Homebuyer Tax Credit - Extended and Expanded

Today the Senate & House of Representatives extended the Homebuyer Tax Credit that was to expire on Nov. 30^th. The new and expanded bill will take effect when President Obama signs it into legislation.

The new bill extends the deadline until April 30, 2010 where the homebuyer will have to have a written and binding contract to close no later than July 1, 2010.

The First-time Buyer Credit stays the same in that the buyer may not have had an interest in a principal residence for 3 years prior to the purchase. The amount will also remain at $8000.

The new bill is expanded to also cover Existing Homeowners, who must have used the home sold as a principal residence for 5 consecutive years out of the previous 8 years. The amount that they would receive will be only $6500, yet this is $6500 more than has been the case.

The income limits have risen to $125K for a single person & $225K for a married couple. These are up from $75K and $150K, respectively.

There previous was no cost limit for the purchase price of the home, but this will now be limited to a $800K home.

There is also an Anti-fraud Rule that was attached to the bill and rightly so. Now the purchaser will have to attach documentation to their tax return.

This is very good news & well needed for the real estate recovery as well as that of the economy.

Till next time…Marc It Sold!

Florida's $8K Tax Credit Downpayment Program

The program utilizing the Government's $8K tax credit as a downpayment became effective July 1. Unfortunately, there is no money as they are relying on current home sales' Doc Stamp taxes to fund the necessary reserves.

The Florida Homebuyer Opportunity Program’s (FLHOP) $8,000 tax credit is a bridge loan (short-term loan) administered by the state's local State Housing Initiatives Partnership (SHIP) program.

Florida's lawmakers are offering this loan to first-time homebuyers eligible for the federal government’s $8,000 tax credit utilizing current programs. But unfortunately, the rules for the SHIP and FLHOP programs differ and this is making for some issues. Because of such, some of the state's local SHIP offices may not be ready come the first week of Aug., the likely kick off date due to collections.

The legislation does not stipulate an education requirement as there are currently with other SHIP programs, but the primary lender may require such.

In some instances these monies can be used as part of the required downpayment, but "those who access through any other FHA-approved lender must (as with any standard FHA loan), provide the 3.5% themselves."

At this point, the best thing for you to do is to contact your local SHIP office.

Till next time....Marc It Sold!

Floridians Can Use Their Federal Tax Credit For A Downpayment

The Florida Legislature approved a budget in which they are providing $30.1M to downpayment assistance programs allowing people to use the Federal $8K tax credit for a downpayment. For 5 months as of July 1, those qualifying for the First Time Homebuyers Tax Credit, will be able to apply for downpayment assistance through their local county housing authority to be able to utilize the $8K tax credit for a downpayment at closing. In return, this amount will be repaid when the borrower receives their tax refund.

This is surely a win-win situation for all. It will definitely help many of those who are limited in purchasing a home because of the lack of an adequate downpayment. Hopefully, this will also further spur on what I'm seeing as an improving economy and especially consumer confidence.

All of the details have not been worked out, but I would suggest that you contact your local housing authority as quickly as possible. Theoretically, this will help over 3000 first time homebuyers. Now to the federal guidelines for the First-Time Homebuyer Tax Credit:

• To qualify, the home must be your principal residence (therefore, neither vacation homes nor rental properties)

• purchased prior to December 9, 2009.

• To be considered a first-time homebuyer, you may not have owned a home for the three years prior to the date you closed on this home.

• The home must cost at least $80,000 to receive the full tax credit, otherwise the credit will be prorated to 10% of the purchase price.

• To qualify for the full tax credit, your Adjusted Gross Income (according to your 1040 Form Tax Return) must be below $75K for single individuals and $150K for married couples. Reduced amounts are available above those limits, but are phased out at $95K for singles & $170K for couples.

• There is only one restriction and that is that you can not sell the home for three years otherwise you will have to repay the tax credit.

Happy House Hunting!!

Till next time....Marc It Sold!

For information on Seminole and Orange County real estate and Seminole and Orange County homes for sale in addition to Seminole and Orange County relocation contact Marc Grossman, your Seminole and Orange County Realtor @ 407-463-1034. Additional information is available for Seminole County real estate, Orange County real estate, West Volusia County and South Lake County.

To learn more about Marc and the services he has to offer, visit his website.

Marc Grossman, GRI - http://www.OrlandoHomes-4u.com/ - 407-463-1034

You can read Marc's other blogs Real Estate Morsels, Real Estate Off The Leash & Real Estate Cracker

Marc donates 10% of his net proceeds to Hospice of the Comforter.

Marc It Sold!