4 minute VIDEO to explain new tax credit law.
November 16, 2009
Home Prices will Rise in 2010
Realtors see 4% rise in home prices in ‘10
SAN DIEGO – Home prices are expected to grow modestly next year and sales will keep rising as the housing market continues to recover from the worst downturn since the Great Depression, the National Association of Realtors said Friday.
Home resales are projected to total 5.7 million next year, up from an estimated 5 million this year. Prices will climb about 4 percent after a projected decline of 13 percent this year, according to Lawrence Yun, chief economist for the trade association.
“Going into 2010, I anticipate that prices will also begin stabilizing or begin to modestly improve,” Yun told the audience at the association’s annual conference and expo in San Diego.
Buyers can claim the $8000 tax credit if they sign a contract by April 30, 2010 and close the deal by the end of June. Lawmakers also expanded the program to include a $6,500 credit for existing homeowners who have lived in their current residence for at least five years
November 11, 2009
Home Buyer Tax Credit Explained
Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040 800-829-1040.
Latest news:
Tax Credit Extension a Positive Step Toward Real Estate Recovery (Nov.5)
President’s Podcast: Tax Credit Extended (Nov. 5)
Who Qualifies for the Extended Credit?
- First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
- Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
How is a Buyer’s Credit Amount Determined?
Each home buyer’s tax credit is determined by tow additional factors:
- The price of the home.
- The buyer’s income.
Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
The Basics: Extended Home Buyer Tax Credit
How to Get: Extended Home Buyer Tax Credit
2009 First-Time Home Buyer Tax Credit
How to Get: 2009 First-Time Home Buyer Tax Credit
Getting the Credit
How to Get the Extended Home Buyer Tax Credit
Applying the Credit to Your 2009 or 2010 Return
Determining Your Credit Amount: Form 5405
Bridge Loans: How to Get the Credit Upfront
NAR Tax Credit Resources
Tax Credit Comparison Chart (PDF: 455K)
Home Buyer Tax Credit FAQ (PDF: 596K)
President’s Podcast: Tax Credit Expanded and Extended
Tax Credit as Down Payment on FHA Mortgage Flyer (PDF: 220K)
Related NAR Information
October 20, 2009
Real ways to Help Buyers finance their home
Art’s Buyers blog is for providing the latest and most useful informaion on Buyer Finance. I have learned through numerous finance classes and seminars, how to help buyers lower their monthly mortgage payments with the seller’s help, improve their credit standing, find the money for down payment and even lower the down payment to purchase a home and much more.
By the way, I’ve been a full time realtor for 10 years and have had 30 years of business experience at the executive level prior to this. Recently I felt it was time (in this economy) to actively help buyers finance their home.
A home seller would be more willing to help a buyer lower their monthly payment by chipping in monetarily rather than reducing the price of their house. You, the buyer, will actually gain more from lower interest rates than a price reduction. You can now pay $100 to $500 less a month on your payments. Transalte that savings over a 30 year loan; for $100 month you save $36,000 over the life of the loan and for $500 a month you save $180,000. Now isn’t that better than getting a $10,000 or $20,000 reduction in the sales price???
I invite you to ask me how this is done. It’s easier to verbally explain the details of a “buydown” than type the explanation here. IIIIII do not charge for this service because I do want to help people get a home and financing always seems to be the big obstacle.
The finance techniques I use have been part of mortgage options for over 20 years and most mortgage lenders know them but hardly use them because the buyer’s realtor has to ask the seller to agree. It’s unfortunate that few realtors know these laws or advise their clients about them.
In the public’s eye house price reduction appears to be the only way to help a buyer…… –it’s definitely not!
October 20, 2009
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