Real Estate Information

9 Tips for Improving Your Credit Score

Posted By Paige On November 14, 2009 @ 12:04 am In Real Estate, Today's Marketplace, Today's Top Story, Today's Top Story - Consumer | Comments Disabled

Here is a great program for REO properties.  They just need to be on Fannie Mae Home Path List

www.fanniemae.com

Program Benefits

As a preferred lender, Prospect Mortgage originates HomePath mortgages with the following

expanded eligibility parameters:

• No appraisal required - value is based on sales price

• Expanded LTVs (up to 97% LTV with no MI required based on occupancy – see eligibility

guidelines below)

• Up to 6% seller contributions allowed for principal residences/second homes

• For second homes or investment properties, borrowers may own up to 10 financed

properties (max LTV 75%)  90% on Investment with less then 4 properties own

Property Types

• All property types eligible per FNMA selling guide except

manufactured housing (prefabs and modular acceptable)

Important: For Condominiums, standard FNMA

guidelines apply. A HOA cert is required, and if

necessary the project must be sent to Secondary

Marketing for project approval or an exception.

Just need to verify the condo still has a master insurance policy in place.

Minimum FICO Scores

• Minimum FICO score of 660 for loans with LTV/CLTV

greater than 80%

• Minimum FICO score of 620 for loans with LTV/CLTV

less than or equal to 80%

Mortgage Insurance MI is not required (with a pricing adjustment)

Maximum LTV/CLTV •

 Maximum LTV/CLTV allowed per the FNMA Selling

Guide, except:

o 90/90 Max LTV/CLTV for 1-2 unit investment

properties

o 75/75 Max LTV/CLTV for second homes and

investment properties where the borrower owns

more than 4 financed properties

Just have your clients go to my website and get pre approved

Tim Guy
Senior Loan Officer
813 431 7148 Direct
tim.guy@perospectmtg.com

First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!

It's official. President Obama has signed a bill that extends the tax credit for 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.

First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

• You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
• You do not use the home as your principal residence.
• You sell your home before the end of the year.
• You are a nonresident alien.
• You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

If you have any questions that fall outside the situations here, give me a call and if you do not have an accountant to speak with, I can refer you to one.

More Homebuyers Qualify for Tax Credit

November 6, 2009 – Congress just passed an expanded version of the $8,000 first

time home buyer tax credit that was set to expire on November 30. We are just waiting

for the President to sign it into law.  The new version of the tax credit has the potential to stimulate

the housing market even more than the  old version due to the fact that more people will

qualify under the new rules. Although the tax credit remains at $8,000 for home buyers that

have not owned a primary residence in the last three years, it has been expanded to include

a $6,500 tax credit for home buyers that have lived in their current primary residence for at

least five consecutive years out of the past eight years. Under the old rules,

move-up home buyers did not qualify.

Consider these three examples:

Example 1:

Jane purchased a home in 2002, lived there for 5 years as her primary home, moved

out in 2007, and turned that home into a rental property. If Jane decides to buy a

new primary residence today, she would qualify for the $6,500 tax credit based on

the fact that she lived in the same residence as her primary home for at least five

consecutive years out of the past eight.

Example 2:

Harry purchased a home in 2004, and lived there for the past 5 years as his primary

home. If Harry decides to buy a new primary residence today, he would qualify for

the $6,500 tax credit based on the fact that he lived in the same residence as his

primary home for at least five consecutive years out of the past eight.

Example 3:

Nicole purchased a home in 2006, and lived there for the past 3 years as her primary

home. If Nicole decides to buy a new primary residence today, she would not qualify

for the $6,500 tax credit based on the fact that she did not live in the same residence

as her primary home for at least five consecutive years out of the past eight.

The tax credit applies to homes purchased for less than $800,000 before May 1,

2010.  If you sign a binding contract to purchase a home before May 1st, you would

need to close on the transaction before July 1, 2010, It works kind of

like a gift certificate that can be redeemed for cash. You simply file a form with the

IRS right after you buy your home, and the IRS will send you a check for the full

amount of your credit.

The income limitation for single tax payers went up from $75,000 under the old rules

to $125,000 under the new rules. For married tax payers, the income limitation went

up from $150,000 to $225,000.

There are many creative ways of structuring your home purchase transaction in ways

that maximize the benefits of the credit. Here are a few examples:

• The credit applies to 1-4 unit homes as long as you live in one of the units as

your primary residence – you could live in one unit and rent out the others

• If two unmarried individuals buy a home, and only one of the individuals

qualifies for the credit based on their income or past home ownership status,

the individual who qualifies for the credit can claim the full credit. (Note: In the

case of married couples, both spouses must qualify for the credit.)

• The credit applies even if you have co-signers on your mortgage loan

Breaking News: Homebuyer Tax Credit Set to be Extended and Expanded!

 Earlier this week, the U.S. Senate unanimously passed an extension and expansion of the homebuyer tax credit. This morning, the House of Representatives approved the agreement reached in the Senate by a vote of 403-12. The bill has now passed both chambers and is awaiting the President’s signature, which could be as early as tomorrow!

Below is a summary of the new modifications in the extension and expansion of the tax credit:

1)  The $8,000 tax credit will be extended and available for first-time purchases before May 1, 2010.

2)  A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify for this provision, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

3)  Prospective purchasers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.

4)  Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.

If you know anyone looking to buy their first home at a time when prices and interest rates are still down, or if you are thinking of buying another home and getting the new $6,500 credit please contact me today.

Sincerely,

Nathan Bangs

The new microfiber furniture materials are wonderful, but are susceptible to oil and grease stains. If you have a small, grease-based spot on microfiber furniture material, try this: Put a drop of degreasing dish soap such as Dawn on the spot and rub it around gently, then sponge or blot up the oils and soap from the material and rinse/blot gently with clean water. Repeat this procedure as often as necessary to remove the spot. If you use care, this method should not affect the fabric or its color.

If you think that your toilet might be leaking slightly, check to see if the problem is due to condensation before calling a plumber. If you have condensation problems, they can be solved by improved ventilation when bathing or showering. To check for a leaking toilet tank flapper valve (the one in the top tank that fills the toilet bowl), first make sure the porcelain/plastic inner surface of the bowl is not chipped or scratched and then put a few drops of food dye in the upper tank. Wait a half hour. If the water in the toilet bowl is colored, you have a leak. If you are handy, valve replacement/repair kits are available; if not, call a plumber.

Indoor lighting occupancy sensors detect activity within an area. They turn lights on automatically when someone enters a room. They reduce lighting energy use by turning lights off soon after the last occupant has left the room. The sensors must be located where they will detect occupants or activity in all parts of the room. There are two types of occupancy sensors. Ultrasonic sensors detect sound, while infrared sensors detect heat and motion. In addition to controlling ambient lighting in a room, they are useful for task lighting applications, such as over kitchen counters. In such applications, task lights are turned on by the motion of a person washing dishes, for instance, and automatically turn off a few minutes after the person stops. They are readily available online and at retail stores.

Existing-Home Sales Show Big Rebound

(Oct 23) Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®. Existing Home Sales- including single-family, townhomes, condominiums and co-ops - jumped 9.4 percent to a seasonally adjusted annual rate1 of 5.57 million units in September from a level of 5.09 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.