Buy Now or Wait?
The $7,500 First-Time Home Buyer Tax Credit¹
for homes purchased April 9, 2008 - June 30, 2009
What is the First-Time Home Buyer Tax Credit?
The Tax Credit is part of the Housing and Economic Recovery Act of 2008, signed into
law on July 30, 2008. The intent of the tax credit is two fold:
• To provide a financial resource for home buyers in the year that they purchase a home
• To provide a stimulus to the housing market and the economy, helping to stabilize home
prices and increase home sales
The law provides a tax credit equal to ten percent of the qualified home
purchase price. The credit is capped at $7,500.
The credit is essentially an interest-free loan. Home buyers are required to repay the
credit to the government, without interest, over 15 years in equal installments or when
they sell the house.
Who is Eligible?²
• First-time home buyers, defined as a buyer who has not owned a principal
residence in the previous three years
• U.S. citizens who file tax returns
• Eligible properties include any single family home that will be used as a principal
residence (including condos and co-ops).
• To qualify, buyers must close on the sale of the home between April 9, 2008 and
June 30, 2009.
Income Limits
• The full $7,500 credit is available for individuals with modified adjusted gross
income (per IRS definition) of no more than $75,000 ($150,000 for couples filing jointly).
• A partial credit is available for individuals with modified adjusted gross income between
$75,000 and $95,000 (between $150,000 and $170,000 for couples filing jointly).
Is the Tax Credit “Refundable?”
• Yes. The credit reduces the income tax liability for the year of purchase.
• The credit can be claimed even if the taxpayer has little or no federal income tax
liability to offset. Typically this involves the government sending the taxpayer a check
for a portion or even all of the amount of the refundable tax credit.
Payback Provisions
• Home buyers claiming a $7,500 credit would repay the credit at $500 per year via
their tax returns. They do not have to begin repayments until two years after the credit
was claimed.
• If the home owner sells the home, the remaining credit would be due from the
profit of the home sale.
• If there is insufficient profit from the sale, the remaining credit payback would be forgiven.
Contact Julie Nellis, Long Realty, to assist you with your Tucson Real Estate needs. www.tucsonhouses4you.com or 520-918-3843
Showing posts with label Tucson Home Loans. Show all posts
Showing posts with label Tucson Home Loans. Show all posts
Thursday, February 5, 2009
World's Safest Banks
Global Finance Names The World’s Safest Banks
New York, 4 September 2008-
Global Finance magazine has released its annual ranking of the
World’s Safest Banks, which will be featured in the special October issue alongside several of the magazine’s renowned Best Bank awards.
The World’s Safest Banks were selected through a comparison of the long-term credit ratings and total assets of the 300 largest banks around the world. Ratings from Moody’s, Standard & Poor’s and Fitch were used.
This is the 16th year that Global Finance has published its list of the world’s largest banks ranked by their creditworthiness. The 10 banks at the top of the list are designated as the “World’s Safest Banks”.
These banks will be honored at an awards ceremony to be held in Washington D.C. on October 13th to coincide with the World Bank/IMF annual meeting.
“These banks have demonstrated an appropriately prudent approach to risk in
providing international financial services,” says Global Finance publisher, Joseph D. Giarraputo. “More than ever customers are viewing strong
credit quality as an important feature of the banks with which they do business.”
WORLD’S SAFEST BANKS
Groupe Caisse des Dépôts (CDC) France
Bank Nederlandse Gemeenten (BNG) Netherlands
Landwirtschaftliche Rentenbank Germany
Rabobank Netherlands
Landeskreditbank Baden-Wuerttemberg-Förderbank Germany
Lloyds TSB United Kingdom
BNP Paribas France
Dexia Belgium
NRW Bank Germany
WELLS FARGO (Long Mortgage loans funded & Backed by Wells Fargo) UNITED STATES
Contact Julie Nellis, Long Realty, for your Tucson area real estate needs. www.tucsonhouses4you.com or 520-918-3843
New York, 4 September 2008-
Global Finance magazine has released its annual ranking of the
World’s Safest Banks, which will be featured in the special October issue alongside several of the magazine’s renowned Best Bank awards.
The World’s Safest Banks were selected through a comparison of the long-term credit ratings and total assets of the 300 largest banks around the world. Ratings from Moody’s, Standard & Poor’s and Fitch were used.
This is the 16th year that Global Finance has published its list of the world’s largest banks ranked by their creditworthiness. The 10 banks at the top of the list are designated as the “World’s Safest Banks”.
These banks will be honored at an awards ceremony to be held in Washington D.C. on October 13th to coincide with the World Bank/IMF annual meeting.
“These banks have demonstrated an appropriately prudent approach to risk in
providing international financial services,” says Global Finance publisher, Joseph D. Giarraputo. “More than ever customers are viewing strong
credit quality as an important feature of the banks with which they do business.”
WORLD’S SAFEST BANKS
Groupe Caisse des Dépôts (CDC) France
Bank Nederlandse Gemeenten (BNG) Netherlands
Landwirtschaftliche Rentenbank Germany
Rabobank Netherlands
Landeskreditbank Baden-Wuerttemberg-Förderbank Germany
Lloyds TSB United Kingdom
BNP Paribas France
Dexia Belgium
NRW Bank Germany
WELLS FARGO (Long Mortgage loans funded & Backed by Wells Fargo) UNITED STATES
Contact Julie Nellis, Long Realty, for your Tucson area real estate needs. www.tucsonhouses4you.com or 520-918-3843
Saturday, January 24, 2009
Home Buyer Tax Credit
Home Buyer Tax Credit: How It Works?
By Dale Martin
CAMDEN AND ROCKLAND (Dec 29): First-time homebuyers in 2008 can take an income-tax credit on their purchase, thanks to passage in Congress earlier this year of the first-time home buyer tax credit.
The definition of first-time homebuyer is generous. To get the credit, the homebuyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.
The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify.
If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.
The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit
Homebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven.
[Editor's Note: The credit is set to expire in mid-2009, although industry groups, including the NATIONAL ASSOCIATION OF REALTORS®, are encouraging Congress to extend it. NAR is also encouraging Congress to make the credit available to all buyers and to eliminate the repayment requirement. More detail on how the credit works is available from NAR on REALTOR.org.]
Source: Chicago Tribune, Mary Umberger (12/28/2008)
By Dale Martin
CAMDEN AND ROCKLAND (Dec 29): First-time homebuyers in 2008 can take an income-tax credit on their purchase, thanks to passage in Congress earlier this year of the first-time home buyer tax credit.
The definition of first-time homebuyer is generous. To get the credit, the homebuyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.
The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify.
If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.
The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit
Homebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven.
[Editor's Note: The credit is set to expire in mid-2009, although industry groups, including the NATIONAL ASSOCIATION OF REALTORS®, are encouraging Congress to extend it. NAR is also encouraging Congress to make the credit available to all buyers and to eliminate the repayment requirement. More detail on how the credit works is available from NAR on REALTOR.org.]
Source: Chicago Tribune, Mary Umberger (12/28/2008)
Friday, July 18, 2008
FHA Down Payment Grants
AmeriDream ProgramAmeriDream is a non-profit organization dedicated to helping people find affordable housing. Part of the AmeriDream mission is to help low and moderate income families buy homes by offering down payment assistance. Buyers who are qualified for an FHA loan but don't have the money for down payment and/or closing costs are eligible to apply for AmeriDream down payment assistance:
*A down payment gift of up to 10% (typically 3%-6%) of the purchase price.
*A true gift-the down payment assistance is not repaid by the home buyer
*Home buyer must have an approved FHA home loan or pre-approved FHA loan.
To participate in the AmeriDream down payment assistance program, buyers should;
*Get pre-approved for an FHA mortgage and start looking for a home.
*Make an offer on the home you want to buy and get a ratified contract.
*Your loan officer applies for the AmeriDream down payment assistance program on your behalf.
*You will receive a "Notice of Gift Approval" from AmeriDream.
*Close the deal on your new home.
The seller must participate in the AmeriDream program, but your loan officer can assist a seller in signing up for the program by showing where and how to apply. For your home buying needs, the loan officer will handle your application for AmeriDream down payment assistance, but may require additional information from you to help fill out the form. AmeriDream is just one of many organizations offering down payment assistance to those with FHA approved home loans. If you have been pre-approved for an FHA mortgage loan but don't meet the income requirements for the AmeriDream program, keep looking. There are several down payment assistance programs with no income requirements or restrictions.
Down payment assistance programs generally require the seller to pay a fee to participate. This fee is considered a payment for services rendered and not a tax-deductible charitable contribution. http://www.fha.com/program_ameridream.cfm
To see if you qualify for the Ameridream Program, contact Tony Poe with Long Mortgage, 520-918-1651 or e-mail tonyp@longmortgage.com Tony can help you find the right loan program for you.
For more on Tucson Real Estate call Julie Nellis, Long Realty at 520-918-3843 or go to www.tucsonhouses4you.com
Julie can assist you in finding the home of your dreams or help you sell your home so you can follow your dreams.
AmeriDream ProgramAmeriDream is a non-profit organization dedicated to helping people find affordable housing. Part of the AmeriDream mission is to help low and moderate income families buy homes by offering down payment assistance. Buyers who are qualified for an FHA loan but don't have the money for down payment and/or closing costs are eligible to apply for AmeriDream down payment assistance:
*A down payment gift of up to 10% (typically 3%-6%) of the purchase price.
*A true gift-the down payment assistance is not repaid by the home buyer
*Home buyer must have an approved FHA home loan or pre-approved FHA loan.
To participate in the AmeriDream down payment assistance program, buyers should;
*Get pre-approved for an FHA mortgage and start looking for a home.
*Make an offer on the home you want to buy and get a ratified contract.
*Your loan officer applies for the AmeriDream down payment assistance program on your behalf.
*You will receive a "Notice of Gift Approval" from AmeriDream.
*Close the deal on your new home.
The seller must participate in the AmeriDream program, but your loan officer can assist a seller in signing up for the program by showing where and how to apply. For your home buying needs, the loan officer will handle your application for AmeriDream down payment assistance, but may require additional information from you to help fill out the form. AmeriDream is just one of many organizations offering down payment assistance to those with FHA approved home loans. If you have been pre-approved for an FHA mortgage loan but don't meet the income requirements for the AmeriDream program, keep looking. There are several down payment assistance programs with no income requirements or restrictions.
Down payment assistance programs generally require the seller to pay a fee to participate. This fee is considered a payment for services rendered and not a tax-deductible charitable contribution. http://www.fha.com/program_ameridream.cfm
To see if you qualify for the Ameridream Program, contact Tony Poe with Long Mortgage, 520-918-1651 or e-mail tonyp@longmortgage.com Tony can help you find the right loan program for you.
For more on Tucson Real Estate call Julie Nellis, Long Realty at 520-918-3843 or go to www.tucsonhouses4you.com
Julie can assist you in finding the home of your dreams or help you sell your home so you can follow your dreams.
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