FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
February 2009
EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
Amount of Credit
Maximum credit amount increased to $8000
Eligible Property
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
All principal residences eligible.
Refundable
Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.
Income Limit
Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).
First-time Homebuyer Only
Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.
No credit allowed if home financed with state/local bond funding.
No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture
If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination
December 1, 2009
Effective Date
January 1, 2009
Thursday, February 19, 2009
Tuesday, January 13, 2009
2009 The Perfect Time to Buy
The Real Estate Tri-Fecta
1. Home Prices
You want to purchase while home prices are low... Are you waiting for them to hit rock bottom? The only way for you to know, for sure, when prices have hit rock bottom, is when they start going up! Prices are low right now; NOW is the time to buy.
2. Mortgage Rates
The best time to purchase a home is when mortgage rates are low and there are loan options available. Rates are at historic lows and FHA financing is more readily available.
3. Housing Inventory
The goal is to have enough inventory to find the home you want, in the area you want, at the price you want. More inventory also allows for consideration of concessions. Such as having your closing costs paid for by the seller.
1. Home Prices
You want to purchase while home prices are low... Are you waiting for them to hit rock bottom? The only way for you to know, for sure, when prices have hit rock bottom, is when they start going up! Prices are low right now; NOW is the time to buy.
2. Mortgage Rates
The best time to purchase a home is when mortgage rates are low and there are loan options available. Rates are at historic lows and FHA financing is more readily available.
3. Housing Inventory
The goal is to have enough inventory to find the home you want, in the area you want, at the price you want. More inventory also allows for consideration of concessions. Such as having your closing costs paid for by the seller.
Tuesday, January 6, 2009
Buyer’s Loan Process - Major Milestones
FROM USHER FINANCIAL GROUP
Carmen Bailey, Mortgage Consultant
Buyer Pre-Approval: As your mortgage consultant, we will pre-qualify you for your maximum loan amount as well as provide you with loan scenarios to fit your monthly payment comfort zone. This includes a full credit review. Pre-qualifying for a particular home loan amount helps all parties involved focus the home search on houses that fit within the buyers’ price range.
Pre-approval Letter: We will contact Cristin and prepare your pre-approval letter for maximum effectiveness. This letter accompanies your Broker’s offer to purchase that is sent to the listing/selling broker. We also are available to speak to the listing broker to confirm your ability and readiness to purchase.
Offer Negotiations: Cristin will present an offer to the seller or their representative. After the seller reviews the offer, it will be accepted, rejected, or turned into a counter-offer. Any change to an offer is considered a counter-offer. An offer does not become a contract until both parties (the buyer and the seller) accept it. After acceptance, all parties will sign a home purchase agreement to finalize the transaction.
Interest Rate Lock: Mortgage interest rates change daily. Usher Financial Group will educate you on this process, monitor the market and provide timely recommendations for locking and securing the most competitive interest rate and terms available to you.
Home Inspections are an evaluation of a home’s condition by a trained expert. During a home inspection, a qualified inspector takes an in-depth and impartial look at the property. An inspector will:
· Evaluate the physical condition: the structure, construction and mechanical systems.
· Identify items that should be repaired or replaced.
· Estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.
Home inspections are not a part of the loan process. Cristin will coordinate the inspections that you have agreed upon are necessary. You will pay these professionals directly for their services. Your Earnest Money Agreement will determine the number of days you have to perform these inspections and remove the home inspection contingency.
Repair Addendum is a buyer’s response to the seller either accepting the property as it is or negotiating specific repairs or price reduction. Cristin will advise you on this as well as the time lines needed to keep you in good standing with your contract and potential rate lock period.
Scheduling Repairs: Repairs Made Before Closing- If the seller elects to make repairs before closing, take your home inspector back for a recheck as soon as repairs are completed. Do not wait for the final walk-through, because you don't want to find out on the day of closing that repairs have not been made or have been made poorly. Seller refuses/negotiates decision not to make requested repairs- Cristin may recommend a negotiated price reduction to cover repairs you would plan to make after you own the home. The method you use depends on the complexity of the repairs. Important Note: Cristin will work with us regarding any questions on Lender required repairs and/or functionality as a condition for loan approval.
Appraisal: Lenders require borrowers to provide an appraisal to independently confirm the value of the home and its physical condition. Your team at Usher Financial Group will order and manage the appraisal process for you and submit the appraisal to the lender for inclusion in your loan approval. Banks may not lend on a property for a variety of reasons outside of your control. The home condition or comparable sales data on the appraisal may cause a lender to request additional documentation on recent property sales, require repairs on items or further inspection. We will not order your appraisal UNTIL you or Cristin gives us the OK. Ordering is usually done after inspections are completed and you are moving forward with the purchase. Ordering your appraisal costs you money whether you decide to continue with the purchase or not. We will not commit you to that service unless you are sure you are moving ahead with the next steps of your purchase and full loan approval.
Lender Underwriting Approval: Once you have an accepted purchase contract and while you are busy with your inspections, our team is hard at work on your loan approval so as not to lose any time. We will manage this process and keep you up to date on the progress.
Lender Final Conditions Approval: After review, your lender will issue a list of final documentation needed to close the loan. These include a copy of your new home owner’s insurance and potentially additional documentation if requested.
Documents Ordered: Once the above conditions are met, your loan documents are prepared including, the Promissory Note, Deed of Trust and supporting disclosures. These are sent to the Escrow company designated in your contract.
Signing: In the state of Oregon, an Escrow Officer conducts the signing and closing and is often affiliated with the title insurance company. Their job is to ensure the buyer obtains a clean title to the property, that the costs of the transaction are paid per the agreements, that the seller receives their proceeds and that YOUR LOAN documents and YOUR PROPERTY TITLE are properly executed and recorded with the county. The Escrow Officer prepares a closing statement that outlines what the required funds are, who's paying and where the funds are going. They will not disburse funds until all terms & requirements of the agreements are met. Our team reviews all your important documents for accuracy prior to your signing appointment being set.
Borrower’s Funds due for Closing: Borrowers most typically provide funds in the form of a cashier’s check or money wire to Escrow, for their down payment, closing costs and pre-paid items (e.g. hazard insurance, property taxes).
Waiting Period: After you sign your loan documents they are returned to the lender for review. Once this review is completed, the loan will then fund and record. This is usually accomplished within 24 to 48 hours and according to your purchase contract terms.
Funding: Funding is when the proceeds for the loan have been wired from the lender to Escrow. Escrow then pays all parties appropriately.
Recording: Recording is when escrow has officially recorded your Deed of Trust and Promissory Note with the county and you officially become the owner of your new home!
Possession: is the date stated in your contract when you physically take possession of the property. Cristin will arrange for you to have the keys!
Carmen Bailey, Mortgage Consultant
Buyer Pre-Approval: As your mortgage consultant, we will pre-qualify you for your maximum loan amount as well as provide you with loan scenarios to fit your monthly payment comfort zone. This includes a full credit review. Pre-qualifying for a particular home loan amount helps all parties involved focus the home search on houses that fit within the buyers’ price range.
Pre-approval Letter: We will contact Cristin and prepare your pre-approval letter for maximum effectiveness. This letter accompanies your Broker’s offer to purchase that is sent to the listing/selling broker. We also are available to speak to the listing broker to confirm your ability and readiness to purchase.
Offer Negotiations: Cristin will present an offer to the seller or their representative. After the seller reviews the offer, it will be accepted, rejected, or turned into a counter-offer. Any change to an offer is considered a counter-offer. An offer does not become a contract until both parties (the buyer and the seller) accept it. After acceptance, all parties will sign a home purchase agreement to finalize the transaction.
Interest Rate Lock: Mortgage interest rates change daily. Usher Financial Group will educate you on this process, monitor the market and provide timely recommendations for locking and securing the most competitive interest rate and terms available to you.
Home Inspections are an evaluation of a home’s condition by a trained expert. During a home inspection, a qualified inspector takes an in-depth and impartial look at the property. An inspector will:
· Evaluate the physical condition: the structure, construction and mechanical systems.
· Identify items that should be repaired or replaced.
· Estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.
Home inspections are not a part of the loan process. Cristin will coordinate the inspections that you have agreed upon are necessary. You will pay these professionals directly for their services. Your Earnest Money Agreement will determine the number of days you have to perform these inspections and remove the home inspection contingency.
Repair Addendum is a buyer’s response to the seller either accepting the property as it is or negotiating specific repairs or price reduction. Cristin will advise you on this as well as the time lines needed to keep you in good standing with your contract and potential rate lock period.
Scheduling Repairs: Repairs Made Before Closing- If the seller elects to make repairs before closing, take your home inspector back for a recheck as soon as repairs are completed. Do not wait for the final walk-through, because you don't want to find out on the day of closing that repairs have not been made or have been made poorly. Seller refuses/negotiates decision not to make requested repairs- Cristin may recommend a negotiated price reduction to cover repairs you would plan to make after you own the home. The method you use depends on the complexity of the repairs. Important Note: Cristin will work with us regarding any questions on Lender required repairs and/or functionality as a condition for loan approval.
Appraisal: Lenders require borrowers to provide an appraisal to independently confirm the value of the home and its physical condition. Your team at Usher Financial Group will order and manage the appraisal process for you and submit the appraisal to the lender for inclusion in your loan approval. Banks may not lend on a property for a variety of reasons outside of your control. The home condition or comparable sales data on the appraisal may cause a lender to request additional documentation on recent property sales, require repairs on items or further inspection. We will not order your appraisal UNTIL you or Cristin gives us the OK. Ordering is usually done after inspections are completed and you are moving forward with the purchase. Ordering your appraisal costs you money whether you decide to continue with the purchase or not. We will not commit you to that service unless you are sure you are moving ahead with the next steps of your purchase and full loan approval.
Lender Underwriting Approval: Once you have an accepted purchase contract and while you are busy with your inspections, our team is hard at work on your loan approval so as not to lose any time. We will manage this process and keep you up to date on the progress.
Lender Final Conditions Approval: After review, your lender will issue a list of final documentation needed to close the loan. These include a copy of your new home owner’s insurance and potentially additional documentation if requested.
Documents Ordered: Once the above conditions are met, your loan documents are prepared including, the Promissory Note, Deed of Trust and supporting disclosures. These are sent to the Escrow company designated in your contract.
Signing: In the state of Oregon, an Escrow Officer conducts the signing and closing and is often affiliated with the title insurance company. Their job is to ensure the buyer obtains a clean title to the property, that the costs of the transaction are paid per the agreements, that the seller receives their proceeds and that YOUR LOAN documents and YOUR PROPERTY TITLE are properly executed and recorded with the county. The Escrow Officer prepares a closing statement that outlines what the required funds are, who's paying and where the funds are going. They will not disburse funds until all terms & requirements of the agreements are met. Our team reviews all your important documents for accuracy prior to your signing appointment being set.
Borrower’s Funds due for Closing: Borrowers most typically provide funds in the form of a cashier’s check or money wire to Escrow, for their down payment, closing costs and pre-paid items (e.g. hazard insurance, property taxes).
Waiting Period: After you sign your loan documents they are returned to the lender for review. Once this review is completed, the loan will then fund and record. This is usually accomplished within 24 to 48 hours and according to your purchase contract terms.
Funding: Funding is when the proceeds for the loan have been wired from the lender to Escrow. Escrow then pays all parties appropriately.
Recording: Recording is when escrow has officially recorded your Deed of Trust and Promissory Note with the county and you officially become the owner of your new home!
Possession: is the date stated in your contract when you physically take possession of the property. Cristin will arrange for you to have the keys!
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