Homebuyer

Home Buyer Programs in the City of Bloomington

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

http://www.ci.bloomington.mn.us/cityhall/commiss/hra/fhip/fhip.htm

Foreclosed Home Improvement Program (FHIP)
Funds available for improvements to foreclosed homes

Up to $20,000 is available for Bloomington residents purchasing and improving foreclosed homes.
If you are purchasing or have purchased a foreclosed home within the last 12 months, you may be eligible for up to $20,000 in loan funds to make improvements.

One half of the amount borrowed will not have to be repaid if the owner lives in the home for 5 years. The remaining half will consist of a 5% deferred loan that does not have to be repaid until the owner sells, transfers title or no longer lives in the home.

To be eligible for FHIP funds, properties must be located within the designated area of Bloomington, see map below. The area is bordered by American Boulevard on the north, E. Old Shakopee Road on the south, Old Cedar Avenue on the east and I-35W on the west.

All FHIP applicants must be purchasing or have purchased a foreclosed home within the designated area within the last 12 months.

Click on the links below to view the brochure and download an application.

• FHIP brochure (289KB, 2-page PDF)
• FHIP application (80KB, 2-page PDF)

For more information, contact:
Brian Duerwachter
Bloomington Housing and Redevelopment Authority
1800 West Old Shakopee Road
Bloomington, MN 55431-3027
PH: 952-563-8939 TTY: 952-563-8740
E-mail: bduerwachter@ci.bloomington.mn.us

Homebuyer financing

What type of loan is ideal for you? There are many options out there.

• For a quick overview, provided by the Mortgage Bankers Association, go to www.homeloanlearningcenter.com/MortgageBasics/MortgageTypes.htm
• VA loan eligibility – loans for those who have served in the Military. For answers to frequently asked questions, go to homeloans.va.gov/faqelig.htm

First-time home buyer programs

You can own a home! The Minnesota Mortgage Program (MMP) is a First Time Homebuyer loan program that helps low to moderate income Minnesotans buy a home. The affordable, low, fixed interest rates are available to eligible homebuyers statewide. Find out today how you can be on the road to successful homeownership with the Minnesota Mortgage Program.

• To read more on what the Minnesota Housing Finance Agency has to offer, go to www.mnhousing.gov/consumers/home-buyers/loans/index.aspx

What about assistance for down payment and closing costs? The Minnesota Housing Finance Agency provides the opportunity for eligible homebuyers who qualify for a Minnesota Housing loan to receive an interest-free, deferred loan to help with downpayment and closing costs through the Homeownership Assistance Fund (HAF) and the HOME Homeowner Entry Loan Program (HOME HELP).

• HOME HELP Frequently Asked Questions (FAQs)
• For more information, go to www.mnhousing.gov/consumers/home-buyers/loans/MHFA_003407.aspx

Powered By WP Footer

Homebuyer

New Homebuyer Tax Credit

Back in 2008, there was a $7500 tax credit that was enacted by Congress and it was to be a great incentive for those buying homes for the very first time. It was to help out the over supply of homes out there that are for sale. For the year of 2009, there have been some changes made to this tax credit. Wondering how the new Homebuyer Tax Credit actually works? Here’s a look at the changes that have been made, who will be eligible, and a lot more important information that you need.

How this Has Changed for 2009

Wondering how everything has changed for the year of 2009 when it comes to the Homebuyer Tax Credit? Well, while the credit used to be $7500, it has now been increased by Congress to $8000. For those that purchase in 2009, there is no repayment feature on this credit, like there was back in 2008. Homes that are purchased for more than $80,000 will get then entire $8000 tax credit. Those that are lower than that will get 10% of the cost of the home. So, someone purchasing a home for $70,000 would get a tax credit of $7000. The purchase must be between January 1, 2009 and must occur before December 1st of 2009.

The People Eligible for the Credit

Many people are wondering who is going to be eligible for this new Homebuyer Tax Credit. Well, only people who are purchasing a home for the very first time are going to be eligible. People qualify as a first time home buyer if they have not owned a home for the past three years. Of course the purchase of the home has to fall in the time frame as well, in order to get this credit.

How it All Works

So, how does this tax credit work? Well, the tax credit reduces the amount of income taxes that are paid. When you fill out your income tax return, you claim these credits on there. You figure out your income items, and then your exemptions, then you figure out the amount of your total tax. Once you figure this out, then the tax credits are going to be applied to what you owe. If you owe $10,000 to the government in taxes and you have the tax credit of $8000, then you’ll only end up owing the government $2000.

A Refundable Credit

There are times when you can get a refundable credit as well. This occurs if you are able to get this tax credit for your home, but you owe less than the $8000 on your taxes. In this case you can actually get money back in a refund from the government. If you only owe $3000 to the government and you have the tax credit of $8000, then you’ll end up getting a refund check from the government for $5000.

Income Restrictions

You will find that the new Homebuyer Tax Credit does come with some income restrictions that you need to know about. The restrictions are based on the amount of money that is claimed and the filing status on the income tax returns. Those who are single can only have an income of $75,000. However, married couples who are filing jointly can have up to $150,000 to quality for this tax credit.

Determination of Income

So, how is the income determined to figure out if you meet the restrictions or not? Usually this is figured out just like the Adjusted Gross Income on the 1040 tax return. This can include salaries, interest, pension, rental income, and many other things. It is this Adjusted Gross Income that you’ll want to look out to make sure that you meet the income restrictions on the tax credit.

The Principal Residence

The tax credit is only available for those who are purchasing a principal residence. So, what exactly is a principal residence? Basically this is the home where a person ends up spending 50% or more of their time. It also may be called housing that is “owner occupied” as well. This includes condos, single family housing that is detached, townhouses, and co-ops. In some cases manufactured homes and even a few houseboats may quality under this definition as well.

Financing Restrictions

For the most part you’ll find that various types of financing are going to be acceptable when you are trying to claim this credit. There were some restrictions in 2008, but the one that was applicable then was removed in Congress. So, you don’t have to worry about financing restrictions keeping you from being able to claim this tax credit.

Do These Credits Have to Be Repaid?

While last year the tax credit eventually had to be repaid, in 2009 there is no repayment on the tax credits that are being given. This is excellent for new homeowners, since they won’t have to worry about paying back the government in the future.

How to Get the Credit

So, how do you get the new Homeowner Tax Credit? Well, there is nothing really special you need to do. Simply claim this on your 1040 tax return this year. The credit will be on a 5405 form that you will attach and you can easily get this form at the IRS website so that you can make the claim and get that tax credit.

Powered By WP Footer