Posted by Laurie Randazzo on Wed, Apr 21, 2010 @ 05:56 AM
The special tax credit for both first-time and long-time resident homeowners will soon April 30th. There are 8 days remaining to put plans in motion to contractually close on home on time.
According to the tax rule, first-time home buyers, or resident home buyers interested in a new home, must purchase their home or be locked into a Purchase & Sale contract to close by midnight on April 30, 2010, and must close by midnight on June 30, 2010. The Internal Revenue Service considers the purchase date to be the date when the home closing takes place and when the title to the property is transferred to the new owner.
Finding a home is simple.
1. Find a Local Lender You Can Talk To in Person
Local lenders understand your market and know of loan programs that might be beneficial to you.
2. Be Specific in the Area You Want To Live
Narrowing your search will speed up the process.
3. Don't Shy Away From Houses That Need Some Work
Just because a house needs some paint or cosmetic fixes doesn't mean it's not a good buy. Ask your REALTOR about the HUD program known as 203(k) that enables you to fold repair money into a primary mortgage.
4. Be Prepared To Act
Sometimes the first home you see is the right one for you. Don't discount it. Remember, good deals still go fast.
Enjoy your search!
Posted by Laurie Randazzo on Sun, Feb 21, 2010 @ 10:56 AM
Spring market is hot - weather is soon to follow! Take advantage of 2010's early start to the spring market.
A win-win for home buyers and home sellers!! The spring real estate market typically takes off in March and runs through May. Because buyers must be under agreement by April 30th, the spring market has started early. There is no better time to buy a house than now. Mortgage rates near a record lows and many buyers qualify for the $6,500 repeat home buyer tax credit or the $8,000 first time home buyer tax credit.
If you have a home to sell, now is the time to get it on the market. The low interest rates and tax credit have generated a significantly higher number of buyers early in the season. Inventory is low - some areas in Massachusetts are even experiencing a sellers market as a result. Don't wait because this win-win scenario will soon change.
Rates on 30-year fixed-rate mortgages averaged 4.93 percent with an average of 0.7 point this week, down from 4.97 percent a week ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.
The 15-year fixed-rate mortgage averaged 4.33 percent with an average 0.6 point, down from 4.34 percent last week and 4.68 percent a year ago.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loan averaged 4.12 percent with an average 0.5 point, down from 4.19 percent last week and 5.04 percent a year ago.
The 1-year Treasury-indexed ARM averaged 4.23 percent with an average 0.6 point, down from 4.33 percent last week and 4.8 percent a year ago.
Rates surveyed by Freddie Mac are for prime borrowers taking out loans with 20 percent down payments. Borrowers taking out loans too large or risky for purchase or guarantee by Freddie Mac can expect to pay more.
After hitting a low of 4.71 percent in December in records dating back to 1971, rates on 30-year fixed-rate loans and other mortgages are expected to rise if the Federal Reserve wraps up ongoing purchases of $1.25 trillion in mortgage-backed securities (MBS) at the end of March, as planned.
In a Jan. 12 forecast, the Mortgage Bankers Association projected rates on 30-year fixed-rate mortgages will rise from an average of 4.9 percent during the final quarter of 2009 to 6.1 percent in the final quarter of 2010, 6.3 percent in the last quarter of 2011, and hit 6.6 percent during the last three months of 2012.
Don't wait. Buyers need to be under agreement by April 30th and close by June 30th. It will be here sooner than you think.Contact us today for more information.
Posted by Laurie Randazzo on Thu, Nov 05, 2009 @ 06:34 PM
Congress extends deadline to June 30, offers $6,500 for existing homeowners
By Annalisa Burgos, FrontDoor.com Published: 11/03/2009
First time homebuyers aren't the only ones who can claim a tax credit when they purchase a home. Under a bill approved by Congress this week, current homeowners will be able to enjoy the tax break too, if they qualify.
Congress voted to extend and expand the popular first time homebuyer tax credit, which was set to expire on Nov. 30. Buyers looking to cash in on the $8,000 tax benefit would have had to close on their purchase by then. Lawmakers also approved increasing income limits. President Barack Obama is expected to sign the bill into law on Friday. The new program is estimated to cost $11 billion. Here are the details:
FIRST TIME BUYERS
Credit: Equal to 10 percent of the home's purchase price, up to $8,000
Who Qualifies:
- Those who haven't owned property in the last three years
- Those with income up to $225,000 for couples and $125,000 for individuals (credit phases out for people who make more than these amounts)
- Must be at least 18 years of age to claim credit
Deadlines:
- Have until April 30, 2010, to enter into contract for a home purchase
- Have until June 30, 2010, to close on the purchase
CURRENT HOMEOWNERS
Credit: Equal to 10 percent of the home's purchase price, up to $6,500
Who Qualifies:
- Those who have owned and lived in their principal residence for at least five consecutive years during the past eight years
- Those with income up to $225,000 for couples and $125,000 for individuals (credit phases out for people who make more than these amounts)
- Must be at least 18 years of age to claim credit
Deadlines:
- Have until April 30, 2010, to enter into contract for a home purchase
- Have until June 30, 2010, to close on the purchase
In addition, buyers have another year to take advantage of the higher loan limit for mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac -- set at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost housing markets. The limit in normal markets will remain $271,050 for FHA and $417,000 for Fannie Mae and Freddie Mac.
What this all means is that many more buyers qualify for the tax credit. So what are you waiting for? If you're even remotely considering buying a home, now's the time to do it. Don't let the first time buyers have all the fun.
Posted by Laurie Randazzo on Thu, Nov 05, 2009 @ 10:05 AM
An $8,000 federal tax credit for first-time homebuyers that is set to expire at the end of the month inched another step closer to getting extended until April. The Senate voted 85-2 yesterday to move the bill to a final vote, and senior members of Congress said that they expected the bill to pass next week.
In what officials say is a move to stimulate the economy, the measure might even be expanded to give a $6,500 tax credit to homebuyers who have lived in their previous home for at least 5 years.
Prolonging the tax credit is sure to be welcomed by home builders like Toll Brothers and KB Homes, as well as financial institutions like U.S. Bank, whose mortgage-revenue rose nearly 5% last quarter.
Posted by Laurie Randazzo on Thu, Nov 05, 2009 @ 09:26 AM
The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
To request your credit, please download the following form.
Posted by Laurie Randazzo on Wed, Feb 18, 2009 @ 02:42 PM
If are a home buyer looking for the latest update on the 1st time buyer tax credit, you can download this chart. $8,000 Tax Credit
Posted by Laurie Randazzo on Mon, Jun 30, 2008 @ 02:44 PM
First-Time Home Buyer Tax Credit for Closing Will Move Market
WASHINGTON, May 29, 2009
Consumers across the country can now take advantage of a Federal Housing Administration program to allow qualified home buyers to apply the $8,000 tax credit when purchasing a home. FHA will now permit its lenders to provide a short-term bridge loan that will let qualified home buyers use the tax credit to either make a larger downpayment above the FHA required 3.5 percent, cover closing costs, or buy down their interest rate.
“A true housing recovery depends on buyers returning to the market and reducing inventory,” said National Association of Realtors® President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Since many of the homes available are lower priced starter homes, the ability for individuals to use the tax credit at closing should have a meaningful impact on home sales and values and will allow thousands of families to achieve the dream of homeownership.”
Shaun Donovan, secretary of the Department of Housing and Urban Development, announced the change today. In an address to several thousand Realtors® gathered two weeks ago at NAR’s Real Estate Summit: Advancing the U.S. Economy, Donovan announced HUD’s plan to offer the tax credit as downpayment assistance. Donovan detailed the modifications to that original proposal and announcement.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans allowing eligible home buyers to access the funds immediately at the closing table.
NAR has supported monetization of the tax credit, which was part of an Obama administration housing stimulus plan enacted earlier in the year. NAR petitioned HUD to allow home buyers to use the $8,000 tax credit to help them cover downpayment or closing costs to bring new home buyers to the market and stimulate home sales.
“We think this is a good program; our members have been getting many inquiries from potential buyers about it,” McMillan said. “NAR is pleased that this enhancement has been made to the administration’s housing recovery program. As we have heard before, there can be no economic recovery without a housing recovery. With an abundance of inventory, reduced home prices, historically low interest rates and now the availability of the tax credit at closing, we expect to see the housing market further stabilize and improve.
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SOURCE : NAR