The Federal Tax Credits Blog

Archive for the ‘First Time Homebuyer Tax Credit’ Category

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

Question: what is the requirement for $400k home loan?

What is the minimum requirement to get a loan for $400,000 or any loan. I want to make sure what exact criteria that need to qualify. How long you have to work in the same company or multiple company to combine a minimum requirement that they need? how much you have to earn in monthly gross if you do it yourself or a co-sign include? what do bank need in minimum % down payment and closing cost?. Sorry if i ask too much questions. I want to understand what i will get myself into. I know there might be more requirment that i didn’t listed. But I just need this basic informations to see where i stand for a first time buyer with a credit score of 750.

Answer: Every lender has its own requirements. The three things that help determine your rate are income, credit history and cash on hand. Most lenders are no longer granting stated income loans w/ zero or small down payments. Most lenders are requiring 5-10% down (20-40 k on $400,000 loan, not including closing costs) with proof of income. Most lenders like to see a history of 2 years in the same job with reliable income. And of course a good credit history. You should have 3 active credit sources (ie. car loan, credit card, school loan) that are reporting to the credit bureaus. I hope this helps you. Most importantly: understand your loan. Read every line. Understand points, APR, fixed rate vs. variable rate, interest only, amortization, negative amortization, balloon payments, penalties, etc. If you don’t understand some of these terms YOU WILL GET BURNED, guaranteed,

Signs point to life in Southeast Texas real estate market

There are 1,806 homes on the market in the Beaumont Multiple Listing Service area.

Joy Daniels’ Real Estate Minute – First Time Home Buyers’ $8000 Tax Credit

Question: If you bought a house in August 08 can you still qualify for the tax refund?.?

THIS IS THE PART THAT HAS ME CONFUSED:

Different income eligibility limits apply depending on when you bought the house. If you purchased it before November 7, 2009, you are eligible for the full first-time home buyer’s tax credit if you are single and your income didn’t top $75,000 or if you are married and your joint income didn’t exceed $150,000. The credit phases out for individuals with incomes up to $95,000 and married couples with joint incomes up to $170,000, disappearing above those income levels.
We did not own a house for 4 years before this purchase, so I know we qualify as a first time home buyer. It states that you must not have owned for at least 3 years before.
We are married, and live on one income of $60 a year.

Answer: You are eligible for $7500 refundable interest free loan payable in 15 years.

Opportunities To Have A Tax Effective Investment Home Loan In The Lead Up To June 30, 2010

Australia’s leading mortgage broker, Aussie Home Loans, today urged investment property owners to investigate to minimise their tax exposure in the lead-up to the end of the financial year on June 30, 2010.

Married Couples and the Home Buyer Tax Credit.mp4

Question: Does Canada have “First-Time Home Buyer Tax Credit” legislation?

Friend of my told me that I could get up to $8000 tax credit since I just purchased a house. I am first-time house buyer, and married couple income is lower than $160,000. So I am wondering, can I apply for this tax credit, I am living in Ontario, Canada. If answer of my first question is “Yes”, then, my second question is, should I fill in the tax return form next year for the home purchase happened this year, or should I fill in the form this year, 2009? Thanks lot for any help!

Answer: Information about the 2009 HBTC is here:

http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

It will be available as a line item on the 2009 tax return, for purchases of homes closed after January 27, 2009.

Consumers remain suspicious of HST

The cheque is the mail. But it’s going to take more than a one-time payment to ease the suspicion consumers have that the new harmonized sales tax isn’t going to cost them.

Why Use A Mortgage Broker – Part 1

Question: 2 questions about my taxes this year?

okay first of all, we are buying a trailer on contract (we did not go through a bank for a loan) this is the first time we are buying a home. we still rent also because we have to pay lot rent of 249. a month since june. would we be eligable for the first time home buyer credit i have heard about?
second, we made a total of $13,647 last year with 6 dependents. our mortgage is 202. a month, and we payed nothing into federal all year. would we be able to get the child tax credit or did we not make enough? we can’t file our taxes until we get my husbands w-2 and im trying to figure out if we will be getting enough to pay back a friend if i borrow money from her… please help asap if you can. the state is indiana if that matters.

Answer: You do realize that this credit is just a loan and has to be repaid back to the government – right?

Q. How is the credit repaid?

A. The first-time homebuyer credit is similar to a 15-year interest-free loan. It is repaid in 15 equal annual installments beginning with the second tax year after the year the credit is claimed. You may need to adjust your withholding or make quarterly estimated tax payments to ensure you are not under-withheld. http://www.irs.gov/newsroom/article/0,,id=187935,00.html

you may get the Earned Income Tax Credit- http://apps.irs.gov/app/eitc2008/Forward_Eligibility.do;jsessionid=QZhsJ9sRHtGJS0K7jZJCYVVqn4lN6ssBLpgyBg1zz3C5l1rGLGZN!1005928371!-133893481
I can’t tell you how much as I don’t know everything about your finances (will you be filling jointly, was there any unemployment compensation) and your dependents (are these you children, are they 17 and under) but I would think it would be around 4000.00. Please, wait until you get the w-2’s until you borrow money, the 4k is just a guess.

You can e-file you federal taxes for free. Don’t go to H&R block for one of their anticipation loans – they are a rip off!

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Miho Natori can recite nursery rhymes in Thai, speak German fluently, converse over coffee in English and is native in Japanese. For this 40-year-old graphic designer, life kaleidoscopes world to world, from Japan, to the orphanage she helped start with her mother in Chiang Mai, Thailand, and to Germany, with which she has a life-long connection. Germany gave birth to the artistic heritage in …

Authors@Google: Peter Nowak