Home Buyer Tax Credit

Home buyer tax credit can be applied to purchase costs U.S. Dept. of Housing and Urban Development (HUD) Secretary Shaun Donovan recently announced that the Federal Housing Administration (FHA) will allow home buyers to apply the administration's new $8,000 first-time home buyer tax credit toward the purchase costs of a FHA-insured home. The American Recovery and Reinvestment Act of 2009 offers home buyers a tax credit of up to $8,000 for purchasing their first home.

Families can only access this credit after filing their tax returns with the IRS. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent down payment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of the announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate.

Source: California Association of Realtors

Will You Be Considering Senior Housing Options?

While many of us would prefer to remain in our homes, for others the wide variety of Senior Housing alternatives seems like the wisest and most prudent thing to consider as they look towards growing older…

Just a few of the many alternatives available to us are Independent Living Facilities, Assisted Living Facilities, Skilled Nursing Facilities and Continuing Care Retirement Communities (CCRC).

Simply put, the Independent Living Facilities are designed for healthy seniors to enjoy a lifestyle filled with recreational, social and educational activities amongst other Seniors.

Assisted Living provides a combination of residential housing and personalized support services and care.

Skilled Nursing Facilities are designed for Seniors in need of 24 Hour Nursing Care.

Continuing Care Retirement Communities are residential campuses that provide the entire continuum of care – Independent Living, Assisted Living, and Skilled Nursing Care all in one location.

While there are many factors to consider when evaluating these alternatives, some of the most important are cost to the resident, appeal of the physical environment, proximity to one’s loved ones, and excellence of care. Secondary considerations might include activities offered, social and educational opportunities and amenities provided.