New Home Buyer’s Tax Credit Ensures Winter Home Sales
January 23rd, 2010 by adminHome sales over the past year or so have caused a mixed bag of emotions for many people. Many people have suffered a great deal of stress and anxiety over losing their homes and falling into foreclosure while many others are delighted with having the ability to buy into a market full of discounted homes, foreclosures, and short sales. While it is true that the real estate market is the cause of a lot of heartache for many Americans, it is also the case that the home sales are also helping to prop up a flailing economy this quarter.
The number of home sales has substantially picked up this fall and in fact, October home sales have finished higher than they’ve been in over two years. This is, in a large part, due to the fact that home buyers were racing to beat the expiration of the first time home buyer’s tax credit. Now that this credit has been extended until the end of April, however, we are sure to see another rush to buy when this deadline approaches.
The low mortgage rates have really helped the current trends in home buying. Even with fewer funds to go around, the reduced prices of homes in combination with these lower lender’s rates have created some ideal opportunities for home buyers, particularly those who’re looking to purchase their first home.
If home prices continue to fall, particularly with the home buyer’s tax credit still in place, then the home sales over the fall may just continue to exceed expectations. However, the sales that occur in late in the year tend to drop off in frequency as the weather worsens.
The increase in home sales has certainly helped the economy somewhat, though experts say that it needs support from a wider range of industries before it really starts to recover. With fewer and fewer homes on the market hopefully this will impact the home building industry soon as it is still struggling with a lack of business due to the glut of homes on the market due to foreclosures and short sales.
Hopefully we will see a slow but steady increase in not only home sales, but also a variety of other industries over this winter. The more confidence that we can put in the economy, the more we will benefit from the increased productivity that our dollars stimulate in it. Only time will tell how the economy will withstand the eventual withdrawal of government stimulus though.
Buy Dfw Real Estate Using First-time Home Buyers Tax Credit -$8,000
January 19th, 2010 by adminThe federal tax credit for first-time home buyers is to ensure that home buyers will become home owners utilizing the $8000. Not only will the tax credit help the real estate industry, it will more importantly help increase home ownership.
The tax credit is for home buyers purchasing a new or pre-owned home. To qualify for the tax credit, you must buy the home before May 1, 2010 (with the closing date before July 1, 2010). If you construct your home, the purchase date is the date that you occupy the home. Even if you were a home owner before, you can qualify for the tax credit if you did not own a home within the last 3 years of the purchase date.
For the purpose of the first-time home buyer tax credit, a first-time home buyer is one who is a tax payer that has not owned a principal home at any time during the three years prior to the date of purchase. The income limits for the home buyers: Married couples modified adjusted gross income should be less than or equal to $150,000 and for other tax payers the modified adjusted gross income should be less than or equal to $75,000. This will enable many home buyers to utilize the tax credit to buy Dallas homes for sale in the DFW real estate market.
You can claim the first-time home buyer tax credit, if you obtain the benefits and burdens of ownership, which means you should have the right to possession, the right to obtain legal title upon full payment of the purchase price, the right to construct improvements, the obligation to pay property taxes, the risk of loss, the responsibility to insure the property, the duty to maintain the property.
The tax credit for two unmarried people who buy a house together can be determined through the guidance of IRS. If you are a single co-owner of a home purchased within the tax credit program dates, you can claim the credit on your 2008 or 2009 federal income tax return. The tax credit can be claimed by a home buyer who does not have any taxable income. A first-time home buyer with no taxable income can claim the tax credit.
You do not qualify for the tax credit if you exceed the income limits, buy your home from a close relative, such as spouse, parent, grandparent, child or grandchild, do not use the home as your principal residence, sell your home before the end of the year, are a nonresident alien, you are or were eligible for the District of Columbia home buyer credit (does not apply for a home purchased in 2009), your home financing comes from tax-exempt mortgage revenue bonds or owned a principal residence within the three years of a purchase date of your new Dallas – Fort Worth home in the DFW real estate area.
You should take advantage of the first-time home buyer tax credit and claim the $8,000 incentive on your home purchase in the Dallas – Fort Worth metroplex. You can claim $8,000 and become a home owner.
Home Buyers – Low-Ball Deal
October 28th, 2009 by adminIn these strange economic times, for home buyers – a person looking to purchase a home could not find a better time to be getting the best deals available within the housing market. With home buyers looking for steals and sellers looking for an out and banks selling off homes at cut-rate prices, the opportunities could not be better, favoring the home buyers.
The old school conventional wisdom within the housing industry just does not hold water today and can actually get in your way of getting your best low-ball deal on a house you want to buy. A low-ball offer can best be summed up as any offer that is less than a large percentage of the asking price.
The current market dictates that seller needs to consider every offer made from prospective home buyers, no matter how low the offer is. Home buyers should make low-ball offers in this market because they could come out way ahead of the game.
Home buyers should also keep a few things in mind before buying a house simply because it seems like such a steal. Shopping around for the right home for you and your family can be a real emotional roller-coaster of a ride. Shopping for homes is not like shopping for anything else you have shopped for before. It is important to stay focused on what you really want and what you need when buying a house.
Home buyers check list.
The size of the house, the location, the age of the home and many offer variables need to be accessed before jumping on a deal.
Does the house you are considering have a good school nearby that your children will be attending? Is the home surrounded by neighbors you would rather watch on reality TV than live next door to? The home may be next to a nice wooded area, but were you aware that the land was sold and a new shopping mall is going to be next to your back yard sometime next year?
As you can see, for any serious home buyers, there are a lot of considerations to check out before purchasing a new home. Is the home you are considering maintenance free or will you have to do some major renovations to suit your tastes? Honestly, this “consideration” list goes on and on.
The most important thing that you can do before shopping for a home is to make an extensive list of all the considerations that need to be taken into account before buying. You will find some things you can live with while other things can’t be sacrificed for any amount of money.
Remember that old Beatles’ song, “Money Can’t Buy Me Love”? Keep that in mind when you decide to put a low-ball bid in on some house you found that is right next to the train tracks and expressway. Your family will love you for making a list, then checking it twice before buying.
Fabulous News for First Home Buyers
October 25th, 2009 by admin
What fabulous news for first home buyers, a whopping $21,000 towards deposit, expenses or even new furniture if you buy a brand new home before June 2009. So if you?re ready to take the plunge and sign up for what is likely to be the biggest commitment you?ve ever made, now, more than ever, seems to be the perfect time to get into the property market as a first home buyer. Even though your friends and family will be full of advice, as with any major decision in our lives, it?s always good to take their experiences and opinions on board, however your own research will give you peace of mind and assurance, before you sign up for the big purchase and possibly sign your life away to the mortgage company. Generally, most first home buyers already have an idea on the location and the type of home they want, so now it?s just a matter of finding out whether you can afford what you want to buy. Almost all the major banks and other lenders offer special packages with reduced application fees and lower interest specifically for First Home Buyers. With the help of some comprehensive search engines, shopping around not only for a home loan, but a property is almost as easy as 1 ? 2 ? 3, so jump on the internet and let your fingers do all the work for you. It?s important to remember that the bank can?t lend you all the money to buy your first home. As a first home buyer, at least a small part of your deposit will have to come from your own savings or alternatively a gift from your relatives. Once you find the right home loan, apply for a pre-approval. This can be done either online or in person. A pre-approval is the bank?s preliminary approval subject to an acceptable property. You will need to provide a completed application form along with requirements such as your identification, income evidence and savings (gift) verification. Once the bank is satisfied that you?re an acceptable first home buyer, they will issue a pre-approval and you can start shopping around for your first home.
So when and how do I apply for a First Home Owner Grant? The First Home Owner Grant is only available to Australian residents and citizens, so before you apply you should contact your state revenue office, alternatively visit their respective website for more information. If you satisfy all the first home buyer criteria and conditions, there are two ways you can apply for your first home owner grant. If you apply for your first home owner grant via your bank, you?re likely to receive the grant at settlement, so on the day you officially become a home owner. If you apply for the grant directly with the state revenue office, the grant is not likely to come through until after the settlement. The best way is to keep in regular contact with the lending manager of your chosen bank. Remember, they help first home buyers every day and are the best source of information and guidance, so don?t be afraid to call them if you have a question, after all, they?re here to help you.
The Australian Housing Affordability Crisis – Where Do First Home Buyers Stand?
October 22nd, 2009 by adminHousing affordability in Australia is reaching a crisis point with many individuals and families now finding the ?Australian dream? of owning their own home soundly out of reach. This has never been truer than for the first home buyer.
The average median house price in Australia is now around $412,000 a whopping 108% increase over the 1997 ? 2006 period with a corresponding 97% increase in the average home loan. It?s no wonder first home buyers are now contemplating a life time of renting.
The average first home buyer will now need to spend over 30% of their disposable income to service the minimum monthly repayments on a new home loan of around $2,332 a month. With rental prices for private housing rising sharply over the last couple of years the first home buyers capacity to save a deposit has been dramatically undermined and along with rising living costs the first home buyer is struggling.
The housing affordability crisis in Australia has come about because of a shortage of available housing and the excessive cost of raw land, long delays in planning approvals and the high cost of infrastructure to support community services. All of these factors are contributing to delays in residential construction.
A similar housing affordability crisis is occurring in the UK for first home buyers brought on by a prevalent housing shortage. The UK mortgage market has been pushing for longer fixed rate loan terms for periods up to 25 years as an immediate solution to ease the housing affordability crisis for first home buyers.
The impact on Australian First Home Buyers?
The emerging trend in Australia at the moment for first home buyers is a delay in home ownership with preference given to maintaining their lifestyle and being able to live in a suburb of their own choice rather than making sacrifices to purchase a home in a less desirable location. With rising debt, large deposit requirements and soaring house prices the first home buyer is opting to rent rather than face the uncertainty of being unable to meet the monthly loan repayments of a new mortgage.
Mortgage relief for the First Home Buyer?
Mortgage brokers like Altrust Finance, financial institutions and the Australian government are all working towards finding lending solutions to alleviate the current housing affordability crisis for first home buyers. Low doc loans and non conforming home loans are making it easier for families and individuals to own their own home. New shared equity schemes aimed at reducing the upfront costs of home ownership for the first home buyer as well as reducing loan repayments are emerging in the Australian mortgage market place. Non conforming loans, no deposit loans and family guarantee mortgages are all available to the first home buyer and are aimed at addressing the needs of the borrower. Australian mortgage brokers like Altrust Finance Group now have the flexibility to offer first home buyers a range of home loan options to beat the housing affordability crisis and purchase their first home.
Home Buyers Rescue You from Repossession
October 19th, 2009 by adminYou’ve stacked up bills and late payments for months, unable to pay anything. You’re facing the repossession of your home. You’re so worried about where money will come from that you have trouble sleeping. Pretty soon you won’t even have a house to call your own. What can you do to escape this financial nightmare?
Does this sound familiar to you? If so, you are not alone. The current housing crisis in the UK has many people facing this same dilemma. Where can they turn? The traditional option of a long, expensive wait while an estate agent sells your home won’t work for you. Fortunately, there is a better option.
A home buyer service can help people out of this mess and give them cash for their home within a week. They specialize in rescuing people from repossession and other financial messes. From Belfast to Colchester, a home buyer is ready and willing to take your burden away and give you a fresh start.
With a simple phone call, you can set up an appointment with a house buyer. They will get basic information from you and send their agent to your home. Usually within a day the agent will arrive to examine the home and valuate it.
After a thorough analysis, they will send you their estimate. You can take some time to decide if you want to accept the offer or reject it. By accepting their offer, you can have the money in your bank account by the week’s end.
If you choose to decline the offer, there are always other home buyers willing to send their appraisal agent to make another offer. Make sure that you are satisfied with the price, even though you’re going for a quick sale.
Most home buyers will give you the option to rent from them once you sell your home. You’ll need some time to find a permanent place to stay, and home buyer services understand this. You’ll save cash with a lower rental payment and be able to put some away at the same time.
The advantages of using a home buyer service are numerous. Homes can sit on the market for months on end, losing value in the process. With a house buyer, you’ll have a guaranteed sale before you cash your next paycheck.
Home buyers also let you avoid hidden fees. The costs of estate agents are rising, and you’ll want to avoid dealing with them. Home buyers provide free services from appraisal agents to make selling property easier. Home buyer services are simple, quick, and effective at selling your home.
You may not even be in financial trouble, but you still need to sell your house. Maybe you have a few properties and you need to get one of them of your hands? UK home buyers will prove that their services are superior to those of estate agents. They guarantee to get that sale in front of you and cash in your bank in seven days.
It’s a Real Estate Boom for First Time Home Buyers
October 16th, 2009 by adminThe subprime mortgage real estate fiasco has created a glut of residential real estate in the real estate market. Foreclosures are on the rise and it doesn’t look like the end is in sight for at least another year. Thousands of home owners are losing their homes because adjustable mortgage rates have adjusted upward and caused increases of monthly mortgage payments so high that the affected home owners just can’t make the payments. It is inevitable, under these circumstances that many homes go into foreclosure and banks have to take them back.
While it is unfortunate that many home owners are losing their homes, the opposite and upside effect is that the real estate market is now a boom for the first time home buyer.
Mortgage interest rates are still low and banks and real estate lending institutions have 30-40 year fixed loans for home buyers. With home values in many areas around the country, such as California, plummeting anywhere from 30-50 percent of what they were a year ago, the market is wide open for buyers who have never owed a home and would like to do so now.
Lending institutions and sellers are very motivated now and are readily lending their ears to home buyers saying “lets make a deal” and deal they will. Here are some of the innovative and sensible ways home buyers can now acquire a home of their own when they are armed with some real estate homebuyer education.
1. Use government grants and loans for down payment assistance.
The federal government in 2003 established the American Dream Down Payment Act. This federal law has allocated $200 Million a year since 2003 to assist with arranging down payments for first time home buyers. This is a good indication of just how serious the government is about helping Americans make the American dream of home ownership come true.
Fannie Mae, one of the many federally supported programs for home buyers has programs such as the MyCommunity Fixed Rate Mortgage. This unique program is ideally suited for the first time home buyer. It provides for low down payment, high loan to value with broad flexibility, including nontraditional credit considerations allowing for the buyer to qualify for the loan. It also has special financial options to serve public servant professions such as teachers, police officers, firefighters and health care workers, and people with disabilities.100% financing is available with 30-40 year fixed rates. Check out the details at http://www.efannie.com.
These funds, in addition to other government funding sources, are made available through federal, state and local government agencies that provide down payment assistance to their citizens on a case by case basis.
Every major city and county has one of these programs. One need only exercise a little initiative and these funds can be acquired. Contact your local housing authority, city managers office or county administration department to find out about them and how to apply.
2. Use non-profit agency down payment assistance
Another little known, but long existing opportunity for first time home buyers to acquire help with down payment assistance is the numerous numbers of non-profit agencies around the country that provide free down payment assistance to home buyers. The Community Reinvestment Act of 1977, enacted by Congress in 1977 and revised in 1995, requires banks located within identified communities to make loans and reinvest the depositors’ deposits within that community.
For decades now and continuing into the future banks have been making huge amounts of funds available to invest in targeted communities. However, the availability of the funds was not publicized in a significant way and many people did not and still do not know about these funds. Many non-profit agencies became aware that they could help in the community revitalization effort by creating a means whereby the banks could channel the funds through various home assistance programs that non-profits created. The non-profits that specialize in this type of program have grown over the years. Some are very large and are nation wide such as the Nehemiah Corporation – www.nehemiahcorp.org.
They get funding from the banks via the Community Reinvestment Act and other funding sources and then provide for down payment assistance and other housing assistance to persons desiring to own a home.
One of the high points of these programs is that the funding is often times not limited to first time home buyers and certainly is not limited to only low income home buyers. This creates yet another source of down payment assistance for the prospective home buyer. Given the numerous avenues of funding to assist in buying a home and the present market swing in favor of home buyers, buyers are now firmly in the driver’s seat.
First Home Buyers Back in the Market in Australia
October 13th, 2009 by admin
All the signals are right if you are a first home buyer living in Australia. At no previous time has a first home buyer had access to a number of cash subsidies and savings that have resulted firstly from individual state government initiatives and secondly from initiative by the Federal Government to encourage first home buyers back into the market. By providing generous subsidies and grants it is hoped that more first home buyers will be out and about looking for a new home and this will provide the stimulus for increased construction activity in the home sector.
In NSW the state government introduced a New Home Buyers supplement Effective from 11 November 2008. Under this arrangement a NSW First Home Buyer who is purchasing a newly constructed home will receive a Supplement of $3,000.
This will be will be added to the existing $7,000 grant for eligible First Home Owner Grant applicants building a new home or buying a newly constructed home. For the time being, the $3,000 Supplement will only be available for 12 months (11 November 2008 to 10 November 2009 inclusive), at which time it will be reviewed in the context of the property market. One can probably assume that if the global crisis continues beyond November 09 then the first home buyer supplement will be extended for a further period.
This first home buyer supplement is on top of the $14,000 provided under the Commonwealth?s First Home Owner Boost scheme. This will give eligible First Home Owner Grant applicants i.e. first home buyers building a new home or buying a newly constructed home a total of $24,000 towards the cost of their new acquisition.
Effective from 1 July 2009 (still subject to Federal Government approval) the First Home Owner Grant and NSW New Home Buyers Supplement will be capped and only be available for properties valued up to $750,000. This is likely to include the majority of first home buyer purchases and is a terrific incentive for first home buyers to enter the market. Other Australian states also provide incentives at State level to first home buyers ? the Commonwealth ?boost? scheme obviously applies to all states and territories.
To date the most funding under the first home buyer schemes in NSW has gone to Liverpool ($98 million +), followed by Campbelltown ($70m +) Wentorthville (69m+) and Blacktown ($63m+). In NSW as at 8th January a total of $5 billion has been paid in subsidies and grants to first home buyers. These subsidies for first home buyers include:
Home Mortgage Facts For Home Buyers Or Exisiting Home Owners
October 13th, 2009 by adminWhen it comes to getting the house that you have been seeking, or leveraging the equity in your existing home to get the things in life you need, you will find that there are a number of different Home Mortgages designed to meet your credit needs.
Buying a home is one of the largest expenses that most of us cannot incur without applying first for a home loan. Because your home is your kingdom, and your most valuable possession, buying any type of real estate is perhaps the most important decision that any individual will make in his or her lifetime.
A typical Home Mortgage Application requires considerable paperwork, including details on your employment record, and the type of house you want to buy in order to determine the loan you need among the different types available, such as Rural Housing Loans, VA Loans, FHA Loans, and so on.
Furthermore, lenders will require exact details of your personal finances, a copy of your latest pay stubs and income tax notice of assessment if you are an employee, or financial statements, if you are self employed. It will obviously be an easier process if you are just renewing an existing mortgage, instead of getting your first one.
For existing real estate owners, home mortgage refinancing can bring additional benefits when home mortgages are obtained under different interest rate schemes, as an example, from an Adjustable Rate Mortgage (ARM) to a Fixed-Rate, although that is a decision you should make with great caution, depending on the amount of time you plan on being in your home.
Another important consideration when applying for home loans, is your credit score. A lender can reject your application if you have not established credit yet, or your credit is not good. Even then, Bad Credit Mortgage Loans are available for those who have bad credit, poor credit, damaged credit, or no credit at all, as well as for people with a previous foreclosure, bankruptcy, and other credit report issues. The only problem is that the interest rates will be higher and there may be other requirements, like a longer pay back term, or other restrictions.
Considering all of this, it is better if you try to repair your credit score before applying for a regular home mortgage.
If you want to get a loan for home repairs, for your childrens college tuition, to supplement your retirement income, or for other important reasons, consider getting a home equity loan.
A Home Equity Loan always requires that you own a home, which is used as collateral, to get the money you need. You are granted a loan based on how much equity is available in your existing mortgage. If your mortage was for two hundred thousand dollars and you have paid off half of that, then your home equity loan would likely be for a maximum of that difference of one hundred thousand dollars, depending also on the current value of your home.
If you are unsure of the benefits of one mortgage loan compared to another, research online at the various financial institution or related websites. For example, at www.fanniemae.com, you will find a wealth of information about home mortgages, while the U.S. Department of Housing and Urban Development provides excellent information at www.hud.gov.
Because knowledge is power, taking the time to learn more about home mortgages can make the difference in making your dream home come true, in finding the funds to improve your life situation, or not.
3 Tips For Selling a House Quickly in Charleston in Today’s Buyer’s Market (Part I of III)
October 7th, 2009 by adminSo just in case you have been living off the land in the middle of the Amazon these last couple of years, here in South Carolina it is definitely a buyer’s market and although this is great news for buyers, it is bad news for sellers. There is nothing worse than putting your house up for sale and watching it sit on the market with all the other bazillion pieces of real estate. This is a very common problem these days in this down real estate market. So, what should you do now? Should you give up your dreams of selling? Wait for the market to rebound? Well, here are a few tips to help you sell your house fast here in Charleston, Dorchester or Berkeley County.
The following tips may help you sell your house quickly, but we need to cover something first. If you have some type of defect with your house, it is going to have to be repaired to sell it to a retail (owner occupant) buyer. There is a difference between making small repairs that prevent a sale versus having a major problem like a cracked foundation or severe termite damage. These tips will only help if your home is in reasonably good shape when compared to those houses selling in your neighborhood. If you have major problems with your house, a buyer will not be able to get a loan and you will therefore be better off selling to a reputable cash buyer like Charleston Home Buyers, LLC that can buy your property quickly “as is” without any bank financing needed.
1. PRICE – Hands down, the number one thing involved in selling your house fast is the price. The price of your home should not be what you personally think it is worth or what that little voice inside your head tells you that you deserve since you “put all that money into improvements……like your new in ground pool”. Buyers simply don’t care about what you paid for your house a few years ago or that you put the best stain-resistant carpet you could buy throughout the house. If you’re asking how do I sell my house fast in this market, the bottom line is that you have to set a price that is very attractive to buyers. The best way to do this is to look for comparable houses in your neighborhood that sold fast. Note I said sold, not what they are currently listed for. Asking price is just that….an “asking” price. And all it means to you is that your price should be below theirs if you want a buyer to choose your home over theirs. Find out how much the homes sold for and compare your price to the prices the other houses sold for while taking into consideration their square footage vs. yours. If you are above those prices, you need to take a deep breath, bite the bullet and lower your price. When it comes to pricing your house for a fast sale, overpricing it in the beginning to just “test” the market will only bite you in the end when you have to chase the market prices downward, your house gets stale to the market and buyers wonder what’s wrong with it. Just follow the lead of others in your area and make sure your home is the best priced and if at all possible the nicest as well. Which leads us to tip number 2 (subscribe to our feed for tips 2 and 3 coming shortly).
Price is just one of the things you can do to try to get your house sold quickly. However, if you’re sick and tired of waiting for your house to sell, have a difficult situation or perhaps just don’t want to deal with the hassle of having to have your home in tip-top shape, and constantly clean in case of unexpected showings that never seem to happen, then selling your home to a professional home buyer like Charleston Home Buyers, LLC may be a great idea. There are many advantages to selling to a local real estate investor: There will only be one showing. They are cash buyers which means you won’t have any surprises the day of closing [after you have the moving truck packed] when your realtor calls to tell you the buyer’s financing fell through. You won’t have to clean or make any repairs. They buy real estate “as is” so you won’t have to worry about your buyer backing out because their home inspector says there are “problems” with the house. It also allows you to go shopping for a new home because you know that you have a solid buyer with very few contingencies ready to cash you out now or whenever is convenient. Another advantage is that they are very adept at handling many difficult situations such as: foreclosure, bankruptcy, divorce, probate and inherited property, vacant houses, tired landlords, short sales, multiple lien holders, lost job and behind on payments, needs repairs and updating, already moved and making two mortgage payments, listing is expired, no equity and you can’t afford to continue paying. These are common problems that can happen to anyone. Charleston Home Buyers specializes in finding creative win-win solutions to real estate problems that others won’t touch.
To find out more how you can sell your house “as-is” for a fair price on the date of your choice, get our FREE REPORT “How to Sell My House Fast”. If you are falling behind on payments or facing foreclosure make sure you get our FREE REPORT “How to Stop and Avoid Foreclosure“. If you need to sell your house quickly, please submit your property information via the “Sell My House” form at our website today for a Free, Confidential, No-obligation offer or call our toll free 24 hour recorded message at 888-52-BUYER (888-522-8937) for more information about selling your home to a professional house buyer. You can also always call us direct at 843-72-BUYER (843-722-8937), however we recommend that you take 5 minutes to fill out our property information form first so that we can save you time by having the information we need to get you an offer right away.
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