Getting the $8,000 tax credit.
I know you have heard about the $8,000 Tax Credit for First Time Home Buyers, but did you know that you can get the money within 60 days of buying a new home? You still can not use the money for your down payment, but not having to wait until your 2009 taxes are filed is a big help!
The $8,000 tax credit was approved for any first time home buyer who purchases a home after January 1, 2009 and before December 1st, 2009. A first time home buyer is defined as someone who has not owned a home in the last 3 years. You do not need to pay this money back unless you move out of the home in the next 3 years. This is different from the 2008 $7,500 tax credit that many people used and must be paid back a little each year when you do your taxes.
The $8,000 is the maximum you can get being 10% for the purchase price of your home, so if you by a house for $75,000 you would only get $7,500. The only other restriction is your income in 2008. The max for a single person is $75,000 and $150,000 for a couple filing together. If you make a little over the $75,000 you can still get money back but it phases out proportionally up to $95,000. If you made $85,000 in 2008 and you purchased a house for $75,000 you would get half of the $7,500 credit or $3,750.
So, if someone is renting now and wants to buy a home, they will still need the required minimum down payment required by FHA of 3.5% or use the 100% program in an eligible area under USDA. But you can get the 3.5% in the form of a gift from a family member and in both cases, we can help you arrange to have the seller contribute to your closing costs so you only need the 3.5%. After you close on the home we can help you apply for the $8,000 and we have had some buyers get the money back as soon as 8 weeks!
This money can be used to buy new carpet, furniture, big screen TV or the best, save it for a rainy day when something in your new home needs to be repaired or replaced. As a new homeowner you are always going have things that you want to update or change and it is far better to use this money instead of charging up the new Home Depot account.
Don’t toss $8,000 out the window, go buy a house before December 1st, 2009!
Jeff Fuller
407-963-6001
Jeff@maitlandlending.com
What if I don’t have the money for a down payment?
I know, with the rates at all time lows and home values bottomed out, now is a great time to buy a home, but you just can not come up with the 3.5% that FHA requires for a down payment and you do not have the ability to get a gift from a family member. So, you are just going to miss out on the $8,000 from the stimulus package. Sorry!
That really is not true, if you are willing to live in the “out skirts” of town, not in a metro/urban area, you CAN get 100% financing through the USDA Rural Development program! That does not mean you need to live out in the boonies! Many areas that are eligible for this program are in or very close to big cities. For instance, here in central Florida, an area as close as 8 miles from down town qualifies.
The program has two big qualifiers; first the location of the property and, second the total income per household. Here in central Florida, if your family has two adults and three kids, your income can be as high as $97,150 in eligible income. If you do not have many other debts, that could mean you qualify for up to a $325,000 house.
Now that is for people with two adults and three kids, if you have one to four people the maximum income is $73,600, with no other debts, that is a house worth $250,000. These are all estimates and if the property taxes are really high or HOA dues are over $75 a month these estimates will be off, but you get he idea. A single person making up to $73,600 can get 100% financing and if we can get the seller to contribute to the closing costs, you can buy a house for as little as $1,000!!! In todays mortgage meltdown market of reducing property values and foreclosed properties this is an incredible program!!!
If you are renting now, have a 620 credit score, do not mind living a little outside of down town and want to get paid $8,000 for buying a home, you need to get moving! You only have until December 1st, 2009 for the $8,000 first time home buyer credit and who knows how long the low interest rates are going to stick around, they have already started heading up and as soon as the economy shows signs of perking up, the first thing that will happen is mortgage rates are going to jump up based on the fear of inflation.
Good luck and do your part to turn the economy around, go buy a new house!!
Jeff Fuller
407-963-6001
jeff@maitlandlending.com
Is Refinancing your mortgage right for you?
Mortgage rates have not been this low since March 2004, so does it make sense for you to refinance?
There are many different opinions when it comes to making the decision to refinance. Should you get at least a one percent drop in interest rate, a 10% reduction in monthly payment? Should you only refinance if you are converting an adjustable rate to a fixed rate while the rates are low? If you need cash-out to do home improvements or consolidate other high rate debt should you combine your existing mortgage or just take out and Equity Line of Credit?
In some situations all these scenarios warrant refinancing and in some scenarios they do not! Many factors such as: the number of years you plan to remain in the home, the breakeven point based on your savings per month compared with the cost to refinance, the monthly savings you get by paying off other debt and the possibility of shortening your amortization should be examined when making your decision.
If you are thinking about refinancing or wondering if you can save money monthly, please give us a call to discuss your options. We are local here in Maitland and will be happy to do an analysis of your individual situation and help you decide if refinancing makes sense for you.
Rob Adams / Jeff Fuller
407-629-5626
THe Right Time to Purchase a Home!
If you have ever thought about purchasing a home, NOW IS THE TIME TO DO IT! Interest rates are low and so are prices. Neither will stay down for long.
100% financing is available if your credit is decent. Sellers are willing to pay all of the buyers closing costs just to get out of the home. We are helping buyers purchase their own home for less than they are paying for rent. Here are a couple of questions to ask yourself to see if you are ready to buy.
1. Do I have at least two months of rent saved in case of an emergency? Open any newspaper or listen to any newscast and you’ll hear about all the Foreclosures occurring. The main reason people are losing their homes is they have not been able to put aside reserves. It was hard to do when prices and rates were high. Knowing all the costs associated with purchasing a home is the first step.
2. Do I have a stable job and income? Stable employment is very important now. Lenders want to make sure their clients will be able to meet their obligations. Getting a new job that pays more is a good reason many decide to purchase. Having sufficient income to cover your monthly obligations is the most important factor in getting financed. There are very few programs available today for Stated or Limited Income Documented borrowers.
3. Is my credit good? Notice I didn’t say GREAT or Excellent. FHA offers competitive rates and programs for good credit. Prior bankruptcies, foreclosures and judgments will create obstacles but not barricades. Check your credit before you sign a contract. ( www.annualcreditreport.com ) is a free service where you can investigate your credit.
If you answered yes to all three questions, don’t wait! Conditions like this will only happen a few times in your lifetime. If you answered no, with the right guidance and coaching you could be in a good position with in a few months.
Rob Adams Maitland Mortgage Lending Company 407-629-56265
