February 2009

IT'S A WHOLE NEW WORLD OUT THERE!

Wednesday, February 25th, 2009 at 9:03pm. 462 Views, 0 Comments.

With the tightening of the credit markets and all the added restrictions, it can be a nightmare applying for mortgage refinancing or even for a new mortgage. Like a good scout, you had better be prepared, or you are going to to get totally frustrated and come up empty. There are some things that you will need to pay close attention to.

1. Before making application, get rid of as much debt as you possible. A poor debt-to-income ratio will kill the deal before you even get started. Make sure that your debt falls below 43% of your total gross income.

2. Your credit score will be critical. Using the 850-point FICO rating scale, a score of 750 and above will garner the best rates. As you go lower, percentages will be added to the rate. For example, if you have a…

TAX CREDIT WITHIN THE STIMULUS BILL...

Monday, February 16th, 2009 at 7:09pm. 438 Views, 1 Comments.

The scale-down of the tax credit within the stimulus package is rather steep having been reduced from the former level of $15,000 to $8,000 or 10% of a home's value for first-time home buyers. This will apply for those home buyers who purchase from the first of the year and will run through the end of November. If you receive a credit and sell the home within three years, you will have to pay it back, as it will now become a loan, otherwise it will revert to being a gift.

Couples will not be eligible if they are making an income in excess of $150,000, nor will single people making $75,000 or more. 

The home builders across the nation were looking for far more and most economic analysts say that with the reduction, any boost will be modest at…

NEW TAX CREDIT PLAN MOVING FORWARD...

Saturday, February 7th, 2009 at 12:07am. 243 Views, 0 Comments.

The other night, the US Senate added a significant homebuyer tax credit to the housing stimulus plan. Here are the key elements of the credit:

1. The tax credit is in the amount of $15,000 or 10% of the purchase price (whichever is less), with the option to utilize all in one year or spread it out over two years. The credit does not have to be paid back!

2. The tax credit is available to all purchases of any home from the date of enactment for one full year - no longer just a first time home buyer.

3. You will be able to claim the credit against your 2008 tax return.

4. Buyers must occupy the home for two years as their principle residence.

5. The credit includes a two year recapture provision (if you leave the home within two years, you lose the credit).

6.…