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Hello, LOs!
We're still short on some details, but the Biden administration has unveiled yet another tax credit program that might be of interest to loan officers.
In order for investors to qualify for the credit, buyers cannot make more than 140% of the area median income. The credit would cover the difference between total development costs and the sales price. The final sales price could not exceed four times the area AMI.
Only homes in census tracts with higher-than-average poverty rates, lower-than-average median incomes and home values are eligible – about one in four census tracts in the U.S. State housing finance agencies would administer the tax credits, which developers, lenders or local governments could compete for. Local housing finance agencies would issue the tax credits.
It's clear that more needs to be done to raise the standard of housing in many parts of the country, especially poorer areas. So I'm curious to hear what you all think about this program. We already have a number of mortgage programs for rehabilitating homes in disrepair. And the two biggest, the FHA 203K and the Fannie Mae Homestyle, are already government backed.
For those who work with rehab loans, do you believe those programs offer enough of an incentive and flexibility? What would you like to see in a home rehab loan program?
The Biden administration shed new details on a tax credit to rehab homes for low and moderate-income homebuyers as part of the trillion dollar infrastructure package.
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By adopting technology once only available to big banks and capitalizing on their natural strengths, community lenders can hope to acquire a sizable share of this year's strong homebuyer cohort. Presented by FormFree
Servicers' forbearance portfolio volumes managed to drop one basis point last week to 4.18%, the 13th consecutive week of declines. However, some unfortunate trends are beginning to crystalize.
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