Archive for Mortgage Blog
It’s official!! First Time Homebuyer Tax Credit Extended Into 2010!
Plus…A New Tax Credit for Certain Existing Home Owners!
Fresh off the press from the CA Mortgage Guy: It’s official. President Obama has signed a bill that extends the tax credit for
Homebuyer tax credit extended and expanded into 2010!
first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.
In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.
Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.
Look forward to my next posting!
CA Mortgage – LA Home Mortgage – Loan Limits in High-Cost Areas Extended through 2010!
Posted by: | CommentsThe Temporary High-Cost Loan Limits for a CA Mortgage in High-Cost Areas has been officially Extended through 2010!
LA Home Mortgage - CA Mortgage - 2010
President Obama has signed into law a bill that included the legislation for an extension of the current Temporary High-Cost loan limits through the end of the calendar year 2010. This is great news for those searching for a CA mortgage as the extension of the loan limits will keep rates down on those loan limits as they will not be classified in the jumbo market. Non-conforming or “jumbo loans” carry higher mortgage interest rates than conforming loans, making them less affordable.
The bill effectively extended the higher conforming loan limits for all Fannie, Freddie and FHA guaranteed CA mortgage loans through December 31, 2010.
The Temporary High-Cost loan limits in high-cost counties will remain:
- 1 Unit – $729,750
- 2 Units – $934,200
- 3 Units – $1,129,250
- 4 Units – $1,403,400
The extension has received praise from N.A.R. (National Association of Realtors) and C.A.R. (California Association of Realtors) as the higher conforming ca mortgage loan limits combined with the tax credit have helped stabilize the real estate markets.
I will keep you posted on information we receive on the extension of the homebuyer tax credit as it becomes available.
Look forward to my next post!
First-Time Homebuyer Tax Credit Update
Posted by: | Comments11/04/09 Update:
The Senate voted overwhelmingly today on a bill which included the extension and expansion of the homebuyer tax credit. The bill passed the Senate with a 98-0 vote Wednesday. The bill included language to extend the first-time hombuyer tax credit of up to $8,000 through June of 2010 as long as buyers enter into a binding contacting before April 30, 2010 and expanded the program to include a $6,500 tax credit for move-up buyer’s who have lived in their current residences for at least five years. The bill also increased the income ceiling to $125,000 for individuals and $250,000 for couples. I’ve also heard that the credit is/will be only available for homes up to $800,000. We’ll have further detail once the bill has passed the House next and the official details are released.
The bill will now go to the House, which is expected to quickly vote, pass and send it on the The President to sign.
Stay tuned for more news on this!
Look forward to my next update!
10/29/09 Update:
According to reports today from Capitol Hill, The AP And Reuters; Senators agreed late Wednesday to extend the popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat/move-up buyers.
Senators agreed to extend the existing tax credit for first-time homebuyers up to $8,000; while offering a reduced credit of up to $6,500 to repeat/move-up buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.
The tax credits would be available to homebuyers who sign sales agreements by the end of April 2010. They would have until the end of June 2010 to close on their new homes, according to a summary of the legislation being circulated among lawmakers. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening. House leaders have also said they support extending the tax credit for homebuyers.
Real estate industry experts and representatives said consumer uncertainty about the tax credit is hurting new home sales. September’s decline was the first since March 2009. It takes 45 to 60 days to close on a house purchase, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors. “Buyers right now have an incentive to hold off, not knowing whether the credit will be extended,” Salvant said.
Roughly 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
Stay tuned for updates!
Is the first-time homebuyer tax credit going to ended or be extended, changed or replaced? That’s the million dollar question I’ve been receiving all month from clients and Realtors.
The CA Mortgage Guy is not sure as of yet, however there was an article today on Bloomberg.com which stated the program may be replaced with a new tax credit program with a smaller tax credit amount capped at $7,290 and based upon a percentage of a home’s sales price – 10% at time of the article publication and current draft of the proposed legislation.
A great change I see from the article is the expansion of the tax credit to move-up buyers..increasing the income eligibility to $125,000 for individuals and $250,000 for couples; up from the current first-time homebuyer tax credit income eligibility of $75,000 for individuals and $150,000 for couples; and leaving the income eligibility for first-time buyers (first-time buyers are classified by the IRS as individuals who have not owned a home within the past three years) at current levels. Makes sense to me! Move-up buyers generally do have higher incomes and have been completely shut-out of the current tax credit program.
With the current program ending in approximately 30 days, we are sure to hear an announcement soon. I’ll keep you posted on any new updates. Make sure and sign up for the CA Mortgage Guy new content/blog post update announcements by completing the Follow Me On The Web section in the left column…..you’ll be notified via email of new content changes and blog post updates.
Have a great day and look forward to my next post!
CA Mortgage Rates are At or Near All-Time Lows
Posted by: | CommentsAre you contemplating a new home purchase or refinance in CA?
Is your interest rate on your current CA mortgage at or above 6.00%? Well, take a minute to read this:
According to Freddie Mac, mortgage interest rates in CA, and nationwide for that matter, have recently dropped to near all-time lows in most areas and within a fraction of their all-time lows in others. This is your chance to lock in that long-term CA mortgage rate you have been waiting for. In our lifetime, we may never see rates at these levels again.
Miss this great opportunity and it may never come along again. And you could miss out on your chance to save thousands of dollars over the life of a home purchase or refinance mortgage loan.
The reasons to act now are numerous. Here are a couple glaring down upon us:
The Federal Reserve implemented a mortgage-backed securities buying program which has basically just artificially lowered mortgage interest rates and the program is nearing its end. It’s scheduled conclusion was to be on December 31, 2009, though it has been extended through early next year. Once the level of the Federal Reserves purchasing participation wanes, CA mortgage rates will inevitably be forced back up to levels seen before the program started, possibly back up to the area of the 6.500% range…and it will happen fairly quickly and without notice to the consumer.
Another major factor to take into account will be inflation. Though it is currently being fairly well contained, it will likely show its ugly head as all the stimulus monies from Washington continue to poor into the financial systems to shore up the economy. The end result will most likely cause increasing inflation pressure and fear across the board with the possible impact of rising mortgage rates in California and across the country.
With home prices down to attainable levels not seen in years, and as it is unlikely that CA mortgage interest rates will be at these at or near all-time low levels again, it’s time to take advantage of them today while you still can before they are long gone.
Look forward to my next posting!
