This is great news for homeowners everywhere
The next step is to get
pre-qualified
704-542-8057
Let me show you the numbers
We do not need to pull credit to generate an estimate: We will calculate
- Payment Amount
- Cash to Close
- If you can afford two homes
- Proceeds from Sale (If you can't)
(You may enter 111-11-1111 for your social security number if you want to hold off on pulling credit.)
Trouble shoot all questions now before you go househunting with a realtor.
FrequentlyAskedQuestions
Here is a helpful link.
SpecialInformationBooklet.pdf
A 100 page "special information booklet" that is given to every "first time homebuyer." Chances are, if you are a current homeowner and have been in your home at least 5 years, you may have forgotten some of this useful information.
For You Readers: Here is More Detail on the $6,500 Home Buyer Credit Legislation.
For You Non-Readers, please contact us:
New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:
- Extends deadlines for purchasing and closing on a home.
- Authorizes the credit for long-time homeowners buying a replacement principal residence.
- Raises the income limitations for homeowners claiming the credit.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.
General Information
Homebuyers who purchased a home in 2008, 2009 or 2010 may be able to take advantage of the first-time homebuyer credit. The credit:
- Applies only to homes used as a taxpayer's principal residence.
Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
The credit is claimed using Form 5405, which you file with your original or amended tax return.
For 2008 Home Purchases
The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.
For 2009 Home Purchases
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1. However, the new Worker, Homeownership and Business Assistance Act of 2009 has extended the deadline. Now, taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010. [Added Nov. 12, 2009]
For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.
First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.
Questions and Answers
More information is available in the question and answer section.
Related Items
IR-2009-83, First-Time Homebuyer Credit Provides Tax Benefits to 1.4 Million Families to Date
Maybe Somebody was Listening to My Suggestion :
Please see my article written for HULIQ.com back in September 2009. The article posed the question about opening up the homebuyer purchase credit for existing homeowners. This measure will help states like Florida who house a lot of senior citizens.
http://www.huliq.com/1/87415/todays-mortgage-rates-under-5-applications-rise
According to the Mortgage Bankers Association the current mortgage rates are officially under 5% with purchase applications jumping 13.2% and refinance applications jumping a whopping 18.2% compared to the previous week’s results. Remember when we are quoting averages of mortgage interest rates, the average usually assumes there is .6 % of an origination point or fee involved.
Having historically low mortgage rates is always great news, but here are a few things to keep in mind concerning our current marketplace.
The current deadline on the $8000 homebuyer tax credit is Dec 1st, 2009. A spike in purchase applications might be a bubble due to the deadline of the homebuyer tax credit going away. Do I think our government will extend this credit? Yes When do I think they will extend this credit? November 30th. In my mind it wouldn’t make sense to extend the $8000 first time homebuyer tax credit prematurely otherwise it would only encourage buyers to go sit on the fence a little while longer. Personally, I would like to see Washington take this whole idea one step further. The Home Ownership Moves the Economy (HOME) Act of 2009, introduced by Howard Coble (R-NC) would continue the availability of the credit into 2010 and allow all home buyers to take advantage of the program. This would have a tremendous effect on places like Florida where for the first time in 60 years the state lost population rather than gained it. Why not provide the tax savings opportunity to other demographics of our population. I am sure many seniors who have owned homes for years would love to go find a bargain condo in Florida or similar places. They also would probably have the 20% necessary to get around some of the tough condo-commando ownership rules.
Refinance applications are back to the levels we had in May. I recall missing a few applications back then on that dreadful Thursday when mortgage rates jumped .25% in a day. Needless to say I have called those customers back. FHA customers should be looking at streamline refinances as well. The Home Affordable Refinance loans are still available until June of 2010.
These types of mortgage loans help homeowners who put their 20% down when they purchased or had existing equity when they refinanced and saw their values whither away. Customers can still do a rate/term refinance up to 105% of the value of their home without force placed lender mortgage insurance. Restrictions do apply but this is a great loan for good Fannie Mae/Freddie Mac customers. Homeowners who obtained their previous financing in the spring and summer of 2006 and 2007 and the end of 2008 should take a look at the above market pricing that they are paying.
One big difference between May 2009 and now is that we presently have some amazingly low adjustable rate mortgages as well. Adjustable rate mortgages have burst back on to the marketplace. Where you can go get a 30 fixed mortgage rate loans under 5% now, you can also go get a 5/1 ARM lower than 4%. This allows mortgage holders to capture huge savings in the short term. These loans are great for customers who are expecting a five year time frame or less in their existing homes. Adjustable rate mortgages can translate into even larger savings for Jumbo and Super Jumbo mortgage customers who typically are not offered a fixed rate.
These mortgage loans are calculated with low margins so we shouldn’t hear the horror stories associated with the sub-prime adjustable rate loans. When looking at this loan make sure you get a copy of the Federal “CHARM” booklet and study your Truth in Lending disclosure (TIL) to make sure you understand what you are signing. If you are an executive who gets transferred a lot or a senior getting ready to move to a new retirement place, this loan might be a good option for you.
Written by Preston Ware / First South Mortgage
Tel: 704-542-8057
* http://www.prestonware.com
Email is preston@prestonware.com.
