Extended Tax Credit to More Buyers
Extended Home Buyers Tax Credit
The Extended Home Buyers Tax Credit offers current homeowners and first-time home buyers alike an incredible tax-saving opportunity when they buy a home through April 30, 2010. Here are the details:
First time buyers, who haven't owned a primary residence in the past three years, are eligible for a tax credit of 10 percent of a home's purchase price, up to a maximum of $8,000.
Current homeowners, who are vacating a principle residence that they have lived in for 5 of the past 8 years, are eligible for a tax credit of 10% of a home's purchase price, up to maximum of $6,500.
The following conditions apply:
- Full tax credit is available to buyers earning up to $125,000 a year, or $225,000 for married couples filing jointly
- Partial tax credit is available to buyers earning between $125,000 to $145,000, or for married couples earning between $225,000 to $245,000
- The tax credit is only awarded on homes purchased for $800,000, or less
- Under the rules, as long as a written binding purchase contract is in effect on April 30, 2010, the buyer has until July 1, 2010 to close
The tax credit is a dollar-for-dollar reduction in the buyers tax liability, and does not have to be paid back as long as the buyer remains in their home for three years or more. This is a once-in-a-lifetime offer to have Uncle Sam help you buy a house. Don't let this opportunity pass you by!
If this doesn't answer your questions: We have many ways to learn more about this Tax Credit. Search through the blog under stimulus package to find some simple Video's that help buyers evaluate if they can qualify. Feel free to contact me and I can go over this Tax Credit in more detail.
Posted at 06:05PM Dec 23, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
Statistics of Mortgages Underwater - You're not Alone!
Nearly One out of Every Two Mortgages- Underwater in Ohio
According to the Newest Information from CoreLogic Data, if your mortgage is underwater, your not alone. Data from Mortgage Bankers Association & CoreLogics is reporting a dramatic increase in negative equity and a need for Mortgage Loan & Foreclosure Reform.
Ohioians - Ohio joins California, Florida, New Jersey, Illinois and Arizona as the top states in the nation with the most number of properties either IN or approaching negative equity position, according to the report. Of the 2.2 million outstanding mortgages in Ohio, 45.6 percent - more than one million mortgages - are already underwater or close to it.
"In addition to the 7,000 or so foreclosures each month in Ohio, we have more than one million mortgages in a very fragile position,” said Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio, and an advocate for House Bill 3, foreclosure reform legislation. “A slight increase in unemployment could push tens of thousands more into the foreclosure pipeline. A million mortgages on the edge of crisis should push the Ohio Senate to make foreclosure reform the top priority.”
Contact your Representative. by zip code. Search for your Governor by state. Send your ideas: be it, short term mortgage adjustments, equity adjustments or extensions till Jobs are Created.
“With negative equity so high, a sustainable loan modification makes sense for everyone, including the owners of the mortgage.” said Faith. “For lenders, homeowners and communities in Ohio, HB 3 would turn losing into winning.”
A solution and plan needs to be inforced before every state joins the 1 out of 2 Mortgages on the negative equity list. Creative thinking is needed and your representatives need to hear your ideas and suggestions.
See Your States Mortgage Equity Statistics from Corelogic Data on page Three.
Posted at 05:59PM Dec 23, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
Home Buyers Tax Credit -Extended to Homeowners
Home Buyers Tax Credit is not just for First Time Home Buyers!
[Read More]Posted at 08:05PM Nov 08, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
Home Technologies
Despite the current economy and decline in the housing market, builders have not abandoned home technologies, according to new findings in the 7th Annual State of the Builder Technology Market Study released by the Consumer Electronics Association (CEA). The study found that a majority of builders remain committed to home technology and recognize its importance in marketing new homes. According to the CEA, consumer desire for electronics helped preserve builder revenue in the current housing market. Seven in ten builders (71 percent) report that technology helped them preserve home renovation revenue that might otherwise have declined this year because of the down economy – an increase of ten percentage points from last year. Read More of Peter Mosca's findings.
Read about New Construction, Building Smart and Building for Less
Posted at 05:57PM Aug 29, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
Concrete Home Cost Savings
Cost Savings when Building New
Save money on your home cooling and heating bills by building a concrete home. It also adds stability and appears like any other home. See more everything you need to know about Building a Concrete Home.
Many programs are in place for home energy savings. Contact the supplier, builder and your State Representative to see if this Energy Savings building methods qualifies for any tax incentives.
Posted at 05:55PM Aug 29, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
Figure your DTI Ratio
How to figure your DTI ratio!
Calculate your Debt to Income Ratio (DTI) so the lender & you have a better idea of what you can afford or if you qualify for loan modification. Convential Loans were typically set at 29/36 & FHA loans at 33/43. The front end ration represents your Mortgage, Insurance & taxes. The back end represents your total recurring monthly debt. Many lenders show a higher DTI number closer to 33/38.
Formula for DTI Ratio
Example of DTI 33/38 with Gross Income of $50,000.00 year
Yearly Gross Income = $50,000 / Divided by 12 = $4166.00 per month income.
$4166.00 Monthly Income x .33 = $1,374.78 allowed for Mortgage Expense.
$4166.00 Monthly Income x .38 = $1583.08 allowed for Recurring Debt.
If you make $50,000.00 a year you would qualify for a house payment w/taxes, insurance of $1364.78 a month. When recurring debt is at 38% which is $1583.00 a month.
Why you need to know your DTI ratio
Every lender uses this method to determine how much you can afford on a home mortgage. This is also used for those seeking loan modification and refinancing. Although each lender may allow a higher or lower percentage, they still want to know you have the income to make the payment at the rate they have set.
I already have a home, why do I need to know my DTI ratio?
Do the DTI Ratio at 33/38 and if you clearing fall short of the allowed Mortgage Expense (33%) you will be an excellent candidate for mortgage debt relief by negotiating a loan modification. There are many lenders that have programs in place to help homeowners refinance or modify the loan, even those homeowners underwater.
Your income will have to justify the new monthly payment at the banks rate of (ex.) 33% or you will be denied. See some examples of the ways lenders can lower your monthly payment at Hud. The banks are being offered government incentives now to refinance qualifing borrowers. Contact your bank to see if they have any programs in place to help you and if not, see Hud free counceling services to get a local advisor, they may be able to find you a bank that will refinance your loan under these new programs.
Posted at 08:16PM Jun 23, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
Are you Facing Foreclosure?
Are you facing forclosure?[Read More]
Posted at 07:40PM Jun 17, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
Tax Credit for Renewable Resources
Tax Credits for Renewable Resources
Government Incentives are available to help reduce the cost of renewable resources. This is available for business and homeowners to obtain many forms of clean energy from solar, thermal, wind and heating sources.
More incentives from the Department of Energy -In addition to federal tax incentives, some consumers will also be eligible for utility or state rebates, as well as state tax incentives for energy-efficient homes, vehicles and equipment. Each state’s energy office web site may have more information on specific state tax information.
Residential Renewable Energy Tax Credits
Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies.
There are so many available - See Department of Energy to start your search.
Posted at 09:39AM Jun 06, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
Tax Credit Update - Use as Downpayment
How to use the Tax Credit as Downpayment
As of May 29,2009 FHA/ Hud have made some advancements to allow home buyers to use the tax credit for closing cost or buy down interest. See the Details Here!
Separate from the above program, some state finance agencies have programs in place that will allow you to use this tax credit as a downpayment.
Posted at 09:11AM Jun 04, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
8,000 Tax Credit on Purchase
Do you understand the new Stimulus Bill?
Below you will find a great chart that simply goes over the new and old bill.
FIRST-TIME HOMEBUYER TAX CREDIT FEATURE CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 REVISED CREDIT ʹ EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 Amount of Credit Lesser of 10 percent of cost of home or $7500 Maximum credit amount increased to $8000 Eligible Property Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. No change All principal residences eligible. Refundable Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. No change Purchasers will continue to receive refund for unused amount when tax return is filed. Income Limit Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). No change Same income limits continue to apply. First-time Homebuyer Only zĞƐ͘__WƵƌĐŚĂƐĞƌ_;ĂŶĚ_ƉƵƌĐŚĂƐĞƌ͛Ɛ_ spouse) may not have owned a principal residence in 3 years previous to purchase. No change Still available for first-time purchasers only. Three-year rule continues to apply. Revenue Bond Financing No credit allowed if home financed with state/local bond funding. Purchasers who utilize revenue bond financing can use credit. Repayment Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. No repayment for purchases on or after January 1, 2009 and before December 1, 2009 Recapture If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
As Modified in the American Recovery and Reinvestment Act
New: Hud and some financial institutions have found create ways to make it possible to use this tax credit to buy down interest, closing cost and downpayment. A few lenders are making it possible to use this tax credit as a downpayment in the form of a second mortgage to be paid off when you receive the tax credit. The programs each one has in place will vary and very few banks are offering it, so see the link above or ask you bank if they have anything available.
Leverage your Tax Credit for Downpayment in Ohio.
Posted at 02:23PM May 18, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
Short Sale Alternative
Is Short Sale Right for you?
The Government is providing our Lenders with a lifeline to help homeowners stay in their
homes by offering an incentive program. They can now reface their image of not working with troubled mortgages and forcing homeowners to walk away.
That was then and this is now, things have changed. You may not know your lenders are now working with more homeowners to find betters solutions and are offering refinancing & modifications to more homeowners that have found themself in a difficult situation.
Resource to Answers - Worth the Time
Check out Making Homes Affordable on the Official Goverment page that is updated regularly.
Do you qualify for Refinancing, answer 4 questions.
Do you qualify for modification, answer 5 questions.
Other Resource Links to Answer your questions if you don't think you qualify. Click Here
I would be glad to help you if a Short Sale is Right for you!
Posted at 02:18PM May 18, 2009 by Victoria Luhring in Mortgage and Stimulus Money | Comments[0]
