Homebuyer Tax Credit Extended and Expanded!

Congress voted this afternoon to extend the $8,000 First-time Homebuyer Tax Credit and created an additional $6,500 credit for existing property owners looking to sell their home and buy another.

Today’s House vote was 403-12 in favor of the bill after the Senate approved the measure in a 98-0 vote Wednesday night.  The legislation now moves to the White House for President Obama’s signature, which could occur as early as tomorrow or Saturday.

The tax credit for both programs (first-time homebuyers and existing homeowners) will apply to all written binding contracts in effect by April 30, 2010 and closed by June 30, 2010.

Both credits have income restrictions limiting their availability and are applicable only for single-family residences.

Rate Update

The bond market is performing well today and rates are better based on a beguine CPI report. Inflation is basically at zero with a year over year decline of 2.1% – the lowest rate since 1950. Maybe more important than that, for the future of low rates, is the fact that the Fed purchased another $42b in treasuries this past week. The Fed has only committed to buy treasuries through October of this year. (As a Realtor, I am telling my clients it is not the time to wait on mortgage rates in hopes that they’ll go lower.) Once the Fed stops buying them, Treasuries may very well have to raise prices to attract other buyers. It could very well could mean higher rates this fall into winter. On top of that the $8000 stimulus money is scheduled to end on December 1st. It may be worthwhile to suggest to clients that these record low rates may not last as long as we hope. I personally believe mortgage rates still have to stay low for quite awhile but the low rates we have today may be limited.

FHA Loans Update May 2009

Below are are the new FHA Updates:

1. 1.The borrower must meet standard FHA credit qualifications (there’s no
   set credit score barometer, but a borrower’s debt-to-income ratio is
   heavily considered).
2. The borrower is able to finance the upfront mortgage insurance premium
   into the loan. The borrower will be responsible for paying an annual
   premium.
3. The FHA mortgage requires a low 3.5-percent down payment, and that
   money can come from a variety of sources, including parent gifts and
   HUD downpayment assistance grants.
4. Closing costs are also low – typically 3 percent of the total purchase
   price – and are usually covered by the seller in today’s market. They
   can also be incorporated into monthly payments.
5. Eligible properties are one-to-four unit structures, and each state
   has a purchase price limit (as high as $400,000) for FHA loans.
6. If a buyer finds a fixer-upper, the FHA 203(k) program can help the
   person purchase or refinance the property, with the cost of repairs
   and improvements included in the loan.
7. FHA home mortgages aren’t just for first-time homebuyers. FHA
   refinance loans can help people get out of toxic debt situations
   caused by subprime mortgages with high interest rates.

If you need help buying or selling a home in the Cincinnati area, call Charlene Fay at 513-602-9000 or email at CharleneFay@REMAX.net.

Attention First Time Homebuyers!

FIRST-TIME HOMEBUYER PROGRAM
Effective 04/06/2009 @ 12:01am

Mortgage Rates
     5.50% for loans without 2.5% assistance grant*
     6.00% for loans with 2.5% assistance grant
     5.25% for Ohio Heroes without 2.5% assistance grant*
     5.75% for Ohio Heroes with 2.5% assistance grant
     30-year fixed rate FHA/VA/USDA-RD/conventional loans are eligible
     2-1 buydowns are permitted-please see the Underwriting Guidelines
(UG) for specific product information
     *The second mortgage rate for borrowers who utilize OHFA’s Housing Tax Credit  Advantage (HTCA) Program will be 1% higher than their unassisted rate.

Fees
     1% origination fee
     $150 transfer fee to Servicer (US Bank fee)
     $79 tax service fee (US Bank fee) (not to exceed $90)
     .25% Adverse market fee (conventional loans only)

Qualified Borrowers
A first-time buyer is someone who has not owned or had an ownership interest in his/her principal residence in the last three years or a qualified military veteran.  Target Area Loan Applicants do not have to be first-time buyers. Everyone must meet certain household income limits.

Acreage Limitation
     Up to two acres inside a municipal corporation
     Up to five acres outside a municipal corporation
     (Unless additional acreage is required by local health or safety code)

Qualified Properties
     Existing house: one-unit single-family dwelling and duplex up to four units–see UG
     Spec/Nearly completed house: one-unit single-family dwelling
     Modular/Manufactured house: one-unit single-family dwelling–see UG
     Properties must meet certain sales price limits

Critical Dates
April 6, 2009–October 5, 2009- Origination period: Loans must close during this period. October 19, 2009- Deliver mortgage file to master servicer by this date.

Note: The recapture tax provision applies to all loans in this program. View this IRS link for an explanation on recapture of federal subsidy.

If you are a first time homebuyer and are in need of an EXPERIENCED realtor, please call Charlene Fay at

513-602-9000 or visit CincinnatiAreaListings.com and start your search today!

State of Ohio Bond Money Rates for First Time Homebuyers

STATE OF OHIO BOND MONEY
For the First Time Home Buyers

5.625% for loans without 2.5% assistance grant
6.125% for loans with 2.5% assistance grant
5.375% for Ohio Heroes without 2.5% assistance grant
5.875% for Ohio Heroes with 2.5% assistance grant
Good only through Aug. 3, 2009
The Tax Credit also applies for these Loans.

Call: Charlene Fay  w/ RE/MAX Elite for your First Time Buyers Packet
as well as a Mortgage Company doing these types of Loans.
513-602-9000

Tax Credit Passes

Guidelines for Home Buyer Tax Credit

Tax credit has been increased to $8,000.
Homes have to be purchased between January 1, 2009 and December 31, 2009.
No repayment/recapture clause for homes sold after 36 months of
occupancy and ownership.

1.The Tax Credit is for home buyers (either spouse if filing jointly)
who have NOT owned a principle residence during the three-year period
prior to the purchase.  Ownership of vacation property or rental
property does not disqualify home buyers from this program.

2.The maximum credit is $8,000 or 10% of the home purchase, whichever is less.

3.The credit is available for homes purchased on or after January 1,
2009 and before December 31, 2009.

4.To qualify for the full tax credit, married couples’ modified
adjusted gross income (MAGI) should be under $150,000 and single
filers’ MAGI should be less than $75,000. Partial tax credits may be
available for married couples with MAGI incomes of over $150,000 but under $170,000 and single filers with incomes over $75,000 but under $95,000.  If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.

5.Home buyers who qualify for this program, but who do not intend to
purchase a home till the end of 2009, may elect to alter their tax
withholdings (up to the amount of the of the tax credit) in order to
save up money for a down payment.  However, if the purchase of the
home does not occur, the taxes must be repaid to the IRS.

6.There is no recapture or repayment clause IF the home is owned for
at least 36 months.
7.The effective date of purchase for new construction (even if buyer
owns title to the lot) is the date the owner first occupies the house.
 So even if construction began in 2008, as long as the home and buyers
qualify for the tax credit, they will be eligible if they take possession any time during 2009.   However, new construction bought from the builder is only eligible if the settlement date (closing) takes place between January 1, 2009 and December 31, 2009.
8.The law allows taxpayers to elect to treat qualified 2009 purchases
as a 2008 purchase so that they can receive the tax credit on their
2008 tax returns.
9.The full amount of the eligible tax credit is refunded to the buyer,
regardless of whether the buyer has paid an equivalent amount in
taxes.

Homebuyer Tax Credit

Compromise Agreement Reached on Economic Stimulus

The Senate and House Conference reached an agreement yesterday on the economic stimulus package legislation.  Congressional leaders hope to officially unveil the measure sometime today. 

Homebuyer Tax Credit

The homebuyer tax credit has been modified yet again and according to
reports is as follows:

·         $15,000 tax credit has been reduced to $7,500 (or possibly $8,000)

·         First-time homebuyers only

·         Nonrefundable – does not need to be paid back by the homebuyer

·         Covers purchases through August 31, 2009

If you are a first-time homebuyer looking to purchase a home in the Cincinnati area, call Charlene Fay at 513-602-9000.

Stimulus for the Housing Industry

Urgent Message from Dave Liniger

If you have been watching the news this week, you may have noticed that the debate in Washington has finally turned toward real stimulus for the housing industry. As a result, I believe that we could be on the brink of a substantial turn around in the real estate market. Now, it’s critical that we all join together and deliver a powerful message to our legislators that we support this stimulus.

Last night, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences.

Today, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence.

If these two provisions survive in the final passage of a stimulus bill they could have a tremendous impact on our industry. If they are coupled together with provisions to ease the flow of credit and reduce foreclosures, we could see an immediate and dramatic turn-around in real estate.

I feel that these provisions represent real economic stimulus. They will put money in the hands of millions of homeowners, increase sales, stabilize home values and add more revenues to local communities in the form of property taxes.

I urge each of you to contact your senators and representatives to let them know that you believe these provisions are essential components of any stimulus bill. You can go to the official Senate and House web sites to locate the email and phone number of your legislators.

This may be one of the most critical moments for the real estate industry in our time. Please pass this information on to anyone you might do business with. The outcome of this legislation will have a lasting impact on us all. I appreciate your assistance on this urgent matter.

Thank you.

 

 

Copyright 2009
RE/MAX International, Inc.
5075 S. Syracuse Street | Denver, Colorado 80237

New FHA Requirements

As volatility in the financial market continues, offering a product that meets the needs of first-time homebuyers has become increasingly difficult. The ability to obtain capital to continue our programs is severely limited. Despite recent rate increases, program volume has continued at a pace that can not be sustained. It has become evident that down payment assistance, not interest rate, is the primary reason today’s homebuyers select an Ohio Housing Finance Agency (OHFA) mortgage.
To protect and continue our core First-Time Homebuyer Program, the Agency will temporarily discontinue our down payment assistance programs, effective at 8:00am October 13, 2008. This announcement applies to both second mortgage loans and down payment assistance grants. We will honor reservations for loans with down payment assistance made prior to this announcement.
OHFA’s mission is to “open the doors to an affordable place to call home” for Ohio families and we are proud to have helped thousands of borrowers through our down payment assistance programs. It is a difficult decision to suspend these programs, but it is now imperative that we devote increasingly scarce resources effectively.
Borrowers can still purchase their home using the First-Time Homebuyer program.
We will continue to evaluate our programs and respond to the market as necessary. We appreciate your patience as we work to preserve the program that for 25 years has helped thousands of Ohio borrowers purchase their first home.

Real Estate Agent Interview Questions

I have found that more and more people are interviewing multiple agents these days, and it really takes an experienced and knowledgable agent to really sell homes in a tough market like the present. What I have compiled are a list of specific questions that you should ask every agent in order to get the best representation of your needs in selling your home. 

Note: Some agents prefer that you don’t ask these questions as it will bring the truth to the table in the experience you may receive by hiring this agent.

1. What makes you different from other agents?

Because of this tough market, it is very important to look for an agressive agent that has unique marketing plans to make your home stand out from the rest of the competition. Look for an agent who is very internet and tech savvy and is up-to-date with current marketing techniques.

2. How many homes have you Sold?

If you want your home sold in the least amount of time for the most money, then look for an agent that has sold alot of homes versus 10 homes. An agent who is a top producer can afford the marketing and advertising to sell your home, and most likely has an assistant(s) to help get the job done.

3. How are you going to market my home?

Find out where your agent advertises and the effectiveness of that advertising.

4. What has your company Sold in my area?

Agents should bring you a list of both sold and active comarable homes in your area.

5. Is advertising controlled by your Broker or you?

If your agent is not in control of their advertising, then your home will be competing for advertising with other listings in the brokerage versus an independent agent as RE/MAX.

6. On average, when your listings sell, what is the difference between the asking and selling price?

Hire an agent who is knowledgable in the market value in your area. Stay away from agents who give you false hope of a high selling price…most price high just to get the listing and end up disappointing you in the end.

7. On average, how long does it take for your listings to sell?

Look for an agent who sells homes faster than the Boards average. Homes priced right in the beginning will sell faster, so again, look for agents who are knowledgable in the market values in your area.

8. How many buyers are you working with?

The more buyers your agent is working with, the better are your chances of selling your home.

9. Do you have a list of references I may contact?

An agent should have a list of past references that they have worked with that you may call to see how their experience was working with that particular agent.

10. What happens if I’m not happy with working you as an agent?

Look for an agent who will not bind you into a lengthy listing contract. 

If you need an agent to sell your home, call Charlene Fay  at 513-602-9000 or email us at .CharleneFay@REMAX.net

We’re only a Click or a Call away!