Register Real Estate Advisors

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.

I have been asked by many first time home buyers, “What is the difference between the $7,500 Tax Credit and the $8,000 Tax Credit?”  

Steve Kaufman is a CPA that published an article titled FREE MONEY in the Houston Realtor Magazine that explained the tax credit in detail.  He included a helpful chart that parallels the differences between the two tax credits, but that magazine is not available to the public.  Using the facts from his article, I would like to explain the difference between the two tax credits to my readers.

Both tax credits can only be used by first time home buyers.  The $8000 tax credit is referred to as the American Recovery and Reinvestment Act of 2009.  This has been defined as someone who has not owned a primary residence during the last three years.  Once you buy the home you must occupy the house as your primary residence for at least three years or the tax credit you receive will be owed back to Uncle Sam.  Both of the tax credits apply to new construction homes, resale homes, manufactured homes, Townhomes, and Mobile homes.

The $7,500 Tax Credit was more of an incentive than a tax credit because it has to be paid back within 15 years, interest free, starting in 2010.  It applies to first time home buyers that purchased their first home between April 9, 2008 and January 1, 2009.  It must be filed with 2009 tax returns for credit to be received. 

The $8,000 tax credit is for first time home buyers that purchase between January 1, 2009 and December 1, 2009 and it never has to be paid back.  It’s just free money from your Uncle Sam.  It can be claimed on your 2008 or 2009 tax return.  So if you are a first time home buyer you will need to close by December 1st which means you should be house hunting now.  It takes atleast 30 days to close on a home unless you are paying cash.

When you file your annual tax return you can claim this credit using IRS Form 5405.  If you claimed the $7,500 and are eligible for the $8,000 tax credit you can ammend your tax return by using IRS Form 1040X.  The maximum credit allowed for the $8,000 tax credit is 10% of the sale price up to the $8,000.  The maximum credit calculation for the $7,500 tax credit is 10% of the sales price up to $7,500.  To receive the maximum credit your income must be below $150K for married couples or $75,000 for individuals. 

Rather than waiting until tax filing for the $8,000, an advance on the credit is available on the credit from the U.S. Dept. of Housing and Urban Development (HUD).  The advance is available for first time home buyers using FHA-Approved lenders.  As an advance, the funds can be applied toward the down payment or closing costs.

Steven offered a great tip in his article.  If you are a first time home buyer and are sure you will purchase by December 1st and qualify for the tax credit, you can go ahead and start taking advantage of the tax credit by adjusting your payroll tax withholding with your employer by filing an updated IRS Form W-4 which will reduce your income tax withholding and will increase your take home pay which can be saved for your down payment.  I consulting with your tax accountant is recommended.

I will be hosting a FREE Home Buyer’s Seminar this Thursday July 16th at 6:30pm.   This quick and informative seminar will answer your questions about the $8,000 Tax Credit and much more.  A representative from Coldwell Banker Mortgage and Access Title will be available to answer your questions.  Other speakers will include an Inspector and Appraisor.  We will have refreshments and door prizes.  Please come out to the Coldwell Banker office at 6905 Cypresswood to learn more about buying your first home while interest rates are low and there’s plenty of inventory on the market so you can get what you want at a great price!

NEW YORK (CNNMoney.com) – The U.S. Department of Housing and Urban Development (HUD) announced Friday that its $8,000 incentive for first-time homebuyers has been tweaked from a refund at tax time to cash made available for assistance on down payments or closing costs.

The mechanics of the new program, according to National Association of Home Builders economist Robert Dietz, allow lenders to purchase tax credits from the buyers and then collect the rebate from the IRS.

Homebuyers must still come up with the Federal Housing Administration’s mandatory down payment of 3.5 percent on their own, but they can use the tax credit to lower their principal balance and save on monthly payments.

“Families will now be able to apply their anticipated tax credit toward their home purchase right away,” said HUD secretary Shaun Donovan. “What we’re doing will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”

By:  Shannon Register

If you have been on the fence about buying your first home, now is the time to buy and I want to tell you why this is the best financial opportunity for you right now.

Right now your Uncle Sam is offering you an amazing deal.  If you buy your first home between January 1, 2009 and December 1, 2009 you qualify for a first time home buyer tax credit.  The tax credit is equal to 10% of the home’s purchase price up to $8,000.  It DOES NOT have to be repaid.  Single taxpayers with incomes up to $75,000 and married couples with inomes up to $150,000 qualify for the full tax credit.  This tax credit is also available to buyers who have not owned a home in the past three years.  Unlike previous home buyer tax credits, this one is refundable which means that the credit can be claimed even if you have little or no federal income tax liability.  So if you had a tax liability of $2,000 and received a tax credit of $8,000, Uncle Sam would send you a check for $6,000.  It really does pay to buy now!

Interest Rates are at an all time low rigth now.  It’s been atleast 40 years since rates have been this low.  There’s no better time to lock in a low interest rate on a 30 year fixed rate loan.  We know for sure rates will go up, but we don’t know when.  Take advantage while they’re really low!

Right now there is a lot of inventory on the market to choose from.  There are builders that have houses ready to be purchased that have never been lived in.  There are also resale homes.  As a first time home buyer, you can get more than a starter home right now.  You can get a lot of house for your money.  Softened prices have increased home affordability!

I have never met a financial or tax advisor that thought owning a home was a bad investment.  There are tax incentives to home ownership.  There is the peace of mind that you own it and are not worried about your landlord’s financial standing.  Now is the time to create long-term financial stability thru home ownership.  Stop renting and paying someone else’s mortgage.  Start building equity! 

Make a move before it’s too late!  If you have a good job and have been pre-approved, what are you waiting for?  Rates will go up, inventory will decrease, and if you wait too long you’ll lose the opportunity of a livetime from Uncle Sam.  Act now, before the market starts to improve.  We were in a sellers market for years.  This buyers market won’t last long and we’ll be back in a seller’s market and you will have missed this amazing opportunity.  Yes, it can be scary when you have never purchased a home before.  I can help you.  I can represent your best interest in the buying process and it doesn’t even cost you any money.  The seller will pay my fees and I represent your best interest.  The market is in your favor right now, but you have to take the first step.  Call me today and I will lead you down the road to home ownership.  I have done it many times myself and have helped many people buy their own homes.  I love selling houses, but there’s nothing like the feeling I get when I see a homeowner taking pride in their first home.  You have to have a great agent that won’t lead you astray and is patient enough to explain things along the way.  I have had clients call me multiple times with the same questions because days later they’d gotten confused about something.  I take the time to explain it again and again because it’s important.  Buying a home is complicated and my clients know they can call or email me anytime and I will walk them through the process and answer any questions they have.  I want to help you buy your first home TODAY!