As I write this I think back to Thanksgiving 2009. I along with many Americans and I suppose people all around the civilized world was afraid of the future. It was a time when it looked like a good possibility that the financial world would crumble. The markets were in free fall. Almost everyone who had saving and retirement plans had seen them tumble to only a fraction of what they had been previously. My personal income took a major hit. It seems that most of these problems had started with greed.
Now as I look back I can see that God took care of us. I really don't think it had much if anything to do with our Government. Fortunately most people have seen their investments grow back to more reasonable numbers although they are still probably worth less than they were. For many including myself, the dose of reality was very good. I am very thankful that my business has recovered and in fact it has been a very good year thanks to all my good friends and clients. Now there are many people still looking for work ( my brother being one of them). The road back for the unemployed is the most difficult. I think we can all help by watching out for job opportunities for our friends that need one. By the way Ande is looking for a sales position.
And we can help by spending a little money in the economy to grease the economic wheels. But I think we will all remain a little more frugal and are more likely to live within our means.
There are probably two reason my teams business has done well. The first is that we were well positioned to help First Time Buyers. And with the tax credit extension ( In fact move up buyers can benefit now) that should continue for a while. The other reason is the very low interest rates. If you know anyone who might benefit, please ask them to contact me. A consultation is free.
Thank You to all of my good customers and friends Happy Thanksgiving!
Wednesday, November 25, 2009
Thursday, November 19, 2009
FHA Streamlines
There has been a lot of issues with appraisals these days. It is keeping many people from refinancing to lower rates. That is because you need a little equity based on a new appraisal to finance closing cost. Of course if someone wishes, they can pay them out of pocket. But that doesn't happen often. The reason I bring this up is that if a person has an FHA loan with a rate of 6.5% or higher, we (MIG) can reduce their rate to 5.5% and pay most of the cost for them. And we can do this without an appraisal. So if you know someone like this, it would help them and us if your referred them to me at 777-HOME (4663).
Wednesday, November 11, 2009
It's Official: More Homebuyers Qualify for Tax Credit
On November 6, 2009, President Obama signed an expanded version of the $8,000 first-time home buyer tax credit that was set to expire on November 30, 2009. The new version of the tax credit goes into effect on November 7, 2009 and has the potential to stimulate the housing market even more than the old version. More people will qualify under the new rules. Although the tax credit remains at $8,000 for home buyers who have not owned a primary residence in the last 3 years, it has been expanded to include a $6,500 tax credit for home buyers who have lived in their current primary residence for at least 5 consecutive years out of the past 8 years. Under the old rules, move-up homebuyers did not qualify. Consider these examples:
Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit because she lived in the same residence as her primary for at least 5 consecutive years out of the past 8.
Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit because he lived in the same residence as his primary home for at least 5 consecutive years out of the past 8.
Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit because she did not live in the same residence as her primary home for at least 5 consecutive years out of the past 8.Example 4:Bob, an existing homeowner, signed a contract on October 22, 2009, to purchase a new home. He has lived in his current home for more than 5 consecutive years and is within the new income limits. He will go to settlement on November 22, 2009. Bob will qualify for the new $6,500 tax credit as there is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
The tax credit applies to homes that are purchased for less than $800,000 and before May 1, 2010. If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010. This is similar to a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.
The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. This means that more people will qualify for the credit -- especially in parts of the country with higher costs of living. This should help stimulate parts of the housing market that may not have been impacted by the old versions of the credit. Some of these are feeder markets for the Upper Cumberlands. As these sellers relocate, higher sales in those markets could translate into more sales here.
There are many creative ways of structuring your home purchase transaction. The licensed and certified mortgage professionals at Mortgage Investors Group can help maximize the benefits of the credit. Here are a few examples:
* The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence. You could live in one unit and rent out the others.
* If 2 unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income, or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)
* The credit applies even if you have co-signers on your mortgage loan.Today's good news regarding the expanded home buyer tax credit will have a positive impact on housing nationally. It is vitally important to share this information with our community so that we can benefit here at home as well.
From John Brewington
Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit because she lived in the same residence as her primary for at least 5 consecutive years out of the past 8.
Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit because he lived in the same residence as his primary home for at least 5 consecutive years out of the past 8.
Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit because she did not live in the same residence as her primary home for at least 5 consecutive years out of the past 8.Example 4:Bob, an existing homeowner, signed a contract on October 22, 2009, to purchase a new home. He has lived in his current home for more than 5 consecutive years and is within the new income limits. He will go to settlement on November 22, 2009. Bob will qualify for the new $6,500 tax credit as there is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
The tax credit applies to homes that are purchased for less than $800,000 and before May 1, 2010. If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010. This is similar to a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.
The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. This means that more people will qualify for the credit -- especially in parts of the country with higher costs of living. This should help stimulate parts of the housing market that may not have been impacted by the old versions of the credit. Some of these are feeder markets for the Upper Cumberlands. As these sellers relocate, higher sales in those markets could translate into more sales here.
There are many creative ways of structuring your home purchase transaction. The licensed and certified mortgage professionals at Mortgage Investors Group can help maximize the benefits of the credit. Here are a few examples:
* The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence. You could live in one unit and rent out the others.
* If 2 unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income, or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)
* The credit applies even if you have co-signers on your mortgage loan.Today's good news regarding the expanded home buyer tax credit will have a positive impact on housing nationally. It is vitally important to share this information with our community so that we can benefit here at home as well.
From John Brewington
Wednesday, November 4, 2009
First Time Home Buyer Tax Credit
The time is close. Unless the law is extended, the pressure is mounting. We would have no problem getting an FHA, VA or Conventional loan approved and closed before the deadline of Nov 30. But if a first time buyer needs the down payment assistance of THDA, we have less than 2 weeks left to get a loan submitted to THDA before the Nov 16 deadline( they have said they will guarantee underwriting will happen in time to close if they receive it by then. ) so it is not too late. Have your friends or relatives who are interested. Call me at 777-HOME (4663) for priority service.
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