Archive

Archive for March, 2010

FHA Increasing Up Front Mortgage Insurance Premium(MIP)

March 30, 2010 Leave a comment

Effective April 5, 2010, FHA loans which case numbers are assigned on or after April 5, 2010 will collect an upfront mortgage insurance premium(MIP) of  2.25 percent.  This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying  streamlined refinance transactions.

This is one of several changes FHA is implementing and please check back for updates.

Military Members Get $8000 Tax Credit Extension

March 25, 2010 2 comments

Congress has made special exceptions for members of the military, the foreign service and the intelligence community that apply to both the $8000 tax credit for first time home buyers and the $6500 for repeat  home buyers.  

 Exemption From Tax Credit Recapture Rules

  • Homes that are sold or cease to be used as a principal residence within 3 years of the initial purchase are subject to recapture of the tax credit.
  • However, qualified service members who sell or move from a tax credit home within 3 years of the initial purchase due to official extended duty are exempt from the recapture rule.

Extension of Tax Credit Deadline

  • The home buyer tax credit is available for qualified purchases with a binding sales contract in place on or before April 30, 2010 and closed by June 30, 2010.
  • However,  for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
  • A person who is forced to return to the U. S.  for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may qualify for the one-year extension.

Definitions

Qualified service member:    A  member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community.

Official extended duty:    Any period of extended duty outside of the United States for at least 90 days during the period beginning after December 31, 2008 and ending before May 1, 2010.

Please consult with your Tax Advisor to see if you qualify.  Check IRS.gov website for more detailed information.

Tell Me About The $8000 Tax Credit

March 15, 2010 Leave a comment

This is a question that, I get from many first time home buyers.  I hope that this will help answer your many questions regarding this tax credit.  Remember, that it does expire and you still have time to start looking for your new home.

  • The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
  • The tax credit does not have to be repaid.
  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
  • The tax credit applies only to homes priced at $800,000 or less.
  • The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
  • For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
  • For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Please consult with your Tax Advisor to see if you qualify.  Contact me if you need more info.

Mortgage Rates Remain Under 5 Percent

March 12, 2010 Leave a comment

Mortgage rates remain under 5 percent for two weeks straight, as reported by Freddie Mac this week,  the average interest rate on a 30 year fixed loans coming in at 4.95 percent from 4.97 percent a week earlier.

Interest rates on a 15 year fixed loans averaged 4.32 percent compared to 4.33 percent the previous week.  Rates on 5 year adjustable rate mortgages settled at 4.05 percent, a decline from 4.11 percent last week.

Who do you know that wants to buy or seller a home?   Interest rates are very low and the $8,000 Tax Credit is still available if you qualify.  Give me a call for more details.  Let’s start looking for your dream home.