Buy Now 101

First time home buyer tax credit to be extended

admin — Fri, 06 Nov 2009 14:17:49 +0000

Buynow101, November 5Th 2009. First time home buyer tax credit is now very close to being extended, while delayed for a couple of weeks senate has now cleared away to allow for the extension and expansion of first time home buyer tax credit.

Although President Obama has indicated that he will sign it, the amended bill is not yet law until he does.

As well as extending the tax credit for first-time home-buyers, the bill also adds a small tax credit for move-up home buyers who have lived in the home for 5 of the past 7 years. The bill will also increase the income limits for home buyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.

First time home buyer tax credit will allow a first time home buyer a tax credit of 10% (up to $8000) on the purchase of a new home by April 30 2010.

First time home buyers a buyer who have not owned a home for 3 years. Buyers may purchase houses or condos and do not have to repay the credit as long as the keep the property for three years.

The tax credit is claimed on the buyer’s federal tax return to reduce liability. The buyer will get a refund check if the credit is more money that the taxes owed.

Now is a great time to buy real estate and take advantage of the great incentives and opportunities in the Real estate market.

For information about Miami estate real estate visit Miami Real Estate Investment

FHA plan to allow home buyers to use the $8,000 Tax credit

admin — Thu, 25 Jun 2009 21:09:34 +0000

What you should know about the FHA plan to allow home buyers to use the $8,000
Tax credit

Home buyers across Florida can take advantage of a Federal Housing Administration
program that allows qualified first-time home buyers to use the $8,000 tax credit
up front to help with the purchase costs of a FHA-insured home.

Details of the FHA plan include:

FHA now allows its lenders to provide a short-term bridge loan to qualified home
buyers for the purpose of accessing the federal $8,000 tax credit at the
closing table. While the loan cannot be used to cover the minimum, FHA-required
down payment of 3.5 percent, it will allow home buyers to use the federal
tax credit in one of three ways:
Home buyers can use the $8,000 tax credit to make a larger down payment above
the FHA-required 3.5 percent; they can use the tax credit to cover closing
costs; or home buyers can use the $8,000 tax credit to buy down their
interest rate.
Therefore, qualified home buyers applying for FHA-backed financing with an FHA-approved
lender that offers a bridge-loan program can use that loan to bring down
the immediate costs of buying a home significantly; however, they would
still have to come up with the minimum 3.5 percent down payment – which
is the buyer’s personal stake in their Florida dream home.
Other resources are available for buyers who need help with the 3.5 percent down
payment, including the Florida Housing Finance Corporation, many local
government agencies and nonprofit lenders.
In addition, Florida has approved $30.1 million for its new Florida Home buyer
Opportunity Program, which will help first-time home buyers with down
payment assistance through its own tax credit bridge loan program, once
it’s established. County housing administrators will operate the program
under the authority of the Florida Housing Finance Corporation. The Florida
program is separate from what the U.S. Department of Housing and Urban
Development offers through the FHA program.

More About the FHA Program

Did You Know?

The federal home buyer tax credit is expected to stimulate 160,000 home sales
across the U.S. – of that number, 101,000 will be first-time buyers who
will receive the credit, according to estimates by the National Association
of Home Builders. An additional 59,000 existing homeowners will be able
to buy another home because a first-time buyer purchased their residence.
Given FHA’s current market share, it’s estimated that thousands of families
will be able to purchase a home by using the anticipated tax credit for
their purchase, along with an FHA-insured mortgage.

Consider the Source.

Home buyers should beware of mortgage scams and carefully compare benefits and
costs when seeking out tax credit bridge loan programs. Programs will vary
depending on the organization offering the services. Borrowers should consider
which program make sense for them, as well as what company offers the most
suitable and affordable option.

Keeping Track.

For every FHA borrower helped through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA officials say they will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

NOTE: This document is for informational purposes and should not be construed as tax or legal advice.
For specific advice on their own tax situation, consumers should always consult a qualified tax professional.
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HUD: Tax Credit maybe Used for Closing Costs

admin — Mon, 01 Jun 2009 15:39:49 +0000

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent down payment.

There remain many sources of assistance for buyers needing help with the 3.5 percent down payment, including many state and local government instrumentality’s and nonprofit lenders.

In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their down payment. These programs are separate from what HUD announced today.

The first-time home buyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Learn more about the credit, including how to apply for it this year even if you’ve already filed your taxes, at REALTOR.org.

Source: Robert Freedman, REALTOR® Magazine Online

Existing home sales rise

admin — Sun, 31 May 2009 12:42:18 +0000

Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales — including single-family, town homes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rateof 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.

Buyers Emerge Once Again

An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago.

NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans.

“We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through home ownership.”

Closer Look at the Numbers

National median existing-home price: for all housing types, was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Total housing inventory: at the end of April, rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2-month supply at the current sales pace, compared with a 9.6-month supply in March. “The gain in inventory is largely seasonal from sellers entering the spring market,” Yun says. “Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier.”

Single-family home sales: rose 2.5 percent to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8 percent below the 4.30 million-unit pace in March 2008. The median existing single-family home price was $169,800 in April, which is 14.9 percent below a year ago.

Existing condominium and co-op sales: increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price was $173,900 in April, down 18.5 percent from April 2008.

By Region

NAR reported the following with existing-home sales across the country:

Northeast: jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
Midwest: slipped 2 percent in April to a level of 1.00 million and are 9.9 percent lower than a year ago. Median price: $138,800, down 11.7 percent from April 2008.
South: increased 1.8 percent to an annual pace of 1.74 million in April but are 8.9 percent lower than April 2008. Median price: $148,000, which is 12.8 percent below a year ago.
West: rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. Median price: $222,600, down 21.8 percent from April 2008.

Source: NAR

What is a short sale ?

admin — Fri, 29 May 2009 13:28:18 +0000

With all the talk today about pre foreclosures and SHORT SALES i am asked everyday

“what is a short sale ?”

Wikipedia States:
“A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.”

Quite simply

“The Bank(s) or mortgage companies agree to take less money than is owed to them for the loan or loans on the property”

Although different states have different laws and most are changing these almost daily the Owners generally can walk away from their property without being put into a state of foreclosure and are often able to buy a new property soon after.