Status of Tax Credit

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.

First-Time Homebuyer Seminar plus Information on the 2009 Tax Credit

Blogging from the desk of Alicia Lagarde Craig:

Take advantage of our FREE Seminar & Learn all about the following:

- Home Ownership Benefits
- The Role of the Real Estate Agent
- Credit Criteria
- How the Credit Scoring System Works
- The Role of the Mortgage Professional
- How to take advantage of the 2009 Tax Credit and receive up to $8000 in FREE money!

Place:
Keller Williams Realty New Orleans
8601 Leake Avenue
New Orleans, LA 70118

Date:
Tuesday, October 6th, 2009

Time:
6pm-7:30pm

Presented by:
Alicia Lagarde Craig & Jeff Craig in affiliation with Keller Williams Realty New Orleans

Please RSVP to: alicialagarde@kw.com or jeffcraig@kw.com

If you have any questions, please call 504-862-4139.

We look forward to seeing you there!!!

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.

$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

First-Time Home Buyer $8000 Tax Credit (2009)

Blogging From The Desk of Alicia Lagarde-Craig

The recently passed American Recovery and Reinvestment Act, including the $8,000 tax credit for first-time buyers, presents an excellent opportunity for buyers ready to take advantage of today’s affordable market. Nonetheless, many first-time buyers might be unsure just exactly how the tax credit works or how it improves upon a similar credit offered last year.

I hope this blog will help you to understand the advantages of the $8,000 tax credit and capitalize on this financial incentive before it is no longer available. If you have any questions, please call Alicia at (504) 382-3724.

The American Recovery and Reinvestment Act of 2009 offers an $8,000 tax credit for first-time buyers who purchase a home on or after January 1, 2009 and before December 1, 2009.

Here are the specifics of the $8000 tax credit:

*The temporary credit is only available for home purchases made from January 1, 2009, but before December 1, 2009 and is equal to 10 percent of the cost of the home, up to a maximum credit of $8,000. (For example, a home purchased for $80,000 or more would qualify for the full $8,000 credit, while a $50,000 home would only qualify for 10 percent, or $5,000).

*Only first-time homebuyers can take advantage of the tax credit. A first-time buyer is defined under the tax credit as an individual who has not owned a home in the last three years. For married joint filers, both must meet the first-time homebuyer guidelines in order receive the tax credit when filing a joint return.

*There are income guidelines on the tax credit. Individuals with an adjusted gross income up to $75,000 (or $150,000 if filing jointly) are eligible for the full tax credit. The credit is phased down for those earning more and is not available for those with an income above $95,000 (or $170,000 if filing jointly).

*Buyers claim the credit on their federal income tax return to reduce their tax liability. If the credit is more than their total tax liability for that year, the buyer will get a refund check for the balance.

*Eligible properties include anything that will be used as a principal single-family residence. Single-family residences also including condos and townhouses.

*The new tax credit does not have to be repaid if the buyer stays in the home at least three years. But if the home is sold before that, the entire amount of the tax credit is recovered from the sale. People who purchased homes under the 2008 $7,500 tax credit program will still be required to repay that credit to the government over a 15-year period.

Send comments to AliciaLagarde@myNOLAhome.com