Obama signs home tax credit extension.

It's finally really here. Of course, this is a little old news, as people have been saying that the tax credit was approved fro the past week. Nothing is in stone until the President signs the bill into law.
It would have been nice if this could be extended to ALL home buyers. This would cause the investors back in the market in droves, and snapping up all the investment homes. Could you imagine buying a rental home for 50,000 and getting back 8,000 of your taxes?
Kind of like when everyone was driving HUMMERS because they could write off the full cost of the vehicle in the first year. I am happy with this extension because personally I have four contracts pending with First time home buyers that were probably not going to close by the deadline. It would have been ugly for all those that were counting on the credit if they couldn't get it.

Here are the highlights

• The stimulus bill will extend the 8,000 dollar tax credit to First time home buyers from the current deadline of November 30. until May 1, 2010. If you are under contract by

• April 30, then you will qualify as long as you close by July 1, 2010.
  
• "MOVE UP" buyers can now qualify for up to a 6,500 dollar tax credit if they are buying a primary home, and have lived in their current home for at least 5 years. (This is really great, although it would be better if it was for all home-buyers regardless of purpose)
  
• All U.S citizens that file taxes are eligible
  
• The tax credit has no pay back provisions so that you don't pay anything back over time, and if your taxes are less than the credit you will get a refund back.

Here is the FINE PRINT

• Home-buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income is less than $125,000.
• For married couples filing a joint return, the combined income limit is $225,000.
  Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
• The credit is not available for single taxpayers whose income is greater than $145,000 and married couples with an income that exceeds $245,000.
• The maximum price of the home can not exceed 800,000. Bummer..
  
  When you need a great Realtor in Manatee County please give me a call. I am ready to help.
  Short sale expert, REO-Bank owned, and investment properties
  Joe Murphy
  Coldwell Banker Residential Real Estate
  941-780-3260
  

3 things first time buyers should know to get the 8,000 tax credit

The first time home buyer tax credit will expire on November 30. With Thanksgiving that week it might as well be a week earlier. Typical F.T.H.B. are getting financing through FHA, VA, or USDA. These type of loans will usually take 45 days to close, if there is no major issues with the borrower. So we have a month to find a home, go to contract, and close it to get the cash for the buyer. Here in Manatee county First time home buyers, and their agents are scrambling. I get a few calls a day from buyer agents asking if one of my listings would be able to close in time for the deadline.

My advice for a first time home buyer?

1. Avoid short sales, unless they are "pre-approved"- Short sales can take months to close. You do not have time for that, and betting that you found the "one" short sale that will close in time is a risky bet now. Focus on foreclosures, and regular motivated sellers ( yes, they do exist!).

2. Get your financing in order as much as possible, as early as possible.- If the deal does not close due to financing issues, or worse, is delayed for financing issues. You will be the one losing the benefit of the tax credit. Make sure you have a reputable lender, be realistic with the time frame, and be proactive to make sure they have everything needed to close the deal.

3. START SHOPPING RIGHT NOW! - Did I mention you have about a month to find, and get into contract with your next home? Also, you are not alone. There are plenty of buyers out there trying to do the same thing. The good deals are going FAST.. I wrote an offer for 5k over list price, pre-qualified buyer, quick close, etc. We were beat out. The home had gone into a bidding war. My buyer was maxed out with what he could afford, but we made the offer within 24 hours of the home getting listed.

GOOD THINGS TAKE TIME..... GREAT THINGS HAPPEN ALL AT ONCE!