For first time home buyers, there’s a new wrinkle to the $8000 tax credit. HUD Secretary Shaun Donovan unveiled the change for down payment assistance, making the $8000 available as a ‘bridge loan” until the funds come from the federal government. That means that for first time home buyers that qualify, the $8000 can be used to fund the down payment for a mortgage, which is typically the biggest hurdle for young buyers. Buyers will be required to use an FHA loan for the primary mortgage; then they can use an FHA-approved lender or HUD-approved nonprofit to secure the bridge loan. This secondary “bridge loan“ will probably have a low interest rate and is repaid when the home buyer receives the tax credit. The details on this program are still being worked out, and only a handful of states have organized a system to provide the loans.
the extension of the residential renewable energy tax credits that provide 30% of the initial cost as a tax credit. Of special note since 2008 there is NO $1500 cap on the credit. This incentive applies to geothermal heat pumps, solar energy systems, and residential fuel cell and microturbine systems. Of these systems, the geothermal heat pump is one of the most efficient and has a good return on investment. A geothermal system utilizes the energy stored in the earth a few feet below the surface and provides four units of energy for every one unit of electricity used. That equates to an efficiency rating of 400%, compared to the most efficient gas furnaces that rate at only 94%. These systems are suitable for new homes or replacement installations and provide clean, quiet, and safe operation, without emitting carbon dioxide, carbon monoxide, or other greenhouse gases. For more information on these systems in the Upstate of South Carolina, see Carolina Heating Service, Inc., a vendor with a lot of experience installing geothermal systems.
From a cost of living perspective, Greenville is a good value when compared to 309 urban areas around the U.S. According to the AACRA Cost of Living Index released by the Council of Community and Economic Research (C2ER), Greenville’s after-tax cost for professionals is 89.2% of the national standard. The study measures the costs of consumer goods and services for managerial households in the upper 20% income bracket, gauging grocery items, doctor visits, mortgage rates, utility rates, and gasoline. For comparison, New York City was the highest with an index of 219.3, Tampa, FL was 95.2, and Pryor Creek, OK was the lowest at 83.1.
Current Weather
It looks like we’ll have a good chance of thundershowers this week with highs in around 80, but clearing for the weekend. It will soon be warming up and with school out next week, you can be sure the local pools will be popular.
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