Archive for the 'First Time Homebuyers' Category

2009-First Time Buyer Tax Credit Still There

January 2nd, 2009 categories: First Time Homebuyers, Tampa Home Buyer Tips

Three days in to the New Year (Happy) and I’ve already had the question posed to me: “Did I miss out on the tax credit?”

That tax credit is the (up to) $7500 tax credit that first time home buyers can get. The answer is NO, you did not miss out. Any first time buyer who purchased a home after April 8th of 2008 and those who purchase a home before July 1st of 2009 can qualify.

First time home buyers are defined as those who have not owned a principal residence in the 3 years previous.

It basically works as a loan however. Buyers get to keep up to $7500 in their pockets. That’s $7500 that would have otherwise been owed as taxes to the federal government. But a portion of that has to be repaid each year for 15 years. If the home is sold the balance of the tax credit not paid back has to be paid off as well.

That’s money that a first time buyer gets to keep to pay for other things. Home improvements, vacations, payoff a portion of a student loan, etc. Or just keep it growing in savings. (consult your tax and financial advisors).

The National Assocaition of Realtors, of which I am a member, has put it all together on a brief document at:

http://www.realtor.org/GAPublic.nsf/files/chart_homebuyer_tax_credit_.pdf/$FILE/chart_homebuyer_tax_credit_.pdf

Browse Tampa Homes For Sale

Posted by Lenny Gurvich | No Comments »

Tampa Condo Credit Gets Crunched

December 18th, 2008 categories: First Time Homebuyers, New Projects (Condos), Real Estate Market Reports, Tampa Condos

We work with a number of outstanding Tampa condo mortgage professionals. If you are curious to see whether loans are being approved for a particular condominium, give us a call.

The number of delinquent mortgages and/or mortgages in default secured by Florida condos is at an all time high currently according to Fannie Mae. So what does that mean for would be Tampa condo buyers? Well, in response to that fact, Fannie Mae has tightened up the standards for loan approvals for condos in Tampa (or anywhere else in Florida). This mainly applies to new condos or newly converted condos.

This is also bad news for sellers of these condos as well, as the pool of buyers who can qualify for these properties has dwindled. Many of the prospective buyers who may otherwise qualify for a loan, will be shut out because the property fails to qualify.

Basically, the downpayment requirements are now higher and the number of units that must be owner-occupied has risen as well. Standards on established condos are somewhat looser, but the fact is, buying or selling a condo in Florida just got a little harder.

Per Fannie Mae:

Requirements for Attached Condominium Projects in Florida:

“There are currently excessive unsold inventories of condominium project units in Florida
resulting from the increase in building new condominium projects and the conversion of
apartments to condominium ownership that occurred during the last several years. The
increase in the number of units available is one of the factors that caused home prices to
reach historical lows, particularly in the condominium market. As part of an ongoing
review of business activities, Fannie Mae assessed the performance of mortgage loans
secured by condominiums located in Florida and found that the number of loans currently
delinquent or in default is at an all time high. As a result, Fannie Mae is modifying some
of the terms under mortgage loans secured by attached units in condominium projects
located in Florida will be accepted.”

Fannie Mae memo

Posted by Lenny Gurvich | No Comments »

Details: Tax Credit For First Time Tampa Homebuyers

September 9th, 2008 categories: First Time Homebuyers, Tampa Home Buyer Tips

One of the most exciting new provisions of the Housing and Economic Recovery Act of 2008 is the First-Time Homebuyer Tax Credit. The credit is designed to encourage first-time homebuyers to go ahead and make the leap to purchase their first homes. Combine this tax credit with the fact that home prices are down, and indeed it is an ideal time for many first-time homebuyers to purchase homes.

Here are some things to keep in mind:

• The credit is available for homes purchased between April 9, 2008 and July 1, 2009
• The credit amounts to 10% of the purchase price of the home not to exceed $7,500
• A first-time homebuyer is defined as someone who has not owned a home in the last three years
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit
• The tax credit works like an interest free loan and must be repaid over a 15 year period

How does a tax credit work?

A tax credit is a special provision that reduces income tax liability on a dollar for dollar basis. When filing a tax return, you must include income items, deduction items and the number of exemptions, among other things, to figure your total tax liability. If your total tax liability ends up being $7,500, and you qualify for the full $7,500 tax credit, this credit would be applied and would wipe out all of the tax due. If your employer had already deducted the $7,500 from your pay checks throughout the year, you would receive a tax refund of $7,500.

Does the credit have to be repaid?

Yes, the credit does have to be repaid, so it is really more like an interest free loan. Homebuyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a homebuyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

Conclusion:

For more information about the first-time homebuyer tax credit or other changes resulting from the Housing and Economic Recovery Act of 2008, just give me a call. I would be happy to assist you with your mortgage in the purchase of your new home!

Mark Mathiason, CMPS ®
Mortgage Corporation of America
213 South Howard
Tampa, FL 33606
813-874-9110 ext 201 direct
(813) 251-4600 fax
Send me an email

Posted by Mark | 1 Comment »

Also Noteworthy

How's The Market In Your Neighborhood?