karleebfree asked:


I qualify for this tax credit but I don’t know if it is already a part of the tax law for 2008. I purchased the home in May 2008. Should I file my taxes now or wait?

Edna

Julie Fontaine asked:




First time home buyers should love short sales, despite all the rumors that may be in the market. Most complaints about short sale, particularly in the San Diego market, generally come from the lag time between when an offer is put on the house, and when the bank gives the green light on the price. Gone are the days that an offer is made and 3 days later it is either accepted or rejected when it comes to short sales. First time home buyers have many reasons to love short sale, and need to understand the opportunities and pitfalls that may arise from a short sale purchase. Here are a few reasons why a first time home buyer should love short sales:

1. Bargain Home Prices. Home prices, at least in the San Diego market are at all time lows. The purchase of a short sale will allow first time homeowners to benefit from an affordable monthly mortgage. It is often possible even to purchase a home at a price lower than fair market value.

2. Up to $8,000 in Tax Incentives. The Making Home Affordable Program allows for a tax credit up to $8,000 for first time home buyers. This is a savings right off your bottom line, making homes even more affordable, particularly in San Diego where we work. First-time home buyers may benefit from tax incentives, grants, down payment assistance and other financial incentives when purchasing a property through a short sale.

3. Lower Taxes & Insurance. Property taxes are assessed based upon the purchase price at the time of sale. Taxes and insurance represent a significant portion of the annual housing expense. Purchasing a short sale property at today’s bargain prices may result in dramatically reduced taxes and insurance rates. Thanks to California’s Proposition 13, taxes will remain at record lows for the duration of your ownership in this home. The savings will live on.

4. Motivated Sellers. As home prices continue to decline and homeowners are seeing their equity position diminish further and further, homeowners are motivated to sell. Many short sale situations are homeowners already facing foreclosure and they are in a race to beat the foreclosure clock. For many facing foreclosure an offer on the house may provide and emotional relief as they see the foreclosure date approaching. The bank will postpone the foreclosure if they see a reasonable offer on the table. This may also allow additional time for the homeowner to stay in the house while the short sale is being negotiated. There is nothing short in the time frame of a short sale, so buyers and sellers should anticipate hanging in their until bank approvals are procured.

5. Affordable Interest Rates. Despite the financial crisis in the banking industry, mortgage rates are still low. Hovering around 5.5 percent, home ownership is still extremely affordable, often time more affordable than renting! A home bought for around $135,000 would result in a total monthly payment, including taxes and insurance, to around $1,000! You can barely rent a one bedroom condo for that in Southern California! You can fix your monthly payments, while building future equity through loan amortization and future appreciation.

6. Negotiable Extras. Motivated sellers will often sweeten the pot by throwing in extras such as a jacuzzi, flat screen TV, and furniture they may no longer need or have room for in their next place. Don’t be afraid to negotiate appliances or other extras as part of the negotiation process. I’ve seen boats, antiques, appliances and even a motor home acquired by just asking for it!

7. Buying As-Is With A Discount. Most short sales are sold “as-is” with no repairs made by the seller. Be sure to have a home inspector lay out any problems with a home and get an estimate for that work. Ask for a discount on the purchase price of the house for that defrayed maintenance cost. First time buyers can score big on those discounts. By doing the work yourself, you can save thousands of dollars. Simple tasks such as painting, yard work and other minor repairs that can be done by the new home buyer can create instant equity in the home.

Natalie

Lokesh Nagpal asked:




There are a host of financial incentives provided by the federal government to encourage people to purchase their own home. The most important and biggest of these is the one included in the Worker, Home ownership, and Business Assistance Act of 2009. In accordance with the provisions of this act, an amount of USD 8000 is extended as a tax credit amount to qualified first time home buyers. It is big monetary benefit to the first time home buyers since one does not have to repay this amount until and unless the property is sold or is not used as principle residence of the beneficiary who claimed the tax credit.

What are the necessary conditions to be fulfilled in order to be eligible to avail this tax credit? In accordance with the IRS definition, a first time home buyer is a person who has not purchased a residence during the immediate three years preceding his purchase. Income levels of single buyers and married couples have been stipulated above which the tax credit is not available. For properties purchased between the periods Jan 1, 2009 to November 05 2009, the maximum income level of a single buyer has to be less than USD 75,000 and in case of couples who are joint holders, the income levels cannot exceed USD 150,000. Similarly for sale transactions executed from November 06 2009 to April 30, 2010, maximum income level could be USD 125,000 and USD 250,000 for single buyers and couples respectively. You can file for availing a joint credit only in case either spouse has not purchased a home within the last three years. The couple still has the option of taking a credit by purchasing the house as a single buyer in the name of the spouse who has not purchased a house in the last three years.

Some important points that you need to note about the first time home buyer credit include the fact that the amount of tax credit available depends upon the property price The tax credit available equals ten percent of the property purchase price with 8000 USD being the maximum amount that can be claimed. The other key point to be noted that not all homes purchased would qualify for this rebate. Only those houses with a maximum price of USD 800,000 would be considered for granting home buyer credit. To be included in the list of beneficiaries you have to ensure that you purchase a home by April 30, 2010, sign the necessary contract papers and complete the sale by June 30, 2010 in order to be eligible under this scheme.

The process of making a claim for the home buyer credit is easy. Submit two statements namely the HUD-1 settlement statement and the IRS from 5405 and walk away with a maximum credit of USD 8000 provided you fulfill the eligibility conditions stipulated by the federal government. IRS allows all those people who buy a home in 2010 to file an amendment to their 2009 tax return and stake their claim.

Colleen

mammjamm18 asked:


My son and his girlfriend bought a house together last May. Both names are on the mortgage, yet they are not married. There is a child from her first marriage and one together.
If they file seperately do they each claim half the tax credit?
We haven’t figured out yet what each of their filing status should be, if they each claim one child. Single or head of household?

Marvin

Jackie Beem asked:




There was a time not too long ago, before the mortgage mess, that even a First Time Home Buyer with Bad Credit could still fairly easily get a home loan.

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mwillsy99 asked:


I am looking to buy a home in Massachusetts, somewhere just north of Boston.

Ramon

knoppolean asked:


I am planning on buying a home before I marry. My soon to be wife bought a home about 4 years ago. If I purchase and close on the house before marrying her, can I still claim the $8K?

Glenda

Tim C. Wood asked:




To rebuild US economy that had tumbled due to recession in the third quarter of 2008, President Obama and his administration has signed up 2009 economic stimulus plan that has to work on many aspects. Almost all the citizens are facing financial crunch and thus are unable to meet all responsibilities. It was felt by the team that among all of them the most sufferer is the sect of homeowners who had taken home loan under high rate of interest and due to the financial crisis they are now unable to repay their loan amount. The first time home buyer stimulus is specially designed to help the first time homeowners to have their house on easy terms and lower interest rate.

When anyone buys his first house it is much more than just a house and investment. There are lot of emotions and sentiments involved in buying and decorating it. It is ones dream house that has many years of planning and savings in it. And if due to non-repayment, this house is on the verge of foreclosure, it has not only the pain of loosing the house but also much more than that. The dreams and emotions attached with that house are unmatched. So there is a special package for first time homeowners so that they can buy their house on affordable rates.

First time home buyer stimulus has made buying home easier and affordable for most of the citizens who had postponed buying house due to the current financial condition. Since the first time homeowners are offered quite less and fixed rate of interest, they are able to pay the installments also. The monthly installments are fixed keeping in mind the monthly income of the borrower so that the loan is completely affordable for them. They also get tax rebate here and so the money saved every month is used in other things like shopping new apparel for young ones or kids that has been postponed for some time seeing the hard days.

There are people who have not gone out to dine and if they are relieved and they save some money every month, they can go out and dine or plan a weekend holiday or so. In this way other sectors of the society is going to be benefited and this will enhance employment opportunities also. As soon as the customer-spending percentage will increase it is going to affect all the sectors of life and society.

Janet

shizzle asked:


I have one more year left in law school and then I plan on purchasing a house. After a I graduate, If I started off with the lowest possible income at 43,000 a year, could I purchase a modest sized home with no money down? Or would I have to wait until I saved up money for a down payment?

Edith

Damian Sofsian asked:




Eventually, everything boils down to owning that house that you have been dreaming of. You have tried and have become tired of living in apartments, in condominiums, in rental homes, and in your parents’ living room. However, you still crave and long for that structure that would be under your name and that you can call your home. And if luck prevails, you may own the home that you have been dreaming of.

One of the things that helps out first-time home buyers are first-time home buyer programs. These programs have been designed to assist people who are engaging in buying a home for the first time. Also, they have been designed to assist low-income families or to interest first-time home buyers. These types of programs assist those people who are in dire need of help when it comes to purchasing a home.

One of the tips that these first-time home buyer programs give to interested parties is that every buyer should be able to take full advantage of the various programs for first-time home buyers, because these can greatly assist them in obtaining lower interest rates. Most of these groups that provide first-time home buyer programs are generally aware of the situations that different types of interested parties have. That is the reason why these groups have also considered these situations and have provided various kinds of assistance for people with different needs.

Knowledge of how these first-time buyer programs work could prove to be an essential tool in taking advantage of them. Further information could be gathered through the Internet, or people could also get in touch with these groups that provide first-time buyer programs.

Irene