|
|
-
|
For prospective homebuyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts as huge tax credits are about to expire. Here are important details for you to know:
Tax Credit for First-Time Homebuyers (FTHBs)
FTHBs (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Tax Credit for Current Homeowners
The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What Are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the timelines available.
What's So Great About a "Tax Credit"?
The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction", or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.
It's also important to note another upcoming deadline as the Federal Reserve winds down a program that has been keeping home loan rates artificially low. The fact is that the lowest rates of 2009 were driven down to their attractive levels because of the Fed's Mortgage Backed Securities (MBS) purchase program, which the Fed once again emphasized in its January 27, 2010 Rate and Policy Statement will end on March 31, 2010. As the Fed's program winds down and ends, rates could rise over time since MBS will have less support from the Fed.
If you have any questions regarding the tax credit, pick up the phone and call me. I'm here to help you take advantage of one of the greatest opportunities homebuyers may ever have.
|
-
President Obama is expected to sign into law today the extension of the tax credit that was scheduled to expire the end of November. Here are highlights of credit: · First time home buyers would qualify for the $8,000 tax credit for contracts signed by April 30th and Closed by June 30, 2010. · NEW $6,500 tax credit beginning December 1, 2009 for homeowners who are buying a new primary residence if they owned their home for five consecutive years in the previous eight. · Military families who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011 to sign a contract. · To qualify, the home must be no more than $800,000 · Annual income restricted to a maximum of $125,000 for individuals and $225,000 for couples. · Anyone who collects the tax credit and sells the home within three years of buying it must return the refund.
|
-
Are you waiting for the real estate prices to hit bottom? You may be too late!  Click here to read about what the Wall Street Journal has to say about the current real estate market. Then call me and I'll help you find your dream home!
|
-
Information regarding some great home loan programs and grants available for buying in Utah! Click here to see more. And of course call me if you have any more questions!
|
-
-
These rates are compliments of Primary Residential Mortgage. It may pay to shop around but don't these rates look great?! | TODAY'S GREAT RATES! Fri Feb 5, 2010 | | | | | | | 1% ORIGINATION FEE WITH RATES QUOTED | | | | GOVERNMENT | | FHA / VA 30 YEAR FIXED: | 5.000 with zero Origination! | | FHA / VA 15 YEAR FIXED: | 4.500 with zero Origination! | | FHA 1 YEAR ARM: | na | | FHA 5 YEAR ARM: | 4.000 | | VA HYBRID 5/1 ARM: | 4.000 | | UTAH HOUSING: | 4.750 |
| | | | CONVENTIONAL | | 30 YEAR FIXED: | 5.000 | | 15 YEAR FIXED: | 4.250 | | 5 YEAR ARM: | na |
| | | | JUMBO | | 30 YEAR FIXED: | na | | 15 YEAR FIXED: | na | | 3/1 ARM: | na | | | All rates based on a 30-day lock for owner occupied purchases.
Extended locks and many other programs available.
VA Rates may vary. |
|
-
NAR Warns of Rental Property ScamWASHINGTON , March 27, 2009 The National Association of Realtors®’ name is being used as part of a property rental scam in which rental property is offered to consumers, who are led to believe that NAR is functioning as an intermediary to receive rental deposits from prospective tenants.
“NAR is not involved in this business and has contacted law enforcement officials to request that the matter be investigated. We encourage any consumers who may be affected to file a complaint,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth.
The scam claims that on receipt of a deposit, NAR will deliver the keys to the property to the tenant. Prospective tenants are instructed to send money via Western Union to NAR’s purported agent in the United Kingdom.
Some of the listings have been posted on Craigslist, which reportedly has had difficulty in tracing the original listings. NAR does not have an escrow service, or function as an intermediary to receive rental deposits. Some of the scam listings also refer to or propose using a “Residential Lease Package” that includes a form lease that purports to be a document prepared by or otherwise associated with NAR. NAR was not involved in creating or producing the “Residential Lease Package” or other lease form, and does not recommend, support, or encourage use of those documents.
Consumers who have encountered this scam may file a complaint with the Internet Crime Complaint Center, sponsored by the Federal Bureau of Investigation and the National White Collar Crime Center.
“Our mission is not only to protect consumers in the real estate transaction, but also guard them against fraud,” McMillan said.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, charts and surveys also may be found by clicking on Research.
|
-
First-Time BuyersShould I Buy Now?Housing may never be this affordable again. Over the past few months, the market has created a unique opportunity for first-time home buyers. If you are renting, you should act now to take advantage. Here are a few reasons renters should take a serious look at buying now: IMPROVE YOUR LIFESTYLEHomeownership is the best way to improve your lifestyle. The ability to choose your own home, be your own landlord and start saving for the future is a great opportunity. Maybe your family needs a yard, a garden, room to grow, new schools or just a fresh start. TAKE ADVANTAGE OF GREAT PRICINGHousing in Utah is affordable again. More than ever before, the market is offering great pricing and incentives. It is a buyer's market and this means you can find great deals on your new home. Take advantage of today's pricing before it's too late. RECEIVE SIGNIFICANT TAX BENEFITSThere are two great tax benefits available for first-time home buyers First, the new $8,000 first-time home buyer tax credit in only available for purchases made before Dec. 1, 2009. The amount will come as a refund when you file your 2008 or 2009 tax returns. In addition to this temporary benefit, each year homeowners can deduct their mortgage interest and property taxes. This keeps more money in your pocket right away and each year that you own your home. TAKE ADVANTAGE OF $6,000 GRANT PROGRAMFor qualified buyers who purchase a newly constructed home, the Utah government is offering a $6,000 Home Run grant for down payment assistance or closing costs. Because there are a limited number of grants, buyers should act quickly if they want to take advantage of this incentive. Click here to learn more about the Home Run grants. AVOID RISING RENTAL RATESRental rates in Utah have been rising. In Salt Lake County, they increased 9.2 percent over the past year. Become your own landlord and stop flushing your money down the toilet. LOCK IN GREAT INTEREST RATESInterest rates are one of the biggest factors influencing the affordability of your monthly payment. Right now, interest rates are incredibly low. This helps make your first home more affordable and keeps money in your pocket. For example, if you wait to buy and interest rates increase 1 percent, your payment will increase by $165 on a $250,000 loan. In other words, you lose $27,417 in purchasing power. Act now before rates increase. GET THE BEST HOME AND LOCATIONThere are currently a large number of homes on the market. The best options for homes and locations in each community always move first. Move quickly to make sure you are the one who gets the best option. Repeat BuyersShould I Buy Now?Housing may never be this affordable again. Over the past few months, pricing in Utah has adjusted downward. This creates a unique and temporary opportunity to purchase a home while pricing is affordable. If you have thought about moving in the next three years, now is the time to take advantage of all the opportunities currently available. There are several compelling reasons to reposition now: IMPROVE YOUR LIFESTYLEWhether your family needs a bigger yard, a garden, room to grow, new schools or just a fresh start, there are beautiful homes and communities throughout the state. TAKE ADVANTAGE OF GREAT PRICINGHousing in Utah is affordable again. More than ever before, the market is offering great pricing and incentives. It is a buyer's market and this means you can find great deals on your new home. Take advantage of today's pricing before it's too late. TAKE ADVANTAGE OF $6,000 GRANT PROGRAMFor qualified buyers who purchase a newly constructed home, the Utah government is offering a $6,000 Home Run grant for down payment assistance or closing costs. Unlike the $8,000 tax credit, this grant is available to both first-time buyers and buyers who have owned in the last three years. Because there are a limited number of grants, buyers should act quickly if they want to take advantage of this incentive. Click here to learn more about the Home Run grants. REPOSITION FOR FUTURE APPRECIATIONWith great pricing, you have the opportunity to reposition now for significant financial benefit in the future. Five to 10 years from now, will your current home and community appreciate as much as the homes in surrounding neighborhoods? If not, now is the time to shift your resources to make sure you are positioned well in the future. LOCK IN GREAT RATESInterest rates are one of the biggest factors influencing the affordability of your monthly payment. Right now, interest rates are incredibly low. This helps makes buying a home more affordable. For example, if you wait to buy and interest rates increase 1 percent, your payment will increase by $263 on a $400,000 loan. In other words, you lose $43,832 in purchasing power. Act now before rates increase.
|
-
Governor Huntsman signed a bill today requiring sellers to disclose to potential buyers if a home was ever contaminated by meth. Click here to read the article on ksl.com.
|
-
Money central MSN posted an article you should read if you are considering buying a foreclosure. Click here to read all about it. I can certainly help you with the purchase, if you are interested let me know! 
|
-
|
You no longer will have to have a membership to enter a bar in Utah! We are finally going to look more normal to the rest of the world. In the past if you went to a bar that served more than beer you would have to buy a membership. They were known as private clubs. Yes if you were just vacationing you could buy a temporary membership but you still had to fill out all the forms and pay for the right to have a drink. Locals had gotten used to this but we sure looked strange to people coming in from out of town! Not any more! Thanks to Governor Huntsman for pushing this through.
|
-
Click here to read a great article in the March 8, 2009 issue of The Salt Lake Tribune. If you are wondering if now is a good time to buy this will give you some scenarios to consider.
|
-
Although Utah’s foreclosure rate saw a rise in the fourth quarter, it still remained well below the national rate during the same time period, according to numbers released Thursday by the Mortgage Bankers Association. At the end of the fourth quarter, 1.79 percent of mortgage loans in Utah were in the foreclosure process compared to the national rate of 3.3 percent, giving Utah the 17th-lowest foreclosure rate. The state’s delinquency rate, a measure of mortgages at least 30 days past due and an early indicator of foreclosures, was 6.06 percent. Although the rate was up from the 4.15 percent in fourth quarter 2007, the state still had the 13th-lowest delinquency rate, with the national rate at 7.88 percent.
|
-
Money Central has a good article about what President Obama announced yesterday to help those upside down in their mortgages. Click here to read that article. I'm saddened by all those who bought their homes at the peak and due to the economy are now in trouble. I hope this helps you!
|
-
Economic Stimulus Plan Benefits the Housing and Mortgage Industries Revised February 17, 2009 Just signed and sealed…a $787 Billion Stimulus Plan made up of tax cuts and spending programs aims at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II. Home owners and potential homebuyers stand to gain from key provisions in this stimulus plan. Here is what we know as of today...
Tax Credit for Homebuyers First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income. The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Additional Housing-Related Provisions Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation. Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills. Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames. Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
More Help for Homeowners in the Future Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage. According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster. While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices. The Economic Stimulus Plan is huge, and impacts a number of industries. I’ve highlighted some of the major provisions that may impact you now and in the future. As always, if you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.
|
|
|
|