Coldwell Banker has launched it’s own program in extending the $8000 tax credit momentum! While this program has nothing to do with the actual federal tax credit, many of the details coincide with the tax credit rules. Under the Buyer Bonus Sales Event, seller’s can voluntarily sign up to offer buyers a credit of 3% – up to a maximum $8000 – off the home’s accepted sales price, and to be applied towards the buyer’s closing costs.
In reality, the “credit” is simply a discount off a listing’s asking price that a seller has honored beforehand (the seller will be netting that much less in the final sale proceeds). Closing cost credits are common in real estate transactions, and can in some cases be more advantageous to buyers than a simple home-price reduction of the same amount, as it can mean that a buyer is not required to bring as much cash to the closing table.
Overview of Buyer Bonus criteria:
* The promotion begins May 1st, 2010 and ends July 31st, 2010 (the property has to be under contract by that date)
* No income limits
* No limits on the price of the home
* No restrictions on whether they were a first time home buyer or owned a home before
* Distressed REO or short sale properties are not eligible to participate
* Subject to the Buyer’s lenders requirements and limitations (if any), the buyer can apply the buyer bonus credit toward anything associated with the purchase price of the home that is contained on the HUD-1 Settlement Statement – from closing costs, to prepaid loan items (taxes/insurance, etc), mortgage rate buydowns or any other lender approved items.
* The closing credits cannot include repair items (these are not allowed by any lenders), as they could affect the value or appraisal of the property
* If a buyer pays cash, the seller can provide the buyer a credit for the full 3% Buyer bonus (not to exceed the $8000)
If you have any further questions about potential loans and what might qualify for seller credits you can call me on my cell at 561-866-2927 or contact Noel Livingstone, who is a Senior Loan office at Sunbelt Lending. You can visit him at his personal webpage – and even apply for your loan – at Sunbelt Lending, Sunbelt Lending Noel Livingstone. He can be reached directly on his cell phone at (561) 843-1983 if you have any further questions.
View Listings Participating in the Buyer Bonus Program on my:
Featured Homes page – Buyer Bonus Listings.
What kind of lender requirements may exist for buyers?
* The Buyer’s lender may have restrictions on the type of expenses the credit may be applied to and the total amount that will be allowed. Generally speaking:
* For a 90% or higher loan – many lenders will allow a maximum of 3% of the purchase price as credits or incentives.
* For a loan of less than 90%, many lenders allow up to 6% of the purchase price for credits and incentives. Each lender differs and the buyer must personally determine what requirements or limitations may exist with their chosen lender.
According to a company survey, about 34% of Coldwell Banker’s agents and brokers said the federal tax credit was the main reason their clients were looking for a home, and 28% said that the government credits’ limitations would keep some potential buyers out of the market.
For information on any of these Buyer Bonus listings, or the Boca Raton and South Florida area, please call or text me at 561-866-2927 or send me an email!