Because there seems to be alot of confusion regarding the extended 1st time home buyers tax credit along with the move up tax credit, I thought I would clarify some of the key points for both programs. It is important to note that I am not in the position to offer any tax advise or legal advise. Please consult with a real estate attorney, tax professional or loan officer to have all of your questions answered.
$8,000 First-time Home Buyer Tax Credit
The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
The tax credit does not have to be repaid.
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
The tax credit applies only to homes priced at $800,000 or less.
The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit
To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
The tax credit does not have to be repaid.
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $6,500.
The tax credit applies only to homes priced at $800,000 or less.
The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
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Saturday, November 21, 2009
Friday, November 20, 2009
Top 5 most common mistakes made when making an offer on a foreclosure
Have you ever wondered why banks will not talk to you?
Why your offers keep getting rejected?
Why you always seem to be the last one to find out about a great deal?
Why does it seem so hard to buy a foreclosure?
The answer to these questions as well as others could have something to do with the Realtor and Loan Officer you choose. I can't stress enough the importance of choosing the professionals that will be helping you before you start looking for a home. They should sit down with you and formulate a plan to help you get to were you ae going. You better believe some of your competition for that home you want has already done this. That puts them ahead of you right away.
Ask any REO listing agent that works exclusively listing forclosure homes and I bet they will tell you many times the reason a buyer does not get the home is related to these 5 common mistakes.
1) There is no time to waste when in a multiple offer situation. Highest price is not always the best offer. It goes back to being organized with all of the proper paper work ahead of time.
2) Incomplete and sloppy paper work. Many offers are submtted without meeting all of the bank requirements. It has to be submitted the first time complete. If it is missing information while the bank is waiting for it another offer that is complete could come along and that is the one the bank will work with. Banks are dealing with thousands of files and don't want to wait in some cases so they move on to the next.
3) Reading and understanding all of the supplements before you present your offer. You have to understand what you are signing before you sign it. It is never a bad idea to have a real estate attorney available to answer any of your legal questions.
4) You have to write a strong offer. What does that mean? Know the value of the home as well as the neighborhood. Be able to close quickly if necessessary and have any information that the bank requests ready and available for them. A lot of that will be answered by the pre-qualification letter your ender provides.
5) Earnest money. It is something of value given with the offer to show you are serious about buying the home. Put as much down as you can, it makes the ofer look stronger. You always have several outs to the contract so you can get it back if there is a problem as long as you stay within the wording of the agreement.
Foreclosures can be a great investment but to have a successful transaction my advice is learn all you can ahead of time.
Follow me on facebook - Tom Sommers Edina Realty Twitter - usearealtor
or any of my Web Sites:
www.tomsommers.com
www.allmnhomes.com
www.tomsommers.edinarealty.com
Why your offers keep getting rejected?
Why you always seem to be the last one to find out about a great deal?
Why does it seem so hard to buy a foreclosure?
The answer to these questions as well as others could have something to do with the Realtor and Loan Officer you choose. I can't stress enough the importance of choosing the professionals that will be helping you before you start looking for a home. They should sit down with you and formulate a plan to help you get to were you ae going. You better believe some of your competition for that home you want has already done this. That puts them ahead of you right away.
Ask any REO listing agent that works exclusively listing forclosure homes and I bet they will tell you many times the reason a buyer does not get the home is related to these 5 common mistakes.
1) There is no time to waste when in a multiple offer situation. Highest price is not always the best offer. It goes back to being organized with all of the proper paper work ahead of time.
2) Incomplete and sloppy paper work. Many offers are submtted without meeting all of the bank requirements. It has to be submitted the first time complete. If it is missing information while the bank is waiting for it another offer that is complete could come along and that is the one the bank will work with. Banks are dealing with thousands of files and don't want to wait in some cases so they move on to the next.
3) Reading and understanding all of the supplements before you present your offer. You have to understand what you are signing before you sign it. It is never a bad idea to have a real estate attorney available to answer any of your legal questions.
4) You have to write a strong offer. What does that mean? Know the value of the home as well as the neighborhood. Be able to close quickly if necessessary and have any information that the bank requests ready and available for them. A lot of that will be answered by the pre-qualification letter your ender provides.
5) Earnest money. It is something of value given with the offer to show you are serious about buying the home. Put as much down as you can, it makes the ofer look stronger. You always have several outs to the contract so you can get it back if there is a problem as long as you stay within the wording of the agreement.
Foreclosures can be a great investment but to have a successful transaction my advice is learn all you can ahead of time.
Follow me on facebook - Tom Sommers Edina Realty Twitter - usearealtor
or any of my Web Sites:
www.tomsommers.com
www.allmnhomes.com
www.tomsommers.edinarealty.com
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