- Mortgage interest.
- Points purchased.
- Private mortgage insurance.
- Real estate and property taxes.
- A portion of your moving expenses if you relocated for work.
- Home improvements made specifically for medical reasons.
Showing posts with label buying a home. Show all posts
Showing posts with label buying a home. Show all posts
Friday, February 11, 2011
Tax Deductions for Homeowners
Home ownership has always been a source of tax benefits and deductions. Whether you purchased your first home in 2010 or have been a long time homeowner, remember the following items when doing your taxes or talking with your tax accountant. Any or all of them may be deductible for your 2010 tax year:
Wednesday, February 9, 2011
Property of the Week
This week's featured property is a brick home in Monroe.
They don't make homes like this anymore! This home is classic perfection inside and out.
A full brick Colonial, this home has 4-7 bedrooms. There are three main floor rooms with closets can be bedrooms if you need the space for a large family. Otherwise, use them like the current owner: home office, family television room, toy room. The master bedroom is truly a retreat from it all. There is a private balcony patio, a tiled bathroom with soaking tub, an alcove waiting for a chaise lounge and a truly enormous 11x9' walk-in closet.
There are oak floors throughout the home, and the original woodwork is beautifully maintained. In the living room, enjoy the stone fireplace with cherry mantle.
The retreat feel continues as you step outside. The fabulous 3 season porch lets you enjoy the view of the landscaped yard even when the rain falls or the mercury dips. It opens to patio and deck that are the ideal place for entertaining in pleasant weather.
Come see this one of kind, classic quality executive home today. Call Brenda or Luis at 214-5796 to set up a showing.
They don't make homes like this anymore! This home is classic perfection inside and out.
A full brick Colonial, this home has 4-7 bedrooms. There are three main floor rooms with closets can be bedrooms if you need the space for a large family. Otherwise, use them like the current owner: home office, family television room, toy room. The master bedroom is truly a retreat from it all. There is a private balcony patio, a tiled bathroom with soaking tub, an alcove waiting for a chaise lounge and a truly enormous 11x9' walk-in closet.
There are oak floors throughout the home, and the original woodwork is beautifully maintained. In the living room, enjoy the stone fireplace with cherry mantle.
The retreat feel continues as you step outside. The fabulous 3 season porch lets you enjoy the view of the landscaped yard even when the rain falls or the mercury dips. It opens to patio and deck that are the ideal place for entertaining in pleasant weather.
Come see this one of kind, classic quality executive home today. Call Brenda or Luis at 214-5796 to set up a showing.
Friday, January 14, 2011
Housing Outlook for the 2011
Wisconsin Real Estate Magazine has an in-depth report on the economic and housing outlook for Wisconsin in 2011.
We'll let you read the full details for yourself, but here are a few interesting quotes:
"But house prices are now roughly in line with fundamentals like incomes, interest rates, and rents. For example, for much of the 80s and early 90s national house prices were about 3 to 3½ times the median household income. During the boom the ratio peaked at about five, but now we are back in step with historic norms."
The bust has been very difficult for our nation, but the rate of increase in the early part of this century simply was not sustainable. Having prices back to historic norms is a very good thing for our nation as a whole.
"Wisconsin’s economy and housing markets are continuing the recovery we noted last year. Statewide, our unemployment rate is 7.8 percent, 2 points below the national average. Even our worst-hit metropolitan areas like Janesville and Racine are outperforming the really hard-hit labor markets..."
This statistic is not helpful if you are one of the 7.8 percent. However, as a whole, it speaks to the robust nature of our economy compared to the rest of the nation. Confidence will help growth, and growth is what we need to fully recover from the recession.
"Some of our smaller metropolitan areas like Eau Claire and Green Bay, though still affected, have seen less of a boom and bust cycle than the rest of the country, and nothing close to the highly volatile markets in states like California and Florida."
This echoes something we have been saying for years: real estate is nothing but local. Just because there are enormous declines in Las Vegas or entire subdivisions nearly vacant in California does not mean that buyers here can expect to get houses for half of their 2006 values. And no, cash offers don't mean sellers will accept 50 cents on the dollar either.
"Housing prices in Wisconsin, as elsewhere, have stopped their decline and appear to have stabilized. "
Again, this is something that we have been seeing locally. Prices do appear to have stabilized across the board. The challenge now is to help sellers accept the reality of today's fair market value instead of longing for the pricing of four years ago.
We do recommend reading the entire report. It is a very readable work and a very informative one.
We'll let you read the full details for yourself, but here are a few interesting quotes:"But house prices are now roughly in line with fundamentals like incomes, interest rates, and rents. For example, for much of the 80s and early 90s national house prices were about 3 to 3½ times the median household income. During the boom the ratio peaked at about five, but now we are back in step with historic norms."
The bust has been very difficult for our nation, but the rate of increase in the early part of this century simply was not sustainable. Having prices back to historic norms is a very good thing for our nation as a whole.
"Wisconsin’s economy and housing markets are continuing the recovery we noted last year. Statewide, our unemployment rate is 7.8 percent, 2 points below the national average. Even our worst-hit metropolitan areas like Janesville and Racine are outperforming the really hard-hit labor markets..."
This statistic is not helpful if you are one of the 7.8 percent. However, as a whole, it speaks to the robust nature of our economy compared to the rest of the nation. Confidence will help growth, and growth is what we need to fully recover from the recession.
"Some of our smaller metropolitan areas like Eau Claire and Green Bay, though still affected, have seen less of a boom and bust cycle than the rest of the country, and nothing close to the highly volatile markets in states like California and Florida."This echoes something we have been saying for years: real estate is nothing but local. Just because there are enormous declines in Las Vegas or entire subdivisions nearly vacant in California does not mean that buyers here can expect to get houses for half of their 2006 values. And no, cash offers don't mean sellers will accept 50 cents on the dollar either.
"Housing prices in Wisconsin, as elsewhere, have stopped their decline and appear to have stabilized. "
Again, this is something that we have been seeing locally. Prices do appear to have stabilized across the board. The challenge now is to help sellers accept the reality of today's fair market value instead of longing for the pricing of four years ago.
We do recommend reading the entire report. It is a very readable work and a very informative one.
Friday, December 3, 2010
Buying a home in December? Are you crazy?
Real estate wisdom has always been that things are wicked slow from Thanksgiving through New Year's. Buyers have a lot going on in their lives, and looking at homes bumps way down on the list unless a buyer really needs to move. We tend to warn our home sellers that any buyer looking at this time of year is extremely serious, so homes must be staged well for every showing.
Buyers can use this conventional wisdom in their favor, making this a great time of year to purchase a home.
Why?
So few buyers want to look right now. Home sellers are aware of this fact, and so they are more likely to work with an offer and negotiate than they might be at other times of year. If sellers get an offer in early or mid-December, they are highly aware of the fact that this will likely be the only offer they see for the next four to six weeks. This is another one or two mortgage payments or a delay in a seller's own relocation. Sellers do consider these extra costs as they negotiate.
If you can fit the time to look at homes into your schedule, give some thought to writing an offer in December. It can be just the edge you want in the negotiation process.
Buyers can use this conventional wisdom in their favor, making this a great time of year to purchase a home.
Why?
So few buyers want to look right now. Home sellers are aware of this fact, and so they are more likely to work with an offer and negotiate than they might be at other times of year. If sellers get an offer in early or mid-December, they are highly aware of the fact that this will likely be the only offer they see for the next four to six weeks. This is another one or two mortgage payments or a delay in a seller's own relocation. Sellers do consider these extra costs as they negotiate.
If you can fit the time to look at homes into your schedule, give some thought to writing an offer in December. It can be just the edge you want in the negotiation process.
Friday, October 29, 2010
What is that strange little spotty picture??
Have you seen the funky little boxy graphics we are starting to incorporate in our marketing and yard signs?
These are called QR codes, and you will probably see them popping up more and more in retail stores, on website, on advertising posters.
If you are wondering what on earth a QR code is and what you should do with it, don't worry. Lots of people in our area don't know about them. Basically, if you have a smart phone, you can download an app called a barcode reader or a QR reader. Not all smart phones can read these codes, but iPhone can and most Androids will too. Android phones often come with Google Googles, which can read them, or you can download apps like Barcode Scanner from the Android Marketplace. If you have an iPhone, readers like Optiscan, QuickMark, QR App, and NeoScan are recommended by cnet.com. Palm has their own QR reader app, or i-nigma or BeeTagg.
You scan these little graphics with that reader, and it decodes them. The QR code might be a text display ("Open house on Friday evening from 5 to 7 pm"). It might reveal a website link with more information. That code above take you to a website that has the pricing, photos, and features for one of the homes we have listed. It could open a video or audio stream, or initiate an email on your smart phone that already has the recipient's email address and the subject line entered ("Please send me more information on 1610 16th Ave, Monroe").
We are using them on yard signs at some of the homes we have listed for sale and in some of our online marketing. It is just another way that we are reaching out to a different client base to help our sellers' homes be seen by as many people as possible.
These are called QR codes, and you will probably see them popping up more and more in retail stores, on website, on advertising posters.
If you are wondering what on earth a QR code is and what you should do with it, don't worry. Lots of people in our area don't know about them. Basically, if you have a smart phone, you can download an app called a barcode reader or a QR reader. Not all smart phones can read these codes, but iPhone can and most Androids will too. Android phones often come with Google Googles, which can read them, or you can download apps like Barcode Scanner from the Android Marketplace. If you have an iPhone, readers like Optiscan, QuickMark, QR App, and NeoScan are recommended by cnet.com. Palm has their own QR reader app, or i-nigma or BeeTagg.
You scan these little graphics with that reader, and it decodes them. The QR code might be a text display ("Open house on Friday evening from 5 to 7 pm"). It might reveal a website link with more information. That code above take you to a website that has the pricing, photos, and features for one of the homes we have listed. It could open a video or audio stream, or initiate an email on your smart phone that already has the recipient's email address and the subject line entered ("Please send me more information on 1610 16th Ave, Monroe").
We are using them on yard signs at some of the homes we have listed for sale and in some of our online marketing. It is just another way that we are reaching out to a different client base to help our sellers' homes be seen by as many people as possible.
Tuesday, October 26, 2010
Property of the Week
This week's featured property is a brick home in Monroe.
They don't make homes like this anymore! This home is classic perfection inside and out.
A full brick Colonial, this home has 4-7 bedrooms. There are three main floor rooms with closets can be bedrooms if you need the space for a large family. Otherwise, use them like the current owner: home office, family television room, toy room. The master bedroom is truly a retreat from it all. There is a private balcony patio, a tiled bathroom with soaking tub, an alcove waiting for a chaise lounge and a truly enormous 11x9' walk-in closet.
There are oak floors throughout the home, and the original woodwork is beautifully maintained. In the living room, enjoy the stone fireplace with cherry mantle.
The retreat feel continues as you step outside. The fabulous 3 season porch lets you enjoy the view of the landscaped yard even when the rain falls or the mercury dips. It opens to patio and deck that are the ideal place for entertaining in pleasant weather.
Come see this one of kind, classic quality executive home today. Call Brenda or Luis at 214-5796 to set up a showing.
They don't make homes like this anymore! This home is classic perfection inside and out.
A full brick Colonial, this home has 4-7 bedrooms. There are three main floor rooms with closets can be bedrooms if you need the space for a large family. Otherwise, use them like the current owner: home office, family television room, toy room. The master bedroom is truly a retreat from it all. There is a private balcony patio, a tiled bathroom with soaking tub, an alcove waiting for a chaise lounge and a truly enormous 11x9' walk-in closet.
There are oak floors throughout the home, and the original woodwork is beautifully maintained. In the living room, enjoy the stone fireplace with cherry mantle.
The retreat feel continues as you step outside. The fabulous 3 season porch lets you enjoy the view of the landscaped yard even when the rain falls or the mercury dips. It opens to patio and deck that are the ideal place for entertaining in pleasant weather.
Come see this one of kind, classic quality executive home today. Call Brenda or Luis at 214-5796 to set up a showing.
Tuesday, October 19, 2010
Property of the Week
This week's featured property is an executive home near Monroe.
Elegance just minutes from town. This refined home in a rural subdivision is country living at its best.
You will have endless options for entertaining with the open layout and large deck. The home office is perfect for a satellite office or managing the household. There are new solid surface counter tops, hardwood flooring, and appliances, plus mature landscaping and updated paint colors, making this high quality Will Pick home a better option than building new.
Enjoy the morning sunrises with your coffee in the office or end the day on the deck watching the sunset over the private valley. Walk in; come home.
You will have endless options for entertaining with the open layout and large deck. The home office is perfect for a satellite office or managing the household. There are new solid surface counter tops, hardwood flooring, and appliances, plus mature landscaping and updated paint colors, making this high quality Will Pick home a better option than building new.
Enjoy the morning sunrises with your coffee in the office or end the day on the deck watching the sunset over the private valley. Walk in; come home.
Wednesday, October 13, 2010
Property of the Week
This week's featured property is an executive home near Monroe.
Elegance just minutes from town. This refined home in a rural subdivision is country living at its best. You will have endless options for entertaining with the open layout and large deck. The home office is perfect for a satellite office or managing the household. There are new solid surface counter tops, hardwood flooring, and appliances, plus mature landscaping and updated paint colors, making this high quality Will Pick home a better option than building new. Enjoy the morning sunrises with your coffee in the office or end the day on the deck watching the sunset over the private valley. Walk in; come home.
Elegance just minutes from town. This refined home in a rural subdivision is country living at its best. You will have endless options for entertaining with the open layout and large deck. The home office is perfect for a satellite office or managing the household. There are new solid surface counter tops, hardwood flooring, and appliances, plus mature landscaping and updated paint colors, making this high quality Will Pick home a better option than building new. Enjoy the morning sunrises with your coffee in the office or end the day on the deck watching the sunset over the private valley. Walk in; come home.
Friday, October 8, 2010
Foreclosures and Sheriff's Sales
We've talked about concerns in buying a home through a sheriff's sale in the past.
The new issues with some foreclosures being handled incorrectly by lenders like GMAC, Chase and Bank of America are creating worries for some purchasers of homes at sheriff sale. With so many notes being sold and resold these days, proper documentation regarding the current lien holder is not always in place. If a bank cannot document that they own the lien to a home, they cannot legally foreclose.
This is an issue right now because it has come to light that some home that were already foreclosed upon or that are currently on the market might have defective documentation. If a court determines that a foreclosure was not valid, the judgment could result in a sheriff sale being voided. If a court rules a sheriff sale void, the buyer can be required to relinquish the property.
The ramifications of this are huge. Unless a purchaser at a sheriff's sale lines up title insurance, and not all title insurance companies will cover this, there is nothing to guarantee title and protect a purchaser's investment. This can impact not only the person who bought a house at sheriff's sale, but also future buyers.
We've said it before, but it bears repeating:
Please proceed with caution and with guidance if you are purchasing a home through sheriff's sale. It is possible to find a wonderful home or investment through these sales, but someone navigating these waters for the first time should take the time to become fully educated on the process.
The Wisconsin Realtor Association advises "No one should ever purchase a property at a sheriff’s sale without a title commitment and the advice of their attorney." Realtors don't give this advice like this because we only want people to purchase homes with the help of a realtor, but rather because we are a little more aware of potential pit-falls and want to help people avoid these situations.
The new issues with some foreclosures being handled incorrectly by lenders like GMAC, Chase and Bank of America are creating worries for some purchasers of homes at sheriff sale. With so many notes being sold and resold these days, proper documentation regarding the current lien holder is not always in place. If a bank cannot document that they own the lien to a home, they cannot legally foreclose.
This is an issue right now because it has come to light that some home that were already foreclosed upon or that are currently on the market might have defective documentation. If a court determines that a foreclosure was not valid, the judgment could result in a sheriff sale being voided. If a court rules a sheriff sale void, the buyer can be required to relinquish the property.
The ramifications of this are huge. Unless a purchaser at a sheriff's sale lines up title insurance, and not all title insurance companies will cover this, there is nothing to guarantee title and protect a purchaser's investment. This can impact not only the person who bought a house at sheriff's sale, but also future buyers.
We've said it before, but it bears repeating:
Please proceed with caution and with guidance if you are purchasing a home through sheriff's sale. It is possible to find a wonderful home or investment through these sales, but someone navigating these waters for the first time should take the time to become fully educated on the process.
The Wisconsin Realtor Association advises "No one should ever purchase a property at a sheriff’s sale without a title commitment and the advice of their attorney." Realtors don't give this advice like this because we only want people to purchase homes with the help of a realtor, but rather because we are a little more aware of potential pit-falls and want to help people avoid these situations.
Friday, July 16, 2010
Did you get these chain emails?
There have been a couple email rumors going around regarding new federal legislation and the potential consequences for home owners. We thought it would be helpful to address these issues on our blog today.
Rumor: The new federal health care bill requires an additional 4% transfer tax on homes sold.
Fact: The new federal health care bill has a 3.8% Medicare tax for some high-income households with net investment income.
Starting in 2013, this tax applies only home households with adjusted gross incomes of over $250,000 and would only be charged on home-sale proceeds that exceed the capital gains exclusion of $500,000. If filing individually, these figures change to incomes over $200,000 and home sale proceeds over $250,000.
Rumor: The energy bill that Congress is working on would require home sellers to obtain an energy audit or make energy retrofits before selling.
Fact: The bill as written at this point would require new construction to be energy-labeled, but it does not allow states to require new ratings when the homes are sold.
FactCheck.org did a nice job answering this question with references on their website earlier this year.
If you come across any other rumors about these issues or others regarding changing rules for selling or buying a home, please ask our Facebook page, leave a comment, or drop us an email. We will check into it for you. We are here to help with all types of real estate questions here in the Green County area.
Rumor: The new federal health care bill requires an additional 4% transfer tax on homes sold. Fact: The new federal health care bill has a 3.8% Medicare tax for some high-income households with net investment income.
Starting in 2013, this tax applies only home households with adjusted gross incomes of over $250,000 and would only be charged on home-sale proceeds that exceed the capital gains exclusion of $500,000. If filing individually, these figures change to incomes over $200,000 and home sale proceeds over $250,000.
Rumor: The energy bill that Congress is working on would require home sellers to obtain an energy audit or make energy retrofits before selling.
Fact: The bill as written at this point would require new construction to be energy-labeled, but it does not allow states to require new ratings when the homes are sold.FactCheck.org did a nice job answering this question with references on their website earlier this year.
If you come across any other rumors about these issues or others regarding changing rules for selling or buying a home, please ask our Facebook page, leave a comment, or drop us an email. We will check into it for you. We are here to help with all types of real estate questions here in the Green County area.
Thursday, July 1, 2010
Congratulations
Congratulations on your first home, Cori! We hope that you will spend many happy years there.
If you dream of a photo of standing in front of your first home in the Monroe, WI area, give Brenda or Luis a call or check out our website to send us a message. We will be happy to work with you to help you find just the right home, whether it is your first home or if you are upsizing or downsizing.
If you dream of a photo of standing in front of your first home in the Monroe, WI area, give Brenda or Luis a call or check out our website to send us a message. We will be happy to work with you to help you find just the right home, whether it is your first home or if you are upsizing or downsizing.
Thursday, May 27, 2010
Congratulations
Congratulations to Luis and Teresa along with their adorable boys! We hope that you all enjoy your new home and that great big backyard!
Friday, April 30, 2010
Financing options
As the consumer lending market tightens, home buyers who do not have at least a 5% down payment for a home are finding it difficult to obtain financing for a home purchase. Traditionally, these buyers have had the option of getting an FHA loan if they have a 3% downpayment or utilizing Rural Development for their mortgage if they don't. Rural Development is currently not lending, however. Legislation is in the works to continue funding this government program, but until then, they are not lending.
Fortunately, another government agency has begun lending once again. WHEDA (Wisconsin Housing and Economic Development Authority) had suspended lending last year due to issues with the private mortgage insurance market. WHEDA loans are once again an option for buyers now, though.
WHEDA's newest loan program is WHEDA Fannie Mae Advantage. This loan allows buyers to purchase a home with as little as $1,000 down. WHEDA Advantage has a competitive, low interest rate and does not require any private mortgage insurance, making for a very affordable mortgage payment for consumers.
WHEDA loans are a very savvy option for home buyers. A home seller who is given an offer with a WHEDA pre-approval letter can have a measure of confidence in the offer. WHEDA does a very strict pre-approval process, fully documenting a buyer's ability to afford a mortgage before the pre-approval is given. WHEDA also requires home buyer to complete an education course before the loan is given, helping to insure that a buyer understand the mortgage loan they are taking out.
All the local banks are able to work with WHEDA, so talk with the mortgage broker at your bank about this great option.
Fortunately, another government agency has begun lending once again. WHEDA (Wisconsin Housing and Economic Development Authority) had suspended lending last year due to issues with the private mortgage insurance market. WHEDA loans are once again an option for buyers now, though.WHEDA's newest loan program is WHEDA Fannie Mae Advantage. This loan allows buyers to purchase a home with as little as $1,000 down. WHEDA Advantage has a competitive, low interest rate and does not require any private mortgage insurance, making for a very affordable mortgage payment for consumers.
WHEDA loans are a very savvy option for home buyers. A home seller who is given an offer with a WHEDA pre-approval letter can have a measure of confidence in the offer. WHEDA does a very strict pre-approval process, fully documenting a buyer's ability to afford a mortgage before the pre-approval is given. WHEDA also requires home buyer to complete an education course before the loan is given, helping to insure that a buyer understand the mortgage loan they are taking out.
All the local banks are able to work with WHEDA, so talk with the mortgage broker at your bank about this great option.
Friday, April 9, 2010
On Using a Buyer's Agent
I came across this video earlier today, and I thought that it illustrated very nicely some of the reason to use a Buyer's Agent when purchasing a home in Green County or anywhere else. Wisconsin laws do allow for a Buyer's Agent, and unless you have a Buyer's Agency Agreement, we as Realtors are obligated to put a Seller's interest first.
Friday, February 26, 2010
Hidden Upgrades
When walking through a home, the eye-catching higher end details often stand out. Great hardwood floors. Solid surface counter tops. Wonderful paint colors. Garden tubs. Six panel, solid wood doors.
Don't forget to ask about the things that are not as easy to see. Look for higher end upgrades in energy efficient features. These upgrades in a home will not only improve your comfort, but they also will save you money, making a home more affordable in the long run.
Take a good look at the windows. Are they a basic builder's grade window, or has the homeowner splurged with low e glass and argon fill? Windows can be a source of enormous heat loss in a home, and quality windows are a huge money saver in the long run. There are many different types of windows, and The Efficient Window Collaborative has an informative website explaining some of the differences.
What is the r-value of the insulation? This one is not easy to see, so ask the seller for documentation if they can provide it. Higher r-values make a home less expensive to both heat and cool.
Have the ducts been sealed? Heating and cooling combined account for about 46% of a home's energy cost on average. With a forced air system, ducts that have been sealed and insulated can prevent energy loss significantly.
Check out the efficiency rating for the heating and cooling system. An Energy Star system is one upgrade that will save you a lot of money over the years.
Those stainless steel appliances might look pretty, but will they cost you a pretty penny to operate? Even low end, inefficient appliances are available in very modern and appealing finishes. Look on the sides of the doors for efficiency ratings or write down the model numbers and check them out online after you take a look at a home.
Ask for copies of the seller's utility bills for the previous twelve months. Yes, there are lifestyle differences the can affect energy usage, but at least you will have a ballpark idea of how much your utility costs would be.
If you buy a highly efficient home, you may be able pay for the cosmetic upgrades you want with the money you are saving on your utility bills. The hidden upgrades can save you big money as the years go by!
Don't forget to ask about the things that are not as easy to see. Look for higher end upgrades in energy efficient features. These upgrades in a home will not only improve your comfort, but they also will save you money, making a home more affordable in the long run.
Take a good look at the windows. Are they a basic builder's grade window, or has the homeowner splurged with low e glass and argon fill? Windows can be a source of enormous heat loss in a home, and quality windows are a huge money saver in the long run. There are many different types of windows, and The Efficient Window Collaborative has an informative website explaining some of the differences.
What is the r-value of the insulation? This one is not easy to see, so ask the seller for documentation if they can provide it. Higher r-values make a home less expensive to both heat and cool.
Have the ducts been sealed? Heating and cooling combined account for about 46% of a home's energy cost on average. With a forced air system, ducts that have been sealed and insulated can prevent energy loss significantly.
Check out the efficiency rating for the heating and cooling system. An Energy Star system is one upgrade that will save you a lot of money over the years.
Those stainless steel appliances might look pretty, but will they cost you a pretty penny to operate? Even low end, inefficient appliances are available in very modern and appealing finishes. Look on the sides of the doors for efficiency ratings or write down the model numbers and check them out online after you take a look at a home.
Ask for copies of the seller's utility bills for the previous twelve months. Yes, there are lifestyle differences the can affect energy usage, but at least you will have a ballpark idea of how much your utility costs would be.
If you buy a highly efficient home, you may be able pay for the cosmetic upgrades you want with the money you are saving on your utility bills. The hidden upgrades can save you big money as the years go by!
Thursday, February 18, 2010
Current Homebuyer Tax Credit
Are you eligible for the $6500 tax credit? We covered the details in December, so take a look if you want to check. There are 73 days and counting left to get an accepted offer.
You must have an accepted offer in place no later than April 30 and close on the home no later than June 30 in order to qualify for this tax credit.
Thursday, December 17, 2009
About that new $6500 tax credit
Much press has been given to the first time home buyer's tax credit, but the newest incarnation of the tax credit includes another very interesting element - the $6500 tax credit available to current home owners.
Not every current homeowner will qualify for this tax credit. Here is a summary of who is eligible:
You will need to live in the home for at least three years. If you live there for less than that, you will need to repay the full amount of the credit.
This tax credit is exciting because it helps not just young families move up in their homes as many of these programs normally do, but it also help empty-nesters and retirees who want to downsize.
Not every current homeowner will qualify for this tax credit. Here is a summary of who is eligible:
- You have lived in the home your currently own for at least five consecutive years of the last eight years. This is very important detail that can help those home owners who have had to relocate for work purposes and who have been unable to sell their former home yet.
- You are purchasing a home for your primary residence. It does not matter if you are purchasing a traditional single family home, a condo, a townhome or a half duplex as long as it will be your primary residence. Investment and vacation properties do no qualify.
- Your income must be less than $225,000 for a married couple or $125,000 for a single person to qualify for the full tax credit. If your income is between $225,000 and $245,000 for a married couple or $125,000 and $145,000 for a single person, you will receive only a partial credit.
- The home you are purchasing must be less than $800,000.
- You must have an accepted offer to purchase no later than April 30, 2010 and you must close on the property no later than June 30, 2010.
You will need to live in the home for at least three years. If you live there for less than that, you will need to repay the full amount of the credit.
This tax credit is exciting because it helps not just young families move up in their homes as many of these programs normally do, but it also help empty-nesters and retirees who want to downsize.
Friday, August 28, 2009
Don't miss out on the tax credit
August 28 already. Back to school time is here. Labor Day is just around the corner. How quickly this year has flown. Four more months left in the year.Three more months before the $8000 first time home buyers tax credit expires.
Three months. That is about 90 days. 95 days including today to be specific.
Are you or someone you know hoping to take advantage of this tax credit? Time is running out. You must close on a home on or before November 30, 2009 in order to claim this credit.
Considering that the average closing happens about 30-45 days after an offer is accepted, there is not a lot of time left to find the perfect first home. If you are writing an offer on a short sale home, it can easily take 60-90 days to close, sometimes more.
Now is the time to be looking for your home if you want to take advantage of this offer. There are great homes out there, and with inventory very high right now, local sellers are willing to negotiate considerably more than they ever have in the past.
Give me or Luis a call if you are thinking of looking for a home. We will be happy to show you what is currently available in the area, and we can help you connect with a reputable mortgage banker who can help you figure out what you can afford in a home. Our market has houses from under $75K to hundreds of thousands, and everything in between. People start at all price points, and each buyer is valuable to us.95 days and counting. Don't miss out on this credit; call us.
Tuesday, May 26, 2009
If it sounds too good to be true...
There are lots of rumors floating around about the $8000 tax credit and whether or not it can be used as a down payment on a home.
Earlier this month, there was a lot of horn tooting excitement because it was announced that it would be possible to use the anticipated tax credit refund as collateral for a short term loan which could then be used as a down payment for a FHA mortgage. This was thrilling news for many first time home buyers out there, and the information was coming from reputable sources - the US government, National Association of Realtors.
A day later, with much less fanfare, the news changed. It was not said that the tax credit could not used as a down payment in this fashion. Oops. The details are being worked on, and while the change is anticipated, nothing has been finalized yet.
FHA requires that a buyer has a down payment of 3.5%. This money can be from the buyer's savings, a gift from a relative, from an approved non-profit group or government agency (down payment assistance program), from a secure loan (ie against an IRA or real property) or from employee contribution programs through the workplace. FHA does not allow for the down payment to come from unsecured loans like those that would be taken out against the anticipated tax refund. The excitement stemmed from early words that the language in the FHA approved sourced for the down payment would be changed to allow for this, but it did not happen.
The tax credit is real, and it is a huge bonus for anyone who has never owned a home or who has not owned one within the last three years and who closes on a home prior to December 1, 2009. There are rules, regulations and limitation on it though. Any buyer who is anticipating receiving this credit should talk not only with a knowledgable realtor but also with a repuatable mortgage banker and/or tax accountant about this.
We all have limitation on our knowledge. I do not pretend to know it all, which is why I hesitate to give advice on matters like the tax credit to my buyers.
Please, be wary of those in our profession who are too free with financial advice. As the old saying goes, if it sounds too good to be true, it probably is.
Earlier this month, there was a lot of horn tooting excitement because it was announced that it would be possible to use the anticipated tax credit refund as collateral for a short term loan which could then be used as a down payment for a FHA mortgage. This was thrilling news for many first time home buyers out there, and the information was coming from reputable sources - the US government, National Association of Realtors.
A day later, with much less fanfare, the news changed. It was not said that the tax credit could not used as a down payment in this fashion. Oops. The details are being worked on, and while the change is anticipated, nothing has been finalized yet.
FHA requires that a buyer has a down payment of 3.5%. This money can be from the buyer's savings, a gift from a relative, from an approved non-profit group or government agency (down payment assistance program), from a secure loan (ie against an IRA or real property) or from employee contribution programs through the workplace. FHA does not allow for the down payment to come from unsecured loans like those that would be taken out against the anticipated tax refund. The excitement stemmed from early words that the language in the FHA approved sourced for the down payment would be changed to allow for this, but it did not happen.
The tax credit is real, and it is a huge bonus for anyone who has never owned a home or who has not owned one within the last three years and who closes on a home prior to December 1, 2009. There are rules, regulations and limitation on it though. Any buyer who is anticipating receiving this credit should talk not only with a knowledgable realtor but also with a repuatable mortgage banker and/or tax accountant about this.
We all have limitation on our knowledge. I do not pretend to know it all, which is why I hesitate to give advice on matters like the tax credit to my buyers.
Please, be wary of those in our profession who are too free with financial advice. As the old saying goes, if it sounds too good to be true, it probably is.
Wednesday, May 13, 2009
Loan Options for service veterans
There are many types of home loans out there: conventional, FHA, Rural Development, and much more. One type that we do not commonly see utilized is VA loans.
VA loans are available for Veterans of the US Service Branches. VA guaranteed loans are loans made by private lenders that are then guaranteed by the federal government in case of default.
VA loans offer several benefits for home buyers. They can often be made with no downpayment required. The interest rates are quite favorable. There is no private mortgage insurance required. The loans are assumable. Closing costs are often comparable to or lower than other types of loans.
Being a veteran does not guarantee that you will be able to obtain a home loan, though. The lender still will have credit and income requirements, and recent bankruptcies may disqualify you from obtaining a VA loan for a while.
A VA loan is a great option, so be sure to talk with your Realtor and your lender about them if you are a veteran. For additional information, please talk with your local VA office or visit the VA website.
VA loans are available for Veterans of the US Service Branches. VA guaranteed loans are loans made by private lenders that are then guaranteed by the federal government in case of default.
VA loans offer several benefits for home buyers. They can often be made with no downpayment required. The interest rates are quite favorable. There is no private mortgage insurance required. The loans are assumable. Closing costs are often comparable to or lower than other types of loans.
Being a veteran does not guarantee that you will be able to obtain a home loan, though. The lender still will have credit and income requirements, and recent bankruptcies may disqualify you from obtaining a VA loan for a while.
A VA loan is a great option, so be sure to talk with your Realtor and your lender about them if you are a veteran. For additional information, please talk with your local VA office or visit the VA website.
Subscribe to:
Posts (Atom)
Brenda's profile
Posts
.jpg)
