As you can see from the professionals' discussion in response to your question, our beloved Senate and the powers that be are still working out the details for the revised tax credit.
Regardless, you have until July 1, 2009 to purchase a home to qualify for the current tax credit of up to $7,500. It is loan, payable over 15 yrs with a min payment $500.00 starting two years after the payout.
You can also apply for this credit before you purchase the home. How? You must be under contract and close on or before July 1st to obtain the credit in advance. You cannot amend your taxes for the credit if you've already filed.
If that's not possible and you need help with your down payment and closing costs, consider down payment assistance. Eligibility is based on 3 factors - your annual income, number of people in your household and where the property is located.
You may use down payment assistance (dpa) to purchase foreclosed properties, HUD properties and in some cases short sales. (I don't really recommend using dpa with short sales unless the bank has already approved the sale price.)
Feel free to contact me to get prequalified. I can tell you how much down payment assistance you may be eligible for as well as how much house you can buy.
Down Payment Assistance Specialist
Enterprise Mortgage Group, Inc.
Winter Park, FL
See our latest blog (below) for more info... click the link...
This is finally a GREAT deal for first time buyers. Let's go house hunting!
Marcus Burke PhD, GRI
Broker: Orlando Real Estate Pros
Condo Metropolis LLC
Licensed Real Estate Brokerage
Homes Website: http://www.OrlandoRealEstatePros.com
Telephone / Fax: 407-290-3408.
Coldwell Banker Residential Real Estate
You may want to move forward (with or with out the tax credit) on your homebuying mission. All your points are correct (the tax credit issue we will hear about as days proceed). I have a couple of observations, recent buyers I have represented have encountered many of the "foreclosure" homes as hard to get. Many have multiple offers, buyers standing in line and waiting for the banks to decide if any offer is good enough. You can (however) purchase a foreclosure, it just takes some work and experience with this. But do not wait, the best prices and the best condition homes are being sold first. Like a clearance sale, if you wait till final days you may get rock bottom prices but the leftovers that no one else wanted!
There are a few suggestions I have to expedite the home purchase process for buyers like you. Your very first step is to make contact with your bank or mortgage broker to establish your credit worthiness and purchase power, interview and hire a Realtor that can assist you and keep your fingers crossed that the tax credit made it thru as a bonus! Seems to be a matter of disagreement here.
One thing we all agree on is that you are correct, no time like now to buy and as Realtors (here) we can help you (at no cost to you!). Realtors can save you time and money. I would invite you to click on my name in right corner or visit my webisite to gain more information about my experience. Talk to a few Realtors, and work with one you are comfortable with and is your advocate. I would be delighted to speak with you.
Best of Luck to you in your search and I hope Louise misunderstood and the tax break is till in the budget! We will all know soon, stay tuned. I am following it very closely.
According to the tax credit that is yet to be approved by the House and president, the credit applies to any house that you will be occupying as a primary residence and the amount of the credit is 10% of the purchase price of the house, up to $15,000.
Please, refer to the following link for more information. http://www.floridarealtors.org/NewsAndEvents/n1-020609.cfm
Our website has information on the current tax credit and will be updated once the new bill is signed in to law.
Here is a good place to read about this program.
In short it is for 1st time home buyers.
Check this l;ink for details.
In any event, while the $15,000 would have been nice to allow folks a little more leeway (especially for those who would be buying a property that needs fix up), it is still a good time to buy. Interest rates are very low, prices are incredible, there's a ton of inventory from which to choose. As long as you make an informed decision about location (location, location) and value (with the professional advice of a Realtor), you should be sittin' pretty in the long run.
Best of luck to you. If I can be of service to help you find something in the Orlando and surrounding areas, I'd be happy for the opportunity. Just click on my info and give me a ring.
Have a great weekend.
Coldwell Banker Residential Real Estate
I wanted to interject here ans say that Mr. Roma is / was correct. The senate was attempting to add this to the bill to benefit "ALL" homeowners, not just buyers, and actually it is first time buyers .. let me explain.
I do believe either Thursday or Friday after the compromise committee between the house and the senate failed to keep the Senate's addition to the "Let's spend every dime we can and see what happens" bill.......
Where I come from its called "throw it against the wall and see if it sticks...." but anyway... The senate had made the change to be as Geovanni says, from the House version which is to be a $7000 or $7500 tax loan paid back over 15 years via your taxes, meaning year 1 you get a $7500 tax credit on your taxes, I believe this is in addition to the typical deduction of mortgage interest, but please check with an accountant for true verification.... but in year two, you begin to pay that $7500 taxes back at a rate of $500 per year. So in reality if your deduction including interest expenses equaled $10,000, then because you are paying back the Gov't for the $7500 first time home buyers "Tax Loan", you actually show the tax deduction of $9,500 .
I am not 100 percent on every specific as the bill hasn't passed yet, and I know better than to count on it until then, either way, I am not a fan of this bill at all. While I do know we need a stimulus, I do not believe $400 per person does much for the majority, while it will tremendously assist those on fixed income and especially assist those that pay zero taxes, it leaves out the average middle class citizen. I know that the real estate industry itself and over eager investors were a large contributing catalyst to our current economic climate, so therefore it would only be accurate that if the elected officials were wise, they would rectify the real estate industry to begin to stabilize the economy.
I am not saying only the real estate industry, and I am not denying that many programs need funding and assistance, but I am saying that this bill is filled with to many items that the house has been holding up it's sleeve waiting for their first chance to add it to anything that has an opportunity of being passed, and this bill is going widely uncontested, because "NO-ONE" officially knows everything about it...... Other than our economy and our country needs an injection.
My strongest suggestion, wait a few more days and it will be all out in the paper and on the net.
I am fairly confident that the rumors of being able to use the $7,500 to purchase or for down payment assistance are not true. Only a first time buyer would get the tax loan on the NEXT tax return, not at the closing table.
I much like yourself, am waiting for the official word on this bill. I work with needy families everyday in this current real estate market, and I hope they are not left out in the cold because some members of the house felt it more important to sod some patchy grass....
I know its just my opinion, and I hope somewhere in there I answered your question..