first time home buyer – owner loan

April 3, 2010

Obama’s Stimulus Package Offers First Time Home Buyers Huge Benefits!

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 8:36 am
Safiur Rahman asked:


If you’ve been following the news, you are likely familiar with the federal government’s $800-900 billion stimulus package designed to boost the economy by creating new jobs, providing mortgage assistance, educational grants, and a suite of other incentives.  A key part of this package is the first time home buyer stimulus program aimed at reviving the ailing housing market by assisting first time home buyers and buyers who haven’t purchased a home in the last three years.  The incentives for those qualifying under this program are such that even those previously opposed to buying a home in this market are now changing their minds.

The main reason the first time home buyer stimulus package is so attractive is that it directly addresses the concerns that most people have about buying a new home.  The first concern that most people have is how they will come up with the down payment.  After all, you must have a considerable sum of money saved away in order to come up with a ten percent down payment.  Thanks to the stimulus package, however, the federal government will help first time buyers by paying a percentage of the down payment.  In other words, you do not have to come up with the full amount on your own.  The second worry is the dreaded interest that accompanies monthly mortgage payments.  There is good news here as well as the federal government has cut interest rates.  Thirdly, those qualifying as first time home buyers can apply for refundable tax credit of ten percent of the purchase price of their homes (up to $8,000) if they enter into a binding agreement by April 30th of next year.  This is practically money in your pocket which you do not have to pay back unless you decide to sell or move out of your home within the first three years.

With all these benefits, no wonder more and more people are getting exciting about buying a new home in these tough economic times.  These incentives will not last forever so if you have a steady source of income and are serious about owning your own home, now is the time to act.



Dana

February 23, 2010

First Time Home Buyer Stimulus: Are You Ready to Claim Your Tax Credit of Up to $8,000?

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 11:41 pm
Safiur Rahman asked:


Buying your first home is a big, life changing decision regardless of the economic climate. The decision becomes even more bold in an a recession where job cuts are rampant and the housing market has been in a slump for over a year. Nevertheless, if you are confident in your financial future, this is actually the best time to buy a house thanks to the federal government’s first time home buyer stimulus package. The stimulus package awards first time home buyers with a tax credit of up to 10% of the purchase price of their home with a ceiling of $8,000. In layman’s terms, this is a grant which does not need to be repaid unless you sell the home within the first three years. More specifically, this is a dollar by dollar reduction in taxes owed or an increase in your tax refund. It is also referred to as “refundable” tax credit because you can claim it regardless of your federal income tax liability.

For those who are unfamiliar with this program, here is a quick summary of the key requirements. Firstly, you must be a first time home buyer as required by the current legislation. You meet this definition if you have not purchased a home as your principal residence in the three prior to your current purchase. If you are married, this applies to both you and your spouse. In other words, If either of you do not meet the definition of a first time home buyer, neither of you qualify for the tax credit. A primary residence does not include vacation homes and the specific type of home (e.g. townhouse, condominium, mobile home, etc) does not matter. Secondly, the purchase must take place between January 1st, 2009 and April 30th, 2010. The deadline was extended recently which gives you a few more months to close on your purchase. (The previous deadline was December 1st, 2009). Technically, you have until June 30th, 2010 to complete the sale but a binding agreement must be entered into by April 30th, 2010. Thirdly, you must fall within certain income limits. Single tax payers must not make more than $125,000 annually if the sale occurs after November 6th, 2009 and not more than $75,000 if the sale occurred between January 1st, 2009 and November 6th, 2009. Married couples filing jointly must not make more than $225,000 annually if the sale occurs after November 6th, 2009 and not more than $150,000 if the sale occurred between January 1st, 2009 and November 6th, 2009. The income limits were also raised as part of recent changes. There are other caveats in the legislation but these are the main requirements.

If you feel that you qualify for this tax credit, you are likely wondering how you will claim it. You do so on your federal income tax return. You must first complete IRS Form 5405 to determine the amount of your tax credit. You then enter that amount on line 67 of the 1040 form on your 2009 tax return or line 69 on your 2008 tax return. No other applications or special forms are required. It is as simple as that.

If you are serious about buying your first home by April 30, 2010, the best advice anyone can give you is to plan ahead and plan accordingly, get in touch with mortgage brokers, file your taxes on time, and make the provisions of the first time home buyer stimulus package work for you. Most importantly, do all your due diligence and do not procrastinate! The law may change from time to time so make sure you stay current on all the latest developments. If you do all that, you’ll be well on your way to owning the home of your dreams.



Tamara

January 13, 2010

Obama’s First Time Home Buyer Stimulus – Lucky Break For First Time Buyers

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 2:08 am
Suzan Smith asked:


The economy is terrible; the housing market as well. Foreclosures are at an all-time high and the market value of most homes has dropped to the point many homeowners do not even have equity any more. It is a very difficult time to sell a house.

But, it is a GREAT time to buy a house, and if you qualify, Obama’s First time Home Buyer Stimulus may help put you in that position! You may be able to take advantage of this stimulus program to purchase your first home and get a great deal of home for your money.

This program provides a 10% tax break for buyers who have never owned a home before or who have not owned a home for three years. The maximum amount is $8000. This stimulus money is in the form of a tax break, but you don’t have to owe that much in taxes to take advantage of it. It is a refundable tax break.

This money is not a loan; you do not have to pay it back if you stay in the house for at least three years. That is called recapture.

The income requirements for this assistance is in the form of a cap; a single purchaser cannot make more than $75,000. A couple who are purchasing together cannot have an income that exceeds $150,000. This home has to be your primary home.

To receive assistance from Obama’s First Time Home Buyer Stimulus, the home has to be purchased between January 1, 2009 and December 1, 2009. You should find out if you are able to take advantage of this great opportunity to not only get a sizeable chunk of financial assistance, but to be able to buy a home at a time when home prices are at their lowest in many,many years.



Gladys

August 23, 2009

First Time Home Buyer Tax Credit Extension: More Fuel for the Charleston, SC Market

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 8:42 am
Lee Keadle asked:


We’ve had great news in the housing market this past week!  The $8,000 First Time Home Buyer Tax Credit will be extended through April 30, 2010.  This extension is good news especially for first time home buyers taking advantage of the credit.

 

But, even if you don’t qualify for it, know that you should benefit indirectly from it.  It’s been a very effective incentive for getting homes sold in Charleston, and as Realtors we’ve seen the results firsthand in our area.  The extension is expected to help continue the healthy growth that we’ve seen in the Charleston real estate market in the past few months.

 

I have included below more of the details regarding the tax credit extension.  These are important to note because this go round, there are more provisions to meet compared to the original tax credit.

 

1)  The IRS defines a first-time home buyer as someone who has not owned a principal residence for the three years prior to purchase.

 

2)  The amount is equal to 10 percent of the home’s purchase price, up to a maximum of $8,000.

 

3)  The purchase price of the home must be $800,000 or less.

 

4)  The time frame includes sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, if a binding sales contract is signed by April 30, 2010, a buyer can still qualify if he/she closes by June 30, 2010.  Buyers who are in the military have some special extensions for these deadlines, so be sure to tell your lender if you meet this qualification.

 

5)  For homes purchased on or after January 1, 2009 and on or before November 6, 2009:  single tax payers must meet the income limit of $75,000 (for married couples filing jointly, their income must not exceed $150,000).

6)  For homes purchased after November 6, 2009 and on or before April 30, 2010:  single tax payers must not exceed the income limit of $125,000 (married couples filing jointly must not exceed $225,000).

7)  The main benefit of a tax credit is that it works as a dollar-for-dollar benefit.  If it were a tax deduction, it would only reduce your tax liability and would only save you $1,000 to $1,500 in the long run. So, let’s say you are a first time home buyer qualifying for the entire credit.  If you owe $8,000 in income taxes qualify for a tax credit of $8,000, you would owe nothing.

8)  The tax credit is also refundable, which means you can receive a check for the credit if you have little or no income tax liability. So, let’s say you are eligible for a tax credit of $8,000, and you owe $3,000 in income taxes.  You can still receive a check for the remaining $5,000!



Brad

August 14, 2009

First time Home Buyers Program- A Key to your Own Home-The Federal Government’s Incentive Program

Filed under: Home And Family — Tags: , , , , , , , , , , , , , , — admin @ 11:59 pm
PATRICIA BARDOWELL asked:


The housing crisis has virtually brought the housing market to a standstill. Houses are now worth half the price, they were three years ago. Even with the low prices, the recession was so crippling to the economy, that people still would not buy these homes. Prospective home buyers were also in fear that they may lose their jobs, and would not want to commit themselves based on an uncertain future. Banks have frozen lending, and mortgage funding has all but dried up. Thousands of homes went into foreclosure, and many people filed bankruptcy to save their homes. The crisis is so severe, that many real estate

The Banks and mortgage companies have thousand of unpaid mortgages on their books, and many homes that were foreclosed on, in their inventory, that they either have to sell at a loss, or keep the houses until the value is closer to the balances on the mortgage. Even homeowners find themselves in an upside down position. Their homes are valued much less than their mortgages. The housing crisis is at the heart of the recession, and the near collapse of the banking sector. The government as a part of the stimulus package, tried to help the housing industry by offering help to first time home buyers.

1. Tax credits

 2. Down payments assistance

3. Lower interest rates

In order to speed up the sale of the houses on the market, the government offered $8000 as a tax credit to first time home buyers, who purchased their homes between January 1, 2009 and November 31, 2009. The claim must be made within two years of buying the home. Congress recently extended the program to April 2010, and include current home owners, who have been living in their homes for 5 years and over.

 The second option is a down payment assistance program of 10% of the sales price, for example, $10,000 on a $100,000 house. The government also offers you a loan with lower points, which results in lowering the closing costs or a lowering the monthly mortgage. This program is designed to assist individuals with income of up to $75,000, or couples with joint income of up to $150,000.

A final alternative is a tax rebate on the loan’s interest. Persons who own investment properties can avail themselves of the tax rebate. This can be used to upgrade the property’s value and can be claimed as an income tax deduction.  

 Your real estate agent, and mortgage broker, will guide you through the process, while you search for your dream home.

 

 



Sylvia

July 17, 2009

Incentives to Become a First Time Home Buyer Now

Filed under: Home Business — Tags: , , , , , , , , , , , , , , — admin @ 12:44 am
michaelstromsteen111 asked:


You might be taking a closer look at becoming a first time home buyer after Congress passed the housing bill recently. The bill includes a few incentives that really make now the perfect time to jump into the market and become a first time homeowner. Of course, the depressed real estate market is enough incentive for quite a few people wanting to take advantage of the lower prices of homes; however, the government is now offering a tax">http://first-time-home-buyer-s.com/firsttimehomebuyer/38/tax-credit-for-first-time-home-buyers-2/”>tax credit for first time home buyers that makes it hard to not jump in. The full tax credit of $7,500 is exceptional as it is obtainable to couples who make no more than $150,000 in joint income, which makes a huge number of people able to qualify.

Quite a few people are feeling that the time is right for them to get active in the housing market, buy their first home and utilize the incentives including the tax credit. The people with the most to offer the market are the first time homebuyer who does not bring additional housing into the market; all they bring is their ability to buy.

The tax credit is appealing to many because it is not something in which you have to apply; it is something you claim when you do your taxes. However, the tax credit does not come without certain requirements and regulations.

The tax credit is based on 10 percent of the sale price of the house with a roof of $7,500. This means that a house that sells for $75,000 or more will qualify for the full $7,500 credit. A house that sells for $65,000 will only qualify for $6,500 credit.

It is also important to note that the tax credit is really more of an interest free loan that has to be paid back over a 15 year period. When you claim the tax credit you will receive the total amount on your taxes and will then have to pay it back over the next 15 years with the total remaining balance due if you sell your home before the loan is paid off. Since there is no interest on the credit it will cost you $502.50 a year if paying back the full $7,500 credit.

There are other incentives available through state programs and private programs such as a lower interest rate for public servants such as teachers, military, police and firefighters. These incentives are available for all, not just first time homebuyers.

Down payment assistance is also available from many lenders; however, the requirements and restrictions are a bit stricter now than they have been in the past. The credit score is very important when applying for a 0% down payment program.

A realtor can and often will point you to more incentive programs than even the ones discussed above. The housing market is defiantly a buyer’s market and for anyone who is considering entering the market now is the best time. To take advantage of the tax credit you will want to close on your new home before July 1, 2009 so you might want to start getting ready now before you lose out or the market changes.



Keith
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