Real estate in texasJULY. 24, 2009
A $68,000 credit on a home? Seriously?By MARTY KRAMER, Consumer columnist

No, it’s no joke. As a first-time homebuyer with a moderate income, you may be able to save $68,000 on a home. That’s $8,000 on the purchase and $60,000 over the life of a 30-year loan. Let that sink in for a minute, but not too long, because there’s a deadline to beat. First, the federal government is offering an $8,000 tax credit to most first-time homebuyers who purchase a home by Nov. 30, 2009. Even better, the Texas Department of Housing and Community affairs has two new programs that allow you to use most of that credit as a downpayment or for closing costs. Without these TDHCA programs, you would have to wait for a refund on your income tax return (or rebate if the credit exceeds your tax liability). By the way, if you and your spouse haven’t owned a primary residence in the past three years, the government considers you a first-time homebuyer.
The TDHCA programs to “monetize” the federal tax credit will make a big difference for many Texans. Coming up with the money for a downpayment and closing costs is one of the steepest challenges many people face when buying a home.
What about the $60,000? Another program offered through the TDHCA gives many homebuyers the ability to save up to that amount over the life of a loan. The Texas Mortgage Credit Program is available to first-time homebuyers who earn up to 115% of their area’s median family income. In certain targeted areas, the first-time buyer requirement is waived and the maximum income level is higher. The first-time buyer requirement is also waived in a similar program for military veterans.
The program allows participants to receive 30% of their annual mortgage interest payments back as a federal income-tax credit, up to a maximum of $2,000 per year, as long as you maintain your home as a primary residence.

You’re thinking there must be a catch. I’ll lay out everything I can think of: 1) When you get to the later years of your loan, you may not qualify for the maximum $2,000. That’s because more of your payment goes toward lowering the principal of your loan rather than paying interest. You also might not qualify for the maximum $2,000 a year on smaller loans; 2) The credit cannot be larger than your tax liability; 3) If you itemize your taxes, you cannot deduct the amount of the credit from your taxes. Keep in mind, though, that the tax credit will save you more than a tax deduction of the same amount; 4) There are up-front fees of $75 and 1% of the loan amount; 5) You must take a homebuyer education course to participate in this program.
I see the last point as a benefit, actually. The TDHCA wants homebuyers to understand the commitment involved in purchasing a home. This class is intended to give you the information you need to stay in your home.
So, yeah, when all is said and done, you may not realize $68,000 in savings. But what if it’s “only” $59,383 or $37,019 or even $17,556? What if you “merely” save $8,000 and get a hefty head start on a downpayment? If I weren’t already a homeowner, I would’ve been on the phone with my Texas REALTOR® the minute I heard about this.

First-time Texas buyers can now monetize federal tax creditIn July the state’s housing agency announced that it has a way – two ways, actually – for Texans to monetize the $8,000 federal tax credit for first-time buyers. The Texas Department of Housing and Community Affairs (TDHCA) released $7.5 million through two separate second-lien mortgage programs to help qualifying first-time homebuyers take advantage of the federal homebuyer tax incentive. The state programs offer short-term loans until homebuyers file and receive their federal tax credit. The loans offered through TDHCA can be used for downpayment and/or closing costs, and the federal tax credit payment can be used to repay them. However, buyers must close on the home purchase no later than Dec. 1, 2009. For more information, visit MyFirstTexasHome.com.
Source: Texas Dept. of Housing & Community Affairs

Press Releases: 2009
Austin real estate market shows strength in second quarter 2009
Austin Board of REALTORS® releases June 2009 real estate statistics

July 20, 2009 - According to the June 2009 Multiple Listing Service report by the Austin Board of REALTORS®, the volume of single-family home sales in June 2009 was 2,135, down four percent from June 2008, and the median price was $199,900, unchanged from June 2008.
"We've seen the year-over-year gap in sales volume close steadily throughout 2009 and that momentum continues this month," said Jay Gohil, Chairman of the Austin Board of REALTORS®.
Home prices in the Austin area have also continued to gain momentum from the beginning of the year. Over the first two quarters of 2009 (January 2009 to June 2009), the average sale price for a single-family Austin home has increased $20,824, while median sales price has increased $24,400.
Also, from January 2009, sales volume is up 61 percent and active listings are up 14 percent. “This signifies a healthy Central Texas real estate market and good news for both local home buyers and sellers,” said Gohil.
June 2009 Statistics
$537,981,570 was the dollar volume of single-family properties sold

$199,900 was the median price, unchanged from one year ago

2,135 was the number of homes sold, a 4 percent decrease compared to June 2008