HERE"S THE LATEST INFO FOR YOU

Here some more information on the tax credit, and how to get it.  Please go

IR-2009-27, March 18, 2009

IRS Tax Tips

the the IRS website for more details.

"Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

The filing options to consider are:

• File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15.  This step would be faster than waiting until next year to claim it on the 2009 tax return.  Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
  
  
• File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later.  Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
  
  
• Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
  
  
• Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately."

Please let me know what you think by pressing the comment button.

  How would you like to buy a vacation home, your dream home, or a rental property, and be able to get it with only ten percent down?  On top of that, how would you like to buy that home with no appraisal required, fast turn around time, and with NO mortgage insurance?

"OK," you ask, "This sounds too good to be true.  What's the catch??"

The catch is that these homes are foreclosed homes that arebeing sold by Fannie Mae.  The good news is that you can find some really good gems in these, and Fannie Mae is offering some really good loan terms.

If you like to check it out, here's a link to some of the homes.  After you study this, drop me a line, or give me a call so that I can explain the financing to you.

Until next time, take care.

Mitch

mitch.champagne@nflp.com

Fannie Mae Properties

One of my customers called and asked me what I knew about a way to tap the equity in her house to offset the income she lost with her mutual funds.  "I heard about this on the radio," she said, "but it sounded to good to be true.

After talking with her, she was more wrong that right on what a reverse mortgage was, as there are a lot of misconceptions on this program. 

I wanted to touch a few of the hightlights.

The Home Equity Conversion Mortgage (HECM) is the program that we offer through FHA.  This program is designed  to let you access some of the equity in your home. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both.

Rather than risk selling investments that are going down in value, many older Americans are considering tapping their home equity to help fund their retirement.

This program is for consumers that are:

Be 62 years of age or older, own the property as a primary residence, and not be delinquent on federal debt, and they must complete a consumer information session given by an approved HECM counselor

Another benefit to the Reverse mortgage is that no income or credit qualifications are required of the borrower, no repayment is required, as long as the property is your principal residence.

There's a ton more information on this, but if your interested, drop me an email and I'll send it to you. 

As always, please comment on my blog, let me know what you think. 

If there's other topics you'd like me to address, let me know that too.

Thanks.

What is a HUD Home?  HUD homes are properties that have been foreclosed upon, and being offered by the lender that has foreclosed on the property, often at a reduced cost.  HUD Homes have been around for a long time, but never with as much inventory as they have right now. You have a window of opportunity here because it's a niche market that many people know about - but few participate in.

Under normal FHA rules, you have to show the ability and the assets to put down at least 3.5% of the purchase price.  On the repo program, what FHA will allow purchasers to buy these homes with almost no money down.  In the case of this program, the required down payment is $100.00.  What FHA has done now was to extend the $100-down repo program that allows borrowers to purchase HUD-owned properties. In fact, the attraction of these programs is that the properties offer financing of up to 100% of the loan amount, which can include a "repair escrow" for repairs for up to $5,000. In some markets, there are additional "incentives" to borrowers, with up to $2500 in paid closing costs and an additional $500 commission bonus to the real estate agent.

The attraction of these programs are obvious.  You could literally buy a home with the change you could find in a sofa!

The downside of this program is if you're looking to buy a home in the Baton Rouge area, the selections are limited.  However, if you're looking in other areas of this state, you can luck into a good buy.

Interested?  drop me an email and I'll send you the  info so you can check out these homes.   

As always, any comments on this blog, please click below and respond.

Until next time,  take care.

Mitch

Are you going to benefit from the Stimulus Package?

There's been a lot of confusion of what's coming down, and what I want to do is to focus on the tax credit on today's blog.

There's actually two tax credits, and that's what's confusing people.  If you're a first time homebuyer, and you bought a home after April 9th, 2008, the stimulus page provided up to a$7,500 tax credit for qualified first-time homebuyers.  This was an interest free loan, and was to be paid back over fifteen years.

The stimulus package passed this year allowed first time buyers to qualify for up to a $8,000 tax credit, the difference being that you didn't have to pay it back as long as you stayed in the house for at least 3 years as your primary residence.

Homebuyers who close in 2009 can take the credit on their 2008 taxes or wait until 2009. There are other differences, and you should talk to a tax expert for details.

We don't have the housing issues like some of the other states, we're in decent shape as far as housing.   If you're considering buying a home, this is a great incentive to move forward.  Also, if you're buying a home in certain areas, there are still 100%, no down payment programs at excellent interest rates.  Please call or email me for details.  Thanks!

Mitch