$8,000 Tax Credit Deadline Approaching

The April 30th deadline is just around the corner!

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In order to claim the tax credit, Home buyers must sign a purchase agreement between November 30, 2009 and April 30, 2010, and close by July 1, 2010.

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress passed legislation that grants a tax credit of up to $8,000 to first-time home buyers and $6,500 for existing homeowners who have lived in their home consecutively for 5 of the previous 8 years. (More Details Here)

FHA Loans – Waiting to Buy Will Hit Your Pocketbook

Yesterday morning mortgage broker Venessa Ward of Pacific Residential Mortgage spoke to the Bella Casa Real Estate brokerage. She covered a lot of valuable information and I wanted to share some of the key points we learned from Venessa.

Venessa provided this FHA loan scenario to illustrate how waiting to purchase will hit your pocketbook in just a short 6 weeks from now. You will notice three upcoming changes that will affect your out-of-pocket expenses:

  • The UFMI rate is increasing from 1.75% to 2.25% (Up Front Mortgage Insurance is an insurance premium collected by FHA at the time the loan is initially made. It is in contrast to private mortgage insurance (PMI), which is collected by the lender each month when a buyer’s down payment is less than 20% of the purchase price.)
  • The allowable Seller Contribution will decrease from 6% to 3%. For example, a seller can only contribute up to 3% toward the buyer’s settlement charges (formerly called “closing costs”).
  • The Homebuyer Tax Credit expires on April 30. Buyers must be under contract, having a signed purchase agreement in hand by April 30th, but you have until June 30th to close the financing. If a first-time homebuyer misses this April 30th deadline then you will miss out on $8,000.

Now take a look at this chart. In the case of $193,000 loan, there is a potential difference of $14,965 by purchasing after April 2010.

The lending industry has undergone big changes this past year, resulting in different paperwork, requirements to qualify for loans, and more complexity. Bella Casa firmly and absolutely encourages all buyers to ONLY seek financing from LOCAL mortgage lenders. You need to be able to sit face-to-face with your lender so they can educate you about the process and your loan, and also so that you can hold your lender accountable.

We realize that these figures can be confusing, so we highly recommend that you call a local lender to discuss your specific situation.

Special thanks to Venessa Ward from Pacific Residential Mortgage!

Pacific Residential Mortgage has offices in McMinnville and Lake Oswego.

Venessa Ward, Sr. Mortgage Banker
NMLS# 140124
“Making it happen in 2010”

Pacific Residential Mortgage, LLC
117 NE Fifth Street, STE D
McMinnville, OR 97128
(503) 437-9200 Office
(971) 241-2001 Cell
(503) 670-0674 Fax
(800) 758-0030 Toll Free

Claim 2009 Tax Credit for Energy Efficient Home Improvements

www.irs.gov/recovery

Homeowners who have made energy efficient improvements to their existing homes in 2009, or who plan to do so in 2010, will want to watch this video, which details how you can reap the benefits when you file your 2009 tax return. Improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems could qualify you for a $1,500 tax credit.

A similar credit was available for 2007, but was not available in 2008. Homeowners should be aware that the standards in the new law are higher than the standards for the credit that was available in 2007 for products that qualify as “energy efficient” for purposes of this tax credit.

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