Tax Credit for 1st-time Buyers Extended!!!

Tax Credit for Homebuyers




First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.



Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.



Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.



Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.



What are the New Deadlines?



In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.



Tax Credit Versus Tax Deduction



It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.



Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!



Higher Income Caps



The amount of income someone can earn and qualify for the full amount of the credit has been increased.



Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible



Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.



Maximum Purchase Price



Qualifying buyers may purchase a property with a maximum sale price of $800,000.



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Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.

jeff@somloans.com
http://www.somloans.com/
http://www.southernoaksmortgage.com/
http://www.loanmanjeff.com/
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New $10,000 Tax Credit for New Home Buyers in California

California lawmakers approved a new budget that included a $10,000 tax credit for home buyers, the largest home-buyer incentive ever offered in US history to date. Here's what you need to know. The $10,000 tax credit is for any home buyers that purchase a new home between March 1, 2009 and March 1, 2010.
This is NOT limited to first-time buyers;
There is NO income limitation; and most importantly
You do NOT have to pay it back, as long as you remain in the home for 2 years.
The bill, however, only set aside $100 million for this tax credit, so after 10,000 new homes are purchased, the credit is gone – so don't wait. The credit CAN be utilized along with the new $8,000 first-time home buyer's credit made available by the new Stimulus Plan. This means that if you're a first-time home buyer, and you purchase a qualified new home in California that costs more than $200,000, you'll get $18,000 in tax credits that you do not have to pay back, if you're a first-time home buyer and you purchase a new home that remains your primary residence for three years.It's important to note that qualified home buyers will receive the tax credit, in equal amounts, over 3-years. If your tax credit is $7,500, you will receive a tax credit of $2,500 each year for three years. If your tax credit is $10,000, you will receive a tax credit of $3,333.33 each year for three years. Finally, there is no down payment requirement to receive the $10,000 tax credit, although you will likely have a down payment requirement to secure a mortgage in today's market, at least 3.5% if you use FHA financing. The good news is the Stimulus Plan also restored the higher maximum loan limits of $729,750 for FHA and conventional loans for 2009. This is largest home buyer tax credit ever offered in US history, let alone California. If you have even been thinking about buying a new home in California, give us a call before it's too late. Don't miss out on this great opportunity to buy the new home of your dreams.

Sincerely,

Jeff Eisenberg

Southern Oaks Mortgage, Inc.

661.964.2600

jeff@southernoaksmortgage.com

http://www.somloans.com/

http://www.loanmanjeff.com/

HR 3221 Bill Provisions - Finally here!

FHA changes - no more down payment assistance programs allowed after Sept. 30th 2008. The FHA minimum down payment is increasing to 3.5% from 3%. First-time buyers will be eligible for a $7,500 tax credit if they purchased a home on or after 4/9/2008 or if they purchase one before July 1, 2009. There are income limitations to this. Call me for details. Conforming Jumbo loan limits will decrease from $729,750 to $625,500 as of Jan. 1, 2009.
Conforming loans will remain at $417,000 or below. This bill will help homeowners who are upside down on their homes, but the mortgages must have been originated prior to Jan. 1, 2008. Criteria is: 1) Borrower must not have defaulted intentionally and 2) Borrower must have had a debt-to-income ratio over 31% as of March 2008. The Lienholder will work with borrower to write down the mortgage to no more than 90% of the appraised value. There are some stipulations however, so call me to find out. They are going to instill a SAFE Mortgage Licensing Act, which will be a nationwide licensing and registry system.