Archive for February, 2009
Credit Scoring Info
Related Posts: Credit & Finance, Government, What If Realty News
hi“Good” credit is not a black-and-white matter these days. To mortgage financiers Fannie Mae and Freddie Mac, there’s good credit, better credit and best credit.
That’s because about a year ago Fannie and Freddie added grades of risk to people’s credit scores, which means they will add fees to the mortgages they buy in the secondary market, in order to mark them clearly for perceived risk. Those risk grades can make a loan significantly more expensive.
A score higher than 740 gets the best rates.
“A score between 720 and 739 gets .125 percent added to the rate, a score between 700 and 719 gets .375 percent added to the rate, and a score between 680 and 699 gets .5 percent added to the rate,”
© 2009 Chicago Tribune, Mary Umberger. Distributed by McClatchy-Tribune News Service.
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Wow ! $8,000 tax credit now for new home buyers
Related Posts: Credit & Finance, Government, What If Realty News
hi• The deduction is worth 10 percent of a home’s value up to $8,000, which means all homes worth more than $80,000 could qualify for the maximum amount.
• There is an income limit to qualify. A married couples’ modified adjusted gross income (MAGI) should be under $150,000 and single filers’ MAGI should be less than $75,000.
• Partial tax credits may be available for married couples with MAGI incomes over $150,000 but under $170,000, and single filers with incomes over $75,000 but under $95,000.
• If married couples file separately, they can both claim 5 percent of the home purchase ($4,000 each for a home over $80,000) on their tax returns.
• It’s a tax credit, not a deduction. That means the entire amount goes back to the first-time homebuyer unlike deductions, such as mortgage interest, that are subtracted from gross income before tax is calculated. If qualified for $8,000, the buyer gets $8,000, even if they would not owe that much in taxes otherwise.
• The tax credit applies to homes purchased between Jan. 1, 2009, and Dec. 31, 2009.
• The tax credit does not have to be paid back, providing the homebuyer keeps the property for at least 36 months and resides in the home.
• To qualify as a first-time homebuyer, the purchaser cannot have owned a home within the previous three-year period. However, ownership of a vacation home or rental home does not disqualify the buyer.
• If purchasing a new home, the effective date to receive the credit is the first day the homeowner actually lives in the house. If construction began in 2008, that buyer could still qualify. And if construction begins in 2009 but the owner does not take possession until 2010, the buyer would not qualify.
• The tax credit is not a downpayment, but it could be used toward a downpayment if first-time homebuyers plan ahead. U.S. taxpayers have money withheld from every paycheck for income taxes. If they owe more tax than the amount deducted, they pay the IRS; if they owe less, they get a tax refund.
By anticipating at least an $8,000 refund in early 2010 when they file 2009 taxes, these buyers could cut down on their tax withholding this year and save the money toward a downpayment. There is one caveat, however: Should they not buy a home in the qualifying period, they would still owe the IRS the money, and reducing their withholding amount could result in a high bill at tax time.
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Home Sales are creeping up……..
Related Posts: Florida Listings, Real Estate News, What If Realty News
hiSales of existing single-family homes in Florida rose 13 percent in fourth quarter 2008 compared to the same period a year earlier, with a total of 30,163 homes sold, according to FAR’s latest housing statistics. It marks the second consecutive quarter for increased existing home sales; sales activity rose 5 percent in 3Q 2008 compared to the same period the previous year. Existing condo sales increased 3 percent in the fourth quarter compared to 4Q 2007.
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Housing Aid is in the Stimulous Bill
Related Posts: Credit & Finance, Government, Real Estate News, What If Realty News
hiHomebuyers could see lower mortgage rates and get tax credits as part of a sweeping economic stimulus package being considered on Capitol Hill.
Lawmakers are heeding the pleas of two powerful and well-heeled interest groups: real estate agents and homebuilders. Those industries have lobbied hard in recent weeks for more expansive assistance for their flailing members.
The Senate took up a $900 billion version of the stimulus legislation on Monday after an $819 billion version passed the House last week without a single Republican vote.
With median sales prices back to levels last seen in mid-2003 and rates on 30-year mortgages hovering around 5 percent, homes have become far more affordable in most of the country. But some economists say they still have farther to fall, particularly in former bubble markets like California and the Northeast.
Plus, some question the amount of money going toward relatively wealthy homebuyers, instead of renters or those who can’t qualify for a mortgage.
The Realtors group spent more than $17 million on lobbying last year, with more than $6.5 million coming in the final three months, according to disclosure forms.
The building industry, which has been devastated by the housing bust, has been pushing a package of subsidies that would bring mortgage rates to just under 3 percent for the first half of this year. The National Association of Home Builders – which spent more than $4.5 million lobbying last year – favors a tax credit of up to $22,000 for home purchases.
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