first time home buyer – owner loan

January 2, 2011

First Time Home Buyer Stimulus

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 7:39 pm
Kelly Kennedy asked:




Have you experienced buying your dream house with the money that you saved for years? This is the most crucial part of your financial history in case that you weren’t able to pay for it on time, it will reflect to all of your credit report especially for the first time buyer. There are no government programs before that can help you to get something in return in buying a home.

Today, if you purchased a home, you will be getting tax credit of $8,000 from the amount of the purchased home for a single taxpayer from “Making Work Pay” Tax Credit plan or it is also known as the American Recovery and Reinvestment Act of 2009. The tax credit is a big help for a person especially for someone who has a low income, having someone sick in the family, or disabled family members.

The American Recovery and Reinvestment Act of 2009 give assistance for the first time home buyer in down payment for the home, low mortgage interest rates and as well as the tax return after purchased of the house. However, not all first time buyers are eligible for this program.

This plan is applicable for the first time home buyers who purchased the house on or before April 9, 2008 until July 1, 2009. This will remove the property owner’s settlement requirement for people who bought the home after January 1, 2009 up to maximum of $8,000 until December 1, 2009.

The American Recovery and Reinvestment Act of 2009 is not only good for homeowners, but also good for real estate companies that will encourage more people to buy a new home to enter the mortgage market that offers low mortgage fees and keeping their dream home and its lessen risk to purchase a new home.

Corey

December 18, 2010

Benefits For First Time Home Buyers

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 5:01 pm
Yanni A Raz asked:




Are you a first time home buyer in the market to purchase the home of your dreams? You may not be aware that there are many benefits in home purchasing as a first time buyer. The Government has been working together with first time home buyers, to help them save money and purchase something at a reasonable price, by giving them grants to be used toward the purchase of their first home.

A tax credit of up to $8000.00 is granted to first time buyers. This is all part of the Recovery and Reinvestment Act of 2009, something that will not only benefit first time home buyers, but will also help to stimulate the economy and get out of this recession. IN order to qualify for this offer, you must first make a purchase on or before January 1, 2009 and before December 1, 2009. The purchase date will be the date the house closes escrow.

Qualifying for the credit is simple. You are considered a first time buyer if you have not purchased a property 3-years prior to the date of purchase. Keep in mind, if you are married, and your significant other has in fact made owned a home in the last 3 years, neither of you will qualify for the credit. If an unmarried couple wants to take advantage of the tax credit, and one of them owned a home in the last 3 years, the one who has not owned will still qualify, the tax credit will then be transferred to the qualifying party.

The tax credit is based on 10 percent of the purchase price, but will not exceed $8000.00.

Qualifying for this benefit is also based on your income. Married couples should have a joint income of at least $150,000 with unmarried couples at an income of $75,000. Also keep in mind, that this tax credit does not have to be repaid. The tax credit is claimed on your Federal tax return form 5405, this will determine your tax credit amount, which you will then want to claim on your 1040 income tax form, line 67. If you have purchased a house in 2009, and received the tax credit toward your purchase, you can choose to claim it against your 2008 tax return or wait to claim it on your 2009 return. If you have filed your 2008 return prior to your purchase, you may amend the tax return if you do not want to wait until the 2009 tax season. This is something you would want to ask your tax professional about prior to making a decision. Also, the home that you purchase, must be used for your principle residence for at least 3-years, or the IRS may try and take the $8000.00 credit back from you. Vacation homes do not count as a principle place of residence.

This $8000.00 tax credit can be used towards your down payment. Again, something you would want to speak to your tax professional about. Time is running out for this great opportunity, so seek the proper advice and make the choice that is right for you.

Stella

July 16, 2009

First-Time Home Buyers: Housing

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 10:33 pm
Melanie Broemsen asked:


As a potential first- time home buyer, the volatility of housing market could seem intimidating. According to National Public Radio, the number of foreclosures increased 32 percent in April 2009 when compared to the same month in 2008. Despite the turmoil, however, there are many good reasons why now may be just the right time to buy your first home. In fact, industry experts suggest that today’s consumers are experiencing the best buyer’s market of the century.

What does that mean for a potential home buyer?

For starters, homes are more affordable today, and there is a larger inventory from which to choose. Mortgage interest rates have dropped significantly, and developers are offering major discounts for those choosing to build a new home.

In addition, there are great tax incentives. To attract potential buyers and stimulate the distressed housing market, the U.S. government implemented new tax incentives this year that could pay you up to $8,000 when you a buy a new home. Unlike the 2008 tax credit that must be repaid, this new program provides first-time home buyers with a dollar-for-dollar reduction in the taxes they owe.

Understanding the 2009 First-Time Home Buyers Tax Credit

The American Recovery and Reinvestment Act of 2009 is an economic stimulus package. One of the provisions of this new legislation expanded last year’s first-time home buyer’s tax credit. This year, eligible first-time home buyers will receive a fully refundable income tax credit equal to 10 percent of a new home’s price, up to a maximum to $8,000.

How the tax credit works – Simply subtract the $8,000 (or amount of your credit) from the amount you owe the Internal Revenue Service (IRS). For example, if you owe $10,000 in taxes, then you would only be responsible for paying $2,000. If you owe $1,000, you would receive $7,000 from the IRS as a refund. As long as you keep the home for three years, the tax credit does not need repaid.

How to qualify – You must be a first-time home buyer buying your primary home between Jan. 1, 2009, and Dec. 1, 2009. A first-time home buyer is defined as someone who has not owned a principal residence in the three years prior to the purchase. If you are married, this previous home ownership rule will apply to you and your spouse. Vacation rental homes and rental properties are excluded from consideration. In addition, if you own a home, but buy a home with someone who qualifies as a first- time home buyer, such as son or daughter, you may be able to assign the tax credit to them.

How to use the tax credit – There are many ways to take advantage of the 2009 first-time home buyer’ tax credit. According to Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, the Federal Housing Administration (FHA) is allowing first-time home buyers to use the tax credit as a down payment. This is great news for potential first-time home buyers, who may be reluctant to part with their savings and commit to a mortgage because of uncertainties in the economy. Another alternative allows potential first-time home buyers to reduce their income tax withholding. This increases their net paycheck and enables them to save for a down payment more quickly. Finally, first-time home buyers can choose to either apply the tax credit to their 2009 federal income tax, or submit an amended form to apply the credit to their 2008 taxes.

The fine print – The 2009 first-time home buyer’s credit has some stipulations. For example, the income limit for single taxpayers is $75,000, or $150,000 for married couples filing a joint return. Taxpayers within $20,000 of the maximum limit can qualify for a partial credit based on a sliding scale. The tax credit reduces to zero for taxpayers with an income $20,000 or more over the limit. In addition, the 2009 tax credit only applies to new home loans that are 30-year fixed rate mortgages. Other limitations may apply. For more details, visit FederalHousingTaxCredit.com or IRS.gov.

Due to the benefits of the new 2009 tax credit, as well the favorable market conditions, the time may be just right to buy your first home. For more information about new home mortgages, and to find out if you qualify, visit nationwidebank.com.



Eddie

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