Many people have questions about how the federal housing tax credit for first time homebuyers works.  Here is an answer from http://www.federalhousingtaxcredit.com/2009/faq.php#2 to a popluar question:

Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.

Finally, HUD's publication of Mortgagee Letter 2009-15 allows FHA-approved lenders to issue short-term loans to advance the credit amount for use in purchasing the home.

 For more answers to your questions concerning the federal housing tax credit check back later this week as I will post more or visit http://www.federalhousingtaxcredit.com/2009/faq.php#2 for a full list of questions and answers.

Ryan Vaught's Listings:

		000 GRUBBS RD, Oroville, CA	$2,275,000.00
		Lots and Land	194.02 Acres
		Small acreage residential homesite development land located in Oroville. This parcel has 194 acres of rolling residential acreage currently zoned low density residential with ... More information on 000 grubbs rd

		2050 4TH STREET, Thermalito, CA	$695,000.00
		Commercial Built in 1989	1.39 Acres  6100 Sq. Ft.
		Quality bank owned commercial property with a great location. Parcel is 1.39 acres. Potential uses of property include boat, RV or auto dealership, mechanic shop, tire shop an... More information on 2050 4th street

		408 PASEO COMPANEROS, Chico, CA	$399,000.00
		Residential 3 Bedroom 2 Bath Built in 1978	0.7 Acres  1806 Sq. Ft.
		Beautifully Remodeled 3 bedroom 2 bath home on close to an acre in town! Spacious kitchen with granite countertops, stainless steel appliances, eating bar and adjacent built i... More information on 408 paseo companeros

		5 KEYSTONE COURT, Chico, CA	$374,000.00
		Residential 4 Bedroom 3 Bath Built in 2006	0.15 Acres  2139 Sq. Ft.
		Clean. Bright. Fresh. It Shows like brand new! Home has great floor plan, stainless steel appliances, large nook, plantation shutters, double-sided fireplace and so much more.... More information on 5 keystone court

		1869 ROSE RIVER AVE, Chico, CA	$315,000.00
		Residential 3 Bedroom 2.5 Bath Built in 2002	1994 Sq. Ft.
		One of the best lots in heritage oaks! This home is facing beautiful natural landscape making it feel very private. A great location with easy access to trails leading to Bidw... More information on 1869 rose river ave

		4795 ZINFANDEL DR, Chico, CA	$225,000.00
		Residential 4 Bedroom 2 Bath Built in 2001	3.29 Acres  1650 Sq. Ft.
		View chico from a mountain top. Stunning views await you at this remodeled retreat on 3 acres! This gated home is only 5 minutes from Chico and has stunning views. Features in... More information on 4795 zinfandel dr

		1210 N CEDAR ST, Chico, CA	$215,000.00
		Residential 2 Bedroom 1 Bath Built in 1913	0.11 Acres  800 Sq. Ft.
		Best CSUC investment property on the market. Market rent is $1100. Walk to campus from this very cute home. Home has been recently remodeled, has new counter tops, appliances,... More information on 1210 N Cedar St

		30 VAQUERO DR, Oroville, CA	$35,000.00
		Lots and Land	0.17 Acres
		Hard to find turn-key lots. This is one of 44 in a nicely designed Thermalito/Oroville subdivision. Build your own house, priced well and ready for your home. Curbs, gutter, s... More information on 30 vaquero dr

		58 GOLDEN HILLS DRIVE, Oroville, CA	$35,000.00
		Lots and Land	0.16 Acres
		Hard to find turn-key lots. This is one of 44 in a nicely designed Thermalito/Oroville subdivision. Build your own house, priced well and ready for your home. Curbs, gutter, s... More information on 58 golden hills drive

		135 CALLE VISTA DRIVE, Oroville, CA	$35,000.00
		Lots and Land	0.14 Acres
		Hard to find turn-key lots. This is one of 44 in a nicely designed Thermalito/Oroville subdivision. Build your own house, priced well and ready for your home. Curbs, gutter, s... More information on 135 calle vista drive

Take a look at my market report for today!
http://www.ryanvaught.com/chicomarketreport

Currently Ryan has about 30+ listings in inventory, and has already sold 14 homes in 2009. Please don't hesitate to contact me with any questions about Chico area real estate.

Interested in learning more about the Chico area or Ryan?
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Keller Williams Chico CA
Office Phone: (530) 343-2959

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