Loans
New and Improved Mortgage Forms
January 1, 2010 by Becky Smith · Leave a Comment
By Les Christie, staff writerDecember 31, 2009: 3:39 PM ET
NEW YORK (CNNMoney.com) — Starting Jan. 1, new rules go into effect that simplify and clarify exactly what mortgage lenders will charge for a loan.
The initiative from the Department of Housing and Urban Development (HUD)requires that a new “Good Faith Estimate” form be given to all applicants, one that makes it easier to compare true costs of loans from different lenders.
For the full story go to:http://money.cnn.com/2009/12/31/real_estate/new_mortgage_rules/index.htm
Buying or selling in 2010? Call Becky Smith of RE/MAX Metro and Carolina Realty Team at 803-804-3375 or e-mail Becky@CarolinaRealtyTeam.com.
The Rescue
December 28, 2009 by Becky Smith · 1 Comment
Mortgage rescue: Credit score killer
By Tami Luhby, senior writerDecember 28, 2009: 8:37 AM ET
NEW YORK (CNNMoney.com) — Most troubled homeowners view President Obama’s foreclosure rescue plan as a way out of their financial troubles.
But many don’t realize that entering a trial mortgage modification can actually hurt their credit.
For the full story, go to http://money.cnn.com/2009/12/28/news/economy/loan_modifications_credit_history/index.htm
Buying or selling in your plans for 2010? Call Becky Smith of Carolina Realty Team and RE/MAX Metro at 803-804-3375 or e-mail Becky@CarolinaRealtyTeam.com.
The Basics: Extended Home Buyer Tax Credit 2009/2010
November 9, 2009 by Becky Smith · Leave a Comment
Bringing the Dream of Homeownership Within Reach
From NAR Website: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.
Latest news:
Tax Credit Extension a Positive Step Toward Real Estate Recovery (Nov.5)
President’s Podcast: Tax Credit Extended (Nov. 5)
Who Qualifies for the Extended Credit?
- First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
- Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
How is a Buyer’s Credit Amount Determined?
Each home buyer’s tax credit is determined by tow additional factors:
- The price of the home.
- The buyer’s income.
Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
We can help you find your home of choice. Contact Carolina Realty Team at RE/MAX Metro. Call 803-804-3375 or e-mail Becky@CarolinaRealtyTeam.com
Push on to expand $8,000 tax credit
October 17, 2009 by Becky Smith · Leave a Comment
Some want to expand the tax credit for homebuyers. Supporters say it could stem price declines. Critics say it would just be a costly, temporary fix.
NEW YORK (CNNMoney.com) — Congress is considering proposals to greatly expand a soon-to-expire $8,000 tax credit for first-time homebuyers — potentially applying it to all but the wealthiest homebuyers.
Supporters say doing so would further boost home sales, stabilize housing prices and generate jobs. Opponents say extending and expanding the credit would be a waste of money and only temporarily stave off further price declines.
The credit now can be claimed by anyone buying a home who has not owned one for three years and who closes the deal by Nov. 30.
Beyond extending that deadline, some lawmakers want to make the credit available to all homebuyers who meet income eligibility requirements. And some want to increase the amount of the credit from $8,000 to $15,000.
Currently the first-time home buyer credit is available in full to those buying their primary residence who make $75,000 or less ($150,000 for joint filers). A partial credit is available to those making between $75,000 and $95,000 ($150,000 to $170,000 for joint filers).
Through mid-September, 1.4 million tax returns had qualified for the credit, according to the IRS.
Some portion of those returns, which the IRS couldn’t specify, represents buyers who took advantage of an earlier version of the tax credit, which was only worth $7,500 and has to be repaid over time.
By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors.
Mark Zandi, chief economist of MoodysEconomy.com, favors extending the current credit until June 1, 2010, and making it available to all home buyers regardless of income or at least to everyone except those at the highest end of the income scale. He estimates the cost of doing so wouldn’t exceed $30 billion over 10 years.
Zandi’s reasoning: Foreclosures are expected to rise next year because of rising unemployment, and that will drag home prices down further. Extending and expanding the credit will help mute that decline. And by June, there’s a chance the job market will have stabilized.
“The most fundamental argument for the credit is that nothing works in the economy if housing is falling — it hurts household wealth and credit becomes tight,” Zandi said. “[The credit] is a good insurance policy. It’s vital to stem the housing price declines.”
To kick start economic activity, Zandi believes lawmakers should set aside an amount of money for an extended credit and tell potential home buyers “first come first served.”
The National Association of Home Builders would like the credit extended for all of 2010.
“We estimate that this would increase home purchases by 383,000 in the next year and help mitigate the foreclosure crisis by whittling down inventory,” NAHB Chairman Joe Robson said in a statement. “This stimulus alone would create nearly 350,000 jobs over the coming year, which is exactly what the economy needs right now.”
A study funded by the industry-supported Fix Housing First Coalition found that the current credit helped stimulate demand for homes at the lower end of the price spectrum.
“An expansion of the tax credit would spur an increase similar to what occurred in the lower end of the market, by motivating buyers in the ‘trade-up market’ to purchase a higher priced primary home,” said Kenneth Rosen in testimony before Congress. Rosen runs the consulting group that conducted the study and is chairman of the Fisher Center for Real Estate and Urban Economics at the University of California in Berkeley.
Opponents of extending and expanding the credit worry that such moves offer poor bang for the buck and won’t stem housing declines.
“Everything spent on this program will ultimately have to be paid for later through higher, economically harmful taxes,” Ted Gayer, co-director of economic studies at the Brookings Institution, wrote in a Brookings blog.
Assuming there are 5.5 million home sales in 2010, Gayer said, expanding the credit to all homeowners “is poorly targeted because it would give a credit to 5.5 million homebuyers who would have bought a home anyway.”
The current credit was estimated to cost federal coffers $6.64 billion over 10 years. But Gayer notes that the cost is likely to be much higher since more people than expected took advantage of it but only about 15% of people wouldn’t have bought a house otherwise.
It would cost an estimated $16.7 billion if the credit is extended until the end of June 2010 and made available to single filers making up to $150,000 and joint filers making up to $300,000. Those are the parameters that Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn., are proposing in an amendment they introduced to a bill the Senate is expected to take up this week. (Please see correction.)
Another argument against an extension: It would only temporarily boost home prices and potentially set up those using it for a fall. That’s because home prices are likely to decline once the credit expires and interest rates ultimately trek north, according to Dean Baker, codirector of the Center for Economic and Policy Research.
“Temporarily propping up house prices, so that a new set of homebuyers can incur losses, is a policy of questionable merit,” Baker said in a CEPR column.
The sooner the market adjusts the better, Baker said. He did offer one caveat: “We may want to step in to prevent prices from overshooting on the downside in a select group of markets where this is a real possibility.”
Zandi said that’s already happened in a number of markets, and that an extended credit might help turn around the deflationary psychology in those markets where buyers are worried about catching a falling knife.
- CNNMoney.com’s Les Christie contributed to this report.
Correction:This article originally misstated Sen. Isakson’s home state. 
$$$ Cashing in on the Homebuyer Credit
September 6, 2009 by Becky Smith · Leave a Comment
Homebuyers qualifying for the $8,000 tax credit are cashing in across the US. It is a great opportunity for many Buyers! CNN has released a map with numbers for each state:
http://money.cnn.com/news/storysupplement/economy/homebuyer_tax_credit/index.htm
Thinking of cashing in too? Call Becky Smith at 803-804-3375 to help you find the perfect home!
Fort Mill, SC Real Estate $8,000 Tax Credit
August 10, 2009 by Dean Hagey · Leave a Comment
This is a helpful piece of information that we found regarding the $8,000 Tax Credit:
UP TO $8000 TAX CREDIT FOR BUYING A HOME
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To qualify for the Tax Credit the home must CLOSE and TRANSFER TITLE by December 1, 2009. It does not matter when the contract was written.
Tip – Make sure your house is under contract a minimum of 6 weeks before December 1.
- The tax credit income limits are $75,000 for single and $150,000 for joint. HOWEVER a partial credit can apply with single income up to $95,000 and joint income up to $170,000.
- A newly married couple when one spouse has never owned a home but the other has-are NOT eligible for tax credit. both spouses must be first time homebuyers (has not owned a primary residence in the past 3 years) regardless of married filing separate or married filing joint.
- If both spouses are first time homebuyers and they file returns “married filing separate” each spouse would be eligible for 1/2 the credit.
- If the home is purchased with a boyfriend/girlfriend or parent/child situation where one of the purchasers is a first time homebuyer, the first homebuyer is ELIGIBLE for the tax credit. As stated above, the guidelines become more strict for married purchasers.
- Homes purchased in 2009 receiving the $8,000 credit will only have to repay the credit if the home ceases to be their home within the first 36 month period beginning on the date of purchase.
- You can amend your 2008 Tax Returns & recieve your tax credit within a few weeks of closing on your new home, if you e-file.
Tip - Talk with an Accountant/Tax Preparer before modifying your returns
Source: www.nahb.org/taxcreditmaterials
Please contact our team if you need more information on the Tax Credit Program and if you would like to see a property for sale. Our office number is 803-802-0640 and one of our experienced agents will be happy to help you. www.CarolinaRealtyTeam.com
USDA Loans in Fort Mill, SC and Rock Hill, SC
August 6, 2009 by Becky Smith · Leave a Comment
Recently a Buyer Client bought a home using Janet Gaglione of South Carolina Bank & Trust. The loan was a USDA 100% loan. Janet did a fantastic job and even attended settlement. For more information on USDA guidelines, Janet compiled the information below.
USDA / Rural Housing
This program has been around for as long as I can remember. It is the new and improved version of the Farmers Home Loan.
It has been totally revamped to offer a viable financing option to many purchasers in today’s market place so don’t let the nightmares of long ago influence a decision away from this excellent financing option.
Application to closing is easily accomplished within 30 – 45 days with an experienced lender, which is comparable to any other type of government financing. There is a 2% funding fee that is added to the loan amount, however there is no monthly mortgage insurance premium added to your monthly payment amount. To compare with FHA financing which has an up-front mortgage insurance premium of 1.75% added to the loan amount along with the monthly insurance premium.
All of Lancaster county is eligible and a large portion of York is eligible. To find if a property is eligible go to http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
York’s maximum income is $76,500 for a family of 1-4 and $101,000 for a family of 5-8
Lancaster’s maximum income is $73,600 and $97,150 respectively. I will be happy to answer any questions that you may have on this program.
Janet Gaglione
704-608-4139 cell
Thinking of buying a house under the USDA program? Contact Becky Smith of RE/MAX Metro and Carolina Realty Team 704-588-7442 or becky@carolinarealtyteam.com
Fort Mill SC Real Estate Loan Document Checklist
July 17, 2009 by Dean Hagey · 1 Comment
The loan process is all about documentation. The underwriters usually get the blame for asking for all of this info but its really the guidlines that need to be met. The underwriter is only following the rules and trying to prepare your loan for acceptance and funding on the secondary market. Here is a basic list of documentation almost always required for today’s loans. Please go to this link for more information provided by Eric Storm with Prospect Mortgage. http://www.moneytoremodel.com/76/
