There are many nuances of the home buyer's tax credit. It's not just for the first time home buyer. Watch this video to learn if you may qualify. Just remember... time is running out.
http://www.youtube.com/watch?v=1leN8E8BKTo
Let me know if I can help.
Lisa...
Posted at 05:15 AM in Real Estate 85268 | Permalink | Comments (0) | TrackBack (0)
Some of you may have noticed that I have been making some subtle changes to my website. One addition that I thought would be nice would be to have client 'Testimonials' about how fabulous our little Fountain Hills gem really is. So, I had a drawing for a flat screen TV for those who wrote to me what their 'Perfect Day in Fountain Hills' might look like. The drawing was held on Valentine's Day and the winner was Ann Bambrough! I would like to share her entry with all of you now, but please check back to my website and soon I will have all of the great write-ups on there.
Thanks Ann! You really captured 'A Perfect Day in Fountain Hills'.
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It takes very little effort to create a perfect day in Fountain Hills. Each person has his or her idea of what an ideal day entails. So unless a person has the time and inclination to pen a 500-page dissertation on the merits of spending time in Fountain Hills, a description of one day’s possibilities must suffice.
To begin the perfect day, you really only need open your eyes after a peaceful night of sleep. From that moment and from virtually any location in Fountain Hills, you can see a view of Four Peaks. My advice to the unfamiliar is to try and time this first glimpse with the sun’s own escape from slumber. There is nothing quite like the beauty of watching that giant glowing orb as it overtakes something as remarkable as those four peaks.
Because the weather is almost always perfect in the early morning hours, it’s not a bad idea to venture outside and observe what creatures are also embarking on their day’s journey. To a nature lover, there is no end to the wildlife that can be spotted in Fountain Hills and nearby areas. From javelinas nibbling on prickly pears to coyotes seeking a little nap after an evening of activity, it’s a humbling experience to feel so at one with nature. It’s a true example of how humans and animals can coexist in harmony with mutual respect for one another.
After witnessing a few marvels of nature, the next logical course of events would be to hop into town for a delicious breakfast at one of the local eateries. Outdoor seating is virtually year round, so one’s love affair with nature and sunshine need not end. And since many of these eateries are within range of Fountain Park with its 560-foot fountain, don’t be surprised if you are enticed into taking a stroll around it. There are many people and their four-legged friends who engage in this activity daily. And you’ll never make acquaintance with a disparaging word while on this little excursion. Fountain Hills has a deep seated history of kindness, as it seems to attract those of that ilk. It offers the safety and security of a small town without truncating the need for some semblance of anonymity.
And here is where the perfect day is up to the individual. If you are a hiker at heart, you can select from the smorgasbord of trails located in Fountain Hills and at the McDowell Mountains. For just a little taste, hike a trail that is only a mile in length. Or make a day of it: take the five-mile Dixie Mine trail and enjoy a picnic along the way. If you are a golfer, then here is your paradise. With five beautiful and immaculate golf courses at varying levels of difficulty, the most challenging decision to make is which one to play. Or take it easy with a round of Frisbee golf and then head home for day of respite without having to forgo an ounce of sunshine or beautiful landscaping.
The end of each day in Fountain Hills is determined by a particular mood. It’s easy to make a short trek to one of several local fine dining establishments. A jaunt to Scottsdale is also not out of the question: shopping and exquisite dining are a mere stone’s throw away. And then there is always the comfort of staying home and enjoying a quiet evening cooking on the grill and watching as the sun departs as is does each day. No matter which option is chosen, it is certain that you will be satiated after having been fed a diet of nature, adventure, relaxation, and beauty.
-Ann Bambrough
Posted at 11:23 AM in Real Estate 85268 | Permalink | Comments (0) | TrackBack (0)
It's official! President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. In addition, the extension also opens up opportunities for others who are not buying a home for the first time.
To help you understand what the new tax credit details mean to you, the following is a concise overview of the new tax credit deadline, income caps, and more. Please take a look at the concise overview below.
You should consult your account or tax advisor for further details and your specific situation.
TAX CREDIT OVERVIEW
Who Gets What?
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
What are the Income Caps?
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
What is the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sale price of $800,000.
What is a Tax Credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.
How Much are First-Time Homebuyers (FTHB) Eligible to Receive?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is Eligible fort FTHB Tax Credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.
This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
How Much are Current Home Owners Eligible to Receive?
The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.
According to the IRS, factors that would demonstrate the ownership of the property would include:
1. Right of possession
7. Duty to maintain the property.
Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer's situation, a credit would not be due:
* They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from "step-relatives.")
* They do not use the home as your principal residence.
* They sell their home before the end of the year.
* They are a nonresident alien.
* They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
* Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
* They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.
Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.
If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other criteria for the tax credit.
**Please let me know if I can be of any assistance with your Fountain Hills real estate needs. I can also help you with Scottsdale real estate, Phoenix real estate or any other surrounding communities.
All my best,
Lisa...
Posted at 07:35 AM in Real Estate 85268 | Permalink | Comments (0) | TrackBack (0)
Posted at 08:02 PM in Real Estate 85268 | Permalink | Comments (0) | TrackBack (0)
On July 10, 2009 the Arizona senate passed the SB 1271 that will change our anti-deficiency laws and severly impact those who may be doing a Short Sale on their property or going through a foreclosure. You can read the bill in it's entirety at http://www.azleg.gov/legtext/49leg/1R/adopted/S.1271FIN.pdf. This seems to mostly impact investors and/or new construction. As always, if you find yourself in a potential distressed property situation, it is recommended that you seek legal advice. If you have already begun to miss mortgage payments time is of the essence! If you would like to persue a Short Sale and need assistance please give me a call at 602.400.0250. This bill takes effect on September 30th, 2009.
Posted at 04:35 PM in Real Estate 85268 | Permalink | Comments (0) | TrackBack (0)
Limited amount of funds available!!
The Arizona Department of Housing (ADOH) will offer 22 percent in purchase assistance to qualified home buyers purchasing an eligible foreclosed home in the State. ADOH provides help in the form of a deferred second mortgage loan for purchase assistance. All loans are zero percent interest with no monthly payment.
QUALIFICATIONS
Eligibility for the purchase assistance is based on a variety of factors:
1.) The household must have a gross income (the total income before taxes, health care costs, social security, etc.) of no greater than 120 percent of the average median income for the county they want to purchase a foreclosed house in. 2.) If you own a residence, you must be leasing your primary residence for least 12 months before applying for the program.
3.) Attend and complete an eight-hour Homebuyer Education Class.
5.) Maximum debt-to-ratio is 31/43.
Eligible Properties:
6.) Foreclosed properties only. One unit detached single family homes, condos and town homes.
7.) Minimum of 3% down payment, 1% must come from borrower's own funds.
HOW DO I START?
Once you have determined you may be eligible for the ADOH program, contact a reputable lender to get prequalified for a mortgage and ADOH program.
For more information, please contact the Arizona Department of Housing at 602-771-1000
Posted at 03:28 PM in Real Estate 85268 | Permalink | Comments (0) | TrackBack (0)
It seems that things have slowed down (just a bit) for the summer. Short Sales and Foreclosures continue to make up a large part of our sales and there are only 30 bank owned properties left in Fountain Hills. You can now easily search Foreclosed properties on my website at www.ISellFountainHillsAZ.com. As of July 1st, there are currently 564 homes for sale in Fountain Hills. This is down again from last month. There are 332 single family homes and the rest are condo's, patio homes, etc. The average price is $711,374. There are 90 homes currently in escrow with an average price of $442,340. The average days on the market were 211. There were 75 homes that sold/closed escrow in June. That means the title companies and home inspectors are busy again! If you are looking for an entry level home in Fountain Hills be prepared to make your best offer since you are likely to encounter multiple offers and bidding wars. It's all about supply and demand, and finally we are seeing a reduction in the supply. Overall, with prices down, interest rates low and a huge selection of available homes, it's a great time to buy!
Posted at 03:22 PM in Real Estate 85268 | Permalink | Comments (0) | TrackBack (0)
WASHINGTON - Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today's action will help stabilize the nation's housing market by stimulating home sales across the country.
The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.
"We believe this is a real win for everyone," said Donovan. "Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation's housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."
Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today's announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower's own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today's action permits the first-time homebuyer's anticipated tax credit under the Recovery Act to be applied toward the family's home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.
According to estimates by the National Association of Home Builders, the Administration's homebuyer tax credit will stimulate 160,000 home sales across the nation - 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA's current market share, it's estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.
Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.
For every FHA borrower who is assisted 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 will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.
Posted at 06:04 AM in Real Estate 85268 | Permalink | Comments (0) | TrackBack (0)
It appears that our market activity may be picking up! Buyers are taking advantage of the great home prices and interest rates. Short Sales and Foreclosures are now only about 50% of our sales and there are only 42 bank owned properties in Fountain Hills. You can now easily search Foreclosed properties on my website at www.ISellFountainHillsAZ.com. As of May 1st, there are currently 697 homes for sale in Fountain Hills. It's been a LONG time since we've been below 700!! There are 409 single family homes and the rest are condo's, patio homes, etc. The average price is $735,090. There are 116 homes currently in escrow with an average price of $505,967. The average days on the market were 192. There were 60 homes that sold/closed escrow in April. I think that any agent you talk to would agree, that our market has definitely improved. We are even seeing a few multiple offer situations! Overall, with prices down, interest rates low and a huge selection of available homes, it's a great time to buy! Don't watch this opportunity in your rear view mirror.
Posted at 06:55 PM in Real Estate 85268 | Permalink | Comments (0) | TrackBack (0)
Unfortunately, I think that the media has done a total disservice to today's sellers. The buyers seem to be under the impression that every seller is desperate and should just take anything. That is simply not the case. Our market in Fountain Hills is down about 40% since 2006 and there are some really great buys out there. Most homes are already priced at today's market value. If they have been on the market for a long time (chasing it down) you will see that they likely started at a much higher price but they have already come down! Those homes that have recently come on the market have come on at current market value. Now, if you have found a home that you are interested in purchasing your agent should show you the current comparable sales. If at that time, it appears that the home is priced above market value you have just cause for offering a lower price. On the other hand, if it appears that the home is priced at - or even below market value, then you have no justification for a low ball. That seller has simply priced his home to sell, which is probably why it appeals to you in the first place. It is already a good deal! The good news is that it appears that we may have finally hit bottom. :)
Posted at 06:50 AM in Real Estate 85268 | Permalink | Comments (0) | TrackBack (0)
