Homebuyer Tax Credit Expansion

As many of you are aware the First Time Home Buyer Tax Credit was extended. What you may not know are the details of the EXPANSION.

As part of the stimulus plan Congress has passed new legislation that: Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between November 6, 2009 and April 30, 2010.

WHO QUALIFIES?

Current homeowners purchasing a home between November 6, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

WHICH PROPERTIES ARE ELIGIBLE?

The extended Home Buyer Tax Credit may be applied to primary residences, including, single-family homes, condos, town homes, and co-ops.

HOW MUCH IS AVAILABLE?

The maximum credit allowed for current homeowners is $6,500.

HOW IS A BUYER’S CREDIT AMOUNT DETERMINED?

Each home buyer’s tax credit is determined by two additional factors:

1. the price of the home
2. The buyer’s income

Price: The credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income: Single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credits Limits.

IF THE BUYER(s)’ INCOME EXCEEDS THESE LIMITS, CAN HE/SHE STILL RECEIVE A CREDIT?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income are not eligible for the credit.

CAN A BUYER STILL QUALIFY IF HE/SHE CLOSES AFTER APRIL 30, 2010?

As long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until July 1, 2010 to close.*

WILL THE TAX CREDIT NEED TO BE REPAID?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three year period, the full amount credit will be recouped on the sale.

*Military and Foreign Service employees have an additional year to purchase a principal residence in the United States.

If you purchased a home between January 1, 2009 and November 6, 2009, or have questions, please see Federal Housing Tax Credit

We hope you found this information helpful. If you have any questions please contact us at either number below or via email.

Posted by Leslie Cotty

Filed under: Financing, Home Buyer Advice, National Real Estate News, Financing, Home Buyer Advice, Move-up/Repeat Home Buyer Tax Credit

January 25, 2010 -Massachusetts Office of Consumer Affairs and Business Regulation Launched

Nationwide Mortgage Licensing System & Registry, a mortgage licensing system operated by state financial regulators including the Massachusetts Division of Banks launched today.

“NMLS Consumer Access is a fully searchable website that allows the public to view information concerning state-licensed mortgage lenders, brokers and individuals currently licensed through NMLS.” As stated on the Mass.gov website.

For more information please go to: www.mass.gov

For search information please go to: www.nmlsconsumeraccess.org

Posted by Leslie Cotty – Buyers Agent

Filed under: Home Buyer Advice, National Real Estate News, Home Buyer Advice, National Real Estate News

In Boston, Homes Prices as Good as it Gets

According to an article in this morning’s Boston Globe, the Federal Reserve has just released their most recent survey on the nation’s economic activity, which notes that most businesses surveyed expect a recovery in the New England economy next year.

The article also notes that homes sales continue to rise across New England, boosted by home buyers taking advantage of the $8,000 first-time home buyer tax credit. While prices continued to drop in most local markets, the September median price for Boston was up 6 percent from a year earlier.

If the region’s economy does improve next year, it is my bet that home prices and mortgage interest rates will rise. Based upon a combination of lower or stable prices and historically low mortgage rates, homes are as affordable now as they are likely to be for some time.

Filed under: Boston Real Estate News, Financing, National Real Estate News, Boston Home Prices, Boston Real Estate, First Time Home Buyer Tax Credit, Home Buyer Advice, Mortgage Rates, Real Estate Search

Tax Credits: Not Just For First Time Home Buyers

Move-Up/Repeat Home Buyer $6,500 Tax Credit:

• How Is This Credit Different? The Tax Credit is not just for First Time Home Buyers.  If you have owned and lived in a home for at least 5 consecutive years of the last 8 years, you may be eligible to receive a tax credit of up to $6,500 if you purchase a principal residence after November 6, 2009 with a binding sales contract signed by April 30, 2010 (or if you purchase by June 30, 2010 with a binding sales contract signed by April 30, 2010).  Note: If you are married, both you and your spouse must pass the homeownership test to qualify.

• Are there income limits? Yes. The income limit for single taxpayers is $125,000; the limit for married taxpayers filing a joint return is $225,000.

• Will I be eligible for a tax credit if I make more than the income limit? Yes.  There is a $20,000 phase-out for the credit, so if you are single and make less than $145,000 or married with a household income of less than $245,000, you will receive a reduced credit.  Consult your tax adviser for information about how the reduced credit is calculated.

• How is the amount of the tax credit determined? The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

• Are there limits on the purchase price? Yes.  For this credit the purchase price must be less than or equal to $800,000.

• Will purchase of a condo qualify? Any home that will be used as your principal residence will qualify for the credit.  This includes single-family detached homes, townhouses and condominiums, as well as mobile homes and houseboats.

• Does new home construction qualify? If you hire a contractor to construct a principal residence on a lot you already own, the date you first occupy the house is treated as the purchase date and must be after November 6, 2009 and on or before April 30, 2010.

More information about the Move-Up/Repeat Homebuyer Tax Credit

First Time Home Buyer Tax Credit: What You Need To Know

• Deadline For First Time Home Buyer Tax Credit Has Been Extended:  If you have not owned a principal residence during the last three-years and you plan to purchase a primary residence, you now have until April 30, 2010 to purchase a home and qualify for an $8,000 tax credit.  You must complete your home purchase by June 30, 2010 to qualify.

• The Income Limits Are Higher: If you are a qualifying first time home buyer purchasing a principal residence after November 6, 2009, the new income limit is $125,000 for single taxpayers and the limit for married couples filing joint returns is $225,000.

• The Income Limit for Earlier Home Purchases is Lower:  If you are a first time home buyer and you purchased a principal residence after January 1, 2009 but before November 6, 2009, the income limit is $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

More information about the First Time Home Buyer Tax Credit Extension

If you are interested in beginning a home search, contact Jebb & Driggin Realty today at (617) 859-0300.

Always consult your tax advisor for information relating to your specific circumstances.

Filed under: First Time Home Buyer, National Real Estate News, First Time Home Buyer Tax Credit, Move-up/Repeat Home Buyer Tax Credit

FTHB Tax Credit Extension

Congress finished action Thursday on the extension and expansion of the Home Buyer’s Credit.

Basic provisions are:

• Extension of the Credit of $8,000 for First Time Home Buyers (Actually, defined as those people who have not owned a home in the last three years).
• New Credit of up to $6,500 for Buyers who have owned their current homes for at least five years.
• Limited to purchase of Primary Residence, costing up to $800,000; no vacation homes allowed.
• The Credit is phased out for individuals with incomes above $125,000 and for joint filers above $225,000. This is a substantial increase in the income limits; and there is still some credit amount above
  those limits.
• Buyers must sign purchase agreements by April 30, 2010 and close before June 30, 2010. The sponsors of the bill have pledged that there would be no further extensions.

Filed under: First Time Home Buyer, National Real Estate News, First Time Home Buyer Tax Credit

New Housing Program Announced

Help is on the way for low-moderate-income families to purchase homes or attain affordable rental housing.

According to the Wall Street Journal, 10/19/09, Jessica Holzer reported a new effort by the Obama Administration to “prop up the housing market by restoring financing to state and local housing agencies.”

This new program could support several hundred thousand new mortgages to first-time home buyers next year and help struggling borrowers refinance to more affordable mortgages through state and local programs.

Fannie Mae and Freddie Mac will be providing short term financing to state and local agencies backed by the Treasury.

Treasury Secretary, Timothy Geithner, announced in a press release that “this initiative is crucial to helping working families maintain access to affordable rental housing and home ownership in tough economic times.”

Read the full-length article

Filed under: First Time Home Buyer, National Real Estate News, Fannie Mae, Freddie Mac