Tax Credit Extended and Expanded

Great News for First-Time Homebuyers and Move-Up Homebuyers! Congress has enacted legislation, which the President has signed, extending and expanding the First-Time Homebuyer Tax Credit.

The extension for First-Time Buyers expires April 30th. This means that you must be under contract by April 30th and close your home purchase by June 30th. First-Time Buyers can qualify for a tax credit of 10% of the purchase price up to $8,000.00

The legislation passed expands the tax credit to "move-up" buyers as well, meaning current homeowners who have lived in their home for 5 out of the last 8 years, who purchase another primary residence, can qualify for a credit up to $6,500.00.

For more information go to www.federalhousingtaxcredit.com

Should I Buy a Foreclosure Property?

With the glut of foreclosed properties that we currently have on the market, a lot of first time buyers are thinking about purchasing foreclosed homes. Here's a short video that will explain some of the pros and cons of purchasing this type of real estate

Pending Home Sales Rise by 6.3% in January!

The National Association of Realtors announced that pending home sales rose by 6.3% in January, fueled by bargain prices and lower interest rates. While its way to early to believe that the housing slump has passed, it is encouraging news. Many buyers are taking advantage of the lower prices and with interest rates hovering around 5%, many are discovering that mortgage costs can be cheaper than rent in some areas.

Personally, my activity in January was encouraging, with 3 contracts written for buyers and 2 closings. Most of the activity was with first time buyers, who have realized that its better to buy now with reduced prices and plenty of inventory to select from, rather than at the peak of the market when prices are high and there are less houses to choose from.

A lot of buyers have taken advantage of the $7,500 first time buyer tax credit, which expires on June 30th, 2009. So, although the economy may see tough right now, there are some great opportunities in the housing market. There's even a financing program perfect for those bank owned properties that need work - FHA's 203K Loan, which allows rehab costs to be rolled into the mortgage. I'm working on one with a buyer right now that, once completed, will give the buyer over $10,000 in instant equity, even in this so called "down" market.

So, even with a tough economy, there are opportunities for buyers in the housing market. If you've got solid employment and decent credit, buying a home may just be one of the best decisions to make in 2009!

Newly Enacted Legislation Provides Tax Credit for First Time Homebuyers

Many know that the recently enacted Housing and Economic Recovery Act of 2008 offers relief for some homeowners facing foreclosure, but did you know that the Act provides an excellent opportunity for first time homeowners as well?

The Act provides a $7,500.00 tax credit for First Time Homebuyers on an eligible home purchase. Congress’s intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales.

The credit is repayable over 15 years or when the home is sold, if there is sufficient capital gain from the sale, making the credit similar to an interest free loan. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

For more details on the credit, how it works and an example of the repayment process visit the following links:

Tax Credit Chart
Federal First Time Homebuyer Tax Credit Info Site