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

FIRST TIME HOMEBUYERS’ TAX CREDIT EXTENDED THROUGH APRIL 2010; ALSO OFFERED TO CURRENT HOMEOWNERS

We have some great news for first-time homebuyers! The Senate has agreed to extend the First Time Homebuyers’ Tax Credit through April 2010. The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November.

More great news: The Senators also agreed to offer a reduced credit to some repeat buyers. Current homeowners looking for a new home could qualify for a $6,500 credit if they have lived in their existing primary residence for at least five years. The home buyers’ credit would be available to individuals earning up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the current law.

The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.

If you’re thinking of buying, you cannot have a better timing than now. With inventory still at peak levels, and prices and mortgage rates at record lows, this is a totally win-win situation for everybody. The current scenario also bodes well for current homeowners who may be planning to downsize or get a bigger place.

The Dulcie Crawford Group is just a phone call or email away for honest and sensible real estate advice. Please call us at 702-285-1990 or email dulciecrawford@gmail.com.

FED DECISION SHAKES THINGS UP; HOW WILL THIS AFFECT YOU?

This just came in from one of our preferred lenders, Paula Clark at Wells Fargo Home Mortgage: Last week at the Fed’s regularly scheduled Federal Open Market Committee meeting, some major decisions were made that will ultimately impact mortgage rates. But just what did they decide...and what do their decisions mean for home loan rates?

The Fed said they are going to ration out the remaining commitment of Mortgage Backed Security purchases through the first quarter of 2010. There will be no additional buying, but instead, a longer weaning off of the program. There was some speculation about the Fed increasing the amount of buying above the $1.25T committed to, and last week's statement is the Fed's nice way of saying "no." They will not be buying more in quantity, but what they will do is attempt to provide a smoother transition to normal market conditions.

It is a given that once the Fed ceases its purchases, that interest rates will climb significantly higher...most likely back above the 6% area. So instead of a hard transition with a large bump in rates, the Fed is attempting to allow rates to gradually rise. This means that waiting to purchase or refinance will very likely mean a higher interest rate.

Their decision also means that the Fed's remaining purchases will all be lower in quantity, as the remaining allotment for purchases will be spread over a longer period of time - and additionally, will not necessarily be spread out as evenly as their past purchases - which could lead to more volatility for rates in the near term.

In other news, Existing Home Sales and New Home Sales were reported slightly less than expected, but both reports continue to show signs of an improving housing market. The inventory of unsold existing homes fell to its lowest inventory level since April 2007, while the inventory of unsold new homes dropped to its lowest level since January 2007. While some of the decline in new home inventory may be due to builders constructing fewer homes - these reports indicate that the housing market is indeed showing signs of life.

Remember, with home loan rates still low - but slated to increase with the Fed's recent decision - as well as a juicy tax credit for First Time Home Buyers that is going to expire on November 30th, it makes sense to get off the fence if you've been considering a purchase or refinance. For sensible home advise, you can contact Paula Clark directly at tel. (702) 868-3920, cell (702) 277-3554, or email her at paula.L.clark@wellsfargo.com.

65 DAYS REMAINING FOR THE $8,000 FIRST TIME HOMEBUYER'S TAX CREDIT

Time is fast running out for the $8,000 First Time Homebuyer's Tax Credit, which expires on November 30, 2009. It has NOT been extended as of today. You must close escrow by this date to be eligible for the tax credit. Given today’s market conditions, you should allow 30- 45 days to close escrow. This means you want to be in contract by October 15, 2009.

That’s only 20 days to find a house.

Another positive factor to consider buying now is the very affordable interest rates. See below for the most up-to-date mortgage rates, courtesy of one our preferred lenders Aaron Gordon from Bank of America Home Loans. Aaron is reminding those who are seriously considering buying a house that the conditions are in your favor. Interest rates are steady, and rates remain at a three-month low. The Fed has slowed the purchase of mortgages amid signs of an improving economy. Fifteen-year mortgages are at their lowest since 1991.

Here’s a round-up of today’s rates (subject to change until locked):

4.875% (APR 5.129) FOR A 30 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED OR SECOND HOME) with 1.125 points, NO ORIGINATION FEE!

4.250% (APR 4.626) FOR A 15 YR FIXED CONVENTIONAL LOAN (OWNER OCCUPIED OR SECOND HOME) with 0.750 points, NO ORIGINATION FEE!

4.875% (APR 5.139) FOR A 30 YR FHA / VA LOAN, WITH 1.250 POINTS, NO ORIGINATION FEE!

4.250% (APR 4.682) FOR A 15 YR FHA / VA LOAN, WITH 1.125 POINTS, NO ORIGINATION FEE!

5.500% (APR 5.763) ON A 30 YR JUMBO LOAN OVER $417,000 with 1.125 POINTS, NO ORIGINATION FEE!

5.000% (APR 5.244 ) ON A 5 YR JUMBO ARM OVER $417,000 with 1.000 POINT, NO ORIGINATION FEE!

5.875% (APR 6.133) ON A 30 YR INVESTOR (NON-OWNER OCCUPIED) LOAN UNDER $417,000 WITH 20% DOWN with 1.000 POINTS, NO ORIGINATION FEE (720 mid score)!

5.375% (APR 5.603 ) ON A 30 YR INVESTOR LOAN (NON-OWNER OCCUPIED) UNDER $417,000 WITH 25% DOWN with 0.750 POINTS , NO ORIGINATION FEE (720 mid score)!

NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE. NO PROCESSING FEE. NO UNDERWRITING FEE. NO ADMIN FEE. You can contact Aaron at tel. 702.283.2333, fax 1.866.905.7922, or email at aaron.gordon@bankofamerica.com.

These rates assume your credit history is in good standing. This is not a credit decision or a commitment to lend; credit is subject to approval. The actual terms of your loan will vary depending on factors such as your credit history when you apply. Until you lock your rate, rates and terms are subject to change without notice. Additional programs are available.

Unless otherwise noted, these rates are based on an Owner-occupied residency in Nevada.

For adjustable-rate mortgages, rates are subject to increase after the initial fixed-rate period. A 30-year loan term applies to adjustable-rate mortgages.

Mortgage insurance may be needed, which could increase the monthly payment and APR.

We hope you find the above information valuable. We at The Dulcie Crawford Group make every effort to be on top of our game, so we can serve you the best way possible. If you have any questions or need sound advice – whether you’re thinking of selling your home or buying one – please call us at 702.285.1990.

TAKE ADVANTAGE OF RECORD-LOW INTEREST RATES BEFORE IT GOES UP

One of preferred lenders, Paula Clark at Wells Fargo Home Mortgage, is reminding us that mortgage rates are still very affordable but may soon go up. Here’s a snippet of her advice to homebuyers:

“Rates are at a low point right now and Wells Fargo thinks that we have a small window of opportunity before it goes higher. The economy is showing signs of improvement and the Fed is running at the end of its buying program. We think that rates could soon go up and go up quickly. If you have an offer accepted, are pending bank acceptance on a short-sale, or have borrowers that are floating on their interest rate, locking the rate is the best strategy per America's largest home lender.”

With the $8,000 First-Time Homebuyers Tax Credit ending by December 1st (we hope Congress extends the program) the highly reasonable rates, and the abundance of property inventory, home ownership is within reach now more than ever.

Wells Fargo offers a free 60-day lock in- which is more than enough to get the hardest loan approved and closed. Paula has personally averaged under 30-days from application to buyer signing docs at escrow. You can contact Paula Clark at 702-868-3920 or 702-277-3554. Please tell her The Dulcie Crawford Group referred you! We only work with the most reliable in the industry, and recommend those whom we can work with ourselves.

We hope you find the above information valuable in your home search. We at The Dulcie Crawford Group make every effort to be on top of our game, so we can serve you the best way possible. If you have any questions or need sound advice, please call us at 702.285.1990.