Council okays buyer assistance program; endorses new resale inspection rule
Written by News Staff
Monday, February 8, 2010
NEWMAN - Housing-related issues were at the forefront last week for the Newman City Council, which took actions that will make it easier for some residents to buy a home of their own and would add an inspection requirement for those attempting to sell theirs.
The council gave its approval to a proposed first-time home buyer assistance program which offers up to $40,000 in assistance to qualifying buyers.
Council members also introduced an ordinance requiring city inspections for potential code violations on any homes being resold.
Assistant Planner Stephanie Ocasio said the city has more than a quarter-million dollars available through the Home Investment in Affordable Housing Program to help income-eligible buyers become homeowners.
“It seems like a lot of folks have become interested in purchasing a home, and they have become affordable again,” Ocasio noted. “This is a great tool to help first-time home buyers.”
A family of four can have an annual household income of up to $47,700 and qualify for the program.
Buyers must have good credit, be pre-qualified with a primary lender and have some cash of their own to put toward the purchase, either 3 percent of the sales price or $3,000, whichever is greater.
Buyers must live in the home being purchased with the financial assistance, which can be as much as 20 percent of the sales price up to $40,000.
“Someone could potentially buy a $200,000 home and have a 20 percent down payment through this program,” Ocasio noted. “The loan is deferred for 10 years, in which time buyers are typically earning more money (and can better afford the repayment).”
The loans will allow buyers to avoid mortgage insurance, and they do not count against the borrower’s debt ratio, she added.
Past home buyer assistance programs have been successful, Ocasio said, and she expects the same from the latest program.
“I think it will help provide opportunities to get people into homes,” she reflected.
Home inspection requirement
Council members last week also took the first step toward requiring that resale homes are inspected for code violations as part of the transaction process.
Ocasio said the new ordinance would require exterior inspections of homes for violations such as work done without a permit and setback or lot coverage violations.
The inspection would give buyers assurances that they were not buying a home with existing code violations (or the knowledge that they were), she remarked, while giving the city a tool to identify and correct violations.
“A lot of people have bought a home not knowing something is illegal,” Ocasio explained. “This way they can make an informed decision. If they decide to inherit a violation, it also lets them know that we are aware of it and will be contacting them to bring it into compliance.”
A violation cannot stop a real estate transaction, she noted.
Once identified, though, the city will ensure violations are corrected - either by the buyer or the seller.
“This would be a great tool,” declared council member Ted Kelly. “Anyone buying a home in Newman is protected.”
The seller would be responsible for the $120 fee.
Ocasio said the city will attempt to educate real estate professionals about the requirement. Sellers who fail to comply with the inspection requirement face a possible administrative citation and penalty which has yet to be determined.
Some transactions - such as the transfer of property among immediate family - are exempt.
The council will consider final adoption at its Feb. 9 meeting.
Towing ordinance
Council members last week formally approved an ordinance which establishes a number of guidelines for companies providing police tow services.
One of the primary requirements is that companies on the police department’s towing rotation have a staffed yard in the city of Newman.
Tuesday, February 9, 2010
Monday, February 8, 2010
Your income tax: Deductions are added for this year
Your income tax: Deductions are added for this year
Updated 3h 50m ago
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EARNED INCOME TAX CREDIT RULES
Income cutoffs for the earned income tax credit in 2009 (based on adjusted gross income):
Single Married Maximum credit
Three or more children $43,279 $48,279 $5,657
Two children $40,295 $45,295 $5,028
One child $35,463 $40,463 $3,043
No children $13,440 $18,440 $457
Source: IRS
ShareYahoo! Buzz Add to Mixx Facebook TwitterMore Fark Digg Reddit MySpace StumbleUpon Propeller LinkedInSubscribe myYahoo iGoogleMore Netvibes myAOL
By Sandra Block, USA TODAY
Underpay your taxes, and you could receive a sternly worded letter from the IRS, with ominous references to "interest," "penalties" and possibly, "incarceration."
But if you overpay, it's unlikely that the IRS will send you a check or even a thank-you note. It's your responsibility to claim all the credits and deductions available to you. Here's a look at some new tax breaks that could cut your 2009 tax bill:
MONEY TIPS: Get our free Personal Finance e-mail newsletter
Home buyer tax credit
Eligibility extended to those who already owned a house
This tax credit was originally intended for first-time home buyers, but that's no longer the case. Under legislation signed in November, two types of home buyers qualify for a tax credit on their 2009 returns:
•Home buyers who haven't owned a primary residence for three years prior to the purchase are eligible for a tax credit of up to $8,000. This credit is available for home buyers who purchased a home from Jan. 1, 2009, to April 30, 2010.
•Home buyers who have owned their primary residence for five consecutive years out of the last eight are eligible for a credit of up to $6,500. This credit is limited to homes purchased after Nov. 6 and on or before April 30, 2010.
For purchases after Nov. 6, the price of homes eligible for the first-time and existing home buyer credit is capped at $800,000.
There are income limits on the credit, but the threshold will depend on when you bought the home. For first-time home buyers who bought a home before Nov. 7, the cutoff for claiming the full credit is modified adjusted gross income (MAGI) of $75,000, or $150,000 for joint filers. Those with MAGI from $75,000 to $95,000, or $150,000 to $170,000 for joint filers, are eligible for a reduced credit; those with higher incomes don't qualify.
For purchases made after Nov. 6, the full credit is available for first-time and repeat buyers with MAGI of up to $125,000, or $225,000 for joint filers. Those with MAGI from $125,000 to $145,000, or $225,000 to $245,000 for joint filers, are eligible for a reduced credit; and those with higher incomes are ineligible.
Taxpayers who buy a home from Jan. 1 to April 30, 2010, have the option of claiming the credit on their 2009 tax return, says Bob Meighan, vice president of TurboTax. "That's a good tax-planning benefit," he says. "You can get your refund much quicker."
But probably not as quickly as you'd like, Meighan says. In an effort to deter fraud, the IRS is requiring taxpayers who claim the credit to attach a copy of their settlement document to their tax returns. That means those taxpayers won't be able to file electronically. When you file by mail, you typically have to wait up to six weeks to get your refund, vs. as little as 10 days for e-filed returns.
To claim the home buyer tax credit, you'll need to fill out Form 5405, available at www.irs.gov.
Earned income tax credit
Eligibility requirements are expanded, so you may qualify
This tax credit is designed to help low-income, working families. Many households saw their income drop last year because of the economic downturn, so even if you weren't eligible in the past, you might qualify in 2009, says David Williams, IRS director of electronic tax administration and refundable credits.
Another reason to give the EITC a second look: Eligibility requirements have been expanded. The IRS has created a new category for families with three or more eligible children and raised the income thresholds. For example, a married couple with two children could have 2009 earned income of up to $45,295 and qualify for the credit (see box).
About a quarter of taxpayers who are eligible for the EITC don't claim it. Many of those are childless taxpayers who don't realize they qualify, Williams says.
Another barrier is the complexity of the credit. Many low-income taxpayers can't afford to pay a tax preparer; others are vulnerable to unscrupulous preparers who try to sell them high-interest loans and other products. But there's help available. If you're comfortable doing your taxes online, you can use Free File, a partnership between the IRS and private software manufacturers that allows eligible taxpayers to prepare and e-file their federal returns at no cost. Taxpayers with 2009 adjusted gross income (AGI) of $57,000 or less are eligible to use Free File, available through www.irs.gov.
If you don't have access to a computer, you may be eligible for assistance from the IRS Volunteer Income Tax Assistance program. This program, staffed by trained community volunteers, is designed to help low- and moderate-income households prepare their tax returns. To find a VITA location in your neighborhood, call 800-906-9887.
New car sales tax deduction
Buyers eligible even if they did a 'cash-for-clunkers' deal
Taxpayers who purchased a new car, motorcycle, light truck or mobile home on or after Feb. 17, 2009, and before Jan. 1, 2010, can deduct sales taxes for the first $49,500 of the purchase price. You don't need to itemize to claim this deduction. Single filers with AGI of up to $125,000 can claim the full deduction; those with AGI of up to $135,000 can claim a reduced amount. For married couples, the deduction phases out between $250,000 and $260,000.
You can claim the sales-tax deduction even if you participated in the federal "cash-for-clunkers" program, says Amy McAnarney, executive director of H&R Block's Tax Institute. That program provided vouchers of up to $4,500 to consumers who traded in their old vehicles for more fuel-efficient models. "Hopefully, you got a great deal on a new vehicle then, and now can claim the sales tax on your tax return," she says.
American Opportunity Credit
A boost in help for families faced with college costs
Congress is always looking for ways to help families offset the cost of college. This year, though, millions of families will be eligible for a new tax credit that's more generous and flexible than previous versions.
The American Opportunity Credit, part of last year's economic stimulus package, allows taxpayers to claim a credit of up to $2,500 for each eligible college student. The credit is calculated as 100% of expenses up to $2,000, and 25% of expenses above $2,000, up to the maximum.
Single filers with an AGI of up to $80,000 and married couples with AGI of up to $160,000 can claim the full amount. You can claim this credit even if you don't itemize, says McAnarney.
In addition, 40% of the credit is refundable, McAnarney says, which means you'll get a refund even if the credit exceeds the amount of tax you owe. That makes the credit particularly valuable for low-income parents and independent students who may not owe much in federal taxes, she says.
In calculating expenses that count toward the credit, parents and independent students can also include the cost of textbooks and other course materials.
Most educational institutions will provide students with Form 1098-T, which shows how much they spent on tuition last year, Meighan says. But since other costs are eligible for the credit, you should keep track of the amount you spent on room and board, supplies and other college-related costs, he says.
Contributions to Haiti relief
Make a donation now, take a deduction now
If you're a regular giver, you're probably accustomed to deducting the previous year's charitable contributions on your tax return. But taxpayers who donate to Haiti relief organizations don't have to wait until next year to get a tax break for their generosity.
A special tax provision signed into law last month allows taxpayers who donated to Haiti relief organizations from Jan. 11 to March 1, 2010, to deduct the contributions on their 2009 tax return. Congress adopted the law to encourage Americans to help victims of the Jan. 12 earthquake.
The provision includes contributions made via text message, an increasingly popular way to give to charity, Meighan says.
The IRS says your phone bill will meet its record-keeping requirements. You must itemize to deduct contributions to charity.
The provision only applies to cash contributions, and money must go to charities that are providing earthquake relief in Haiti. You can find more information about charities that are helping in Haiti at the website for the U.S. Agency for International Development, www.usaid.gov.
You might be interested in:
Payroll taxes increase for many employers across the U.S. (USATODAY.com in News)
Poll: Most Americans want more GOP support on health care - USA Today (USATODAY.com in News)
It's not too late to get in on some good tax breaks (USATODAY.com in Money)
Self-employed have options to save on 2009 income taxes (USATODAY.com in Money)
Updated 3h 50m ago
Comments 25
Recommend 2 E-mail
Save
Reprints & Permissions
DON'T MISS ANY PERSONAL FINANCE COVERAGE
Sign up for USA TODAY's Personal Finance e-mail newsletter. Every Friday, you'll get a week's worth of USA TODAY's personal finance news and columns. The experienced columnists and reporters at USA TODAY give you the news you need and advice you trust.
SIGN UP NOW. IT'S FREE
EARNED INCOME TAX CREDIT RULES
Income cutoffs for the earned income tax credit in 2009 (based on adjusted gross income):
Single Married Maximum credit
Three or more children $43,279 $48,279 $5,657
Two children $40,295 $45,295 $5,028
One child $35,463 $40,463 $3,043
No children $13,440 $18,440 $457
Source: IRS
ShareYahoo! Buzz Add to Mixx Facebook TwitterMore Fark Digg Reddit MySpace StumbleUpon Propeller LinkedInSubscribe myYahoo iGoogleMore Netvibes myAOL
By Sandra Block, USA TODAY
Underpay your taxes, and you could receive a sternly worded letter from the IRS, with ominous references to "interest," "penalties" and possibly, "incarceration."
But if you overpay, it's unlikely that the IRS will send you a check or even a thank-you note. It's your responsibility to claim all the credits and deductions available to you. Here's a look at some new tax breaks that could cut your 2009 tax bill:
MONEY TIPS: Get our free Personal Finance e-mail newsletter
Home buyer tax credit
Eligibility extended to those who already owned a house
This tax credit was originally intended for first-time home buyers, but that's no longer the case. Under legislation signed in November, two types of home buyers qualify for a tax credit on their 2009 returns:
•Home buyers who haven't owned a primary residence for three years prior to the purchase are eligible for a tax credit of up to $8,000. This credit is available for home buyers who purchased a home from Jan. 1, 2009, to April 30, 2010.
•Home buyers who have owned their primary residence for five consecutive years out of the last eight are eligible for a credit of up to $6,500. This credit is limited to homes purchased after Nov. 6 and on or before April 30, 2010.
For purchases after Nov. 6, the price of homes eligible for the first-time and existing home buyer credit is capped at $800,000.
There are income limits on the credit, but the threshold will depend on when you bought the home. For first-time home buyers who bought a home before Nov. 7, the cutoff for claiming the full credit is modified adjusted gross income (MAGI) of $75,000, or $150,000 for joint filers. Those with MAGI from $75,000 to $95,000, or $150,000 to $170,000 for joint filers, are eligible for a reduced credit; those with higher incomes don't qualify.
For purchases made after Nov. 6, the full credit is available for first-time and repeat buyers with MAGI of up to $125,000, or $225,000 for joint filers. Those with MAGI from $125,000 to $145,000, or $225,000 to $245,000 for joint filers, are eligible for a reduced credit; and those with higher incomes are ineligible.
Taxpayers who buy a home from Jan. 1 to April 30, 2010, have the option of claiming the credit on their 2009 tax return, says Bob Meighan, vice president of TurboTax. "That's a good tax-planning benefit," he says. "You can get your refund much quicker."
But probably not as quickly as you'd like, Meighan says. In an effort to deter fraud, the IRS is requiring taxpayers who claim the credit to attach a copy of their settlement document to their tax returns. That means those taxpayers won't be able to file electronically. When you file by mail, you typically have to wait up to six weeks to get your refund, vs. as little as 10 days for e-filed returns.
To claim the home buyer tax credit, you'll need to fill out Form 5405, available at www.irs.gov.
Earned income tax credit
Eligibility requirements are expanded, so you may qualify
This tax credit is designed to help low-income, working families. Many households saw their income drop last year because of the economic downturn, so even if you weren't eligible in the past, you might qualify in 2009, says David Williams, IRS director of electronic tax administration and refundable credits.
Another reason to give the EITC a second look: Eligibility requirements have been expanded. The IRS has created a new category for families with three or more eligible children and raised the income thresholds. For example, a married couple with two children could have 2009 earned income of up to $45,295 and qualify for the credit (see box).
About a quarter of taxpayers who are eligible for the EITC don't claim it. Many of those are childless taxpayers who don't realize they qualify, Williams says.
Another barrier is the complexity of the credit. Many low-income taxpayers can't afford to pay a tax preparer; others are vulnerable to unscrupulous preparers who try to sell them high-interest loans and other products. But there's help available. If you're comfortable doing your taxes online, you can use Free File, a partnership between the IRS and private software manufacturers that allows eligible taxpayers to prepare and e-file their federal returns at no cost. Taxpayers with 2009 adjusted gross income (AGI) of $57,000 or less are eligible to use Free File, available through www.irs.gov.
If you don't have access to a computer, you may be eligible for assistance from the IRS Volunteer Income Tax Assistance program. This program, staffed by trained community volunteers, is designed to help low- and moderate-income households prepare their tax returns. To find a VITA location in your neighborhood, call 800-906-9887.
New car sales tax deduction
Buyers eligible even if they did a 'cash-for-clunkers' deal
Taxpayers who purchased a new car, motorcycle, light truck or mobile home on or after Feb. 17, 2009, and before Jan. 1, 2010, can deduct sales taxes for the first $49,500 of the purchase price. You don't need to itemize to claim this deduction. Single filers with AGI of up to $125,000 can claim the full deduction; those with AGI of up to $135,000 can claim a reduced amount. For married couples, the deduction phases out between $250,000 and $260,000.
You can claim the sales-tax deduction even if you participated in the federal "cash-for-clunkers" program, says Amy McAnarney, executive director of H&R Block's Tax Institute. That program provided vouchers of up to $4,500 to consumers who traded in their old vehicles for more fuel-efficient models. "Hopefully, you got a great deal on a new vehicle then, and now can claim the sales tax on your tax return," she says.
American Opportunity Credit
A boost in help for families faced with college costs
Congress is always looking for ways to help families offset the cost of college. This year, though, millions of families will be eligible for a new tax credit that's more generous and flexible than previous versions.
The American Opportunity Credit, part of last year's economic stimulus package, allows taxpayers to claim a credit of up to $2,500 for each eligible college student. The credit is calculated as 100% of expenses up to $2,000, and 25% of expenses above $2,000, up to the maximum.
Single filers with an AGI of up to $80,000 and married couples with AGI of up to $160,000 can claim the full amount. You can claim this credit even if you don't itemize, says McAnarney.
In addition, 40% of the credit is refundable, McAnarney says, which means you'll get a refund even if the credit exceeds the amount of tax you owe. That makes the credit particularly valuable for low-income parents and independent students who may not owe much in federal taxes, she says.
In calculating expenses that count toward the credit, parents and independent students can also include the cost of textbooks and other course materials.
Most educational institutions will provide students with Form 1098-T, which shows how much they spent on tuition last year, Meighan says. But since other costs are eligible for the credit, you should keep track of the amount you spent on room and board, supplies and other college-related costs, he says.
Contributions to Haiti relief
Make a donation now, take a deduction now
If you're a regular giver, you're probably accustomed to deducting the previous year's charitable contributions on your tax return. But taxpayers who donate to Haiti relief organizations don't have to wait until next year to get a tax break for their generosity.
A special tax provision signed into law last month allows taxpayers who donated to Haiti relief organizations from Jan. 11 to March 1, 2010, to deduct the contributions on their 2009 tax return. Congress adopted the law to encourage Americans to help victims of the Jan. 12 earthquake.
The provision includes contributions made via text message, an increasingly popular way to give to charity, Meighan says.
The IRS says your phone bill will meet its record-keeping requirements. You must itemize to deduct contributions to charity.
The provision only applies to cash contributions, and money must go to charities that are providing earthquake relief in Haiti. You can find more information about charities that are helping in Haiti at the website for the U.S. Agency for International Development, www.usaid.gov.
You might be interested in:
Payroll taxes increase for many employers across the U.S. (USATODAY.com in News)
Poll: Most Americans want more GOP support on health care - USA Today (USATODAY.com in News)
It's not too late to get in on some good tax breaks (USATODAY.com in Money)
Self-employed have options to save on 2009 income taxes (USATODAY.com in Money)
Friday, February 5, 2010
Saving for a Down Payment on a House
Saving for a Down Payment on a House
Helpful Tips to Minimize the First Time Home Owner Loan
Feb 5, 2010 Brenna Coleman
First time home loans can be overwhelming for new home owners. The larger the down payment on a house however, the smaller the financial burden.
Buying a first home is an exciting time in an individual's life. It is a right of passage, a transition to independence from either renting or living with family. A sense of liberty comes with buying a new home; but, unfortunately, a great responsibility comes as well — the first time home owner loan.
As financially, and even emotionally disturbing as first time home loans can be, buyers do have a way to diminish the oncoming wave of debt from constantly accruing interest, private mortgage insurance, and principal loan payments. By saving for a sizable home down payment, new home owners can be in a financially stable position when it is time to take the keys to the first house
Why Save for a Large Home Down Payment
The main reason to save for a large home down payment is money. In the long run, a twenty percent down payment on a house will reduce the overall cost by thousands, if not tens of thousands of dollars. The more money to begin with, the smaller the first time home owner loan will be. The less debt there will be to pay interest on, the smaller the overall cost of interest. The less risky the loan, the lower the interest rate will be, again diminishing money spent on interest.
Another benefit of taking the time and effort to save, is not having to deal with private mortgage insurance. With a home down payment of at least twenty percent of the price of the house, new home owners can avoid paying for mortgage insurance altogether. As insurance generally costs between one half and one percent of the loan, eliminating this cost can bring the total potential price of a home down by several thousand dollars.
Buying a home with no money down, or with only a small amount of initial cash may seem appealing. In some cases of course, it may be beneficial. For example when house prices are down, and expected to rise, or when rent payments are so high it is impossible to save money. For many however, having the patience and diligence to build up a large down payment for a house, is ultimately the most cost-efficient option.
Read more at Suite101: Saving for a Down Payment on a House: Helpful Tips to Minimize the First Time Home Owner Loan http://first-time-home-buyers.suite101.com/article.cfm/saving-for-a-down-payment-on-a-house#ixzz0egjATOk8
Helpful Tips to Minimize the First Time Home Owner Loan
Feb 5, 2010 Brenna Coleman
First time home loans can be overwhelming for new home owners. The larger the down payment on a house however, the smaller the financial burden.
Buying a first home is an exciting time in an individual's life. It is a right of passage, a transition to independence from either renting or living with family. A sense of liberty comes with buying a new home; but, unfortunately, a great responsibility comes as well — the first time home owner loan.
As financially, and even emotionally disturbing as first time home loans can be, buyers do have a way to diminish the oncoming wave of debt from constantly accruing interest, private mortgage insurance, and principal loan payments. By saving for a sizable home down payment, new home owners can be in a financially stable position when it is time to take the keys to the first house
Why Save for a Large Home Down Payment
The main reason to save for a large home down payment is money. In the long run, a twenty percent down payment on a house will reduce the overall cost by thousands, if not tens of thousands of dollars. The more money to begin with, the smaller the first time home owner loan will be. The less debt there will be to pay interest on, the smaller the overall cost of interest. The less risky the loan, the lower the interest rate will be, again diminishing money spent on interest.
Another benefit of taking the time and effort to save, is not having to deal with private mortgage insurance. With a home down payment of at least twenty percent of the price of the house, new home owners can avoid paying for mortgage insurance altogether. As insurance generally costs between one half and one percent of the loan, eliminating this cost can bring the total potential price of a home down by several thousand dollars.
Buying a home with no money down, or with only a small amount of initial cash may seem appealing. In some cases of course, it may be beneficial. For example when house prices are down, and expected to rise, or when rent payments are so high it is impossible to save money. For many however, having the patience and diligence to build up a large down payment for a house, is ultimately the most cost-efficient option.
Read more at Suite101: Saving for a Down Payment on a House: Helpful Tips to Minimize the First Time Home Owner Loan http://first-time-home-buyers.suite101.com/article.cfm/saving-for-a-down-payment-on-a-house#ixzz0egjATOk8
Odd twist: Officials say meth bust turns up evidence of 1st-time homebuyer tax fraud
Odd twist: Officials say meth bust turns up evidence of 1st-time homebuyer tax fraud
By Press-Register staff
February 05, 2010, 7:49AM
ROCKLEDGE, Ala. -- Etowah County drug enforcement officials apparently made an unusual find when they raided an Etowah County mobile home where undercover methamphetamine buys were made.
The Thursday night raid uncovered evidence of an income tax fraud scheme involving the first-time home buyer's tax credit, the Gadsden Times reports.
The tax program allows first-time homebuyers to receive a refund of $8,000. The alleged tax fraud evidence will be turned over to the IRS and the FBI and authorities also confiscated several guns and other weapons, cash, and imported meth in the pure form known as ice, according to the Gadsden Times report.
Read the complete Gadsden Times account of the raid.
By Press-Register staff
February 05, 2010, 7:49AM
ROCKLEDGE, Ala. -- Etowah County drug enforcement officials apparently made an unusual find when they raided an Etowah County mobile home where undercover methamphetamine buys were made.
The Thursday night raid uncovered evidence of an income tax fraud scheme involving the first-time home buyer's tax credit, the Gadsden Times reports.
The tax program allows first-time homebuyers to receive a refund of $8,000. The alleged tax fraud evidence will be turned over to the IRS and the FBI and authorities also confiscated several guns and other weapons, cash, and imported meth in the pure form known as ice, according to the Gadsden Times report.
Read the complete Gadsden Times account of the raid.
Thursday, February 4, 2010
First-time home buyers face tax-credit hurdles
First-time home buyers face tax-credit hurdles
February 4, 2010
Home buyers looking to claim the federal first-time homebuyer tax credit won't be able to file their taxes electronically, and there are new documentation requirements they must meet designed to deter fraud.
Meanwhile homeowners claiming the credit who filed early may see two- to three-week delays before getting a refund, according to the Internal Revenue Service. The agency said it expects to start processing 2009 tax returns claiming the credit by the middle of this month after it updates and tests systems to meet new requirements. The updates will allow the agency to install systematic checks to deter fraud related to the credit, the IRS said.
Those claiming the credit must complete a new Form 5405 and include with their 2009 tax returns proper documents, including:
• A copy of the settlement statement.
• For mobile-home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract.
• For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy is required.
Check with irs.gov or a tax planner for details on what the settlement statement, contract or certificate must show and other requirements.
The credit also can be claimed by a long-time resident of the same main home if that homeowner purchased a new principal residence. To qualify, taxpayers must show they lived in their old homes for five consecutive years during the eight-year period ending on the purchase date of their new homes. These homeowners must submit:
• A Form 1098, mortgage interest statement or substitute mortgage interest statements.
• Property tax records or homeowner's insurance records
February 4, 2010
Home buyers looking to claim the federal first-time homebuyer tax credit won't be able to file their taxes electronically, and there are new documentation requirements they must meet designed to deter fraud.
Meanwhile homeowners claiming the credit who filed early may see two- to three-week delays before getting a refund, according to the Internal Revenue Service. The agency said it expects to start processing 2009 tax returns claiming the credit by the middle of this month after it updates and tests systems to meet new requirements. The updates will allow the agency to install systematic checks to deter fraud related to the credit, the IRS said.
Those claiming the credit must complete a new Form 5405 and include with their 2009 tax returns proper documents, including:
• A copy of the settlement statement.
• For mobile-home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract.
• For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy is required.
Check with irs.gov or a tax planner for details on what the settlement statement, contract or certificate must show and other requirements.
The credit also can be claimed by a long-time resident of the same main home if that homeowner purchased a new principal residence. To qualify, taxpayers must show they lived in their old homes for five consecutive years during the eight-year period ending on the purchase date of their new homes. These homeowners must submit:
• A Form 1098, mortgage interest statement or substitute mortgage interest statements.
• Property tax records or homeowner's insurance records
Thursday, January 28, 2010
Home Buying Guide – Step by Step Guide and how to find a dream home
Home Buying Guide – Step by Step Guide and how to find a dream home
Posted on January 28th, 2010 in Mortgage Bankers Association Articles by admin
Buying home 101 – Home Buying Guide Step-by-step for first time buyers. First-time buyers have tons of questions, you can understand that nervous to invest the time to save lives in the house. Okay, you have a good idea to buy a home for yourself or your family. How did you make this decision. Are you planning a family, you need to invest in real estate, if you buy the pressure from your peers. For all of them have bought houses when drunkYou will be asked repeated questions Potluck shares, "When are you home for sale. The reason can be many, might be the right time for determining the real estate market, cash is available for filing taxes on high incomes, the state family, or not much difference between the rental and owner (depending on city to city).
Whatever the reason to buy a house for first time buyers, is an important decision, and are confused and are looking for guidance and detailed information. Complete data andStep by step details to help first home buyers. The information will be first home buyers to help the home buying process understandable.
Check your credit score and financial situation
The first thing before starting the home buying process is to check your credit score. Your credit score is the main factor of a loan for the home. To request a credit for home loans, first your credit history and credit score check. Now with the new regulations issuedevery consumer has the right to receive credit reports from all three credit rating companies (TransUnion, Equifax, Experian).
Under federal law, guidelines, each consumer can get a free credit report from major credit rating companies techniques after every 12 months. Next link to your credit report free. (http://www.annualcreditreport.com)
(Note: Beware of fake websites provide free credit report, which aims to keep your personal data. CheckURL above, when you type or cut / paste, it should be the same place. Po 'time with a couple of mistakes, which may go to different site with the same look and functionality. Again, beware of people looking for personal information. Your personal information is your identity on the Internet.)
Your credit score will provide information to creditors about your credit future. It tells them how good you are to keep your records, including the payment of accounts on time, without values, the way you manage yourCredit cards and other debts. Does it have any negative comments against your name, etc.
If you find a suspicious activity report against your name on your credit report immediately in writing to all three major rating agencies to credit for businesses. This relationship can also be used for any incorrect address or the name of the credit report. Bottom line of this report may help to know where he stands on the threshold and as a good opportunity to take a loan for a reasonable rate of interest. The higher score means more creditoffers attractive loan from banks.
Once your credit score was checked and was satisfied with the needs of banks, the next thing that your financial situation to monitor. The first thing is your current assets over current liabilities. You are able to retain a large proportion of salary set aside for future mortgage payments, without disturbing the existing commitments.
Do simple calculations, if your salary is $ 5000 and the family's current expenses, including payments of debtabout $ 2000 (including rent $ 1000). This means you have $ 3000 left in your bank. If you are looking for a house for the monthly payment will go to $ 2000 and after deduction of the remaining left with $ 1000 Next deduct your property tax of $ 1000 Take another $ $ 400 (prices vary from state to state). We are left with $ 600. You must still factor in home security, landscape, Miscellaneous. costs associated with owning a home.
In total, you have $ 1600still in control of spending. This is not the final exercise, but it will be your guide to make your list of expenses and cast and see if your monthly house payment to pay. It 'a good exercise, you will be surprised how many hidden costs will surface when you go through this exercise.
Typically, the debt must be less than 50 percent of its income. It is also advisable to take 4-6 months of payments for a home page before you go home option. Reserve funds willRain useful in situations such as loss of jobs, health issues, etc.
Time to take Real Estate
The first question on what exactly an agent is not the same buyer at home. The first time he has access to homes for sale. This list will be the first brokerage network before it is published on the Web or in print. Your local broker will have more information on the current market trends, and the manner in which the market is going in your area. He will be the first to know a good house lands on yourThe choice of the area.
Get Listing Agent Network, or referral of your friends or relatives. Make a short list of agents and brokers to select a few and talk to your needs, even the budget for the homes of the future. Be honest and let them know that it will not be of interest to the highest bid. Want to go home and not at the expense of losing your peace of mind. Give us your specifications, such as 2,3,4 bedrooms that local area, any restriction to cross the street, so the more information providedreal estate agent will help him / her to understand your needs. Speaking with him that his bank would have in connection with a loan. Most real estate agents or brokers have connections with financial institutions and can help to reduce the use of paper.
Throughout the knowledge, experience, professional approach hawk eye of a mediator brings to the table, which is going to tour the property. This is an important part of buying a house. Do not worry if you do not find the house right after a fewvisits. It takes some time before you get your first dream home.
Be careful, when you go out for looking home, every home you tour looks great, specially if you have been living in an apartment. This is common apartment complex syndrome. Always match home specs with your specs, what you want not what is shown to you.
Where to get mortgage or where to apply for a loan
Almost 99 percent of home buyers finance home through mortgage companies. Only 1 percent of rich people can buy the house with cash. We are all in the same boat. You may ask what loan is best for you, or where to purchase mortgages. The bottom line, you want a loan at interest rates lower, with zero points.
You can get loans broker loan mortgage company or commercial banks. Each unit is treated in another way. Where you might have a better management mortgage brokers, as is the mediator between the buyerand lenders and their interest to make money on one side or both sides. Such brokers are independent and their work, in collaboration with a broker or bank important. The main thing is to see the paper terms and conditions of the rate lock period, all points will be applied to your mortgage and what costs will be added to your loan. Since they operate independently, there are different rules. For small, you do not want do not inheritbad loans.
The next option is to go through a broker, banker, broker this type of work with a specific bank for many banks and contribute to a better price for the banks to obtain. Ability to negotiate less than what he had to do with the policy of the bank. The fee structure will be standard, and there is no discount available. The paper work is more worthy of trust, as is done in collaboration with the bank.
Another option is to negotiate directly with commercial banks such as FremontBank, Citi Bank and Bank of America. Some of the benefits of doing personal loans, the bank will give you competitive prices, then already do business with them.
Some of the other options, credit unions and private lenders. If you are a part of a credit union, with those who are your options. You can have a better chance of obtaining a loan of competition from them as you meet the selection criteria.
Whatever option you choose to use a loan;Finally, you must decide if the loan product that feels. Want to go to a 80/20 loan product, which means that there will be 20 percent of the house to pay the price of deposit and the remaining 80 percent will be financed by the Bank. Other popular products are 85/15 and 90/10 for the market at high prices. Until recently, even 100 per cent interest interest-free loans available to the buyer. After the collapse of the housing market that the power has been interrupted by all banks. The factor of loan, you have to factor inyou plan to buy a house. You must be comfortable for the payment of a deposit without impact on other obligations.
Time to look for the dream
Well, we have provided the dilemma before buying a house, have struggled to find a mediator. Get your facts and spec list broker. We covered the option of a loan. The next big step is to go out and see the property.
Buying a new home
Why should anew house, only it is new?. Many people do not like the previous owners taste and sympathy is not hereditary. They do not know how the layout and colors on the wall does not. A choice of cooking styles may differ, etc. If you fall into this category and do not want a large sum of money on an upgrade or a new home is the choice for you will not.
Before scanning for new properties in the choice area, visit the model home, and thus is zero on a model that have been finalized. Once the selection is in place, it seemsBroker who will represent for the purchase of new property. Do not use builders Broker, are paid to work for the contractor, and not receive any extra commission on the house sold. In addition, the contractor will be faithful as possible. Chances are your broker will be paid a commission by the manufacturer to ease his house today.
Some of the things you want to control the purchase of a new home
Builders Do not use if your broker broker
DoDo not use the builders lender to borrow a loan
Check the prices before you update the design documents
Confirm unforeseen Department
Check the warranty period, and that everything is under warranty
Check the manufacturers' past performance
Coming home inspection done, even a new home.
Buying an old house, you've already thought made for an existing house and you do not mind moving to the former owners the choice of landscape or the interior design is not. You do not have to go far to upgrade the future if necessary. Nowshould be clear from the location where you want to buy a house. Less confusion about the choices that will make you more concentrated in a house to buy. If you prefer to have only the houses of the city, there is no point in going to open houses for single-family homes. The more you focus on your needs, you get a good home. Weekend Open House Wy few visits with the broker. Some things you might want to go, while looking for houses.
It is home to the streets
What is the noise
Istoo close to school premises
Check if the roof is replaced
How well do fencing, many sellers to paint the fence to give the new look
Take control of pests that
What is the status of the air conditioner
If the carpet is old, the seller will replace or give discounts
Check the dishwasher, disposal, electricity and health —
When the paint was done last
Related posts:
Changes Pant – Angels or Devils?
To use the Mortgage Meltdown
What is a Low Income Home Buying Program?
How To Get a Low Mortgage Nance
The growing popularity of seller financed Real Estate
The finding of a Ocala Real Estate Broker – Some suggestions
Everything a real estate agent does not want you to know, "A Year in Review 2006
Why Hire an Exclusive Buyers Agent
Houston Mortgage Brokers
The selling Help Homeowners in Trouble
Posted on January 28th, 2010 in Mortgage Bankers Association Articles by admin
Buying home 101 – Home Buying Guide Step-by-step for first time buyers. First-time buyers have tons of questions, you can understand that nervous to invest the time to save lives in the house. Okay, you have a good idea to buy a home for yourself or your family. How did you make this decision. Are you planning a family, you need to invest in real estate, if you buy the pressure from your peers. For all of them have bought houses when drunkYou will be asked repeated questions Potluck shares, "When are you home for sale. The reason can be many, might be the right time for determining the real estate market, cash is available for filing taxes on high incomes, the state family, or not much difference between the rental and owner (depending on city to city).
Whatever the reason to buy a house for first time buyers, is an important decision, and are confused and are looking for guidance and detailed information. Complete data andStep by step details to help first home buyers. The information will be first home buyers to help the home buying process understandable.
Check your credit score and financial situation
The first thing before starting the home buying process is to check your credit score. Your credit score is the main factor of a loan for the home. To request a credit for home loans, first your credit history and credit score check. Now with the new regulations issuedevery consumer has the right to receive credit reports from all three credit rating companies (TransUnion, Equifax, Experian).
Under federal law, guidelines, each consumer can get a free credit report from major credit rating companies techniques after every 12 months. Next link to your credit report free. (http://www.annualcreditreport.com)
(Note: Beware of fake websites provide free credit report, which aims to keep your personal data. CheckURL above, when you type or cut / paste, it should be the same place. Po 'time with a couple of mistakes, which may go to different site with the same look and functionality. Again, beware of people looking for personal information. Your personal information is your identity on the Internet.)
Your credit score will provide information to creditors about your credit future. It tells them how good you are to keep your records, including the payment of accounts on time, without values, the way you manage yourCredit cards and other debts. Does it have any negative comments against your name, etc.
If you find a suspicious activity report against your name on your credit report immediately in writing to all three major rating agencies to credit for businesses. This relationship can also be used for any incorrect address or the name of the credit report. Bottom line of this report may help to know where he stands on the threshold and as a good opportunity to take a loan for a reasonable rate of interest. The higher score means more creditoffers attractive loan from banks.
Once your credit score was checked and was satisfied with the needs of banks, the next thing that your financial situation to monitor. The first thing is your current assets over current liabilities. You are able to retain a large proportion of salary set aside for future mortgage payments, without disturbing the existing commitments.
Do simple calculations, if your salary is $ 5000 and the family's current expenses, including payments of debtabout $ 2000 (including rent $ 1000). This means you have $ 3000 left in your bank. If you are looking for a house for the monthly payment will go to $ 2000 and after deduction of the remaining left with $ 1000 Next deduct your property tax of $ 1000 Take another $ $ 400 (prices vary from state to state). We are left with $ 600. You must still factor in home security, landscape, Miscellaneous. costs associated with owning a home.
In total, you have $ 1600still in control of spending. This is not the final exercise, but it will be your guide to make your list of expenses and cast and see if your monthly house payment to pay. It 'a good exercise, you will be surprised how many hidden costs will surface when you go through this exercise.
Typically, the debt must be less than 50 percent of its income. It is also advisable to take 4-6 months of payments for a home page before you go home option. Reserve funds willRain useful in situations such as loss of jobs, health issues, etc.
Time to take Real Estate
The first question on what exactly an agent is not the same buyer at home. The first time he has access to homes for sale. This list will be the first brokerage network before it is published on the Web or in print. Your local broker will have more information on the current market trends, and the manner in which the market is going in your area. He will be the first to know a good house lands on yourThe choice of the area.
Get Listing Agent Network, or referral of your friends or relatives. Make a short list of agents and brokers to select a few and talk to your needs, even the budget for the homes of the future. Be honest and let them know that it will not be of interest to the highest bid. Want to go home and not at the expense of losing your peace of mind. Give us your specifications, such as 2,3,4 bedrooms that local area, any restriction to cross the street, so the more information providedreal estate agent will help him / her to understand your needs. Speaking with him that his bank would have in connection with a loan. Most real estate agents or brokers have connections with financial institutions and can help to reduce the use of paper.
Throughout the knowledge, experience, professional approach hawk eye of a mediator brings to the table, which is going to tour the property. This is an important part of buying a house. Do not worry if you do not find the house right after a fewvisits. It takes some time before you get your first dream home.
Be careful, when you go out for looking home, every home you tour looks great, specially if you have been living in an apartment. This is common apartment complex syndrome. Always match home specs with your specs, what you want not what is shown to you.
Where to get mortgage or where to apply for a loan
Almost 99 percent of home buyers finance home through mortgage companies. Only 1 percent of rich people can buy the house with cash. We are all in the same boat. You may ask what loan is best for you, or where to purchase mortgages. The bottom line, you want a loan at interest rates lower, with zero points.
You can get loans broker loan mortgage company or commercial banks. Each unit is treated in another way. Where you might have a better management mortgage brokers, as is the mediator between the buyerand lenders and their interest to make money on one side or both sides. Such brokers are independent and their work, in collaboration with a broker or bank important. The main thing is to see the paper terms and conditions of the rate lock period, all points will be applied to your mortgage and what costs will be added to your loan. Since they operate independently, there are different rules. For small, you do not want do not inheritbad loans.
The next option is to go through a broker, banker, broker this type of work with a specific bank for many banks and contribute to a better price for the banks to obtain. Ability to negotiate less than what he had to do with the policy of the bank. The fee structure will be standard, and there is no discount available. The paper work is more worthy of trust, as is done in collaboration with the bank.
Another option is to negotiate directly with commercial banks such as FremontBank, Citi Bank and Bank of America. Some of the benefits of doing personal loans, the bank will give you competitive prices, then already do business with them.
Some of the other options, credit unions and private lenders. If you are a part of a credit union, with those who are your options. You can have a better chance of obtaining a loan of competition from them as you meet the selection criteria.
Whatever option you choose to use a loan;Finally, you must decide if the loan product that feels. Want to go to a 80/20 loan product, which means that there will be 20 percent of the house to pay the price of deposit and the remaining 80 percent will be financed by the Bank. Other popular products are 85/15 and 90/10 for the market at high prices. Until recently, even 100 per cent interest interest-free loans available to the buyer. After the collapse of the housing market that the power has been interrupted by all banks. The factor of loan, you have to factor inyou plan to buy a house. You must be comfortable for the payment of a deposit without impact on other obligations.
Time to look for the dream
Well, we have provided the dilemma before buying a house, have struggled to find a mediator. Get your facts and spec list broker. We covered the option of a loan. The next big step is to go out and see the property.
Buying a new home
Why should anew house, only it is new?. Many people do not like the previous owners taste and sympathy is not hereditary. They do not know how the layout and colors on the wall does not. A choice of cooking styles may differ, etc. If you fall into this category and do not want a large sum of money on an upgrade or a new home is the choice for you will not.
Before scanning for new properties in the choice area, visit the model home, and thus is zero on a model that have been finalized. Once the selection is in place, it seemsBroker who will represent for the purchase of new property. Do not use builders Broker, are paid to work for the contractor, and not receive any extra commission on the house sold. In addition, the contractor will be faithful as possible. Chances are your broker will be paid a commission by the manufacturer to ease his house today.
Some of the things you want to control the purchase of a new home
Builders Do not use if your broker broker
DoDo not use the builders lender to borrow a loan
Check the prices before you update the design documents
Confirm unforeseen Department
Check the warranty period, and that everything is under warranty
Check the manufacturers' past performance
Coming home inspection done, even a new home.
Buying an old house, you've already thought made for an existing house and you do not mind moving to the former owners the choice of landscape or the interior design is not. You do not have to go far to upgrade the future if necessary. Nowshould be clear from the location where you want to buy a house. Less confusion about the choices that will make you more concentrated in a house to buy. If you prefer to have only the houses of the city, there is no point in going to open houses for single-family homes. The more you focus on your needs, you get a good home. Weekend Open House Wy few visits with the broker. Some things you might want to go, while looking for houses.
It is home to the streets
What is the noise
Istoo close to school premises
Check if the roof is replaced
How well do fencing, many sellers to paint the fence to give the new look
Take control of pests that
What is the status of the air conditioner
If the carpet is old, the seller will replace or give discounts
Check the dishwasher, disposal, electricity and health —
When the paint was done last
Related posts:
Changes Pant – Angels or Devils?
To use the Mortgage Meltdown
What is a Low Income Home Buying Program?
How To Get a Low Mortgage Nance
The growing popularity of seller financed Real Estate
The finding of a Ocala Real Estate Broker – Some suggestions
Everything a real estate agent does not want you to know, "A Year in Review 2006
Why Hire an Exclusive Buyers Agent
Houston Mortgage Brokers
The selling Help Homeowners in Trouble
Tuesday, January 26, 2010
Zero-interest home sold for no profit to deserving family
Zero-interest home sold for no profit to deserving family
If you are a first time home-buyer, live or work in Marin, and make less than $58,000 per year you could qualify to buy a 3 bed-room, 2-bath home in San Rafael with a zero-interest mortgage.
The good deal is courtesy of Habitat for Humanity, the organization dedicated to building and providing homes for low-income residents. This particular home will also be sold at no profit by HFH.
Anyone interested in applying for the home needs to attend an orientation meeting where they can learn about the application process and obtain an application form. The orientations are scheduled for:
Tuesday, February 23 from 6:00 p.m. to 8:00 p.m.
Kennedy Room at the San Rafael Church, 1104 - 5th Avenue, San Rafael
Read more: http://www.sfgate.com/cgi-bin/blogs/inmarin/detail?&entry_id=56007#ixzz0djjCRXaL
If you are a first time home-buyer, live or work in Marin, and make less than $58,000 per year you could qualify to buy a 3 bed-room, 2-bath home in San Rafael with a zero-interest mortgage.
The good deal is courtesy of Habitat for Humanity, the organization dedicated to building and providing homes for low-income residents. This particular home will also be sold at no profit by HFH.
Anyone interested in applying for the home needs to attend an orientation meeting where they can learn about the application process and obtain an application form. The orientations are scheduled for:
Tuesday, February 23 from 6:00 p.m. to 8:00 p.m.
Kennedy Room at the San Rafael Church, 1104 - 5th Avenue, San Rafael
Read more: http://www.sfgate.com/cgi-bin/blogs/inmarin/detail?&entry_id=56007#ixzz0djjCRXaL
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