January 4th, 2010
by Reva Published in FHA, News, Reverse Mortgage
When the new homebuyer's tax credit was extended last month,
the HECM for Purchase Program benefited too. HUD confirmed via
an email to RMD that as long as the senior borrower qualifies
for both programs, the new homebuyer's tax credit will still
apply to a HECM for Purchase.
Last month, Congress extended the new homebuyer's tax credit
through April 2010. At the same time, the eligibility
requirements to receive the $8,000 tax credit were reduced.
While the previous tax credit only applied to first-time
homebuyers with salaries of up to $75,000/year for individuals
and $150,000/year for couples, the extension raises that
requirement. The tax credit will now apply to first-time
homebuyers with salaries of up to $125,000/year for individuals
and $225,000/year for couples. These changes make the vast
majority of the US population eligible for the tax credit.
In addition, a new $6,500 tax credit has been added for those
wishing to move out of their current homes into more expensive
ones. This tax credit can also be used in conjunction with the
HECM for Purchase Program.
The application of the tax credit should be a tool reverse
mortgage lenders can use to promote the HECM for Purchase
program and help seniors seeking to buy a new home or upgrade to
a nicer home.
For more information on the Move-Up/Repeat Home Buyer Tax
Credit, prospective borrowers can look at the National
Association of Home Builder's FAQs: For more information on the
New Home Buyer's Tax Credit, visit here.
About the ICFE:
The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation). The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely.
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.
The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org). CASDRAP disbanded in 2010, shortly after the web site project was completed. In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.
The ICFE is also an on-line help for consumers who spend too much. ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.
Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org. Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G, a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.