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Homebuyer Tax Credit – Why is it Extended?

As part of the recently signed American Recovery and Reinvestment Act of 2009, an extra $8,000 in tax credits are available to qualifying purchasers (as long as they have been in their home 5 years) who purchase a home between April 9, 2008 and September 30, 2009.

There are several reasons for extending this credit beyond the originally planned end date of November 1st, however, the most important factor is the negative impact on the American economy of the…now expired…new tax incentives. Therefore, additional spending is the obvious outcome and thus the Federal Government is going to do all in its power to reinvest this money back into American business and industry. A new factory or new policies,papers withdrawing from China, gold-leaning currency in Europe…this really does mean liquidity and that means consumer spending.

The housing credit, previously set at $7,500 will now be extended to include the purchase of any home purchased for $800,000 or greater in value, provided a first-time homebuyer were involved in this transaction, and that the home is a primary dwelling. Other features of this include purchasers making for 3 consecutive 5-year periods, investors purchasing up to $1 million of income producing properties and all homebuyers purchasing a minimum of $80,000 mortgage debt as a minimum for this credit. A vast array of properties qualify and here is a brief overview of how this works:

*Tax credit is equal to 15-25% of the purchase price that varies based on property location and sales price.

*Pro funds run on a 10-year Goose Creek operating system withEmerald Financial as the Operating Trustee, yield allocated to investors is based on a benchmark that is the average of an index per calendar year plus 1.5%.

*Tax credit is reduced immediately the property composite value in the first 4 years of ownership increases by no more than $10,000.

6)FHA, VA and Conventional LoansNow all investors and home buyers have a much more direct and honest option to obtaining financing through pool or credit investing. FHA, VA or Conventional Loans where a borrower qualifies like always before will get some sort of rate reduction and possibly a waiver of required mortgage insurance. As most of the new financing is bank qualification, investors perhaps need to have a relationship with a valued lender to take advantage of these fantastic rates.

7)Professional Mortgage and Financial Counseling towering over Fannie Mae, Freddie Mac and other GSEs means access to incredible early beachhead pricing and better long-term security. These market leading firms provide a level of security for investors both immediate and in the future.

8)Equity Management OpportunityThe potential for Unequivocating equity value is staggering. With knowledge from leading research companies and conferences, large funds and strategic asset investors now have unparalleled access to live and online research data, leading research and data analysis, as well as live case studies of previously unknown or otherwise little known strategies. Equity Management positions are now generally backed by state and local government or providers of regulated, professional and ethical investment vehicles.

With information and analysis, direct and timely delivery, and previously disregarded investment opportunities now within reach of the average homebuyer, its time to see tremendous gains from your hard-earned money.