Blogging From The Desk of Alicia Lagarde-Craig
Status of Tax Credit: Getting Closer
While a final deal was not reached, there were encouraging signs that a deal is very likely. It is more a question of “when” than “if”.
The proposed deal (which is still subject to change) would extend the tax credit until April 30,2010 and also expand it to “move up” borrowers.
Details of the revised homebuyer credit reportedly are as follows:
• Credit is changed to 10% of sales price up to $7290
• For first time homebuyers, the income level to qualify is $ 75,000/150,000.
• For “move up” buyers the income level to qualify is $ 125,000/250,000.
• For “move up” buyers, they must have been residing in their primary residence for 5 years.
• The credit runs from Dec. 1, 2009 to April 30, 2010.
Sales contracts signed as of April 30, 2010 would have 60 days to close.
Showing posts with label $8000 Tax Credit. Show all posts
Showing posts with label $8000 Tax Credit. Show all posts
Wednesday, October 28, 2009
Thursday, August 13, 2009
First Time Homebuyers $8000 Tax Credit
Blogging From The Desk of Alicia Lagarde-Craig
We’ve been hearing a lot of questions about the new tax credit. Who qualifies? How does it work? How long will it last? We’re going to take an in-depth look at the $8,000 tax credit for first time home buyers.
According to the new legislation, a first time home buyer is defined as someone who has not owned a principle residence in the past three years. Those three years are counted up to the date you take possession of the house you buy in 2009. This means that even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t purchased a primary residence since (August) 2006.
The same goes for married tax payers – they must both be first time home buyers. For non-married joint buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence in the past three years.
Qualifying homes include:
* New homes
* Homes that are being re-sold
* Condos
* Townhomes
The main restriction is that the credit is only for those who buy a home as their primary residence. So investors looking to buy a rental property would not qualify for the credit. However owning a vacation home or a rental property already does not necessarily disqualify you from taking advantage of the credit (as long as you haven’t owned a primary residence in the past three years).
A Look at the Numbers
The tax credit is equal to 10% of the purchase price of the home, up to $8,000. The amount of the credit you can qualify for is related to how much money you earn. Here’s how the credit is scaled:
* Single home buyers earning 95K or less qualify. If you make 75K or less, you qualify for 100% of the $8000. If you make halfway, 85K, you qualify for 50% or $4000. The credit phases out gradually between 75K and 95K of income. For example, if you make halfway between the income limits, 85K, you qualify for up to half of the credit.
* The same rate applies for married couples and joint buyers whose incomes limits are doubled to $150,000 to $170,000. Married couples or joint buyers whose incomes are less would receive the full $8000 credit. At an income level of $160,000, halfway between 150 and 170, the buyers would receive half the credit – or $4,000. And the credit phases out altogether at $170,000.
This credit represent a significant amount of money. One of the biggest points of difference for the new credit from the one congress passed in July of 2008, is that the new credit does not have to be paid back.
In addition, it’s refundable, which means that if you’ve paid all your taxes as you go with an automatic payroll deduction, you would receive an $8,000 check from the IRS.
If you’re committed to buying a house in 2009 and want to use the $8000 tax credit for a down payment, consult with your REALTOR and/or Certified Public Accountant.
In Closing
Qualifying home buyers will need to make their home purchase between January 1, 2009 and December 1, 2009. And the home has to remain their principal residence for the following three years.
The new tax credit coupled with historically low mortgage rates and rising affordability, offers buyers a great opportunity if they act fast.
08/13/2009. Agent is licensed in the State of Louisiana, USA.
We’ve been hearing a lot of questions about the new tax credit. Who qualifies? How does it work? How long will it last? We’re going to take an in-depth look at the $8,000 tax credit for first time home buyers.
According to the new legislation, a first time home buyer is defined as someone who has not owned a principle residence in the past three years. Those three years are counted up to the date you take possession of the house you buy in 2009. This means that even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t purchased a primary residence since (August) 2006.
The same goes for married tax payers – they must both be first time home buyers. For non-married joint buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence in the past three years.
Qualifying homes include:
* New homes
* Homes that are being re-sold
* Condos
* Townhomes
The main restriction is that the credit is only for those who buy a home as their primary residence. So investors looking to buy a rental property would not qualify for the credit. However owning a vacation home or a rental property already does not necessarily disqualify you from taking advantage of the credit (as long as you haven’t owned a primary residence in the past three years).
A Look at the Numbers
The tax credit is equal to 10% of the purchase price of the home, up to $8,000. The amount of the credit you can qualify for is related to how much money you earn. Here’s how the credit is scaled:
* Single home buyers earning 95K or less qualify. If you make 75K or less, you qualify for 100% of the $8000. If you make halfway, 85K, you qualify for 50% or $4000. The credit phases out gradually between 75K and 95K of income. For example, if you make halfway between the income limits, 85K, you qualify for up to half of the credit.
* The same rate applies for married couples and joint buyers whose incomes limits are doubled to $150,000 to $170,000. Married couples or joint buyers whose incomes are less would receive the full $8000 credit. At an income level of $160,000, halfway between 150 and 170, the buyers would receive half the credit – or $4,000. And the credit phases out altogether at $170,000.
This credit represent a significant amount of money. One of the biggest points of difference for the new credit from the one congress passed in July of 2008, is that the new credit does not have to be paid back.
In addition, it’s refundable, which means that if you’ve paid all your taxes as you go with an automatic payroll deduction, you would receive an $8,000 check from the IRS.
If you’re committed to buying a house in 2009 and want to use the $8000 tax credit for a down payment, consult with your REALTOR and/or Certified Public Accountant.
In Closing
Qualifying home buyers will need to make their home purchase between January 1, 2009 and December 1, 2009. And the home has to remain their principal residence for the following three years.
The new tax credit coupled with historically low mortgage rates and rising affordability, offers buyers a great opportunity if they act fast.
08/13/2009. Agent is licensed in the State of Louisiana, USA.
Sunday, June 14, 2009
First Time Home Buyers Class
Blogging From The Desk of Alicia Lagarde-Craig
Attention First Time Homebuyers:
Make Plans to attend a FREE FIRST TIME HOME BUYERS CLASS (Pre-Registration is REQUIRED to attend)
Take advantage of this educational event hosted by Keller Williams Realty New Orleans, America’s 3rd largest and fastest-growing real estate company! This is a fabulous opportunity to have all your questions answered. Learn all the steps to the home buying process including: how to make your best offer and pitfalls to avoid that will save you time and money!
FIRST THREE REGISTRANTS WILL RECEIVE A FREE COPY OF THE
Event Time & Location:
Keller Williams Realty New
Seating is Limited, Register Today
(Pre-Registration is REQUIRED):
Call The Craigs For Real Estate
Call Alicia Lagarde Craig at (504) 382-3724 or email your contact information to alicialagarde@kw.com (put “homebuyer class” in subject line)
Keller Williams Realty New Orleans, each office independently owned and operated. Alicia Lagarde Craig, agent licensed in the State of
Friday, May 29, 2009
$8000 Tax Credit- Updated Guidelines 5.29.2009
Blogging From The Desk of Alicia Lagarde-Craig
Thousands of first-time homebuyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit that was designed to boost the battered U.S. housing market.
The Federal Housing Administration on Friday released details of a plan in which borrowers who use FHA loans can get advances from lenders that effectively let them receive the credit before they complete their taxes.
The FHA had no estimate of how many borrowers would qualify. But the agency, which backs about a quarter of new home loans, is projected to guarantee about 2.2 million loans in the next budget year.
Borrowers can claim the credit by filing an amended 2008 tax return or can wait for their 2009 return.
The change "will present an enormous benefit for communities struggling to deal with an oversupply of housing," Housing Secretary Shaun Donovan said in a statement.
Borrowers will still have to come up with the FHA's required 3.5 percent down payment, unless they work through a state or local housing program. But officials say the money can still be used for closing costs or a larger down payment.
The tax credit was included in the economic stimulus package signed by President Barack Obama in February.
Send all questions to: AliciaLagarde@kw.com
Thousands of first-time homebuyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit that was designed to boost the battered U.S. housing market.
The Federal Housing Administration on Friday released details of a plan in which borrowers who use FHA loans can get advances from lenders that effectively let them receive the credit before they complete their taxes.
The FHA had no estimate of how many borrowers would qualify. But the agency, which backs about a quarter of new home loans, is projected to guarantee about 2.2 million loans in the next budget year.
Borrowers can claim the credit by filing an amended 2008 tax return or can wait for their 2009 return.
The change "will present an enormous benefit for communities struggling to deal with an oversupply of housing," Housing Secretary Shaun Donovan said in a statement.
Borrowers will still have to come up with the FHA's required 3.5 percent down payment, unless they work through a state or local housing program. But officials say the money can still be used for closing costs or a larger down payment.
The tax credit was included in the economic stimulus package signed by President Barack Obama in February.
Send all questions to: AliciaLagarde@kw.com
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