The Time of Golden Opportunity is now,
don't miss out!
If you haven't been keeping your ears to all the financial and tax changes going on in the last few months, waiting for things to settle out, which quite honestly could take another chunk of time, read this!
As of now, some of the significant benefits to purchasing a home whether in foreclosure or not are:
The first-time home buyer tax credit,
which
Congress in February increased to $8,000 from $7,500 and eliminated the repayment requirement.
The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.I only wish I could use this but it is only for those that, haven't owned a property for three years. You also must retain the property as your primary residence for three years and the most important item, you have to qualify within the set guidelines.
There is also, in the state of California, a property tax reduction. Most counties are re-assessing properties bought from 2003 to present and adjusting the taxable values downward. It will be reflected in the tax bills and a notice of such will be mailed to affected property owners.
State Tax Credit On NEW Homes
How much is the state tax credit?The state tax credit is for $10,000 or 5 percent of the purchase price of a newly built home, whichever is less. The home must be the principal residence of the buyer, and the sale must close between March 1, 2009 and March 1, 2010.
How does the tax credit work?The credit will be provided in equal amounts (up to $3,333) per year, over three successive tax years, beginning with the year the purchase is made.
Will I receive the credit if I buy an existing home? The credit is only for the purchase of a newly built home that has never been occupied. That is because building a new home generates more tax revenues than the credit will cost the state.
Are there any other restrictions?The taxpayer must live in the home as their principal residence for at least two years. If he/she does not, he/she will have to repay the credit.
How much money is available under the program?The law limits the total amount of credits that can be claimed to $100 million. Credit reservations will be allowed on a first-come, first-served basis. It is likely that the full amount will be exhausted this year, so prospective buyers should move quickly.
Can the credit be used in conjunction with the recently enacted federal tax credit?Yes. If you buy a new home between March 1 and Dec. 31 and are a first-time homebuyer, you can take advantage of both the $10,000 state credit and the $8,000 federal tax credit.
"Green" Mortgage Rebates
In purchasing a home, foreclosed or not, there are programs offered by lenders that rebate the borrower up to $35,000. of their loan, when energy efficient and/or sustainable products/materials are used in upgrading the property. Call me, I will be happy to refer you to some significant lenders.
California Help for FIRST-TIME Home buyers.
To help provide first-time home buyers with peace of mind when purchasing a home, the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) Housing Affordability Fund is offering a new mortgage protection program to first-time home buyers. Through the C.A.R. Housing Affordability Fund’s 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. 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/Buying Now vs. Renting
Given recent changes in home prices and the current low mortgage rate climate, there have been significant gains in affordability for prospective first-time homeowners. Earlier in 2009, a provision in the Stimulus Bill provided for a first-time Homebuyer Tax Credit of 10 percent of the purchase price of the home up to $8,000. The CALIFORNIA ASSOCIATION OF REALTORS® analyzed the difference between renting and buying a home in light of recent market and policy developments. Housing costs and tax implications of buying a home and renting a home were computed as a part of the analysis.
Assumptions:
• The household currently rents a 3-bedroom, 2-bathroomapartment at the prevailing rent and purchases rental insurance.The prevailing rent for a 3-bedroom, 2-bathroom apartment was$1,855 per month (Q4 2008, latest available). The household purchases renter’s insurance at a cost of $247 per year or $20 per month.• The household considers the purchase of a home at the entry-level price, which is 85 percent of the statewide median price.The monthly cost of housing is equal to the mortgage payment,taxes, and insurance.• The entry-level home is priced at $248,000, or 85 percent of theprevailing median-priced home of $291,800.• The monthly payment including taxes and insurance (PITI) wascalculated using a 10 percent down payment, a 40 percentqualifying ratio, the prevailing one-year ARM mortgage rate,and a 1.038 percent assumed insurance costs and propertytaxes. The monthly PITI payment under these assumptionsis $1,630.
To seach for available homes in the Santa Cruz or Lake Tahoe Areas go to my website: www.BestSantaCruzProperties.com
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