$6,500 Homebuyer Tax Credit for Homeowners

you may qualify for the $6,500 if…

1.0
You have owned a home for five consecutive years out of the past eight years.  This home must have been your primary residence.

2.0
You purchase a different home as your primary residence.  This home’s purchase price cannot exceed $800,000.  If it does , you are not eligible for any portion of the credit.

3.0
You do not need to sell your former primary residence.  You may lease it, sell it or give it away.

4.0
Your income does not exceed $125,000 filing individually or $225,000 if married filing jointly.  Even if you do make more you may be eligible for a smaller credit.

5.0
You must purchase the home sometime from November 7, 2009 to April 30, 2010.  You must have signed purchase/sales agreement during that time.  And have proof of purchase for your tax return.

6.0
You get an additional 60 days to close financing or on sale July 1, 2010

7.0
You must be 18 years of age or older.

First-time Home-buyer’s tax credit limit equals $8,000

Who qualifies:

You have not owned a home for the past three years.

Your income does not exceed $125,000 filing individually or $225,000 married filing jointly.
(If your income is more, you may still qualify , but a sliding scale.)

You get an additional 60 day grace period to close financing

The home you by must be your primary residence.

What you get:
A tax credit that equals 10% of the value of the home up to $8,000.
If you do not owe $8,000 in taxes you receive the balance in a stimulus check to you.
If you sell your house within three years  there are penalties.

Resources:

www.wahomeowners.com
A great site for homeowners.

www.homeloans.va.gov
VA home loans.

Washington State housing finance commission: www.wshfc..org
Low-interest loans, down payment assistance, and first-time home buyer classes.

Homeownership in Washington: www.homeownership-wa.org
Another great nonprofit resource web site.

Homesite Washington:  www.homesightwa.org
Help for low to moderate income families looking to buy a home.

Fannie Mae:www.fanniemae.com
Competitive loans and a great buyers resource.

HUD Help for homeowners:www.hud.gov
Free foreclosure avoidance counseling.

Making homes affordable: www.makinghomesaffordable.gov
government-sponsored programs to refinance your home or loan modification.

Washington Association of mortgage professionals: www.wamb.org
trade association for mortgage professionals as well is excellent information for consumers

Realtor.com:www.realtor.com
The world’s largest database of homes for sale.

Susan

www.susanknowshomes.com

Conforming Your Loan Limits

Conforming Loan Limits

A conforming loan is one that meets the standards of loan guidelines as established by government-sponsored enterprises (GSE’s) Freddie Mac and Fannie Mae, meaning Freddie and Fannie can buy loans up to predetermined amount, with that amount adjusted annually. Presently, the conforming loan limit for a single-family home is $417,000, although as part of the Economic Stimulus Act of 2008, the loan limit in certain high-cost areas of the U.S. have a new cap of up to $729,750, depending on location. These loans are referred to as “conforming jumbo” loans. The cap for these loans is calculated to be 125 percent of the area median home price and is not to exceed $729,750, except in Alaska, Hawaii, Guam and the U.S. Virgin Islands, where the cap is 50 percent higher than the limits for the rest of the country.

Confused yet?

Boiled down to real language, prior to the Stimulus Act, conforming loan limits were $417,000 and rates were attainable. However, if you needed a loan over $417,000 – called “non-conforming jumbo loans” – you probably paid a percentage point or two above what a conforming loan cost. For loans that big, it was difficult for borrowers to qualify. For example, suppose “John” needed a mortgage loan for $350,000 – he could get a rate around 6.5%. But if John wanted to buy a bigger house and needed a mortgage loan of $600,000, his rate could be as much as 7.5-8.0%, only because the loan amount exceeds $417,000. See the difference?

With inequity in rates, the mortgage crisis and a stalled real estate market, the government has stepped in to try to kick-start the high-end market by lifting the lid on the conforming cap. The hope is that for borrowers who live in these areas, the rates and availability on higher-end loans that were once hard to get are now more accessible. For example, borrowers who are in high-cost Jumbo ARMs can refinance into a lower-rate 30-year fixed with more affordable payments. Also, sellers who live in higher-priced areas will have a better chance of selling their home with more loan options available for potential buyers.

 

Where is the Money?

Freddie Mac and Fannie Mae have agreed to buy jumbo mortgages in 224 high-cost markets where median home prices exceed the original conforming loan limit of $417,000. The loans will be purchased from Wells Fargo Home Mortgage, Chase and from all lenders that sell to GSEs and the Federal Housing Administration (FHA). Freddie and Fannie will then bundle thousands of these loans together and resell the debt to investors. Investors are comfortable buying the debt packaged and sold by Fannie and Freddie because these two GSEs only buy loans that will meet their standards for creditworthiness.

 

Susan

Tax Credit $8000.00 Extended Through April 30, 2010

$8000 Tax Credit Extended Through April 30, 2010

In what has been urged as a must-have by real estate professionals and builders, the $8000 tax credit for first-time home buyers (previously due to expire Nov. 30), has been extended through April 30, 2010, according to the Associated Press. Not only has it been extended, but it has also been expanded to include more buyers.

Details on Tax Credit Extension:

* $8000 tax credit for first-time homebuyers extended for buyers who sign a contract by April 30, 2010 (and who close by the end of June).
* $6500 tax credit offered to homebuyers who have lived in their current residence at least five years and who want to “trade up” (buy a new primary residence).
* Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify (up from $75,000 for individuals and $150,000 for couples).
* Tax credit not applicable for those buying homes worth more than $800,000.
* Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.

Will the Tax Credit Extension Help?

According to a recent survey  conducted , nearly one in five (18%) prospective first-time home buyers said extending the $8,000 tax credit would be the primary influence on their decision to buy a home before the end of 2010, potentially stimulating an additional 334,000 home sales. The caveat here is the survey asked first-time home buyers if they would purchase a home prior to the end of 2010; this bill will only go through April 2010, not the end of 2010 and it involves a different type of buyer, as well.

The cost for the tax credit extension is estimated to be $10 billion and opinions vary on whether it will actually help the economy or not. One writer provides 5 reasons the U.S. should stop home buyer perks.

Susan

www.susanknowshomes.com

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ThankYou

SUSAN