The $8,000 First Time Home Buyer Tax Credit will be ending soon.  You must be under contract by the end of April to qualify for the tax credit and must close on your home by the end of June.  To qualify, the purchaser(s) may not have owned a primary residence in the last three years.  It does not have to be a resale home, you may purchase from a builder.  You should use a Realtor even when you purchase from a builder.  It’s free for buyer’s to use Realtors and your Realtor will be representing you and looking out for your best interest.  You can receive the maximum $8,000 tax credit if you are single with an income up to $125,000 or married with an income up to $225,000.  The amount of the tax credit decreases as home buyers income approaches the maximum limit.  Homebuyers earning more than the maximum qualifying income are not eligible for the credit. 

There is an existing home buyer tax credit currently in place for $6,500.  To use this tax credit you must sell your current primary residence that you have lived in for atleast five consecutive years and purchase another primary residence.  If you don’t want to sell your current home, but have lived there for five years and now want to move to a new primary residence, you can still qualify for the tax credit.  There are some income requirements, so check with your accountant to be sure you qualify. 

 Neither of these credits have to be repaid as long as you live in the new primary residence for atleast three years. 

 For Active Duty Military personnel living overseas during any part of this tax credit are still eligible to take advantage of the tax credits until April 30, 2011. 

 To take advantage of these tax credits call me today because time is running out to qualify.  For additional questions about the tax credit you can contact a tax professional or the IRS at 800.829.1040.

Don’t be fooled, take advantage of the $8,000 tax credit before it goes away.  It ends at the end of this month.  It’s the best gift Uncle Sam will ever give you!  If you would like to sell your home and buy another home, you may be eligible for the $6,500 tax credit.  Give me a call today so we can get you qualified for your tax credit.  I am not fooling around, these tax credits are a great deal!

1.  They don’t ask enough questions of their lender and miss out on the best deal.

2.  THey don’t act quickly enough to make a decision and someone else buys the house.

3.  They don’t find the right real estate professional who is willing to help you through the homebuying process.

4.  They don’t do enough to make their offer look good to a seller.

5.  They don’t think about resale before they buy.  The average first-time buyer only stays in a home for four years.

REPRINTED WITH PERMISSION FROM REAL ESTATE CHECKLIST AND SYSTEMS ( http://www.realestatechecklists.com )  REPRINTED FROM REALTOR MAGAZINE ONLINE BY PERMISSION OF THE NATIONAL ASSOCIATION OF REALTORS, COPYRIGHT 2005, ALL RIGHTS RESERVED.

If you are a renter, you might be wondering how much mortgage you can afford.  Please use the Rent vs. Buy calculator on my website to figure out what you can afford.  I thought the following information was interesting, so I am sharing it with you.  It is reprinted with permission from the National Association of REALTORS and reprinted from REALTOR Magazine Online.

The following calculation assumes a 28% income tax bracket.  If your bracket is higher, your savings will be, too. 

Rent: _____________

Multiplier:  X 1.32

Mortgage Payment:  __________________

Because of tax deductions, you can make a mortgage payment – including taxes and insurance – that is approximately 1/3 larger than your current rent payment and end up wtih the same amount of income. 

Not only does owning a home give you a haven for yourself and your family, it makes great financial sense, too.  Right now, if you are a first time home buyer you can take advantage of the $8,000 tax credit available.  You must hurry, because it ends in April!  Call me today so we can get started.

As well as helping people buy and sell properties, I also help families lease homes.  I often refer them to my rent vs. buy calculator so they can see that owning a home does not cost much more than renting a home.  Why pay someone else’s mortgage for them?  There are many reasons to own your own home. 

First of all, when you own your own home you can take advantage of tax breaks.  You can deduct the interest you pay on your mortgage and property taxes.  Houses usually appreciate in value over time, so you gain equity.  Now I know right now houses in most areas are not appreciating, but in general, usually houses do appreciate over time.  When you pay rent, you lose that money.  But when you purchase a home, part of that monthly payment goes towards your equity in the home.  Through the years, you will gain equity and pay down the mortgage.  Usually, after 30 years people can own their homes free and clear.  Building equity is like a savings plan for most homeowners.  If they need money, they can take out a home equity loan and use the equity to make purchases when needed.  Also, your mortgage payments do not increase over the years unless you have an adjustable rate mortgage.  Many landlords do increase rent yearly.  When you own a home you have the freedom to make whatever decorating changes you want. 

There are many reasons to purchase a home instead of renting or leasing a house.  Right now, first time home buyers can take advantage of the $8,000 tax credit.  That is free money from the government that won’t be around much longer – it ends this April.  If you would like to explore your options in home ownership, please call me today so we can get started.  I have helped many renters enjoy the opportunity of home ownership and that is what makes my job as a REALTOR so exciting!

Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

By STEPHEN OHLEMACHER Associated Press Writer © 2009 The Associated Press

Oct. 28, 2009, 7:00PM

WASHINGTON — Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.

The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit.

Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat 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. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.

Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash.

Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening.

Popular bills like the one to extend unemployment benefits often attract amendments that would have a difficult time passing on their own.

Republicans were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group ACORN and on requiring that people receiving unemployment insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires.

Majority Democrats have refused to add the amendments.

If the Senate passes the bill, it would go to the House, which passed a similar bill extending unemployment benefits last month. House leaders have also said they support extending the tax credit for homebuyers.

Sen. Chris Dodd, D-Conn., has been negotiating for several weeks with Sen. Johnny Isakson, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate.

Lawmakers didn’t release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion.

Industry representatives said uncertainty about the tax credit is hurting new home sales. September’s decline was the first since March.

It takes 45 days to 60 days to close on a house, 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.

About 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.

The tax credit for money-losing businesses is a favorite among Republican lawmakers. Businesses could get tax refunds by using losses from 2008 and 2009 to offset taxable profits made in the previous five years. Under current law, they can only offset profits from the previous two years.

The provision would help a variety of industries, including retailers, manufacturers and home builders, though it’s expensive.

“It’s clearly a way to put cash in the hands of some major economic players,” said Clint Stretch, a tax policy expert at Deloitte Tax.

A similar proposal that was ultimately dropped from the economic stimulus package enacted in February would have cost nearly $20 billion over 10 years. Lawmakers are working to reduce the price tag.

Because people are so strapped for cash, this is a good way to get refunds when businesses need them for operating expenses, said Rachelle Bernstein, vice president and tax counsel for the National Retail Federation.

If you are still confused about the $8,000 Tax Credit then you need to keep reading. The tax credit is still available, but will end on November 30, 2009. That means if you are a first time home buyer and have not found a home and negotiated a contract on it, you need to call me today to get started on your path to home ownership and the best thing your Uncle Sam is ever going to give you. Time is ticking away and you need atleast 30 days from the time of contract exection to the closing date. Not sure if you qualify? If you have never owned a home, you qualify. If you have not owned a principle residence in the last three years, you qualify.

What does the credit actually mean for you? The credit from Uncle Sam is 10% of the home’s purchase price up to $8,000. The only repayment required is if you sell the home within three years of the purchase. Are there any income restrictions? The limit on income is $75,000 for a single person or $150,000 for a married couple. Call me today to get started because time is ticking away and your free money from Uncle Sam will be gone!

Only 96 days left to purchase a home using the New Home Buyer $8,000 Tax Credit.  There is talk of extending it past December 1st, but that’s not definite yet.  From the time you execute the contract you will need to allow at least 30 days until closing.  Some transactions are taking 45 days.  If you haven’t found a Realtor and started looking, don’t delay any longer.  I believe it’s the best gift Uncle Sam has ever given a home buyer.  Call me today so we can get started - 832.628.SELL.

1014 Graham Drive B5 Tomball, Texas

One Bedroom Condo in Tomball centrally located to Shopping & Entertainment.  Don’t miss this wonderful opportunity.  Just listed, this Condo is ideal for anyone with pets as it has Fabulous Hardwood Floors throughout.  Great screened in porch & fenced deck for entertaining.  Only $54,900.  Call me today to see it in person 832.628.SELL.