Real Estate by AnnaMaria Andriotis (Author Archive)
Why You Should Buy That Home Now
The Obama administration's proposals this morning to extricate the government from mortgage lending sounded the death knell for Freddie Mac and Fannie Mae. They weren't good news for homebuyers, either. In the proposals were changes that will mean more expensive mortgages, with higher fees and, probably, higher interest rates, larger down payments and, in the near term, fewer lenders to choose from.
No Money Down? Not Anymore
As housing prices drop, mortgage lenders are requiring larger downpayments on homes. Kelsey Hubbard talks to WSJ's Mitra Kalita about what the changes mean for consumers. ( Watch video .)
The changes aren't effective immediately, and, some, if passed by Congress, won't go into effect for several years. Even so, they pose a dilemma for today's would-be homebuyers: loans are cheaper today than they're likely to be in the future – but one of the unintended consequences of the proposals could be another drop in home prices should higher mortgage costs dampen demand. Unfortunately, there's no single right answer, experts say. "Buyers shouldn't rush in – but there's no reason in most markets to delay waiting for something better to come along – it probably won't," says Barry Zigas, director of housing policy at the Consumer Federation of America.
Congress will ultimately decide whether Fannie and Freddie have a future, and whether the other changes could go into effect as soon as this fall. Here are the big three:
Smaller mortgages
In October, the maximum size of mortgages backed by Fannie and Freddie will shrink. (That's when the current limits are set to expire, and the president's report is calling for them to not be extended.) Currently, in high-cost cities like New York and San Francisco, homebuyers can borrow up to $729,750 for a single-family home; that amount drops 14% to $625,500. The $417,000 amount for more moderately priced areas will remain the same. The new limitation would, for example, render 10% of homes in San Francisco County ineligible for financing backed by Fannie or Freddie, according to analysis by the California Association of Realtors. It could also crimp refinancing for borrowers who try to get a home loan beyond these limits.
Higher fees
In November, the Federal Housing Administration could raise annual mortgage insurance premium fees by 0.25% for all borrowers, according to proposals. The hike comes out to an extra $250 per $100,000 of mortgage per year, which borrowers can pay upfront or have rolled into their mortgage. The new premium could be as high as 1.2%, up from a previous maximum of 0.95%. Over the life of a 30-year $300,000 mortgage, the higher rate means at least an additional $12,000 more in payments. Separately, two of the administration's proposals would provide mortgage insurance for some mortgages -- for a fee, which would be passed along to the borrower.
Bigger down payments
Currently, borrowers can try to get a mortgage from a bank with just 5% down by taking on mortgage insurance – mostly because that mortgage is then sold off to Fannie Mae or Freddie Mac. That requirement would gradually increase to 10%, according to the proposals, but a Freddie Mac spokesman says no implementation details are available at this time.
There are other government groups with a similar agenda, and similar effects on homebuyers. Housing regulators are currently considering making it harder to get a mortgage – higher down payments are possible, as are other hurdles – and are expected to offer specifics in April. Around the same time, mortgages backed by Freddie Mac (starting March 1) and Fannie Mae (starting April 1) will get more expensive by 0.25% to 0.50%. Later in the summer, the Consumer Financial Protection Bureau, which is expected to make mortgages a top priority, could make the process of originating a mortgage more expensive for the lender by requiring, for example, more personnel to check documentation, says Keith Gumbinger, vice president at HSH Associates, which tracks the mortgage market. And those costs will likely be passed along to borrowers as well.
Long term, consumer advocates worry that if the government stops backing private mortgages, as Fannie Mae and Freddie Mac do currently, lenders will get out of the market and consumers will have fewer options. But for now, it's simply possible that mortgages will become more expensive, as lenders react to the uncertainty that's just been introduced to the market. As it is, mortgages have already become more difficult to obtain. In August 2010, the most recent data available from mortgage data firm CoreLogic, the average mortgage borrower had a credit score of 767, higher than the average score of 761 six months prior.
And in the long term, should these proposals go into play, a healthier housing market could ensue, says Stu Feldstein, president at SMR Research, which tracks home loan data. The most sweeping message of the proposals is that the government won't help every American buy a home, especially if they can't afford it. "Houses will be sold to people with financial wherewithal to buy them and will reduce foreclosures going forward," he says.
Tuesday, February 22, 2011
Friday, February 18, 2011
5 Reasons To Buy Now!
Selling Your House? 5 Reasons To Do It NOW!
by The KCM Crew on February 15, 2011 •
The conventional wisdom when selling a home has always been to wait until the ‘Spring Buying Season’. Over the years, that has seemed to make sense and is now accepted as a good strategy for those who want to sell their house and receive the best possible price. This real estate market has shattered many previously held beliefs. The wisdom of waiting for a spring market is another belief that is about to fall. Here are five reasons why?
1.) Interest Rates Are On the Rise
Interest rates have spiked up rather dramatically over the last ninety days and are now over 5%. Initially, an increase in rates has a positive effect on the market as it forces buyers off the fence. However, it also eats into a buyer’s purchasing power. As rates increase, the mortgage amount a buyer qualifies for decreases. This will eventually have a negative impact on prices.
2.) Your Dream Home Will Never Be Cheaper
If your family goal is to sell your current house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams, DO IT NOW! Prices will continue to soften in most markets. However, if you are buying, COST should be more important than PRICE. Cost can be dramatically impacted by rising mortgage interest rates. Do the math and decide if now is the time.
3.) Buyers Are Out Early
There is mounting evidence that buyers are coming out earlier this year. A belief that now is a good time to buy coupled with the increase in interest rates has started the buying season early.
Pete Flint, CEO of Trulia:
“We’re seeing a national resurgence of buyer and seller activity on Trulia.com. In January alone, we experienced an unprecedented level of site traffic including 11 million unique visitors – which is more than 70 percent year-over-year growth. We’ve are now experiencing 100,000 property views per minute.”
The National Association of Realtors just reported that the number of house sales increased 12.9% over last month.
4.) Inventory Increases Every Spring
Every year there is an increase of inventory which comes to market as we approach the spring. Here is the number of listings available for sale in 2010.
• February – 3,531,000
• March – 3,626,000
• April – 4,029,000
We believe there will be an increase in these numbers in 2011 as there is a pent-up selling demand created by the weak market of the last few years. You won’t have to worry about this increasing competition if you sell now.
5.) We Are in the Eye of the Foreclosure Storm
While banks are trying to rectify their foreclosure procedures, there is a large supply of discounted properties which has been delayed coming to market. This inventory will be released sometime in the next few months. Foreclosures sell on average at a 41% discount. When released they will be competing with your house for the buyers in the marketplace. If you are looking to sell in 2011, you want to sell before this inventory becomes your competition.
CNN Money quoted the leadership Of RealtyTrac on this issue:
“We’ve now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000,” said James Saccacio, CEO of RealtyTrac.
“Unfortunately,” he added, “This is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing.”
“We expect a spike in the first quarter,” said Rick Sharga, a RealtyTrac spokesman.
Bottom Line
These are five strong reasons to sell now instead of waiting until later in the year. Sit down with a local real estate professional today and decide the best options for you and your family.
by The KCM Crew on February 15, 2011 •
The conventional wisdom when selling a home has always been to wait until the ‘Spring Buying Season’. Over the years, that has seemed to make sense and is now accepted as a good strategy for those who want to sell their house and receive the best possible price. This real estate market has shattered many previously held beliefs. The wisdom of waiting for a spring market is another belief that is about to fall. Here are five reasons why?
1.) Interest Rates Are On the Rise
Interest rates have spiked up rather dramatically over the last ninety days and are now over 5%. Initially, an increase in rates has a positive effect on the market as it forces buyers off the fence. However, it also eats into a buyer’s purchasing power. As rates increase, the mortgage amount a buyer qualifies for decreases. This will eventually have a negative impact on prices.
2.) Your Dream Home Will Never Be Cheaper
If your family goal is to sell your current house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams, DO IT NOW! Prices will continue to soften in most markets. However, if you are buying, COST should be more important than PRICE. Cost can be dramatically impacted by rising mortgage interest rates. Do the math and decide if now is the time.
3.) Buyers Are Out Early
There is mounting evidence that buyers are coming out earlier this year. A belief that now is a good time to buy coupled with the increase in interest rates has started the buying season early.
Pete Flint, CEO of Trulia:
“We’re seeing a national resurgence of buyer and seller activity on Trulia.com. In January alone, we experienced an unprecedented level of site traffic including 11 million unique visitors – which is more than 70 percent year-over-year growth. We’ve are now experiencing 100,000 property views per minute.”
The National Association of Realtors just reported that the number of house sales increased 12.9% over last month.
4.) Inventory Increases Every Spring
Every year there is an increase of inventory which comes to market as we approach the spring. Here is the number of listings available for sale in 2010.
• February – 3,531,000
• March – 3,626,000
• April – 4,029,000
We believe there will be an increase in these numbers in 2011 as there is a pent-up selling demand created by the weak market of the last few years. You won’t have to worry about this increasing competition if you sell now.
5.) We Are in the Eye of the Foreclosure Storm
While banks are trying to rectify their foreclosure procedures, there is a large supply of discounted properties which has been delayed coming to market. This inventory will be released sometime in the next few months. Foreclosures sell on average at a 41% discount. When released they will be competing with your house for the buyers in the marketplace. If you are looking to sell in 2011, you want to sell before this inventory becomes your competition.
CNN Money quoted the leadership Of RealtyTrac on this issue:
“We’ve now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000,” said James Saccacio, CEO of RealtyTrac.
“Unfortunately,” he added, “This is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing.”
“We expect a spike in the first quarter,” said Rick Sharga, a RealtyTrac spokesman.
Bottom Line
These are five strong reasons to sell now instead of waiting until later in the year. Sit down with a local real estate professional today and decide the best options for you and your family.
Friday, April 30, 2010
RURAL Housing USDA Funding May Be Coming Soon To A Lender Near You!
USDA • USDA funds status as of April 27, 2010:
Total unobligated balances remaining for USDA fiscal year 2010: $1,130,860,689.38
Purchase: $1,046,482,690.77
Refinance: $84,377,998.61
USDA anticipates that current funding will likely be exhausted by May 7, 2010.
But Wait…… The U.S. House of Representatives recently passed the Rural Housing Preservation and Stabilization Act of 2010 (H.R. 5017). Through this legislation, the guarantee fee in the USDA Guaranteed Rural Housing (GRH) Program may be raised to offset any need for Congressional appropriations. Additionally, H.R. 5017 would authorize USDA Rural Development to guarantee up to $30 billion in loans in Fiscal Year 2010. This would represent an additional $18 billion in loan making authority for the remainder of this fiscal year. Be advised that there is a requirement in this bill to increase the UPMIP from 2% to 4%. Before these changes can be implemented, similar legislative action will need to occur in the U.S. Senate.
Total unobligated balances remaining for USDA fiscal year 2010: $1,130,860,689.38
Purchase: $1,046,482,690.77
Refinance: $84,377,998.61
USDA anticipates that current funding will likely be exhausted by May 7, 2010.
But Wait…… The U.S. House of Representatives recently passed the Rural Housing Preservation and Stabilization Act of 2010 (H.R. 5017). Through this legislation, the guarantee fee in the USDA Guaranteed Rural Housing (GRH) Program may be raised to offset any need for Congressional appropriations. Additionally, H.R. 5017 would authorize USDA Rural Development to guarantee up to $30 billion in loans in Fiscal Year 2010. This would represent an additional $18 billion in loan making authority for the remainder of this fiscal year. Be advised that there is a requirement in this bill to increase the UPMIP from 2% to 4%. Before these changes can be implemented, similar legislative action will need to occur in the U.S. Senate.
Thursday, February 18, 2010
Wednesday, January 20, 2010
FHA changes for borrowers
FHA CHANGES COMING SOON!
Basic Breakdown: (we will have a new mortgagee letter tomorrow that may give more details)
1) Upfront MIP will go from 1.75% to 2.25% The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2) Sellers contribution will go from 6% to 3% This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
3) The 10% down payment will only effect borrowers below 580. Which won’t effect your borrowers since there aren’t any lenders broker or correspondent going below 620.
This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer
As soon as I get exact dates and more information, I will get it out immediately. Wed Jan 20, 2010 12:41pm EST
•
WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Housing Administration said late Tuesday it was increasing borrowing costs for homeowners getting loans backed by the government in an effort to shore up the agency's finances and avoid a taxpayer bailout. The FHA said it would increase the up-front mortgage insurance premium, which is paid by the borrower when the loan is made, to 2.25 percent from 1.75 percent. And it would raise the minimum down payment required to secure an FHA-backed mortgage for less creditworthy borrowers.
REGULATORY NEWS | BONDS
Why is the FHA making this move?
In late 2009, an independent auditor found that the FHA's capital reserves were below the 2 percent required by Congress. In fact, the FHA has capital reserves equal to just 0.53 percent of the value of the thousands of outstanding U.S. home mortgages it insures. So, the agency is trying to increase the quality of its borrowers in order to reduce the number of loans that end up in default. But it doesn't want to seriously impact the ability of borrowers to get FHA-backed loans, which now make up half the market. So it is tweaking the rules around the edges.
What does the FHA decision to raise borrowing costs mean?
The biggest immediate change is the increase in the up-front mortgage insurance premium. For a loan of $100,000, the mortgage insurance premium would be $2,250, up from the current $1,750. A $500,000 loan would therefore be $11,250 instead of $8,750. Those fees can be rolled into the loan. The FHA also said it was cutting the amount of aid sellers could provide buyers to 3 percent of the purchase price from 6 percent. That's designed as a counterweight to inflated house prices stemming from borrowers just tacking on the closing costs to the purchase price of a home. FHA is also asking Congress to increase its second premium, the so-called annual premium which is paid over the life of the loan. FHA Commissioner David Stevens said the FHA plans to lower the upfront premium after it gets approval to raise the annual premium, currently capped at 0.55 percent of the loan amount.
How many borrowers will be affected by this decision?
Stevens told reporters on Wednesday that he couldn't answer that question. And some analysts say that's because it's almost none. The FHA is raising its minimum credit score for a 3.5 percent down payment to 580 while scores below that level would be required to have 10 percent down. But most FHA lenders won't lend to anyone below 620 so it's unclear how many borrowers would really be affected by the down payment change. And the other changes might cause some borrowers on the margins to be unable to get loans as a result of increased up-front costs but most borrowers will just have to scrape up the extra cash. FHA says that's by design. The FHA faced some pressure to raise the down payment minimum to 5 percent, but FHA says that would go against the agency's mandate to bolster housing finance for needy borrowers.
David Berenbaum, chief program officer at the National Community Revinvestment Coalition said the FHA has a difficult task of navigating its competing goals. "The burden to the individual borrower is modest and should ensure, overall, that borrowers have access to responsible credit," he said.
(Reporting by Corbett B. Daly; Editing by W Simon )
Basic Breakdown: (we will have a new mortgagee letter tomorrow that may give more details)
1) Upfront MIP will go from 1.75% to 2.25% The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2) Sellers contribution will go from 6% to 3% This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
3) The 10% down payment will only effect borrowers below 580. Which won’t effect your borrowers since there aren’t any lenders broker or correspondent going below 620.
This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer
As soon as I get exact dates and more information, I will get it out immediately. Wed Jan 20, 2010 12:41pm EST
•
WASHINGTON, Jan 20 (Reuters) - The U.S. Federal Housing Administration said late Tuesday it was increasing borrowing costs for homeowners getting loans backed by the government in an effort to shore up the agency's finances and avoid a taxpayer bailout. The FHA said it would increase the up-front mortgage insurance premium, which is paid by the borrower when the loan is made, to 2.25 percent from 1.75 percent. And it would raise the minimum down payment required to secure an FHA-backed mortgage for less creditworthy borrowers.
REGULATORY NEWS | BONDS
Why is the FHA making this move?
In late 2009, an independent auditor found that the FHA's capital reserves were below the 2 percent required by Congress. In fact, the FHA has capital reserves equal to just 0.53 percent of the value of the thousands of outstanding U.S. home mortgages it insures. So, the agency is trying to increase the quality of its borrowers in order to reduce the number of loans that end up in default. But it doesn't want to seriously impact the ability of borrowers to get FHA-backed loans, which now make up half the market. So it is tweaking the rules around the edges.
What does the FHA decision to raise borrowing costs mean?
The biggest immediate change is the increase in the up-front mortgage insurance premium. For a loan of $100,000, the mortgage insurance premium would be $2,250, up from the current $1,750. A $500,000 loan would therefore be $11,250 instead of $8,750. Those fees can be rolled into the loan. The FHA also said it was cutting the amount of aid sellers could provide buyers to 3 percent of the purchase price from 6 percent. That's designed as a counterweight to inflated house prices stemming from borrowers just tacking on the closing costs to the purchase price of a home. FHA is also asking Congress to increase its second premium, the so-called annual premium which is paid over the life of the loan. FHA Commissioner David Stevens said the FHA plans to lower the upfront premium after it gets approval to raise the annual premium, currently capped at 0.55 percent of the loan amount.
How many borrowers will be affected by this decision?
Stevens told reporters on Wednesday that he couldn't answer that question. And some analysts say that's because it's almost none. The FHA is raising its minimum credit score for a 3.5 percent down payment to 580 while scores below that level would be required to have 10 percent down. But most FHA lenders won't lend to anyone below 620 so it's unclear how many borrowers would really be affected by the down payment change. And the other changes might cause some borrowers on the margins to be unable to get loans as a result of increased up-front costs but most borrowers will just have to scrape up the extra cash. FHA says that's by design. The FHA faced some pressure to raise the down payment minimum to 5 percent, but FHA says that would go against the agency's mandate to bolster housing finance for needy borrowers.
David Berenbaum, chief program officer at the National Community Revinvestment Coalition said the FHA has a difficult task of navigating its competing goals. "The burden to the individual borrower is modest and should ensure, overall, that borrowers have access to responsible credit," he said.
(Reporting by Corbett B. Daly; Editing by W Simon )
Friday, November 6, 2009
First Time Homebuyer Tax Credit Update & Changes
THE FIRST TIME HOME BUYER TAX CREDIT IS BEING EXTENDED!
Here is the brief version, see below for all of the details
There have been some slight revisions “Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30. The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.”
Tax Credit for Homebuyers
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Tax Credit Versus Tax Deduction
It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sale price of $800,000.
------------------------
Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.
In addition, you may be able to benefit from additional housing related provisions, including the following:
------------------------
Tax Incentives to Spur Energy Savings and Green Jobs
This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings
This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing
This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly)
Here is the brief version, see below for all of the details
There have been some slight revisions “Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30. The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.”
Tax Credit for Homebuyers
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Tax Credit Versus Tax Deduction
It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sale price of $800,000.
------------------------
Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.
In addition, you may be able to benefit from additional housing related provisions, including the following:
------------------------
Tax Incentives to Spur Energy Savings and Green Jobs
This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings
This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing
This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly)
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