NYC Bank of America 1st Home Buyer Grant?

[anu31402]

One of my clients came calling today that a Real Estate Agent he is using to search for his First Home had advised him B of A is giving a $8,000 grant towards closing costs if he gets his mortgage from them(B of A).

I told him its Obama's credit for 1st Home buyers BUT he said this one is different. Please, anyone heard of this. Client is in NYC.


Any contributions appreciated.

Kay EA

[BHoffman]

Hello Kay - research indicates that your client may be confused. There is nothing online that leads me to believe B of A has any special program for first time homebuyers.

Generally, when a client announces some wonderful new thing I act interested and ask them for details.

[equinecpa]

Some banks are lending against the grant so buyers can have the money at closing -is this perhaps the case here?

[anu31402]

I think the RE agent is just trying to get my client's business. Thanks all.

Kay EA

[Black Bart]

Re: extra $8K?

One of my clients came calling today that a Real Estate Agent he is using to search for his First Home had advised him B of A is giving a $8,000 grant towards closing costs if he gets his mortgage from them(B of A).

I told him its Obama's credit for 1st Home buyers BUT he said this one is different. Please, anyone heard of this. Client is in NYC.


Any contributions appreciated.

Kay EA

I never heard of it either and looked around the Net a bit (I assume you already have) and nothing pops up. While it's possible BOA is matching IRS $8K to stimulate business, it doesn't seem likely. I think I'd just call the RE agent and ask his source -- bet you get a long silence and "I heard it at the cafe."

I just recently did my first (so far) FTHB credit and my client also had a "tax expert" realtor. Making conversation, I said "This ($8K) should help quite a bit on your payments." He replies "Oh no, I can't do that -- my real estate agent says it can't be paid on the house itself, but I'm allowed to spend it on furniture (yeah, that's what he said)." I protested a bit but he comes back with "No, he's a licensed real estate agent and .... blah, blah, blah." That statement begs the question "What's an EA? Chopped liver?"

Anyway I let it go -- if he's that goofy, there's nothing I can do about it.

[HBurkholder]

I have heard of BofA giving money toward closing costs. Actually, I heard it from one of their competitors. It is my understanding that they will issue a 1099 for the amount that they contribute.

[Black Bart]

Closing costs

I have heard of BofA giving money toward closing costs. Actually, I heard it from one of their competitors. It is my understanding that they will issue a 1099 for the amount that they contribute.

I think that's from a couple of years ago -- unrelated to FTHB credit. Here's the link:

http://www.erate.com/blog/2007/05/bank-of-america-cuts-mortgage-closing.html

[solomon]

The press release from HUD secretary, Donovan, can be read at the following link - among others.

http://www.thinkglink.com/article/2009/05/29/use-8000-tax-credit-toward-costs-with-fha-loan

[DTS]

The press release from HUD secretary, Donovan, can be read at the following link - among others.

http://www.thinkglink.com/article/20...-with-fha-loan

Forgive my ignorance, but how does the lender get this credit the t/p receives that is used to pay closing costs? Is there a note that is drawn up and signed by the homebuyer?

Thanks,
D

[Burke]

According to the website, the credit is monetized "via secondary financing through the FHA or non-profit." So it looks like it is a bridge loan of sorts. Paid off with the TC when it is received. Perhaps they will do some sort of direct assignment from the IRS to the FHA? No details given on that.

[solomon]

Forgive my ignorance, but how does the lender get this credit the t/p receives that is used to pay closing costs? Is there a note that is drawn up and signed by the homebuyer?

Thanks,
D

This gives the methodology.

http://personalbudgeting.suite101.com/article.cfm/bridge_loans_from_the_8000_tax_credit

[DTS]

Burke and Solomon...

thank you for the link and the clarification on the credit. Appreciate it.

D