Attention all Home Owners and Potential Home Buyers

It’s a perfect time to make a great investment!

In November, Congress extended the tax credit for first time home buyers.

Who is eligible to claim the $8,000 tax credit?
First-time home buyers purchasing any kind of home—new or resale— to be used as a principal residence costing $800,000 or less are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2010, be under contract on or before April 30, 2010 and close before June 30, 2010.

What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

Are there any income limits for claiming the tax credit?
The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. Single or head-of-household taxpayers with income between $125,000-$145,000 and joint filers between $225,000-$245,000 qualify for reduced credits.

Is this a loan?
No, the tax credit does not need to be repaid as long as you continue to own the home for a minimum of 3 years.

There is a special deadline for people serving in the Military: The deadline has been extended until June 30, 2011 for members of military who have served outside the United States for at least 90 days between January 1, 2009 and May 1, 2010.

If you are a current homeowner, you don’t have to be left out.

As part of the new legislation, there is a tax credit of up to $6500 for ‘move-up’ buyers. Those are buyers who have owned their current home for at least 5 of the 8 previous years. The same restrictions apply regarding the date that the transaction must be completed by.

With mortgage rates and home prices still low, there's never been a better time to buy a house.

**As a full-time Realtor, I am part of an organization called Leading Real Estate Companies of the World, a global network of nearly 700 premier real estate firms with 5,500 offices and 170,000 sales associates in 38 countries around the world. If you are considering a move or a purchas of a home and need some assistance or just have some basic real estate questions, let me know. I'd be happy to refer you to an agent in your area or answer your questions.**

I Hope They Are Listening

Today's post might be a little boring (maybe they all are, I dunno) but sometimes I have to do some business.....or bidness as a friend used to say.

Chances are you have read recently about the bill before Congress to extend the First-Time Home Buyers Credit. Part of the American Recovery and Reinvestment Act of 2009, this opportunity may be gone very soon.

The $8,000 tax credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009, and is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

Some people have said that stimulus money given out since the beginning of the year has caused problems in the economy. As a full-time Realtor for the last ten years, I can assure you that the $8,000 first-time homebuyer tax credit has definitely been a success. Homebuyer interest and housing sales increased almost as soon the availability of this program became news. Today's lower prices and interest rates appeal to consumers, but it's been the tax credit that has attracted people to open houses and to homeownership. Demand from first-time homebuyers helped drive a 9.4% increase in sales of existing homes from August to September according to the National Association of Realtors, continuing a trend of increasing sales in five out of the last six months.

This tax incentive is a true tax credit. The $8,000 home buyer tax credit is tangible cash, not a deduction from taxable income. This is not a loan and does not have to be repaid as long as you live in the house for the next three years.

A ‘first-time home buyer’ is defined as someone who has not owned a home in the last three years. There are other restrictions in the qualifications such as income caps, and the home must be your principal residence.

I explain to people that this program has had a ‘trickle up’ effect. Home owners in the lower-priced market have been able to sell to buyers eligible for this credit which has given those sellers the opportunity to move up into more expensive homes. In my business in 2009, 40% of my transactions have involved buyers who qualify for and intend to apply for this credit. Some of those people were:

A woman in her mid-50’s getting back into home ownership after being divorced several years earlier. Her mortgage and condo fees were less than what she had been paying for rent.

A 42-year-old electrician who was buying his first home after having recovered from credit problems.

A young couple and their two-year-old daughter who have been living with extended family whose own home was facing foreclosure.

A couple in their late 50’s who had sold their home years earlier and planned to move South but who bought a two-family house with their son who has 4 children. The grandparents were already helping with the childcare so now three generations are living under one roof and will split the tax credit.

These are just four of many transactions I’ve been part of where the tax credit will be applied for. As the November 30th deadline looms I have seen a slump in my buyers’ activity. It’s close to being too late to enter into a sales agreement with any hope of closing by that date.

Uncertainty about the future of the credit will dampen consumer demand nationwide. There’s a strong lobby in Washington among realtors, lenders and builders urging Congress to extend this opportunity. The progress that has been made in the recovery of the real estate market could grind to a halt unless Congress acts now to extend the credit through 2010. Let’s hope they are listening!

Some GOOD News About the Real Estate Market

Calling all first-time home buyers!!


Would you or someone you know like to purchase a home in the next 6 months? Well, if you haven't owned a house in the last three years and meet certain criteria, this may be your year to become a homeowner!

Chances are you have heard about the First-Time Home Buyer Tax Credit which is part of the American Recovery and Reinvestment Act created in July of 2008. Revised earlier this year, it provides a maximum credit amount of $8000 to purchasers who qualify. This is not a loan; as long as you live in the house for three years, it doesn't have to be paid back; basically it's a GIFT. Only single family residences (including condos) qualify. Purchases of multi-family houses, even if owner-occupied, are not eligible. Only applicable to homes purchased between January 1, 2009, and December 1, 2009, there are a few rules.

1. Purchasers must have an adjusted gross income of no more than $75,000 for individuals, $150,000 on a joint return.
2. Purchaser and spouse may not have owned a house in the 3 years previous to the purchase.
3. If the home is sold within three years of purchase the whole amount of the credit must be repaid at closing.

Home prices are at the lowest they have been in years. There are many great opportunities out there. If you would like to find out if you qualify for a mortgage and the First-Time Home Buyer Tax Credit, give me a call or send me a message and I'll give you a referral to a lender who can answer all your questions. And if you need help finding your home, let me know! It's an exciting time to be a home buyer.

Note: I am a licensed Realtor in Rhode Island & Massachusetts. Even if you are not looking for a home in my area, please call me. I am part of Leading Real Estate Companies of the World, the premier real estate network providing service nationally and internationally. I would love to give you a referral to a qualified, professional Realtor in your area!

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