Port Charlotte Florida Real Estate » Real Estate

Tax Credit Can Be Used for Down Payment

taz — Thu, 14 May 2009 14:06:31 +0000

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn’t receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at “The Real Estate Summit: Advancing the U.S. Economy,” at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

2009 First-Time Home Buyer Tax Credit

taz — Tue, 12 May 2009 00:56:27 +0000

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 legislation that grants a tax credit of up to $8,000 to first-time home buyers

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

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.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum 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 $75,000 and $95,000 for single buyers and between $150,000 and $170,000 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 $95,000 for singles and over $170,000 for couples are not eligible for the credit.

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 the three-year period, the credit will be recouped on the sale.

Beware of Losing Your Home with a Failed Home Equity Consolidation.

taz — Mon, 05 Jan 2009 02:11:38 +0000

No one likes to deal with credit cards and the resultant high interest rates that many of these cards yield so people will look for options to deal with excess debt. One of the best ways to do this is to take out a home equity bill consolidation loan as these loans come with much lower interest rates than the credit cards. Of course, that brings up the question as to why these loans have lower interest rates. It is because, of course, one’s put up his home as collateral. Now, it should go without saying here that this could become a potentially dangerous position for an individual who does not take proper fiscal responsibility once the loan is executed. After all, a disaster in this avenue could lead to a person losing his home.

If there ever was a sage piece of advice that could be given in regards to this particular business venture it would be that once the balances of the credit cards are at zero then the cards should never be touched again. Once the home equity loan option has been utilized the need for immediate financial responsibility should be enacted or else the results could be cataclysmic. Keep in mind if debt skyrockets out of control once again and the inability to pay becomes a reality then the home may very well be foreclosed upon. Needless to say, this would be a disastrous situation so the use of a home equity loan should be done to facilitate a new leaf as opposed to the furtherance of bad habits.

Home Inspections and their Value

taz — Sat, 20 Dec 2008 17:40:31 +0000

There are a variety of qualified and talented individuals who have the ability to offer comprehensive and accurate home inspections, but many home owners do not take advantage of their service. Part of the reason for this is that they do not see the inherent value in having a home inspected. This is somewhat understandable as most people are not familiar with the positives associated with a home inspection and this is why the benefits need to be pointed out.

When a home inspection is performed the flaws that may be present in the home can be brought to the attention of the homeowner with the notion that the homeowner will now take appropriate steps to correct the flaws. Of course, this is not done merely for cosmetic reasons as isolating problem areas in the home and then fixing those problems will inherently increase the value of a home. After all, if it is suggested that the home have new siding put on it, the new siding will make the home far more marketable than it would have been without the siding. As such, the sale value of the home will increase and, hopefully, it will increase dramatically.

The purpose of a home inspection is not merely to satiate curiosity (although there is nothing wrong with that), but to maintain the maximum value of the home. Real estate is, of course, equity and it is always better to maximize that equity than see it decrease due to benign neglect of oversight.