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Senate Approves Homebuyer Tax Credit Extension
November 5th, 2009 9:56 AM

Senate Approves Homebuyer Tax Credit Extension

by Jann Swanson on
The Senate today voted unanimously Wednesday night to extend the $8,000 tax credit for home buyers beyond its scheduled November 30, 2009 expiration date.  The credit would be available until April 30, 2010.  Under the new legislation the credit will also now apply to home buyers who are buying their second or subsequent home.  The credit currently applies only to first time home buyer.

The Senate vote was 98 to 0

Under a compromise reached late last week, the tax credit for veteran homeowners will apply only to those who have lived in their current residence for at least five years.  The credit for these buyers will be capped at $6,500 while first time buyers will continue to receive $8,000.

Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively.  Above those limits there are diminishing credits available.

The bill was passed as an amendment to legislation extending unemployment benefits.  The House is expected to vote on the bill before the end of the week.

Housing interests, especially the National Association of Home Builders and the National Association of Realtors, has pushed strongly for the extension and the Obama administration has also lobbied heavily for its passage. However, not everyone was in favor of it.

Some critics have charged that the tax credit has merely moved sales that would have occurred sooner or later to an earlier date and that, when the credit finally does go away, the market will experience another severe downturn. A diametrically opposed opinion would have it that, while 1.4 million claims have been made, few sales were actually inspired by the credit.  Others have argued that the current interest rates and low housing prices are enough of an incentive without spending tax money. The extension is expected to cost an estimated $11 billion on top of the $10 billion that has been spent to date.

There have also been charges of fraud in the operation of the program.  To combat this the new law has some expanded safeguards including a minimum age of 18 for obtaining the credit, a requirement that a settlement statement accompany the tax return claiming the credit and a prohibition on non-arms length transactions.

Another criticism of the extension has been that it ends just as the "spring market" is getting underway.  Diane Olick writing for CNBC's RealtyCheck said it "is sort of like offering cheap snow boots in July."

Posted by Rosanna Hudson on November 5th, 2009 9:56 AMPost a Comment (0)

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Just Listed! 6832 Clift Street North Richland Hills, TX 76182
November 30th, 2009 4:54 PM
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$250,000.00
6832 Clift Street

North Richland Hills, TX 76182

Beds: 3 Rooms: 8
Full Baths: 2 Sq. Ft.: 2064
Garage: 2 Built: 1969
 
Nestled Away! Come and see this 2,064-SF treed lot home on 2.230 acres in North Richland Hills, Texas. Horses are permiited. House and pool need TLC.
This is a new listing that
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If you have any questions
about this property or
require more information,
please feel free to call.

Cindie Stewart
Texas Sold Team Realty, LLC
8173375169
www.soldteam.net
 
  Visit this listing here
Posted by Cindie Stewart on November 30th, 2009 4:54 PMPost a Comment (0)

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Just Listed! 309 Edinburgh Court Southlake, TX 76092
November 22nd, 2009 5:19 PM
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$1,100,000.00
309 Edinburgh Court

Southlake, TX 76092

Beds: 5 Rooms: 12
Full Baths: 4 Sq. Ft.: 5979
Garage: 3 Built: 2008
 
Ultimate Lifestyle! Your friends will be impressed by this 5-bedroom/2.5-bath 5,979-SF home on 0.461 acres in Southlake, Texas.
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 
If you have any questions
about this property or
require more information,
please feel free to call.

Cindie Stewart
Texas Sold Team Realty, LLC
8173375169
www.soldteam.net
 
  Visit this listing here
Posted by Cindie Stewart on November 22nd, 2009 5:19 PMPost a Comment (0)

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Expanded Version of Tax Credit Will Allow More Homebuyers to Qualify
November 10th, 2009 11:33 AM

Expanded Version of Tax Credit Will Allow More Homebuyers to Qualify

RISMEDIA, November 9, 2009—President Obama recently signed an expanded version of the $8,000 first-time homebuyer tax credit that was set to expire on November 30. “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,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. “Although the tax credit remains at $8,000 for homebuyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for homebuyers 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 homebuyers 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,” Nicholas said. “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. “This means that more people will qualify for the credit – especially in parts of the country with higher costs of living,” Nicholas said. “This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit.” 

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 

For more information, visit www.CMPSInstitute.org. 

Read more: http://rismedia.com/2009-11-08/expanded-version-of-tax-credit-will-allow-more-homebuyers-to-qualify/#ixzz0WTkr6IKw

Posted by Cindie Stewart on November 10th, 2009 11:33 AMPost a Comment (0)

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TAX CREDIT HAS BEEN EXTENDED
November 6th, 2009 2:25 PM

TAX CREDIT HAS BEEN EXTENDED

The $8000 tax credit for first time homebuyer's has been extended.  The program was expanded to include a $6500 tax credit on the purchase of a new home to apply to people who have owned a home for at least five years. 

Income restrictions will be relaxed, meaning more people could take advantage of the program.

The bill would extend it to apply to home purchases under contract before May 1, 2010. 

Great news!   Watch for more details.

Give us a call for all of your Real Estate needs.You can reach us directly at 817-337-5169 or on the web at www.soldteam.net  

Texas Sold Team Realty, LLC
CRS, e-Pro, ABR, Luxury Real Estate Expert

Information provided by Pam Taylor with WR Starkey Mortgage

Posted by Cindie Stewart on November 6th, 2009 2:25 PMPost a Comment (0)

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