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Posts Tagged ‘Credit’

Buying a House With Bad Credit

Wednesday, February 10th, 2010

How to buy a house with bad credit? This is a question that more and more people are asking with the recession in full swing. The answer is that you can indeed buy a house with bad credit. However, it’s not easy and it’s certainly less easy than it was a couple years ago. It used to be that mortgage lenders were practically throwing subprime mortgage offers at everyone. However, with the subprime housing crash, it’s no longer easy to get a house if you have poor credit. However, it’s not impossible. The first thing you need to do is look at your credit history. If you have terrible credit history, it’s going to be more difficult. You may already have bad credit, but there are levels of bad credit. If your credit is borderline bad, it’s possible that the bank might use other factors – your income, your job security, your assets and still give you the mortgage. But with terrible credit, it’s going to be an uphill battle.

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Tags: Buying, Credit, House
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Tax Credit For Current Home Owners

Friday, February 5th, 2010

Although most of the real estate news seems to focus on the First Time Home Buyer Tax Credit, there has also been a new tax credit that will be signed in that is geared to help existing home owners. The goal behind this bill is to encourage potential buyers who already own a home and have maintained (or paid in full) their mortgage bills steadily for at least five years. These buyers would usually be moving up, or buying a larger or more expensive home.
-Buyers must have owned and lived in their previous home (in other words, as a primary residence) for five years in a row out of the last eight years.
-The amount is 10 percent of the home’s purchase price, with a maximum credit of $6,500.
-The purchase price of the home must be $800,000 or less.
-The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, if a binding sales contract is signed by April 30, 2010, the home purchase qualifies (as long as the closing is completed by June 30, 2010).
-The income for a single taxpayer cannot exceed $125,000. Married couples filing jointly must not have a combined income of more than $225,000.

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Tags: Credit, Home, Tax
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Homebuyer Tax Credit

Monday, January 4th, 2010

Homebuyers who act quickly may take advantage of the extended and expanded federal homebuyer tax credit. Unlike previous federal homebuyer tax credits, this extended and expanded version does not have to be paid back. Remember back in November, 2009 when The President signed into law the home buyer tax credit extension? Well, time is running out for would be home buyers because the extension was not a very long one. Those who are considering purchasing a home in 2010, may take advantage of this tax credit if they purchase their home before the deadline. A homebuyer must purchase a home before April 30, 2010. Unless they already have a home picked out, this means they should get moving on it. The buyer must have an accepted contract by April 30, 2010 and they will have until June 30, 2010 to close.

Searching for a home and negotiating the terms of a purchase contract is not an easy task and its better to get it done early rather than to close too late to pocket the tax credit. Those who have experience purchasing homes can attest to the considerable time delays of what should be a simple negotiation. There are counter offers and counters to the counters and sometimes ridiculous demands from the sellers. Swooping in at the last moment with an offer is not the proper strategy for a buyer who is serious about receiving the tax credit. What does the extension and expansion do? Well for starters, it includes not only first time home buyers but also existing homeowners. The previous federal homebuyer tax credit only included first time homebuyers. Now, existing homeowners can receive a tax credit up to $6,500.00 in addition to the first time home buyers receiving a tax credit up to $8,000.00. First-time home buyers and existing homeowners who purchase homes between November 7, 2009 and April 30, 2010 can participate. A current homeowner is defined as a homeowner who has used the home being sold as a principal residence for five consecutive years within the last eight years.

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Tags: Credit, Tax
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Home Buyer Tax Credit

Wednesday, December 16th, 2009

Who is Eligible for a Home Buyer Tax Credit?
- First Time Home Buyers
- A First Time Home Buyer is defined as someone who has not owned a home within the last 3 years. This means that a person who sold their home more than 3 years ago and has been renting ever since can be considered a First Time Home Buyer in addition to individuals who have never owned a home before.
- Long Time Home Owners
- A Long Time Home Owner is defined as someone who has owned a home and lived in it for at least 5 out of the last 8 years. This person can sell their existing home and qualify for a tax credit on their new purchase.
- For First Time Home Buyers the credit is equal to 10% of the purchase price of the home, up to $8,000.
- For Long-Time Home Owners the credit is equal to 10% of the purchase price of the home, up to $6,500.
- The government has extended these credits until April 30, 2010. To get the credit, a property must be under contract by the end of April and must close by the end of June.

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Tags: Credit, Tax
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Obama Homebuyer Tax Credit

Thursday, December 3rd, 2009

President Obama recently signed into law H.R. 3548, an expansion and extension of the homebuyer tax credit that would otherwise have expired at the end of November. Both the House and Senate passed the new legislation by wide margins. Instead of just extending the current $8000 for a few more months, they added a credit for current homeowners who purchase a new primary residence between November 7 and April 30, 2010. The credit will be up to $6500 for married joint income tax filers and $3250 for single filers and married people, filing separately. One restriction is current homeowners must have resided in the home being sold consecutively for 5 of the last 8 years. A contract to purchase must be in effect on April 30 or before, and the purchaser will have until July 1, 2010 to close.

There are also income limits attached to the new home seller credit: $125,000 for single tax filers and $225,000 for married filers. The home may not cost more than $800,000, and the home may not be purchased by a dependent. They must live in the new residence for at least three years or they will need to pay the credit back. The government estimates that 70 percent of homeowners will now be eligible for a credit should they choose to sell their home and purchase a new one within the designated timeframe. What we do not see in the law is any restriction that would apply to homeowners who are selling their home by Short Sale. Normally, a seller who sells a home at a loss that the lender absorbs is not allowed to benefit from the sale of the home. However, in an effort to provide incentives for everyone to make property productive again, the federal government has been showing more interest in helping troubled homeowners more directly. The fact that the rules for this tax credit do not seem to exclude Short Sale homeowners is an indication of the government’s recognition that people in this situation are hurting and could use the tax break in order to get a clean start.

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Tags: Credit, Obama, Tax
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Home Buyers Tax Credit

Tuesday, December 1st, 2009

The federal tax credit for first-time home buyers is to ensure that homebuyers 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 incentive is for homebuyers purchasing a new or pre-owned house. To qualify for the tax credit, you must buy the house before May 1, 2010 (with the closing date before July 1, 2010). If you construct your house, the purchase date is the date that you occupy the home. Even if you were a homeowner 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 homebuyer 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.

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Tags: Credit, Tax
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Purchasing a House and the $8000 Tax Credit

Friday, November 13th, 2009

If you are a resident of Arizona and you have been thinking about taking advantage of the $8000 first-time home buyer tax credit, you are quickly running out of time. The purchase must be completed by November 30, 2009 in order to qualify for the tax credit. However, several things make this date a lot closer than you think.

The first thing to keep in mind is home values are at an extremely low rate. While this is good if you are hoping to purchase a home at a low rate, it also means that the volume of homes for sale is extremely high. The Phoenix area in particular has, over the past few months, become a hotbed of record high volume of home sales. This means that these homes may have multiple offers from consumers trying to take advantage of the low prices. This creates a few problems for potential home buyers.

Many of the properties for sale are either short sales or bank-owned foreclosures. In this case, banks may be slow to respond to offers, holding out for the highest offer.
A short sale requires a lengthier closing period due to the fact that all the lien holders will need to sign off on the offer; this may take up to 60 days or more.
The mortgage lending industry has such a large volume of business that the system is clogged up. Banks are at capacity as a large volume of business comes their way. It will only get worse as a large number of people rush to get their purchase in under the qualification deadline.

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Tags: Credit, House, Tax
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Home Buyer Credit Extension

Tuesday, November 3rd, 2009

The latest discussion in the ever-changing homebuyer credit extension is a credit worth up to $8,000 for first-time homebuyers and up to $6,500 for homeowners looking to trade up to a bigger primary residence and who have already lived in their current home for five years. To qualify for the full credit, homebuyers must have an adjusted gross income of less than $125,000 ($225,000 for married couples filing jointly).

Additionally, the credit would only apply to homes sold for $800,000 or less. Residential Purchase Agreements must be signed by April 30, 2010, and the deals must close by June 30 in order for a buyer to qualify for the credit. There are a few critics that say the program has been poorly targeted and therefore not cost-effective. They point to estimates that only 10% to 20% of the nearly 2 million homebuyers who will have gotten the credit by Nov. 30 bought solely because of the tax break.

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Tags: Credit
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First Time Home Buyers Extension of Credit

Friday, October 23rd, 2009

Real estate sector is definitely a volatile business which is always affected by various terrible issues. The on going credit crunch and global economic crisis are the major factors why this sector has been struggling for so long. The financial benefits made by the federal government like the first time home buyer’s credit has greatly affected the whole system of home buying and real estate. However, there are also restrictions with the tax credit provided to aspiring and qualified buyers. These limitations are the main reason why government officials and other agencies are pushing its extension and even amending the essential terms and conditions covered in the mentioned tax incentive.

To give you a clear understanding if the government must grant extension to home buyer’s credit, read through this article and refresh your basic knowledge.

There are already existing incentives for qualified home buyers. One of the most recognized benefits is the $8,000 tax incentive or 10% of the whole price of the house will be granted to the qualified applicants, whichever amount is greater. This is only provided to aspiring first time home buyers who are always on top of the concern of the federal government for financial assistance.

This tax incentive is strict in their qualification as being a first time buyer. To avail this, you must not have bought any house for the last three years. Hence, even if you have acquired a house before, sold it and chose for rental alternatives in the last three years without any property buying transactions, you are certainly qualified for this tax credit.

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Tags: Buyers, Credit, Home
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Home Buyer’s Credit

Wednesday, October 14th, 2009

The United States’ tax incentive for first time home buyers is considered a very salient and revolutionary financial assistance that the federal government has offered. Its help has extended to both home buyers and the ailing real estate economy. For instance, it has taken the initiative to provide the necessary funds to those who are aiming to purchase their own homes in the midst of the economic uncertainties. However, there are certain limitations to this tax credit that only lasts until December 1st of the year 2009. Hence is the pressing question on should the government extend the home buyer’s credit.

To have a clearer view of this issue, it is good to have a refresher information about first time home buyers stimulus plan to weight whether or not it is wise to pursue its extension and regulation. The stimulus plan states that qualified applicants are given tax incentive of $8,000 or 10% of the total property amount, whichever is higher, for the home purchase that they are going to venture into.

Here are some of the basic premises included in this federal law for home purchase.
• The home buyer’s credit is given to first time home buyers who have not yet purchased any property before, or three years prior to the issuance of the said promulgation. Thus, if you have owned a house, sold it and preferred rental options without any home ownership since then especially in the previous three years, then you are eligible for the incentive.

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Tags: Credit, Home
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