Who doesn't want extra cash?
8K for buyers from a Government Program
Need Down Payment Money? You can use the 8K as your part or all of your down payment. (Certain loans do this now)
Need help qualifying? Your parents can co-sign and you can still get 8K (even if they own now or in the last three years)
NAR, National Association of Realtors, provided us with the most commonly asked questions regarding changes to the Tax Credit.
Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. Will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
Question: I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. Will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phase-out range).
Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. Thekeyword here is "consecutive." As long as he lived in that house for 5 years straight what he
did since 3 years doesn't impact eligibility.
Question: I am an eligible first time homebuyer. I entered into a contract to purchase on
November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
Ready to take the step towards owning your own home? Call 757-724-1064.
Be sure to check out our home page and BLOG for more information.
This market has created the perfect storm for buyers. Rates are still in the 5's and sales prices are phenominal.
This program is not a gimmick. The government put this in place so first time home buyers or those who have not owned in three years would have an incentive to buy a home. You do not have to pay it back like last year.
There are many homes priced below market value and still in good shape.
Check out our short sale listings page.
Or simply Search on your own.
Please don't kick yourself later and wish you had bought a home this year.
Looking for a particular neighborhood?
Updated: Neighborhood Listings
Waiting for the market to drop even more is good, if you are a cash buyer.
If the house prices drop another 10%, that would be great, you would save serious cash.
But, if you need a loan it is different.
They are predicting the rates are going to go up.
So, if rates go up just 1%, your house payment would be the same as if you bought it today.
What is the point of waiting? (NY TIMES, 2009)
Get started here:
CALL YOUR ACCOUNTANT FOR MORE INFORMATION. Information not guaranteed and should be verified independently for accuracy.
