Category Archives: tax credit

Existing Home Sales Had a Large Rebound

According to the information below from Realtor.org, first-time home buyers accounted for almost half of home sales. I hope that the tax credit can be extended. Many of my recent activity has been buyers trying get the tax credit. This credit has also helped some of my sellers upgrade to their second home due to the first time home buyers purchasing their home. It will be interesting to see what congress decides in the coming weeks.

“Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of REALTORS®.

Existing-home sales—including single-family, townhomes, condominiums, and co-ops—jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in more than two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.” . . . . .

Conditions for First-Time Buyers:

Early information from a large annual consumer study to be released on Nov. 13, the 2009 National Association of REALTORS® Profile of Home Buyers and Sellers shows that first-time home buyers accounted for more than 45 percent of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29 percent of transactions in September.”

Read More . . . Quoted from Realtor.org

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Photo Copyright, Amy S. Myers 2009

Will The First Time Home Buyer Tax Credit Be Extended?

Many recent transactions and potential transactions that I have dealt with have been buyers who were enticed by the first time home buyer tax credit. Since you must close by November 30, 2009, the window is no longer open.  The market has changed this month. I believe buyers are holding out to make their next move.  It appears that the tax credit has done its job by pumping up the economy and reducing inventory. The National Association of Realtors is pushing for an extension of the tax credit.

Here is some information from the National Association of Realtors:

“The data on the present home buyer tax credit show that the credit has had its intended impact—sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably,” Phipps said. He also pointed out that each home sale generates approximately $63,000 in additional economic activity, providing a tremendous economic boost to the national economy.”

Read more . . . .

Quoted from Realtor.org

Additional Tax Credit Info

Will The First Time Home Buyer Tax Credit Be Extended?

Times are Historic to Buy a Home

Use Tax Credit Down Payment?

Homebuyer Tax Credit Window is Ticking Away

Record Lows for Mortgage Rates Still Exist

Homes are Being Swept Up Quickly

Home Buyers Don’t Miss the Opportunity For Your $8000

First-Time Home Buyer Tax Credit to Rise?

More Tax Credit Info Surfacing

First Time Home Buyer Tax Credit Question

First Time Home Buyer Tax Credit Loans

Great News! Tax Credit Can Be Used for Down Payment

First-Time Homebuyer Federal Tax Credit Info

Times are Historic to Buy a Home

It is a great time for people to get into the housing market as I have mentioned over the last few months.  There is still time to take advantage of the market conditions but don’t wait too long. Things will change.

Believe it or not but I have had different buyers bidding and buying properties less than $20K and some that do not need that much work. It is an amazing deal and some did not need always need a major overhaul. As the market begins turn turn around there are going to be less opportunities like this. The deals that are there will be more competitive. Some houses such as these can have mulitiple bids on them (as many as five or ten bidders or more). If you see a deal move fast and bid competitively whether for investment property or for owner occupied.

It appears that first time home buyers have really taken advantage of the tax credit.   “”First-time homebuyers, most between the ages of 25 and 45, accounted for about 45 percent of home sales from January through July 2009, according to the National Association of REALTORS®”.


“This is a historic time,” says George Jaramillo, a 35-year-old business analyst in Atlanta, who recently bought three homes, two of them foreclosures. “It’s a great opportunity to make some great gains in the future.” – Realtor.org, Associated Press

Use Tax Credit Down Payment?

In past posts I have mentioned the tax credit, which if not extended will expire by November 30, 2009. This means your transaction must close by this date. Aside from the deadline, also mentioned was using the tax credit as part of your down payment. But who would actually loan you the money and wait for the up to $8,000 repayment by tax refund time?

PHFA (Pennsylvania Housing Finance Agency) has a program called Credit Advance Loan Program (TCA) that will loan you up to $6.000 for use towards a down payment according to Kate Newton, Director of Home-ownership Programs for PHFA.

Even if you miss the tax credit deadline. PHFA has some great programs out there for first time home buyers. Contact your loan officer to discuss.

Read more the details at Realtor.org

http://www.parealtor.org/content/phfa.htm

Additional Tax Credit Info

Homebuyer Tax Credit Window is Ticking Away

The days and hours are ticking away for the homebuyer tax credit. Have you pick a house? Activity is picking up fast. Keep in mind that you have to approximately October 1, 2009 to get a property under contract with a seller.   It will take approximately 6-8 weeks to close.  A homebuyer needs to close on their home by November 30, 2009 to qualify for the government homebuyer tax credit. Keep in mind there is a holiday in this window and loan officers will not be available during this time. The 6-8 week period is an average processing time as long as things go smoothly. So if you have your eye on that house or are sitting on the fence, jump off and get running. You have about two weeks left.

Additional Tax Credit Info

Record Lows for Mortgage Rates Still Exist

First time home buyers get ready. One month from Tuesday is approximately how much time you have left to secure your sales contract on the purchase of a house, if you are going to qualify for the tax credit. It takes about 6-8 weeks to process a sale (as long as things go fairly smooth). Here is some additional information about the exisiting rates. It is still a buyers market with plenty of inventory to choose from. Take advantage!

“Long-term mortgage rates remain near record lows, despite rising slightly this week. Freddie Mac reported that average interest on a 30-year fixed loan was 5.14 percent, up from 5.12 percent a week ago.

Rates for 15-year home loans, meanwhile, rose to 4.58 percent from 4.56 percent last week.

Source: Pittsburgh Post-Gazette (08/28/09)”

Additional article on the First Time Home Buyer Tax Credit

Homes are Being Swept Up Quickly

In the last few weeks, I have had some buyers that have not moved quickly and unfortunately lost opportunity for the home of their first choice. The good one’s are going and going fast. Many are getting multiple offers. This describes many average priced properties and but even more so to foreclosed properties.

One of my buyers called and said that they went back to review some of their favorite listings and many of them had the status changed to under contract.  Time is running out for the first time home buyer tax credit and so is the good inventory.

Here is some additional information quoted from Realtor.org regarding foreclosures and that they are disappearing.
“Buyers of foreclosure have to be quick these days. Some houses go under contract fewer than 90 minutes after they are put on the market, says Brad Geisen, founder of Foreclosure.com.

“For every listing that comes out, we have 10 buyers,” says Cesar Dias, an associate with Approved Real Estate Group in Stockton, Calif.

Dias had 15 minutes of fame after introducing foreclosure sales tours last year. Now the tours are defunct because there are not enough homes to show.

“We had a lot of inventory last summer. Now we’re down to 1,500 listings — from more than 5,000,” Dias says.

In Florida, real-estate investment companies, buying in bulk and paying cash, face competition.

Even in the hard-hit Detroit area, bargains are disappearing.

“For a good house that’s not too beat up, in a good neighborhood, there’s no lack of buyers in this market,” says Andy Sakmar, founder of Century 21 Sakmar in Rochester, 20 miles north of the city. “There are a lot fewer of these properties than a year ago, and the super buys get multiple offers.”

Source: CNNMoney.com, Les Christie (08/06/2009)

Home Buyers Don’t Miss the Opportunity For Your $8000

If you are a First Time Home Buyer time is running out. If you desire to take advantage of the First Time Home Buyer tax credit your property must close by December 1, 2009. Buyers should have a signed purchase contract with the seller signed by early October to have plenty of time to close.

For my buyers that need to finance, I always suggest about 6 weeks for closing, especially with inspections. In most “normal” cases that is enough time. I have seen other odd cases where it can take longer and the reasons can vary.

Just recently I was going to close on a home. It was delayed because the buyer for my seller’s home had to close on her house first.  Well, this buyer for the buyer in our transaction lost their financing and had to start all over. When all was said and done, the house closed about two months after it was suppose to and everyone involved was happy.

So consider this with only 6-8 weeks (hoping there are no snags), you need to find that house in the next 2 to 2 1/2 months or sooner. If you are eager to take advantage, hurry. If you are not sure where you stand with your credit, just take that step and talk to you loan officer.  Happy Hunting.

Details on First Time Home Buyer Tax Credit

First-Time Home Buyer Tax Credit to Rise?

Lawmakers are hoping for an expansion of the tax credit helping first-time home buyers and current home buyers that have a home to sell. First time home buyers make up about 40% of the current home purchases. This statistic, lawmakers feel, is not stimulating the housing industry enough.

Here are some key points of what lawmakers would like to see happen:

*Â Changing the top Tax Credit amount from $8,000 to $15,000.

* Extend the purchase deadline from November 30, 2009 through to mid year 2010.

*Â Extend the tax credit from first-time home buyers to all home buyers

* Offer another tax credit of up to $3,000 for home owners who refinance.

Remember there are income caps and you do have to stay in your home for 3 years to avoid paying back the tax credit.

Read more in this USA Today article.

Related Posts:

A CONSUMER GUIDE TO THE FIRST-TIME HOMEBUYER FEDERAL INCOME TAX CREDIT

First-Time Homebuyer Federal Tax Credit Info

First-Time Homebuyer Tax Credit Details

Great News! Tax Credit Can Be Used for Down Payment

Frequently Asked Questions for First-Time Homebuyer Tax Credit from the National Association of Realtors website, Realtor.org

First Time Home Buyer Tax Credit Loans

First Time Home Buyer Tax Credit Question

More Tax Credit Info Surfacing

Each day I am reading more and more information on the first time home buyer tax credit. The most recent issue are on how a first time home buyer can use the tax credit as a down payment.

“Short-term bridge loans are now available from a variety of lenders so that buyers can tap the benefits of the $8,000 Federal Housing Tax Credit for First-Time Home Buyers upfront. If your clients are eligible for the tax credit, these bridge loans will enable them to use the money for their down payment and closing costs with the credit as collateral. Consumers will have to pay the money back after they’ve filed their tax return and received a refund.” Quoted from Realtor.org

This article discusses four sources of financing and they vary.
1. State HFA Bridge Loans

2. Local Government or Nonprofit Loans

3. Local HFAs

4. FHA-approved Lenders

*****

At our office meeting this morning, our loan officer discussed how rates in the last week have gone up about 1/2 of a percent. Take advantage of the market. It is a wonderful buyers market. Good inventory is going fast and I am seeing it first hand. I have take a couple of different buyers out recently and many of the homes they are interested in are going under contract very quickly. Don’t miss out on this great opportunity. The tax credit ends November 30, 2009. Buy today!

Related Posts:

A CONSUMER GUIDE TO THE FIRST-TIME HOMEBUYER FEDERAL INCOME TAX CREDIT

First-Time Homebuyer Federal Tax Credit Info

First-Time Homebuyer Tax Credit Details

Great News! Tax Credit Can Be Used for Down Payment

Frequently Asked Questions for First-Time Homebuyer Tax Credit from the National Association of Realtors website, Realtor.org

First Time Home Buyer Tax Credit Loans

First Time Home Buyer Tax Credit Question