Housing Tax Credits Offered and "Flipper" Rules Lifted
FRESNO, Calif. (KFSN) -- California homebuyers who make a deal by midnight can save a lot of money. Buyers can get a combination of federal and state tax credits of up to $18,000.
In addition, another federal program is helping property "flippers" get more homes on the market.
A combination of Federal and State Tax Credits could give homebuyers $18,000 in Federal and State tax credits. The incentives were enough for Harpit Gill to sign on the dotted line.
"I was like, I better hurry up for the deal so I can take advantage of those credits," Gill said.
In order to get the federal credits, a deal must be in place by midnight April 30 and finalized by the end of June. The State Credits start May 1, but there's enough overlap for double dipping. The combined tax credits sparked a surge in sales.
"This is my day off I came in on my day off to help a couple of people who wanted to get their papers filed to get the state and federal tax credits today," Jan Bray said.
Other government incentives are helping so called "flippers" return to the market. HUD has temporarily lifted a rule prohibiting homes that turn around in less than 90 days from getting FHA financing.
"HUD has finally realized for the first time that investors are good because investors clear off these rotting homes that are otherwise going to sit there and continually deteriorate. So this is very good that FHA and HUD have allowed this anti-flipping thing to be relaxed for 12 months," Todd Pigott said.
Pigott says the average investor could make $20,000 to $30,000 on a deal.
Jim Heisdorf is one of the investors looking to turn a quick profit, by fixing up a substandard house so it can get sold.
"This is going to be a like new house. This house was built in 1924 but when it's done it will have a new kitchen, bathroom new paint and carpet, everything will be repaired, "Heisdorf said.
Heisdorf is hoping to sell this house for about $130,000, but says turning a profit, on a deal like this is not easy.
"I've been hit in the face with a two by four, had a sewer back up, thousands of cuts and bruises dirt dust grime. Imagine a house you wouldn't want to live in then take it apart and make it one that you would.
The combination of tax credits, and allowing investors a chance to get distressed properties back on the market could be a big step towards getting more homes sold and stabilizing the housing market.
fresno, housing, local, gene haagenson
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