HUD allows $8,000 tax credit to be used for downpayment

One of the biggest hurdles for many first time buyers is coming up with a downpayment. With housing prices so low, renters could easily find themselves making mortgage payments as low as what they currently pay for rent. If only they could come up with a downpayment.

Now they can.

New measures announced by HUD would allow FHA-approved lenders; federal, state and local government agencies; and FHA-approved non-profit organizations to supply home buyers short-term or "bridge loans" up to the amount of the $8,000 first-time home buyer tax credit.

Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.

For more information, please visit the National Council of State Housing Agencies web site.

Previously, the home buyer would have been unable to access the tax credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS.

Governor Gibbons signs tentative map extension into law

Good news for the building community! Tentative maps will now have a 4-year lifespan and final maps will be good for 2 years, with an additional 2-year extension allowed. We witnessed the Governor sign this bill into law today and it is effectively immediately.

Greg Peek, of ERGS Inc. and BANN past president, said this is a major accomplishment for builders and developers. ERGS has development project in Lyon County that had maps about to expire. The re-submitting process could have easily cost the developer hundreds of thousands of dollars.

If you have maps that re about to expire, please contact the planning department to make sure they are following the new timelines.