Orange County Home Buyer Tax Credit Reminder is a post from: Orange County Real Estate-Orange County Homes For Sale

Governor Endorses New Home Buyer Tax Credit

Real Estate in Rancho Santa Margarita and other Orange County cities could get another boost from the government.  Governor Arnold Schwarzenegger has proposed  a new homebuyer tax credit for California taxpayers.

Not Just For First Time Buyers

Just like the new recently passed Federal program,  the proposed credit would apply to the purchase of existing as well as new homes.  There are some restrictions on the proposed credit.  For example, the buyer cannot be a dependent, and cannot be purchasing a home that belongs to a relative.

Some Details of the Program

Buyers would receive a credit of up to $10,000, although the specifics of how the credit would be calculated have not been determined.  Under the old program the buyers could receive a credit of 5% of the purchase price of the home, also up to $10,000.  The state would allocate up to $200 million – twice the amount of the previous program, which ran out of  money almost 8 months before the program deadline.  Other details haven’t been released, such as the dates in which homes must be purchased to qualify.

What Orange County Homes For Sale Will Qualify?

Almost any single family home for sale in Rancho Santa Margarita, Mission Viejo, Coto de Caza, or Ladera Ranch will qualify for the full $10,000 credit, since all are priced well above the $200,000 mark.  There are some condos in those cities priced lower, and even some houses in Central and North Orange County cities the wouldn’t get the expected full credit, but most buyers can expect to take full advantage if the bill is passed and they move quickly!  Remember, the last program like this ran out of money months before the scheduled end, so get your pre-approval and get ready to move.

Proposed California Tax Credit Could Boost Orange County Real Estate is a post from: Orange County Real Estate-Orange County Homes For Sale

There’s good news for home buyers seeking homes for sale in Orange County, and Real Estate in Irvine and other local cities should be affected.  New legislation has extended and expanded the old “First Time Home Buyer Tax Credit” – it now applies to people who already own home as well.  The picture of the chart from NAR has the details.

The Main Points

• First time buyers are people who have not owned a home in over 3 years
• Credit for first time buyers is $8,000
• Credit for current home owners is $6,500
• Current home owners must have lived in the home being sold for 5 consecutive years out of the last 8 years
• The income limits are increased to $125k/$225k single/married
• You must be under contract by April 30 and close escrow by July 1, 2010

Why not start searching for your Orange County home now?

Extended and Expanded Tax Credit is a post from: Orange County Real Estate-Orange County Homes For Sale

Senator Johnny Isakson has introduced new legislation that would significantly expand the existing first-time home buyer tax credit. Isakson is a Republican from Georgia, but he was joined by a bi-partisan group of co-sponsors, including Senators Chris Dodd, a Democrat, and Joe Lieberman, an Independent.

Key Provisions

• The maximum amount of the credit would be increased from $8,000 to $15,000
• The credit would be available to all home buyers, not just first timers
• The current $75,000 and $150,000 income limit for individuals and couples would be eliminated
• The credit would be extended one year from the date of passage
• Buyers could claim the credit on 2009 tax return, even if the purchase was in 2010

Another group of senators, including Harry Reid and John Ensign, are pushing for a six month extension of the existing tax credit for first-time buyers.

Proposed Legislation to Expand First-Time Buyer Tax Credit is a post from: Orange County Real Estate-Orange County Homes For Sale

How Orange County Home Buyers Can Take Advantage of the First-Time Home Buyer Tax Credit

One of the most exciting provisions of the American Recovery and Reinvestment Act of 2009 for Orange County Home Buyers is the $8,000 tax credit available for first-time home buyers. Add this tax credit to the historical low home prices and interest rates – and – VOILA – a perfect time for first-time home buyers to jump in and buy a home – especially here in Orange County!

These are the key points for Orange County Home Buyers to keep in mind:

• To meet the definition of a first-time home buyer – you cannot have owned a home in the last three years. Simple – right?
• The maximum credit is up to 10% of the purchase price of the home. HUGE! But the kicker is the total credit cannot go over $8,000. So as long you’re paying at least $80,000.00 for the home – you get the maximum credit allowable. Simple to do here in Orange County.
• You never have to pay the credit back – as long as you live in the home for at least 3 years in a row.
• You must buy the home before December 1, 2009 in order to get the credit. HELLO – what are you waiting for – with all the Short Sales in the market – it may take you that long to close a deal!
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. The credit is phased out above these income levels.
• You cannot purchase the home from a related party like a spouse, direct ancestor, or direct lineal descendent (child or grandchild); however, you can still qualify for the credit if you purchase a property from siblings, nephews, nieces or others.
• If you are married, both spouses must be first-time home buyers.
• If more than one unmarried individual is buying the property, the credit can be split up among all the individuals who qualify. However, the total credit taken cannot exceed $8,000.

One of the greatest benefits of the $8,000 credit is that you can claim it on your 2008 tax returns, even if you buy a home in 2009. All you need to do is file an amended tax return with the IRS after you buy your new home and they will send you a refund check for $8,000. Remember though, you’ll receive the $8,000 from the IRS AFTER you purchase the home, so you cannot use the funds to help with your down payment unless you purchase using an FHA loan. On May 29, 2009 the Federal Housing Administration (FHA) announced that they will soon allow lenders to offer borrowers short-term bridge financing in amounts equal to the tax credit. FHA will be publishing the details shortly. So stay tuned here for the latest on tips for Orange County home buyers.

First Time Home Buyer Tax Credit – The Inside Scoop is a post from: Orange County Real Estate-Orange County Homes For Sale

Thanks to Janice Eckles at MetLife Home Loans for helping to compile this information

First Time Home Buyer Tax Credit

One of the most exciting provisions of the American Recovery and Reinvestment Act of 2009 is the $8,000 tax credit available for first-time home buyers.  Combine this tax credit with the fact that home prices and interest rates are at historical lows, and it is indeed an ideal time for many first-time homebuyers to purchase a home!

Here are some things to keep in mind:

• A first time home buyer is defined as someone who has not owned a home in the last three years.
• The credit amounts to 10% of the purchase price of the home not to exceed $8,000.
• The tax credit does not need to be paid back if you continue living in the home as your primary residence for three years without selling it.
• The home must be purchased before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.  The credit is phased out above these income levels.
• You cannot purchase the home from a related party like a spouse, direct ancestor, or direct lineal descendent (child or grandchild); however, you can still qualify for the credit if you purchase a property from siblings, nephews, nieces or others.
• If you are married, both spouses must be first-time home buyers.
• If more than one unmarried individual is buying the property, the credit can be split up among all the individuals who qualify.  However, the total credit taken cannot exceed $8,000.

One of the greatest benefits of the $8,000 credit is that you can claim it on your 2008 tax returns, even if you buy a home in 2009.  All you need to do is file an amended tax return with the IRS after you buy your new home and they will send you a refund check for $8,000.  Remember though, you’ll receive the $8,000 from the IRS AFTER you purchase the home, so you cannot use the funds to help with your down payment unless you purchase using an FHA loan.  On May 29, 2009 the Federal Housing Administration (FHA) announced that they will soon allow lenders to offer borrowers short-term bridge financing in amounts equal to the tax credit.  FHA will be publishing the details shortly.

First Time Home Buyer Mortgage Protection Program

The California Association of Realtors (C.A.R.) has launched a free program for first time home buyers.  Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

“The Mortgage Protection Program was developed to help ease the anxiety of consumers who are concerned about potential job loss and its impact on their ability to pay their mortgage should they purchase a home,” said C.A.R. President James Liptak. “It also provides peace of mind to those buyers who are actively searching for a home.”

To qualify for the Mortgage Protection Program, applicants must:

• Be a first-time home buyer – someone who has not owned a home in three or more years
• Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
• Use a California REALTOR® in the transaction
• Purchase the property in California
• Be a W-2 employee (cannot be self-employed)

To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.

For more information including eligibility requirements and information on applying for the C.A.R.H.A.F. Mortgage Protection Program, please visit www.car.org/aboutus/hafmainpage/carhafmortgageprotection.

First Time Orange County Buyer Info is a post from: Orange County Real Estate-Orange County Homes For Sale