View Current E-Newsletter | View Previous E-Newsletters Have our E-Newsletters emailed to you

News From Hunziker & Associates, REALTORS®

FHA Announces Plan to Allow the First-Time Homebuyer Tax Credit to be Accessed for Downpayments

This Federal Housing Administration announced today that it would permit its lenders to allow homebuyers to apply the $8000 first-time homebuyer tax credit to their down payment through the use of secondary financing which can be obtained from a government agency (see HUD-4155.1 REV-5, paragraphs 1-13 A and B) or an FHA-approved nonprofit (a list of FHA approved non-profits can be found at:

Previously, the credit could only be accessed at the time the homebuyer completed their tax return. FHA now permits homebuyers who finance their purchase with an FHA loan to access the credit at closing through the use of a short-term loan or “secondary financing”.

The secondary financing works as follows:

  • The tax credit advance, when combined with the FHA-insured first mortgage may not result in cash back to the borrower. The second lien may not exceed the total needed for the downpayment, closing costs and prepaid expenses.
  • The tax credit advance must provide that if the borrower does not repay the amount borrowed by the designated deadline, that principal and interest payments begin automatically.
  • If payments on the tax credit advance are required, they must be included in qualifying the borrower and, when combined with the first mortgage, cannot exceed the borrower’s reasonable ability to pay.
  • If payments on the tax credit are deferred, the deferment must be for a minimum of 36 months in order for the payment to not be included in the qualifying ratios.
  • The tax credit advance second mortgage must not provide for a balloon payment before ten years.
  • The amount that may be borrowed in this manner may not exceed the anticipated tax credit due the homebuyer based on the computations of form IRS 5405.
  • Fees and charges for the tax credit advance loan are not to exceed a nominal amount necessary for preparing and administering the loan.


FHA Temporarily Withdraws Plan to Allow First-Time Homebuyer Tax Credit to be Accessed for Downpayments While the Agency Contemplates Some of the Details of the Program.

Stay In Touch for More Information

Not a First Time Home Buyer?

There may be good news for you as well.  We are witnessing a fairly robust demand from first-time homebuyers entering the real estate market, and therefore noting a strong tightening of the available supply of homes for sale in the $125,000-$225,000 price range.   Do you have a home in this price range?  Do you have a need or a desire for another home, but have postponed that decision out of fear that your house might not sell?  With the current climate of strong demand, combined with rather a rather low supply of houses for sale, we have a perfect recipe that can all but guarantee a successful sale.  If this describes your situation, call your Hunziker and Associates Realtor® to learn more about the specifics of positioning your home to sell in tomorrow’s market. 


Ames Residential and Rural Subdivision*

  Current Listings as of May 1 Homes SOLD in April Month's Supply**
< $125,000 45 14 3.2
$125,000 - $175,000 73 30 2.4
$175,000 - $225,000 45 19 2.3
$225,000 - $300,000 52 13 4.0
$300,000 - $400,000 26 7 3.7
$400,000 + 16 4 4.0

*Ames Residential and Rural Subdivisions based upon information obtained from the Ames Multiple Listing Service for April 2009

**Supply is defined as the amount of time it would take to completely exhaust the inventory of all homes actively listed for sale, assuming that no new listings were added to the market, and that the pace of sales were to remain constant.


$8000 Tax Credit for First Time Home Buyers

In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.  This is a tax credit, not a deduction.  The $8000 credit can be filed on an amended 2008 Federal Tax Return, putting those dollars in your hands yet this year!

But time is of the essence for buyers who want to take advantage of this unprecedented opportunity. Only homes purchased and closed on or after January 1, 2009 and before December 1, 2009 are eligible.

Please contact your Hunziker and Associates Realtor®, or go to to learn more about this program.



Hunziker & Associates - We know the market.

At Hunziker & Associates, REALTORS® we recognize that timely, accurate information is critical in home buying and home selling decisions. We continually gather and track specific real estate data that is both reflective and prospective. We examine and interpret the most current information that enables our clients to make informed real estate decisions. Please contact any of our sales associates to learn more about the specific real estate market conditions that may affect your decision to buy and/or sell.


Parade of Homes

Dates: June 12-14 and 19-21

Friday 6:00-9:00
Saturday 1:00-5:00
Sunday 1:00-5:00
Tickets are $5 and are available at Greater Iowa Credit Union, Somerset location, prior to and during the show. Proceeds raised from ticket sales benefit the AHBA Scholarship Program.

Homes Open
3113 Red Fox Road - Friedrich Construction
3332 Sedwick - HCS Builders
5217 Tabor Drive - HCS Builders
3212 Cullen Drive - Rathert Construction
311 Prairie View Drive, Gilbert - Rich Lepper Construction
3009 Sedwick Drive - Tasteful Homes LLC

Hunziker & Associates, REALTORS® has been helping people buy and sell homes in Central, Iowa for over 50 years. With offices in Ames, Ankeny, Boone and Nevada, our real estate agents can help you find the "right" place to call home. Our agents have access to hundreds of homes for sale in the Ames, Ankeny, Boone and Nevada areas through the various Multiple Listing Services (MLS).