growth and its volunteerism rate, and a higher ranking for home affordability.
It was followed by the Dallas/Fort Worth area, an economically diverse region that benefits from Texas’ energy riches – and also by the fact that its housing market didn’t get too inflated during the big run-up in housing prices. In the third spot is Charlotte, N.C., which has a more diverse economy, with strength in finance, and high rankings for popularity and volunteerism.
The top 20 cities:
1. Austin, Texas 10. Las Vegas, Nev. (tie)
2. Dallas-Fort Worth, Texas 10. Seattle, Wash. (tie)
3. Charlotte, N.C. 13. Minneapolis-St. Paul, Minn.(tie)
4. Denver, Colo. 13. Raleigh-Durham, N.C.(tie)
5. Columbus, Ohio (tie) 15. San Antonio, Texas
5. Indianapolis, Ind. (tie) 16. Portland, Ore.
7. Washington, D.C.-Baltimore, Md. 17. Cincinnati, Ohio
8. Atlanta, Ga. 18. Pittsburgh, Pa.
9. Oklahoma City, Okla. 19. Memphis, Tenn.
10. Houston, Texas (tie) 20. Cleveland, Ohio
“Studies have shown that many people don’t like where they live. At the same time, a lot of people are looking for work, whether they’re unemployed now or fearing layoffs. It’s a scary time, but for some it might be a good time to think about starting over. So, we identified some good locations to consider for people looking to start with a clean slate in a new community,” says Sharon Asher, chairman and founder, Relocation.com.
List Criteria
Relocation.com looked at communities with more than 1 million people. Although many midsized cities are flourishing, they tend to be tied to a single industry or a government agency, while larger cities generally have more diverse economic bases. The list was determined by four criteria, each of which was weighted equally.
Popular cities: Relocation.com’s moving request data was used to determine the cities that people want to move to, based on the per-capita number of quotes for moving services requested to particular communities in 2008 and year-to-date 2009.
Although an influx of people can put pressure on local resources, these newcomers also bring new ideas, skills and outlooks that can spark economic development and strengthen communal ties. A ‘churn’ of newcomers is vital for a community.
Economic prospects: Forbes.com’s list of the Best Places for Businesses and Careers was used to determine the cities with the greatest job growth prospects over the next three years. The list was published in March 2009.
Affordable housing: Figures from the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index were used to determine the best housing opportunities. This report looks at more than 200 of the country’s largest metropolitan areas and determines the percentage of homes sold in the latest quarter that were affordable to the median average family in that area – the higher the percentage, the more affordable housing is to the greatest number of people.
High volunteerism rates: The current recession is radically changing the economic and social landscape. With fewer resources at their disposable, many people will depend more on their neighbors for their economic and social livelihoods.
Relocation.com looked at volunteerism rates from the Corporation of National Community and Service, an independent federal agency whose board of directors and CEO are appointed by the president. Communities with high volunteerism rates tend to be stronger with lower crime rates, and greater volunteerism rates can mean less need for government spending on providing those services. It is healthier too: people who volunteer have lower mortality rates and lower rates of depression than the general population, according to the Corporation.
Sitterle Homes Opens For Sales In Salado Canyon At Rogers Ranch
May 19, 2009
Sitterle Homes has opened for sales in Salado Canyon in Rogers Ranch. This gated community gives families easy accessibility to many parts of the city—only minutes away from The Shops at La Cantera, The Rim, the Medical Center, and many places of business. Salado Canyon offers 10 floor plans, ranging from 2,356 to over 4,000 square feet. The plans have a variety of unique spaces, including a hobby center, large master walk-in closets, a sunroom, a game room, library with a separate study, or extra storage in garages or on second floors. Plans with standard three-car garages and up to four and five bedrooms are available. Families also have a wide array of structural options from which to choose, including Entertainer or Gourmet Kitchens and Spa or Luxury Master Baths, among others.
Children who live in this community will go to Northside ISD schools, including Blattman Elementary School, as of this writing. Rogers Ranch residents have access to many wonderful amenities, including a Junior Olympic swimming pool with a swim club, tennis court, playground, community pavilion, miles of walking trails and mini-parks.
“We’re excited to offer another choice for home buyers in beautiful and prestigious Rogers Ranch,” Jeff Buell, Partner, said. “We truly offer something for every lifestyle—families can enjoy beautiful native trees and landscapes in Salado Canyon, while The Gardens On Point Bluff offers hilltop garden home living for empty-nesters and young professionals.”
To visit Salado Canyon in Rogers Ranch, travel west on Loop 1604 from Highway 281 North. Exit Bitters/Rogers Ranch Parkway and make a right on Rogers Ranch. Continue on Rogers Ranch until it turns into Salado Canyon. Turn left on Apache Plume, where the model will be on the left. Homes currently start from the $300’s.
For more information on building with Sitterle Homes in Salado Canyon at Rogers Ranch, register below.
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Forbes Ranks America’s Best Bargain Cities
May 14, 2009
Written by Zack O’Malley Greenburg at Forbes.com
Behind the Numbers
To determine which U.S. cities are the best bargains, Forbes looked at the country’s 50 largest U.S. metropolitan statistical areas and metropolitan divisions–geographic entities defined by the U.S. Office of Management and Budget used by federal agencies in collecting, tabulating and publishing federal statistics.
We assigned points to metro regions across four data sets: Average salary for workers with a bachelor’s degree or higher, from PayScale.com; annual unemployment statistics, from the Bureau of Labor Statistics; cost of living, from Moody’s Economy.com; and the Housing Opportunity Index, from the National Association of Home Builders/Wells Fargo, which measures the amount of homes sold in a given area that would be affordable to a family earning the local median income based on standard mortgage underwriting criteria.
Lone Star Constellation
While the capital of Texas graced the top of our list, the rest of the state’s large cities performed admirably too. All five of Texas’ biggest burgs–Houston, San Antonio, Dallas and Ft. Worth–were among the top 10 best bargains. Not a single city in Texas ended up on our list of most overpriced places.
Part of the reason is that Texas offers some of the best incentives for entrepreneurs looking to start or move a business, according to Eduardo Martinez, a senior economist at Moody’s Economy.com. Like Phoenix, Texan metros “have picked up a lot of California companies that have left because of high operating costs,” he says.
15. Detroit, Mich.
14. Kansas City, Mo.
11. Cambridge, Mass. (tie)
11. Denver, Colo. (tie)
11. Nashville, Tenn. (tie)
10. San Antonio, Texas
9. Houston, Texas
8. Dallas, Texas
7. Columbus, Ohio
5. Indianapolis, Ind. (tie)
5. Cincinnati, Ohio (tie)
4. Fort Worth, Texas
3. Washington, D.C.
2. Phoenix, Ariz.
1. Austin, Texas
New Rule Allows Tax Credit To Be Used for Down Payment
May 13, 2009
Updated: TDHCA Releases Two Downpayment-Assistance Programs
HUD Secretary Shaun Donovan’s decision to allow consumers to use the $8,000 first-time home buyer tax credit to help cover their downpayment and closing costs on FHA-insured mortgages will be a big boost to the housing market, according to the National Association of Home Builders (NAHB).
“The biggest obstacle for first-time buyers is coming up with a downpayment,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “We commend Secretary Donovan for acting decisively to enable buyers to access the tax credit at the time of closing. This will help to stimulate home sales, stabilize housing and get the economy back on track.”
The measures announced by HUD would allow FHA-approved lenders; federal, state and local government agencies; and FHA-approved non-profit organizations to supply home buyers short-term or “bridge loans” up to the amount of the $8,000 first-time home buyer tax credit.
Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.
More information about these programs can be found on the National Council of State Housing Agencies Web site at www.ncsha.org/section.cfm/3/34/2920. Currently the “Texas Department of Housing and Community Affairs (TDHCA) is designing a down-payment assistance program for recipients of the federal homebuyer tax credit.” What is the TDHCA waiting for? We have less than 7 months until Dec. 1, 2009 is here!
Previously, the home buyer would have been unable to access the tax credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS.
Robson and others NAHB leaders discussed this matter and other housing-related issues with Secretary Donovan last week.
“Secretary Donovan shares our view on the need for a housing and economic recovery,” said Robson. “We appreciate his leadership in moving swiftly to help first-time home buyers to access the tax credit up-front at the time of closing. The timing could not have been better as we are in the midst of the crucial spring home buying season.”
The next step is to see how FHA-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions of the loans. NAHB encourages lenders to act promptly to put these provisions into place.
To qualify for the tax credit, first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Buyers can take the credit on their 2008 or 2009 income tax return.
For further information about the tax credit – visit our Frequently Asked Questions About The $8,000 Home Buyer Tax Credit page.
Top 10 Cities For Young College Graduates
May 7, 2009
Thousands of soon-to-be college graduates are planning to relocate this spring. While choosing the best place to settle down can be a daunting decision, the current economic climate has raised the stakes. To provide recent graduates with a reliable resource during a time when they are making “real-world” decisions, Apartments.com, working in conjunction with CBcampus.com -CareerBuilder’s college job search site-has announced today its second annual “Top 10 Best Cities for Recent College Graduates” list.
“Given the current economy, new grads looking to relocate are becoming increasingly concerned with the cost of living as they are faced with more competition for jobs than seen in previous years,” said Tammy Kotula, public relations and promotions manager at Apartments.com. “With these very real concerns weighing on the minds of many, two leading online resources for apartments and jobs have come together to paint a realistic landscape of both the job market and cost of living in the most popular cities for young adults after college.”
The list ranks cities with the highest concentration of adults aged 20 to 24, the inventory of jobs requiring less than one year of experience, and the average cost of rent for a one-bedroom apartment.
Top 10 Best Cities for Recent Average Rent for a One Bedroom
College Graduates Apartment
1. Indianapolis $625
2. Philadelphia $1,034
3. Baltimore $1,130
4. Cincinnati $691
5. Cleveland $686
6. New York $1,548
7. Phoenix $747
8. Denver $877
9. Chicago $1,133
10. San Antonio $696
