First Time Home Buyer Credit

It’s still a good time to purchase a home… why might you say? In some parts of the state things just seem upside down and certain counties/cities have been hit hard with the housing market decline. However, there is good news in sight. Legislators and Congress have been working very diligently to ensure that the First Time Homebuyer Credit was extended and expanded. The tax credit is available to First Time Homebuyers and Current Homeowners.

It seems that good things are in store even though we are the last two months of 2009. I believe that this credit isn’t something that we will see on the ballet always or permanently in the tax code but it is definitely something that is needed in order to continue to stimulate and jump start the housing market. Especially, since sales historically are sometimes somewhat slower during this season.

A first time homebuyer credit is for all contracts entered into agreement before or on April 30, 2010 and close no later than June 30, 2010. The credit is for 10% of the purchase price up to a maximum available credit of $8,000.

There is also a tax credit program available for those who already own a residence but decide to move to another primary residence. What a great incentive to make a move…The tax credit is up to $6,500 for qualified purchasers who have owned or occupied a residence for a period of five consecutive years during the last eight years. The deadline for this credit is the same as the First Time Homebuyer Credit. In order to qualify for the credit you must enter into a contract on or before April 30, 2010 and it must close before June 30, 2010.

So how do I go about applying for this credit and how can I be sure that I am receiving accurate information? My advice is always to seek a professional in the business. Real Estate professionals can provide you the information but as the consumer you still need to verify with a tax consultant or you can also refer to the link on the IRS website below:

http://www.irs.gov/newsroom/article/0,,id=187935,00.html

Good Luck and happy house hunting. Stay tuned for next month’s tip!!

It seems to be a good market to purchase a foreclosed home. Or you may say, it sounds good…”I am in the market to purchase a Foreclosed home.” I want to get a steal of a deal and take advantage of this market but how do I do it? Or possibly you have found that the process is quite daunting and grueling at times due to the research involved and the competition.
Purchasing a foreclosed home is highly desirable in this market climate and you are most likely finding that there is a lot of competition out there. It is not uncommon in the current market to find investors out there who are gobbling up foreclosed homes. However, do not despair it is possible and opportunities do exist granted you do some basic steps when searching for a home.

Here are some tips when purchasing a foreclosed home:

• There are agents who the banks have hired who specialize in foreclosed homes. Search for an agent who is dedicated and specializes in foreclosed homes. As you probably already know there is a lot of research and investigation that goes on in order to find the right property.

• Since, there is a lot of competition in purchasing a foreclosed home so it’s important to do your homework as a buyer. Get yourself pre-approved for your home loan. Make sure your lender gives you documentation that you are pre-approved for a home loan and the amount. Also, have your down payment money ready.

It is important to understand that when you are purchasing a foreclosed home you are not purchasing a home from a traditional seller. The bank has acquired the property because the previous owner has defaulted on their loan; therefore, the bank considers this property to be a liability or in other words a cost to them. The bank is motivated and wants to sell this property right away. However, it’s important to note the banks have certain ways of handling the sale of the property.

Tune in for next months tip!