Solar Home Financing

First Time Homebuyer Tax Credit

Making Homes Affordable

Don’t Get Kicked Out, Lease From the Federal Government

First Time Home Buyer Tax Credit Extended!!!!

Be Careful of Who Represents You

New Loan -to Value Ceiling

Small Business Assistance

You Know Your Legacy?

To Big To Fail?

First Time Homebuyers Tax Credit

Bringing the Dream of Homeownership Within Reach

Who Qualifies for the Extended Credit?

Which Properties Are Eligible?

How Much Is Available?

How is a Buyer’s Credit Amount Determined?

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Will the Tax Credit Need to Be Repaid?

Terryp — Thu, 03 Dec 2009 17:27:49 +0000

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.
Latest news:
Watch: REALTOR® Party Tax Credit Video Contest Winner (Nov. 12)
Home Buyer Tax Credit Has Added Benefits for Armed Services Members, Others (Nov.11)
Tax Credit Extension a Positive Step Toward Real Estate Recovery (Nov.5)

First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

Each home buyer’s tax credit is determined by tow additional factors:

The price of the home.
The buyer’s income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Terryp — Thu, 19 Nov 2009 18:00:50 +0000

The Obama Administration has introduced a comprehensive Financial Stability Plan to address the key problems at the heart of the current crisis and get our economy back on track. A critical piece of that effort is Making Home Affordable, a plan to stabilize our housing market and help up to 7 to 9 million Americans reduce their monthly mortgage payments to more affordable levels.

The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures.

Our consumer website, www.MakingHomeAffordable.gov, provides homeowners with detailed information about these programs along with self-assessment tools and calculators to empower borrowers with the resources they need to determine whether they might be eligible for a modification or a refinance under the Administration’s program. Through this website, borrowers can also connect with free counseling resources to help with outstanding questions; locate homeowner events in their communities; find a handy checklist of key documents and materials to have ready when making that important call to their servicer as well as FAQs from borrowers in similar circumstances; and much more.

We hope that you will find this website informative and useful as we all work together to solve our nation’s housing crisis and put our country on the path to a lasting economic recovery.

Terryp — Wed, 18 Nov 2009 15:17:09 +0000

Terryp — Mon, 16 Nov 2009 19:14:04 +0000

The Worker, Home-ownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

Terryp — Thu, 12 Nov 2009 14:49:18 +0000

False Representations of FDIC-Owned Real Estate Properties for Sale – November 4, 2009

The Federal Deposit Insurance Corporation (FDIC) is warning the general public and interested investors of false claims from various entities (individuals and companies) claiming to represent the FDIC in the sales of FDIC-owned properties.

These individuals and companies present a common theme. First, they claim to have “inside access” and, secondly, they attempt to charge fees or collect money up front from potential buyers of FDIC Owned Real Estate (ORE) properties with promises of steep discounts off appraised values. Information on ORE assets in the FDIC’s inventory is free to the general public. Any person approached by an individual or business entity with an offer requiring upfront fees and/or the disclosure of personal bank information should exercise extreme caution.

The FDIC has contracted with and authorized a number of asset management companies to market, sell, and maintain FDIC ORE properties. In representing the FDIC, they are not brokers or brokerage services firms. Rather, they are asset managers who contract with licensed real estate brokers and other vendors in the disposition FDIC-owned properties.

FDIC-owned properties currently being marketed for sale are available for FREE public viewing and access on the FDIC Web site at http://www2.fdic.gov/drrore/. The listing for each asset includes the assigned asset management company, local brokers, and contact information.

Terryp — Wed, 11 Nov 2009 16:40:43 +0000

	Fannie Mae Implementing New Loan-to-Value Ceiling for Home Affordable Refinance Program; Loans Eligible for Delivery September 1 WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today that the company is providing information to servicers regarding changes to the Home Affordable Refinance Program (HARP) that permits refinancing of existing Fannie Mae loans with loan-to-value (LTV) ratios up to 125 percent. The loans will be eligible for delivery on or after September 1, 2009. “This step aims to reach even more borrowers who would benefit from a lower payment,” said Michael J. Williams, President and Chief Executive Officer. “Many borrowers in good standing have been shut out from the benefits of refinancing due to significant declines in property values across the country. By broadening the scope of the initiative, more borrowers will experience savings on their monthly mortgage payments and have a better chance of sustaining homeownership over the long term.” Previously, HARP allowed for refinancing of Fannie Mae loans with LTVs up to 105 percent. With the expansion, loans with LTVs above 105 percent and up to 125 percent will be eligible for refinancing through the company’s Refi Plus™ manual underwriting option. For loans with LTVs above 105 percent, borrowers must refinance through their existing servicer and the new loans must be fully amortizing fixed-rate mortgages with terms greater than 15 years up to 30 years. In conjunction with the LTV eligibility expansion, Fannie Mae will offer a special .50 percent reduction in the loan-level price adjustment charged for loans with LTVs above 105 percent and loan terms of 20 and 25 years. The reduction is intended to incent borrowers to select shorter terms and build positive equity in their homes sooner than with a typical 30-year mortgage. HARP is part of the Administration’s Making Home Affordable plan aimed at stabilizing the housing market, helping Americans reduce their mortgage payments to more affordable levels, and preventing avoidable foreclosures. For more information, visit www.makinghomeaffordable.gov.

Terryp — Mon, 09 Nov 2009 18:46:16 +0000

Lenders Can Help America’s Small Businesses Recover
with SBA’s ARC Loans
Lenders play a critical role in the health of the American economy, and are especially vital to small businesses. The U.S. Small Business Administration is implementing a special, temporary loan program you can use to help struggling American small businesses while reducing your risk during these tough economic conditions.
Under authority provided in the American Recovery and Reinvestment Act (signed Feb. 17, 2009), SBA has
designed a deferred-payment loan program to help small businesses make payments on existing debt.
Sectin 506 of the Recovery Act authorized SBA to help viable small businesses make payments on existing
small business debt. The America’s Recovery Capital, or ARC Loan Program, is designed to give viable small businesses facing immediate financial hardship some temporary financial relief so they can keep their doors open, refocus and get their cash flow back on track. ARC loans are available through SBA-approved small
business lenders and have been authorized through Sept. 30, 2010, or until the appropriated funds run out, whichever comes first.
Non-SBA lenders can become ARC lenders. Contact your local SBA district office for information and training. You can find the nearest SBA district office at www.sba.gov/localresources/index.html.
Loan structure
• An ARC loan is a deferred-payment loan of up to $35,000.
• ARC loans will be used to make up to six months of principal and interest payments on qualifying loans
for existing viable for-profit small businesses in the United States.
• Disbursement period (up to six months) is followed by 12 months with no repayment of the ARC loan
principal, followed by a repayment period of five years. SBA pays monthly interest to the bank.
How lenders benefit
• Reduced Risk: 100 percent guaranty provides greater security and confidence to lend.
• Guaranteed Interest: SBA will pay monthly interest to the lender at reasonable rates throughout the term
of the loan.
• Conventional, commercial business loans (and SBA-guaranteed loans made on or after Feb. 17, 2009) are
an eligible use for ARC loan proceeds.
• Proceeds may be used to pay on mortgages, secured and unsecured loans, lines of credit and credit cards
if the debt was used for eligible business purposes under the program.
• SBA turnaround on non-delegated loan applications – expected within five to ten business days.
• Access to E-Tran, SBA’s electronic application process available to SBA delegated lenders.
• Existing SBA lenders are eligible to make ARC loans and delegated lenders may make ARC loans on a
delegated basis.
How the community benefits
• SBA loans help build and retain community businesses, create jobs and stimulate economic activity.
How small business owners benefit
• ARC loans are interest-free to the borrower, have deferred payments for 12 months, and have no SBA
fees associated with them.
• ARC loans will allow borrowers to redirect cash flow from making loan payments to investing in their
businesses.
• Banks will begin investing in small businesses again, making credit more readily available for those
businesses that need it.
• Streamlined applications by SBA.
SBA loan programs now provide greater incentives to you the lender, are more affordable for small business owners, and help to drive economic recovery in your community.

Terryp — Mon, 02 Nov 2009 15:07:36 +0000

Public-Private Investment Program for Legacy Loans
Frequently Asked Questions
What is the Legacy Loans Program?
In order to cleanse bank balance sheets of distressed loans and other assets and reduce the
associated market overhang, the FDIC and Treasury are launching the Legacy Loans Program. The
FDIC will provide oversight for the formation, funding, and operation of new public-private
investment funds (“PPIFs”) that will purchase loans and other assets from depository institutions.
The Legacy Loans Program will attract private capital through an FDIC debt guarantee and
Treasury equity co-investment. Private market equity investors (“Private Investors’) are expected to
include but are not limited to financial institutions, individuals, insurance companies, mutual funds,
publicly managed investment funds, pension funds, foreign investors with a headquarters in the
United States, private equity funds, and hedge funds. The participation of mutual funds, pension
plans, insurance companies, and other long term investors is particularly encouraged. The FDIC
will staff operations relating to the formation, funding, and operation of PPIFs and will work with
participant banks, the Treasury, Private Investors and contractors to administer the asset pool
auctions. The Treasury will be responsible for overseeing and managing its equity contribution in
the PPIFs, while the FDIC will be responsible for overseeing and managing its debt guarantees to
the PPIFs.
What is the structure of the Legacy Loans Program?
Individual PPIFs will be established to own and manage each pool of assets that is sold from
participating banks. With predetermined asset pools, the FDIC will conduct asset portfolio auctions
with private bidder participants to determine the most attractive bid and ultimate purchase price.
An independent valuation firm will provide valuation advice to inform the Legacy Loans Program
in its bidder selection. Through the Legacy Loans Program, the FDIC will provide a debt guarantee
to the PPIF, and the Treasury will provide co-investment equity to the PPIF alongside private
market investor equity. For each asset pool transaction, the Legacy Loans Program will determine
appropriate leverage levels and equity funding based on the unique asset pool profile. Treasury will
consider alternatives for its capital contribution that do not diminish the pari passu sharing of profits
and losses, the collateral protection securing the FDIC guarantee, and capital neutrality compared
with the currently contemplated investment. Consistent with EESA requirements, the Treasury will
have warrants in the PPIFs.
The exact requirements and structure of the Legacy Loans Program will be subject to notice and
comment rulemaking
What are the primary benefits of the Legacy Loans Program?
These programs are designed to provide taxpayers with benefits associated with the public-private
partnerships. By applying market-based pricing to the asset purchases, the PPIFs will ensure that
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purchases are at prices that give taxpayers and private investors substantial opportunities to benefit.
In addition, by offering a structure that allows banks to clear these assets off their books, the PPIFs
will complement other government programs designed to enable greater lending and restore
economic growth. These programs will help open lending channels by facilitating a market for the
distressed assets currently clogging the system. The equity contribution from Treasury provides the
foundation for this program and the benefits to taxpayers. The financing support provided by the
FDIC, under the Legacy Loans Program, and the Federal Reserve, under the Term Asset-Backed
Securities Loan Facility (TALF), will provide the liquidity that has been missing from the market so
far to achieve these purchases for the public
What is the FDIC’s role in the Legacy Loans Program?
The FDIC will provide oversight for the formation, funding, and operation of new PPIFs that will
purchase loan and other asset pools from participating banks. Such functions include approving the
asset pools from the participating banks, determining asset pool leverage levels, and conducting the
auctions. In addition, the FDIC will provide credit support for PPIF debt financing through a debt
guarantee issued by the PPIF. The FDIC will be responsible for managing such PPIF debt
guarantees. In its broad oversight function, the FDIC will ensure that both the FDIC and the
Treasury are provided with sufficient asset pool data to effectively oversee the investment pools.
What is Treasury’s role in the Legacy Loans Program?
The Treasury will invest alongside the private sector initially targeting 50 percent of the equity
position in each PPIF in a non-controlling position. In addition, the Treasury will be responsible for
overseeing and managing its equity position in PPIFs.
What is the private investor’s role in the Legacy Loans Program?
The private investor will provide 50 percent or more of the PPIF equity capital (subject to a
minimum government subscription right to be determined).
What assets are eligible for the Legacy Loans Program?
Loans and other assets from depository institutions under criteria established by the FDIC are
eligible. Participant banks must demonstrate to the satisfaction of the Treasury and the FDIC that
the contemplated asset pools qualify based upon Treasury and FDIC agreed upon minimum
requirements.
How will Treasury’s equity investment be counted against the limit on Treasury’s purchases
of troubled assets in the Emergency Economic Stabilization Act?
The purchase price of the Treasury equity investment in the PPIFs will count against the $700
billion cap.
Will warrants be issued as part of the structure?
As required by the EESA, the Treasury will be receiving warrants in the transaction.
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How will the PPIFs’ debt be structured?
The PPIF will issue debt that is guaranteed by the FDIC. This debt will initially be placed at the
participant bank. The participant banks will be able to resell this debt into the market if they
choose. PPIF leverage will not exceed a 6 to 1 debt to equity ratio and will vary from pool to pool
based upon analyses performed by the FDIC with input from a Third Party Valuation Firm. The
FDIC will provide a debt guarantee collateralized by PPIF assets and charge a debt guarantee fee, a
portion of which will be allocated to the Deposit Insurance Fund.
Where does the Legacy Loans Program obtain operational funds?
The FDIC and the Treasury will be governed by a cost sharing arrangement. The FDIC will be
reimbursed for its expenses incurred in the FDIC’s program oversight function. Ongoing
administration fees will be paid to the FDIC by PPIFs. In exchange for a debt guarantee, the FDIC
will charge the PPIFs a debt guarantee fee, a portion of which will be allocated to the Deposit
Insurance Fund.
When will a Legacy Loans PPIF close its first loan or asset pool purchase?
The FDIC will be seeking public comment and communicating with stakeholders expeditiously.
The FDIC will launch the Legacy Loans Program as quickly as possible.
What type of financial institution is eligible to participate?
Banks of all sizes will be eligible to participate in the Legacy Loans Program. Participant banks
must demonstrate to the satisfaction of the FDIC that the contemplated asset pools qualify based
upon the FDIC’s minimum requirements.
How will banks decide which assets to sell?
Identification of individual asset pools will be an iterative process, involving input from
participating banks, as well as primary federal banking regulators. In addition, banks will approach
the FDIC with potential asset pools.
Who will bid for the assets?
Potential Private Investors will be pre-qualified by the FDIC to participate in an eligible asset pool
auction. Joint bids from pre-qualified investor groups are acceptable, but group/investors will be
prohibited once the auction process begins to maintain fairness.
Will the Legacy Loans Program be subject to executive compensation restrictions?
The executive compensation restrictions will not apply to passive Private Investors.

Terryp — Fri, 30 Oct 2009 16:06:48 +0000

To Big To Fail

Fannie Mae Announces Deed for Lease™ Program

WASHINGTON, DC — Fannie Mae (FNM/NYSE) is implementing the Deed for Lease™ Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.

“The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications,” said Jay Ryan, Vice President of Fannie Mae. “This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.”

The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.

For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement on www.efanniemae.com.

Terryp — Wed, 28 Oct 2009 17:12:19 +0000

As I mentioned in an earlier post the Tax credit may soon come to an end. I have contacted my Representative Congressman Mike Thompson and I would like to share the response he sent to me.

October 27, 2009

Mr. Terry Phenicie

Dear Mr. Phenicie:

Thank you for contacting me regarding the first-time homebuyer tax credit. I appreciate you taking the time to share your concerns with me.

In February of 2009, the American Recovery and Reinvestment Act (H.R. 1) became law. This legislation included a provision to provide certain first-time homebuyers with a refundable tax credit of up to $8,000 for 2009. Under current law, individuals who purchase a home between January 1, 2009 and December 1, 2009 are eligible for this credit.

I have heard reports from our district that delays in the sales process are raising concerns that many home purchases will not be completed before the December 1 deadline. In order to remedy this situation, the Committee on Ways and Means, of which I am a member, is exploring ways to ensure that individuals in these circumstances will still be able to receive the credit. One proposal, which I support, is to allow any individual that has a binding agreement to purchase a home by November 30, whether the purchase has occurred or not, to be eligible for the full tax credit.

The Committee is expected to take up a package of major tax provisions by the end of this year, and I will certainly keep your thoughts in mind as I work with my colleagues on the Committee to include an extension of the homebuyer tax credit in this legislation.

Again, thank you for sharing your concerns with me. Please continue to contact me on all issues of importance to you and to our district.
Sincerely,

MIKE THOMPSON
Member of Congress
http://www.mikethompson.house.gov