Clustrmaps
Posts Tagged ‘first time home buyer’
“Cash for Keys” Program to Help Homeowners
Recently we have all heard about programs such as “cash for clunkers” or “cash for refrigerators” because these are programs that the Obama administration has started in the helps to help some struggling businesses and areas of the economy. Well, the programs do not stop there. Now there is “Cash for keys” which is a program intended to help homeowners out of mortgage programs and future debt. Some mortgage investors are offering homeowners money in exchange for the deed and keys to their homes.
These types of deals seem to be increasing and are becoming wide spread in areas such as Boston, California, and even to some residents of Ohio. It has allowed many of these homeowners to relocate to places with a better job market, and allowed them to pay off debt and bills that give them more freedom. Owners of bad loans are making deals with borrowers so that they can avoid a foreclosure and will not suffer damages to their credit.
The U.S. Treasury will starting in April, will pay borrowers who agree to a deed facing foreclosure or a short sale, and the homes will be sold for less than the debt. Unlike other housing market programs this helps to get rid of excess debt and reset home values, solving the problem of many bad loans and limiting default on a loan.
This program is actually bringing investors to the market because they are given discounts and have more to work with when dealing with borrowers and banks.
Many of us have seen programs come and go and crash and burn since the economy first started struggling. This program though seems like a real chance to help the real estate industry which has been struggling so much for so long. It seems like a reasonable option for many homeowners facing huge debt problems and foreclosure. It also seems like a chance for other home buyers to get a home at a more affordable price. It is worth a try, and at least with this new option, buyers and sellers can make more informed decisions about what they should do now and in the future.
Views: 154Buyer’s Credit — Eight Weeks Left
The revised and extended Home Buyer’s Credit has eight weeks left. You need to enter into contract to buy the home by April 30th, and close by the end of May, if you want to take advantage of this program.
First time buyers, or buyers who have not owned a home in the past three years, can claim $8,000 for the purchase of a home. Current home owners can claim $6,500. This is a tax credit, meaning that the amount is applied to your 2010 taxes, either reducing the total amount you owe or increasing the amount of your refund. There are income limits, $125,000 for singles or $225,000 for couples. The amount you receive is determined by the price of the home; homes over $800,000 are not eligible. There are bridge loans available for this credit, allowing you to put the money towards your down payment, although you will probably still need to pay for a portion of the down payment on your own.
If you want to take advantage of the buyer’s tax credit, and you haven’t started your search for a new home yet, it’s time to contact a Syracuse real estate agent to get the process started. Don’t wait until the last minute, and then rush to find the perfect home with only a few weeks left. Give yourself the time you need to find the property that best fits your needs. Remember that you also need to have your offer accepted and an initial contract for the purchase of the home signed before time runs out.
This isn’t the only government refund you can take advantage of as a new, or soon to be new, home owner. New York’s Great Appliance Swap-Out, designed to replace older appliances with more efficient models, is still going. This program started a few weeks ago, and offers significant rebates for the purchase of new washers, refrigerators, freezers and dishwashers. The rebate amount for each appliance varies, and dishwashers are only available for a rebate when purchased with other appliances. If you pay to have your current appliances removed and recycled, you can qualify for a larger rebate. This program lasts until the funding runs out. For more information, visit New York’s Great Appliance Swap-Out.
A lot of appliance stores are offering their own discounts or rebates on appliances, further reducing their cost. If you take advantage of both programs, you could be in a new home, with brand new appliances, with a discount worth nearly $10,000.
Views: 63Home Sales Rising Due to Ending Tax Credit
Due to first time home buyers tax credit ending by April 30th instead of November 30th, home sales are rising as home owners rush to sign a purchase agreement by the end of April in order to qualify for the tax credit. Sales are expected to rise 1.4 percent which means an annual rate of 5.65 million which is up from September which was only 5.57 million. Even though sales are expected to drop in the winter months because the tax credit is not running out until later, this means an expected sales increase in the spring, which is also in most areas a better time for selling homes due to warmer weather.
Even though this is some good news for the housing market, there are still many people facing foreclosures. Fourteen percent of homeowners are either getting behind on their mortgage payments or were in foreclosure state by the end of September. Also, if unemployment keeps rising, than the housing market will continue to suffer. There are some plans to lower mortgage rates next year but the government is limited in being able to help the housing market.
The best thing that can be taken away from this news is that there is hope for the housing market because sales are expected to rise in the Spring, so even if things may seem slow this winter, don’t give up on getting that perfect house you want in the spring and if you are person selling your home, push more to sell in the Spring, when more homebuyers will be rushing to beat that tax credit deadline.
For more information, contact your real estate agent or visit: http://news.yahoo.com/s/ap/20091123/ap_on_bi_ge/us_home_sales
Views: 46Homebuyer Credit Gets New Life
Key lawmakers in the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years.
Home buyers must be under contract by April 30, 2010, and close before July 1. House Democrats have expressed concern about the cost of the tax credit for the government, and allegations of abuse have resulted in an IRS probe of the program.
Source: Wall Street Journal, Corey Boles and John D. McKinnon (10/29/09)
Views: 37Senators agree to extend homebuyer tax credit
Set to expire at end of November, plan will remain until end of April
WASHINGTON – Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.
The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November.
Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.
The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, said a congressional aide, who spoke on condition of anonymity because he was not authorized to publicly discuss the deal.
Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash.
Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening.
Source: Associated Press 10/28/09
Views: 34Tax Credit Extension Seems Likely
It seems likely that the U.S. Senate will approve a deal to extend the First-Time Homebuyer Tax Credit, but the devil is in the details.
Florida Democrat Sen. Bill Nelson told reporters traveling to Florida with President Obama on Monday that he thought that the extension would be approved, but both senators and representatives are among those who think that there should be some fiscal offset for the cost of the extension. Spending any more money on the stimulus effort also could stir up a hornets’ nest in some circles.
The proposal in the Senate that appears to have the most likelihood of passage would extend the $8,000 credit through March 31, then its value would drop by $2,000 for each of the subsequent three quarters of 2010. This plan was offered by Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus, a Montana Democrat.
Source: Associated Press, Andrew Taylor (10/26/2009) and The Wall Street Journal, John D. McKinnon (10/27/2009)
Views: 44NAR: Housing Tax Credit Is Working
Consumers are just starting to see the first glimmers of a bright future for the housing market and the overall economy. It’s up to Congress to make that glimmer a reality by building on the momentum created by the $8,000 home buyer tax credit. That’s what National Association of REALTORS® First Vice President Ron Phipps, told the Senate Banking, Housing and Urban Affairs Committee Tuesday during a hearing on “The State of the Nation’s Housing Market.”
One of the key ways to do that is for Congress to extend the home buyer tax credit, “The data on the present home buyer tax credit show that the credit has had its intended impact—sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably,” Phipps said. He also pointed out that each home sale generates approximately $63,000 in additional economic activity, providing a tremendous economic boost to the national economy.
“But it is a fragile recovery, and now is the time to build on home sales momentum by extending the tax credit throughout 2010 and expanding it to all home buyers,” he said. The present credit, due to expire on November 30, cannot help new purchasers now who write a contract today—they won’t be able to close before the deadline, and will lose out on the credit, said Phipps. “Without congressional action now, the market and our national economy may freeze again—possibly as soon as this month.”
Make Loan Limits Permanent
Phipps called upon Congress to take action on a number of additional fronts to strengthen the recovery. First, make the FHA and Fannie Mae/Freddie Mac loan limits permanent; these are set to expire on December 31. “Maintaining current loan limits would ensure that families have access to low-cost financing to purchase homes and can refinance problematic loans into safer, more affordable mortgages,” Phipps said.
Secondary Mortgage Markets
In addition, Congress should continue the federal government’s involvement in the secondary mortgage market. “Without the government’s involvement in the secondary mortgage market, market participants will have no incentive to reach out to lower-income, creditworthy consumers. We must ensure that the housing market works in all markets and at all times, and that mortgage capital is provided to all potential and qualified purchasers in a way that promotes sustainable homeownership,” said Phipps.
—NAR
Views: 33