WINTER PREP TO KEEP COSTS DOWN

As the temperatures continue to dip, we want to share these tips to ensure that your home is prepared for the cold days ahead. The article below is courtesy of RIS Media, one of the leading information sources for real estate.


Fall is the perfect time for homeowners to ensure their house is prepared for winter weather. A home should be winterized so it will be able to sustain damage severe weather may bring. Additionally, if a house is winterized and damages do occur, the homeowners insurance policy will cover the house against the weather damage.  HomeownersInsurance.net offers advice so people can prepare for winter weather and help avoid potential costly issues.

Homeowners must first inspect their house thoroughly so that possible issues can be avoided. The most important interior areas are the furnace and fireplace. HVAC professionals can inspect the furnace and clean out the ducts. Furnace filters should be replaced on a monthly basis to keep ducts clean. Any flammable materials around the furnace should be removed.

If there is a hot-water radiator, the valves need to be opened slightly to bleed. When water is seen, they can be closed. If propane is used in the home, the tank will need to be filled. These should all be inspected to be sure they are working properly.

If there is a fireplace in the house, the screen or cap on the top of the chimney should be secure to keep out any birds, squirrels or rodents. The chimney should be cleaned by a professional occasionally because buildup of soot can cause fires. The damper should open and close properly and the mortar between the bricks should not be cracked. Any cracks should be fixed so heat does not seep into areas it should not be, creating a fire hazard.

The next step in preparing for winter for safety and insurance purposes is to examine the exterior. Damage may not be evident immediately during winter months, and may only be noticed with the first spring rain. The doors and windows should be checked for cracks, and then fixed. If the homeowner has a basement, shields can be placed over the window wells for protection from snow melt. Any worn shingles or roof tiles should be replaced so melted snow does not seep into weak areas. Gutters and downspouts should also be unclogged and leaf guards should be installed. Debris should then be cleared from the foundation to look for further cracks to repair.

OBAMA ADMINISTRATION RELEASES OCTOBER HOUSING SCORECARD

Below is a recent press release from The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury on the latest Housing Scorecard under the Obama administration. The latest housing figures show continued signs of stabilization in house prices and high home affordability due in part to record low interest rates. The housing scorecard is a comprehensive report on the nation’s housing market.

We like to share this piece of good news because as an active Realtor, I continue to be hopeful that the housing market improves. I have served many clients through high and low times and certainly, this challenging environment is something we haven’t seen before, but I believe is nothing insurmountable.

You can view previous housing scorecards here: http://portal.hud.gov/portal/page/portal/HUD/initiatives/Housing%20Scorecard

Here is the complete report for October:

“Over the last 21 months, the Obama Administration’s swift action in the housing market has kept millions of families in their homes and provided responsible borrowers with incentives to refinance or to become a homeowner,” said HUD Assistant Secretary Raphael Bostic. “But, with many unavoidable foreclosures still in the pipeline, it’s clear that we have a hard road ahead. That’s why we’re focused on successfully implementing the programs we’ve put in place – such as additional assistance on refinancing and helping unemployed homeowners stay in their homes – and ensuring that help is available to homeowners as soon as possible.”

“HAMP is not only an important part of the Administration’s efforts to stabilize the housing market, it has also redefined the loan modification standard for the mortgage industry overall. That has led to more than 3.5 million modification arrangements directly benefitting families in communities across the country still healing from the crisis," said acting Assistant Secretary for Financial Stability Tim Massad. "Early data shows that well beyond the trial phase, the majority of homeowners are maintaining their HAMP modifications, reflecting the rigorous standards the program uses to provide assistance to responsible homeowners.”

The October Housing Scorecard features key data on the health of the housing market including:

• Families continued to benefit from the lowest rates in history on 30-year fixed mortgages. Since April of 2009, record low interest rates have helped more than 7.1 million homeowners to refinance, resulting in more stable home prices and $12.7 billion in total borrower savings.
• As expected with the expiration of the Homebuyer Tax Credit, new and existing home sales remained below levels seen in the first half of 2010. At the same time, home prices remained level in the past year after 33 straight months of decline and homeowners added $95 billion in home equity in the second quarter.
• More than 3.52 million modification arrangements were started between April 2009 and the end of August 2010 —nearly triple the number of foreclosure completions during that time. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and more than 1.6 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the number of agreements offered nearly tripled foreclosure completions for the same period (1.3 million).
• At nine months, almost 90 percent of homeowners remain in their permanent HAMP modification, with 11 percent defaulted. Early data indicate that HAMP permanent modifications are performing well over time, with lower delinquency rates than those reported by the industry at large. At nine months, less than 16 percent of permanent modifications are 60+ days delinquent.

Data in the scorecard also show that the recovery in the housing market continues to remain fragile. For example, foreclosure completions continue to move upward and a large supply of homes are being held off the market. While the recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

Each month, the Housing Scorecard incorporates key housing market indicators and highlights the impact of the Administration's unprecedented housing recovery efforts, including assistance to homeowners through the FHA and HAMP.

NAR MEETS WITH BIG BANKS TO DISCUSS FORECLOSURES PROBLEMS

With all the recent issues surfacing related to foreclosures, it is good to note that the National Association of Realtors (NAR) is taking a highly proactive stance to address the current market struggle with housing and mortgage. Recently, the NAR Leadership Team has held several meetings during the past two months with the heads of major national banks, i.e. Bank of America Home Loans, Wells Fargo Home Mortgage, Chase Home Mortgage, and CitiMortgage, to discuss problems with short sales and the availability of credit to potential buyers. NAR’s position has always been that “we want to help homeowners avoid foreclosure, whenever possible.”

These meetings give NAR an opportunity to discuss with the four largest lenders the problems Realtors face every day when working to get deals to the closing table. All the banks acknowledge the difficulties that realtors, lenders and homeowners are facing and have given their commitment to work with all concerned.

We are including below the key agreement points provided by NAR, as a result of this meeting. As an active member of the NAR, my group supports the initiatives and will closely monitor the progress that will enable us to provide you with the best service.


SUMMARY OF BANK MEETINGS

In each meeting, lenders and REALTORS® have agreed to work in the following areas:

Transparency
REALTORS® need to understand each lender’s policies for underwriting loans, valuing property, selecting brokers for REO listings, and deciding whether to approve a short sale.

Service
Having a single point of contact is extremely important to improve service to the borrower, short seller, and the real estate agent. NAR is urging all lenders to adopt this approach.

Balance
FHA and the government sponsored enterprises (GSEs: Fannie Mae and Freddie Mac) have become over-focused on safety at the expense of their mission. NAR urges lenders to advocate a return to a reasonable center, now that credit policies have over-corrected.

Speed
When a borrower applies for a loan and receives a conditional approval, the conditions are often impossible to meet. It would be better to decline the loan and allow all parties to move on. Short sale approvals often take months. HAFA and other short sales programs should be implemented quickly.

Accuracy
Lenders are aware that problems related to the application of new appraisal guidelines have skewed some appraisals. NAR continues to raise these issues with the lenders, regulators, FHA, and the GSEs and seek solutions.

Performance/Compensation
Real estate professionals work extremely hard and for many months on a successful short sale. NAR urges lenders to make commissions policies more transparent and to agree not to reduce commissions at or shortly before closing. At the same time, NAR acknowledges that lenders waste time processing short sales that are not real offers, and we urge our members not to participate in this practice.

Lenders also are monitoring performance of REO listing brokers and will take steps to resolve problems.

FREE ONLINE TOOL FOR BOTH BUYERS AND SELLERS

We have a great online tool that you can subscribe to that will allow you to keep abreast of what’s happening in a particular neighborhood, whether you are a seller or a buyer. Called the Market Snapshot, the web-based resource is a comprehensive database of real estate activities that can be tailored to your search parameters.


Specifically, the report pulls together recent listings and sales in a community or zip code culled from the MLS (Multiple Listing Service), and gives you information on nearby schools and the community. This is a very handy reference for both sellers and buyers.

As a seller, it gives you critical market information about what’s for sale in your neighborhood, the recent sold properties, data on asking price vs. selling price and time on the market. If your home is currently on the market or you are thinking of selling, this will give you the advantage to make decisions based on facts that you can discuss with your Realtor, and will prove to be especially useful to implement marketing and pricing strategies to sell your home faster.

As a buyer, the Market Snapshot will give you valuable insight into the community you’re interested in, check nearby schools and neighborhood amenities (e. g. shopping areas, post office, places of worships, etc.) up to a five-mile radius. But more importantly, it will give you statistics on current sales that will help you make a smart offer on a home in this kind of market condition.

The updated report is sent to your inbox on a regular basis and is very easy to modify and can be stopped at anytime if you no longer wish to subscribe. We hope you give it a try! To sign-up, please click on this link: http://www.dulciecrawford.com/HomeValues.ubr. It takes thirty seconds but the information you can derive from it will help you be one step ahead of the competition. Remember: knowledge is power, and it’s even better if it’s free.

If you have any questions or need help signing up for this complimentary service, please call The Dulcie Crawford Group at 702.285.1990 or 702.588.6842.

HOW A SECTION 203(K) PROGRAM CAN BE AN OPTION TO FINANCE A DISTRESSED PROPERTY

With the real estate market flooded with distressed properties, it can be a discouraging scenario for a potential homebuyer to proceed with the sales process even if the house is priced within reach and appears to be a good investment. Often, the thought of dealing with a fixer-upper suggests visions of overblown budgets, problems with contractors and never-ending issues. However, not many people may know that there is a loan program available from the Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), called the Section 203(k) that is available for such properties.

The following are some basic information from the HUD website that explains what the program is all about. The program is discussed in greater detail at the following link: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

203(k) - How It Is Different

Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.

This program operates through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.

The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it.

Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203(k) with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance agencies have designed programs, specifically for use with Section 203(k) and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing.

The Department also believes that the Section 203(k) program is an excellent means for lenders to demonstrate their commitment to lending in lower income communities and to help meet their responsibilities under the Community Reinvestment Act (CRA). HUD is committed to increasing homeownership opportunities for families in these communities and Section 203(k) is an excellent product for use with CRA-type lending programs.

Eligible Property

To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.

Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.

In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.

An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.

A 203(k) mortgage may be originated on a "mixed use" residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) the commercial use will not affect the health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property.

Condominium Unit

The Department also permits Section 203(k) mortgages to be used for individual units in condominium projects that have been approved by FHA.

The 203(k) program was not intended to be a project mortgage insurance program, as large scale development has considerably more risk than individual single-family mortgage insurance. Therefore, condominium rehabilitation is subject to the following conditions:

• Owner/occupant and qualified non-profit borrowers only; no investors;
• Rehabilitation is limited only to the interior of the unit. Mortgage proceeds are not to be used for the rehabilitation of exteriors or other areas which are the responsibility of the condominium association, except for the installation of firewalls in the attic for the unit;
• Only the lesser of five units per condominium association, or 25 percent of the total number of units, can be undergoing rehabilitation at any one time;
• The maximum mortgage amount cannot exceed 100 percent of after-improved value.

After rehabilitation is complete, the individual buildings within the condominium must not contain more than four units. By law, Section 203(k) can only be used to rehabilitate units in one-to-four unit structures. However, this does not mean that the condominium project, as a whole, can only have four units or that all individual structures must be detached.

If you have questions about the 203(k) program or are interested in getting a 203(k) insured mortgage loan, we suggest that you get in touch with an FHA-approved lender in your area or the Homeownership Center in your area. Full guidelines, including maximum mortgage amount, appraisal and inspection requirements and certain program limitations, can be found at the HUD website: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

If you need a well-qualified lender that can help you explore how this program can help you, please call us at 702.285.1990 and we would be happy to give you a referral.

FHA SHORT REFINANCE OPTION: POTENTIAL RELIEF FOR UNDERWATER HOMEOWNERS

Is your home worth less than you owe? On September 7, 2010, the US Department of Housing and Urban Development (HUD) will begin offering its Federal Housing Administration (FHA) Short Refinance Option. The HUD press release states that: “The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or 'underwater' - because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.”

In order to be able to participate in the Short Refinance Option, a homeowner/borrower:

1. Must owe more on their mortgage than their home is worth and be current on their existing mortgage.
2. Must have their mortgage through any non-FHA lender.
3. Must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500.
4. Must be using this option on their primary residence.
5. The borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115% and all lien holders must agree to the terms.
6. The new FHA-guaranteed loan must have a loan-to-value ratio of no more than 97.75%.

The FHA press release also says the FHA Short Refinance program is voluntary and “requires the cooperation of all lien holders”. This program is not automatically open to any homeowner who is underwater on a conventional home loan; as stated previously, the borrower must meet all guidelines and satisfy other typical FHA loan underwriting prerequisites.

Furthermore, the press release states that: “To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens.” Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.

If you need assistance in determining your eligibility for the FHA Short Refinance program, please give us a call at 702.285.1990 and we would be happy to evaluate your individual situation.

FANNIE MAE INTENSIFIES PENALTIES FOR STRATEGIC DEFAULTERS

Seven-Year Lockout Policy for Strategic Defaulters

We would like to share this current update on recent Fannie Mae policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. This change will affect homeowners who decides to do a “strategic default,” -- when borrowers are walking away from their homes based on the sheer fact that the property is currently worth less than what is owed, even if they are able to afford their monthly mortgage payments. This phenomenon isn’t looked upon kindly, as it unnecessarily adds to the growing number of foreclosures across the nation.

Under these changes, defaulting borrowers who walk away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the day of foreclosure.

In addition, Fannie Mae said it will take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. In an announcement next month, the company said it will be instructing its servicers to monitor delinquent loans facing foreclosure and put forth recommendations for cases that warrant the pursuit of deficiency judgments.

“We’re taking these steps to highlight the importance of working with your servicer,” said Terence Edwards, executive vice president for credit portfolio management. “Walking away from a mortgage is bad for borrowers and bad for communities, and our approach is meant to deter the disturbing trend toward strategic defaulting.”

On the flip side, Edwards said borrowers facing hardship who make a good faith effort to resolve their situation with their servicer will preserve the option to be considered for a future Fannie Mae loan in a shorter period of time.

According to Fannie Mae, troubled borrowers who work with their servicers and provide information to help the servicer assess their situation can be considered for foreclosure alternatives, such as a loan modification, a short sale, or a deed-in-lieu of foreclosure. Fannie Mae said borrowers with extenuating circumstances who work out one of these options with their servicer could be eligible for a new mortgage loan in three years and in as little as two years depending on the circumstances.

Here is the verbiage from the FN Bulletin:

Currently, the waiting period that must elapse after a borrower experiences a
foreclosure is seven years. However, Fannie Mae allows a shorter time period –
five years – if certain additional requirements are met (e.g., minimum down
payment and credit score, and occupancy requirements).

These requirements are being modified to remove the five year option. Unless the foreclosure was the result of documented extenuating circumstances, which only requires a three-year waiting period (with additional requirements), all borrowers will now be required to meet a seven-year waiting period after a prior foreclosure to be eligible for a new mortgage loan eligible for sale to Fannie Mae."

Don't miss the section that says borrowers who have extenuating circumstances may be eligible for new loan in a shorter timeframe.

You can check out the full text of the announcement here: Fannie Mae's Selling Guide Announcement SEL-2010-05.

What Tax Records Should You Keep and How Long Should You Keep Them?

While tax preparation seems to get a little bit easier each year with the prevalence of online tax prep software, there’s still one question that leaves many Americans scratching their heads: What records should I hang onto for tax purposes and how long should I keep them?

There are a few basic records that everyone should keep, according to the IRS, including documents that provide evidence of your income and expenses. In addition, if you own a home or have investments, the IRS recommends that you hang onto related records. Here’s the breakdown:

Basic Records to Keep

Now that you know what to keep, here’s the low-down on how long to keep them (also known as the “period of limitations”):


How Long to Keep Records*

*Unless otherwise noted, the number of years you should keep records refers to the time period beginning after you filed your return. If you filed your return before the deadline, the IRS treats it as if you filed it on the deadline.

For more details about which records you should keep for tax purposes, the IRS has put together a handy publication on Recordkeeping for Individuals.

GREAT NEWS FOR SHORT SALE FRUSTRATION

On November 30, 2009, the Obama Administration released guidelines and uniform forms for its Home Affordable Foreclosure Alternatives Program (HAFA). Modified HAFA rules for loans owned or guaranteed by Fannie Mae or Freddie Mac will be issued in coming weeks. HAFA does not apply to FHA or VA loans.

HAFA, which will help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP), provides incentives in connection with short sales and deeds-in-lieu of foreclosure. HAFA is a complex program with 43 pages of guidelines and forms. We will keep you updated in future blogs and strive to simplify the jargon to see how this program can help you.

The program:

• Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
• Uses borrower financial and hardship information already collected under HAMP.
• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
• Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6%).
• Requires borrowers to be fully released from future liability for the first mortgage debt and, if the subordinate lien holder receives an incentive under HAFA, that debt as well (no cash contribution, promissory note, or deficiency judgment is allowed).
• Uses a standard process, uniform documents, and timeframes/deadlines.
• Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to a $1,000 match for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders. Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.
• Does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program ends on December 31, 2012.
  

Who is eligible for HAFA?
The borrower must meet the basic eligibility criteria for HAMP:

• Principal residence
• First lien originated before 2009
• Mortgage delinquent or default is reasonably foreseeable
• Unpaid principal balance no more than $729,750 (higher limits for two- to four-unit dwellings)
• Borrower’s total monthly payment exceeds 31% of gross income

What else should I know?

• The deal must be “arms length.” Borrowers can’t list the property or sell it to a relative or anyone else with whom they have a close personal or business relationship.
• The amount of debt forgiven might be treated as income for tax purposes. Under a law expiring at the end of 2012, however, forgiven debt will not be taxed if the amount does not exceed the debt that was used for acquisition, construction, or rehabilitation of a principal residence. Check with a tax advisor.
• The servicer will report to the credit reporting agencies that the mortgage was settled for less than full payment, which may hurt credit scores.
• Buyers may not reconvey the property for 90 days.

HOMEBUYER TAX CREDIT CHANGES AT A GLANCE

First-time Homebuyers and Repeat Homebuyers still have time to take advantage of the tax credit available to them. The following quick reference is from the Federal Housing Tax Credit website. We have provided more links to detailed discussions for each.

If you have questions specific to your situation, please call us at 702-285-1990 and we would be happy to provide answers.

$8,000 First-time Home Buyer Tax Credit at a Glance

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
  

To view Frequently Asked Questions, please click here: http://www.federalhousingtaxcredit.com/faq1.php

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
  The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
  

You can find Frequently Asked Questions here: http://www.federalhousingtaxcredit.com/faq2.php