The unquestionable and favorable influence of the First-time Homebuyer Tax Credit on the housing market, and therefore the economy, had many, including the National Association of Realtors, lobbying for an extended and expanded bill that would benefit a greater number of potential buyers for a longer period of time, and that's just what we got!!
Under the Extended Homebuyer Tax Credit, first-time buyers can still receive a maximum $8,000 tax credit on houses purchased until April 30, 2010. PLUS the bill has been expanded to include up to a $6,500 tax credit for existing homebuyers that purchase a new or exisiting between now and April 30, 2010.
In order to qualify as first-time buyers, the purchaser and his/her spouse cannot have owned a home during the 3 years prior to purchase. Existing homebuyers must have used the home being sold or vacated as primary residence consecutively for 5 of the last 8 years.
Extended eligible properties are primary residences, including: single-family homes, town homes, condos and co-ops. (Sorry folks, no second homes)
Qualifying properties must have a contract to purchase by April 30, 2010 but have until July 1, 2010 to close, and there is no need to re-pay the tax credit so long as buyers occupy the house for 3 years or more.
The tax credit is determined by:
The price of the home, which cannot exceed $800,000 and,
The buyer's income. Income caps have been increased since 2009 and the new Extended Homebuyer Tax Credit limits are as follows: in order to receive the maximum allowable tax credit for a particular purchase price an individual can make up to $125,000 annually, and married couples up to $225,000 annually. A partial tax credit is available to those making up to $145,000 annually as individuals, and couples making up to $245,000 anually.
In other good news, the loan limits will not shrink and remain at $730,000 giving buyers in high priced markets the opportunity to take advantage of the historically low mortgage rates.
There are a whole bunch of projections on just what this is going to do to further help the economy, but I'll save those for the next entry. In the meantime, whether you're in the market for your first home, need a bigger home for your growing family or are ready to down size - get in touch to see how we can make this amazing opportunity work for you!
Wednesday, November 25, 2009
Tuesday, November 3, 2009
Why Getting Pre-Approved For Your Loan FIRST Takes Care of Your Financial Woes By: Andrea Mossman
So you are ready for that next big step of purchasing your first house. Well, if it is your first home or fifth home financing has evolved into a trying process. Hopefully by reading this blog, you will be headed in the right direction to find the loan that fits your financial situation. Remember this might be the biggest purchase of your life so do it right. Don’t be afraid to ask questions to get the information you are looking for.
Before you begin your house hunt start by going to a reputable bank or mortgage lender to search for the perfect loan that fits your budget. If you have the time and energy I would suggest shopping around for different lenders to see who is willing to work for you and who best suits your needs. Lenders need your business, so let them work for it. The first question they should ask you is what is your credit score? Buyers are finding it near impossible to get a loan with out having an excellent credit rating. That in mind the next question they should ask is how much money do you have for a down payment? These questions might not be the first two lenders will ask but these questions will steer you clear from negative results if this information is not known from the get go.
The next conversation you might have is what type of loan are you interested in? Ask your lender about the different types of loans and which options will best suit your needs. Lenders are now required to provide you with documentation on the negative aspects of every loan in an easy-to-read format. I would suggest you do some research on line about the many different and creative ways to pay off your home and come with questions for your lender about how to manage your financials now and in the future.
Be smart and proactive about getting your financial questions cleared up BEFORE you begin the exciting process of looking and purchasing your home.
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