The Federal Tax Credits Blog

Archive for the ‘Homeowner Tax Credits’ Category

Question: I bought a home in January 2009. Do I qualify for the $6500 credit now under consideration?

I am not a first time home buyer.

Answer: It’s for those who purchase after December 1, 2009, and who have owned a home for five previous years. Sorry!

Nov 2009 Home Buyer Tax Credit

Question: What is the best way to start the home buying process for first time buyers with little or no credit?

I live in GA and I am looking for a home in Douglasville. How do I start the loan approval process?

Answer: In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

#1 One month of pay stubs for each person that will be on the mortgage.

#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

#3 Two years of federal income tax along with the W-2 that match.

Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

Make sure your mortgage broker explain all your options so you may make an intelligent decision.

What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

So select the best option for you and your financial situation.

You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

Your mortgage broker will now order an appraisal to show proof of the property value.

The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.

After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

I hope this has been of some use to you, good luck

“FIGHT ON”

The capital conundrum

Although there are plenty of available homes for sale in today’s market, the one type of home that may be difficult to find is a spec home; a brand new home built with no particular buyer in mind. If you ask a builder, he’ll say it’s because the banks aren’t lending money to build spec homes. If you ask a banker, he’ll say it’s because there are no buyers for spec homes and adding more inventory …

Loan Modification – Part 2: Home Mortgage Bailout – Real Estate Foreclosure Prevention Process

Stop piling up U.S. debt

President Obama’s economic policies have failed — in the short and long terms. Our financial meltdown occurred primarily because banks and households incurred too much debt — much of it backed by worthless collateral.

Smart Homeowners Know When To Refinance with David Bach

Question: regarding the 6,500 tax credit for homeowners.?

We purchased our home in July of 2006. We sold our previous home in which we lived for 7 years. Not sure if our current home would qualify, or if the purchase had to be this year.

Do we qualify for the 6,500 credit? We know we do under the income guidelines.

Thanks.

Answer: Let’s say you buy a house today, 12/2/2009. The lookback period for the 8 years is 12/2/2001 to 12/2/2009. To get 5 years, you need to see the previous house no earlier than 12/2/2006 *and* have rented for the intermediate 3 years.

You sold in July and you weren’t renting.
No, you do not qualify.

Tax-credit extension will help out some

July 08–MANATEE — A recent three-month extension of a homebuyer tax-credit deadline will help seal some delayed deals but otherwise will have little impact on the local housing market, area real-estate agents say.

$6500 Tax Credit for Current Homeowners

Question: Questions about the housing rescue bill?

I am a first time home buyer and I’ve heard that I can receive a credit of $7500 for buying a house.

Every time I call a mortgage lender they act like either I’m from Mars and I don’t know what I’m talking about or they say they don’t have any updated information to tell me.

Who can I call or where can I find out additional information about this. I want to make sure I make the appropriate downpayments and follow the rules to make sure I’m elgible.

Who can tell me more about this? What resources are there out there? It seems like Congress passed a law and no one knows about it. Is anyone with a pulse eligible that is a first time home buyer?

Answer: First time home buyers, is a “Loan” that you get from the government that you have to pay back each year when you file for your income taxes.

Lenders do not like this credit at all because it ends up as a “phantom” down payment. What i mean is you have to pay it back and increases the risk to the lender.

More information found in my link below.

Las Vegas home sales fall 11 percent in June

July 09–The tailwind from the homebuyer tax credit has ended and some housing analysts are concerned the market may be headed for further decline.

Home Buyer Tax Credit Update, Use $ for Down Payment