Hi All, I decided to create a FREE website in regards to credit - anything to do with credit, buying a home, identity theft, etc.... It takes alot of time to write articles and get topics, etc... but I'm striving to make it a one stop shop in the future for anyone to learn about credit.
There's an active forum now up and running, please feel free to sign up and post under one of the topics! Check it out at .....
Hi, this is Gerard Ladalardo of First Mortgage Corporation right here in beautiful Temecula, California and I’m here with your tip of the week. Ok, I have two great tips for you this week. First tip – Foodio54. That’s right, not Studio 54, but www.Foodio54.com This is a very clever website whether you use it locally or while traveling. On this website you can put in a zip code and what type of food you are looking for whether it is Japanese, Mexican, Pizza, Indian, Barbeque, whatever and it lists all the restaurants within a specified radius that has your specified cuisine. You can choose the radius from where you are and it will give you recommendations for places to eat! I absolutely love it! Everyone in my office uses it when we go on trips, especially this time of year. Foodio54.com Go check it out. You are going to love it!
Tip number 2 - This is a very limited thing that you need to take action on right away. We have a free report on the $8000 tax credit. In a nut shell, if you buy a house today and close by a certain time the government will actually write you a check for buying the house. That’s right. You get a check from the government for up to $8000! Great strategy! You have got to see this report! This is for a very limited time and it is part of the bailout program. This offer does expire shortly, so you need to act on this fast. Whether you, a friend, or a family member is looking to buy a house make sure you have the information about how to get your $8000 check with no strings attached. This is not a loan. This is a real gift from the government as part of the bailout program. Make sure you get your copy of this report, check out Foodio54, and send us an email or give us a call. Talk to you when you call!
Hi, this is Gerard Ladalardo of First Mortgage Corporation right here in beautiful Temecula, California and I’m here with your tip of the week. Ok, I have two great tips for you this week. First tip – Foodio54. That’s right, not Studio 54, but www.Foodio54.com This is a very clever website whether you use it locally or while traveling. On this website you can put in a zip code and what type of food you are looking for whether it is Japanese, Mexican, Pizza, Indian, Barbeque, whatever and it lists all the restaurants within a specified radius that has your specified cuisine. You can choose the radius from where you are and it will give you recommendations for places to eat! I absolutely love it! Everyone in my office uses it when we go on trips, especially this time of year. Foodio54.com Go check it out. You are going to love it!
Tip number 2 - This is a very limited thing that you need to take action on right away. We have a free report on the $8000 tax credit. In a nut shell, if you buy a house today and close by a certain time the government will actually write you a check for buying the house. That’s right. You get a check from the government for up to $8000! Great strategy! You have got to see this report! This is for a very limited time and it is part of the bailout program. This offer does expire shortly, so you need to act on this fast. Whether you, a friend, or a family member is looking to buy a house make sure you have the information about how to get your $8000 check with no strings attached. This is not a loan. This is a real gift from the government as part of the bailout program. Make sure you get your copy of this report, check out Foodio54, and send us an email or give us a call. Talk to you when you call!
OCALA, FLORIDA – TAYLOR, BEAN & WHITAKER MORTGAGE CORP. (“TBW”) RECEIVED NOTIFICATION ON AUGUST 4, 2009 FROM THE U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, FREDDIE MAC AND GINNIE MAE (THE “AGENCIES”) THAT IT WAS BEING TERMINATED AND/OR SUSPENDED AS AN APPROVED SELLER AND/OR SERVICER FOR EACH OF THOSE RESPECTIVE FEDERAL AGENCIES.
TBW HAS UNSUCCESSFULLY SOUGHT TO HAVE THE TERMINATION/SUSPENSION DECISIONS OF EACH OF THOSE AGENCIES REVERSED. AS A RESULT OF THESE ACTIONS, TBW MUST CEASE ALL ORIGINATION OPERATIONS EFFECTIVE IMMEDIATELY. REGRETTABLY, TBW WILL NOT BE ABLE TO CLOSE OR FUND ANY MORTGAGE LOANS CURRENTLY PENDING IN ITS PIPELINE.
Important update: FTB No Longer Accepting Applications
As of July 3, 2009, the state of California Franchise Tax Board (FTB) is no longer accepting new home credit applications. They have received over $100 million in new home credit applications and more than 12,000 applications.
The tax credit is available for qualified buyers who purchase a brand new home (never occupied home) between March 1, 2009 and before March 1, 2010. They must live in the new home as their primary residence for a minimum of two years immediately following the purchase date. (date escrow closes)
The Franchise Tax Board estimated receiving 12,000 applications - but many are duplicates, revised, or even possibly invalid. They continue to report certificates issued on a weekly basis until the full $100 million has been allocated. The expected timeframe to complete processing all certificates is August. The Franchise Tax Board will send a notification in response to all applications received, indicating the amount of credit allocated or if the homebuyer was denied.
Certificates issued for New Home Credit through 07/02/09:
As part of the American Recovery and Reinvestment Act of 2009, Congress authorized a first-time homebuyer tax credit of up to $8,000. The $8,000 credit replaced the $7,500 tax rebate program that was included in 2008's stimulus program.
According to the IRS, a first-time homebuyer is anyone who has not owned a "home" in the last 3 years where "home" is defined as a home in which a person has lived in and occupied. It can include traditional homes, houseboats, trailers and other residence types. The IRS was smart because they also defines what it means to be a first-time homebuyer with respect to couples. According to the IRS definition, there's no clean way for spouses or soon-to-be-married types to "cheat the system" and take an undue $8,000 in tax credit. The $8,000 First-Time Homebuyer The tax Credit requires both homeowners to be first-time homebuyers in order to claim the credit.
One of the biggest reasons why the $8,000 tax credit is working is because, unlike its 2008 counterpart, the government doesn't require the 2009 version of its tax relief plan to be paid back over time. First-time home buyers in 2009 can claim their credit and never have to repay it - best of all, the credit is automatic -there's no extra paperwork to sign with your real estate agent and no additional disclosures between the buyer and the seller.
The IRS instructions show that not every first-time homebuyer will be eligible to claim an $8,000 tax credit. Some notable, exclusionary cases include first-time homebuyers who:
Separately filed taxes and adjusted gross income exceeds $95,000
Jointly filed taxes and whose adjusted gross income exeeeds $170,000
Acquire property from a mother, father, sibling or child
Acquire property from a corporation/partnership in which you are a majority owner
Acquire the home as a gift or inheritance
BEWARE: If you doqualify for the credit, beware of the program's guidelines. For example, If you sell your home, or cease to use it as your owner occupied home within 3 years, the IRS will require a full payback with only a few allowable exceptions. If you plan to keep your home more than 3 years then you will be ok.
I've finally had ENOUGH!!! I have been a mortgage broker for 7 years now. It's getting harder and harder to do business as a mortgage broker. I have to reply on 3rd party entities that are all 3rd parties (processing, underwriting, etc...) to get loans done now and it isn't working effectively. As a broker I have to rely on the lender that their turn times (turn times are business days for underwriting, condition signoff, docs, etc...) are what they actually say they are - and you guessed it, most of these lenders lie, lie, lie. Then they never call you back or respond to your emails when they blow their deadlines.
Today was the last straw! I got "jacked" around again by another lender trying to get answers why my loan I submitted hasn't been underwritten and of course I get the run-around. It was very convenient also for them to not have a manager present to speak with to assist me in expediting the issue. When I can't get the loan done ontime, because of mostly these issues it makes me look like the bad guy.
I'm actually making the change to a Mortgage Banker (direct lender) where processing, underwriting, conditions, docs, funding will all be in the same place! Underwriting turn times are currently 2 business days. I'm excitied to go to the next level as a mortgage banker!
How To Keep from Leaving $8,000 at the Closing Table
•1. Who is eligible to claim the tax credit?
If you are a first-time home buyer purchasing a new home or a resale-you are eligible for the tax credit. The purchase must take place on or after January 1, 2009 and before December 1, 2009 to qualify for the tax credit. As it applies to the tax credit, the purchase date is the date when the home closes and the title to the property transfers to the home owner.
•2. What is the definition of a first-time home buyer? The tax credit law defines a "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. If you are married, both spouses cannot have owned a home.
For example, if you didn't own a home but your spouse did, you do not qualify. For unmarried purchasers, the credit amount can be given to any buyer who qualifies as a first-time buyer, for instance, if a parent jointly purchases a home with a son or daughter. If you owned a vacation home or rental property not used as a principal residence you are not disqualified as a first-time home buyer.
•3.How is the amount of the tax credit determined? The tax credit is 10 percent of the home's purchase price, however, there is a maximum $8,000 credit.
•4. Are there any income limits for claiming the tax credit? The full tax credit amount is given to buyers with a modified adjusted gross income (MAGI) of less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. For taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) the credit is reduced to zero. Taxpayers between these figures are prorated accordingly.
•5. What is "modified adjusted gross income"? Modified adjusted gross income or MAGI is defined by the IRS. For most buyers this will be the figure at the bottom of the first page of form 1040 or 1040A. For Form 1040 EZ this is reported on line 4 as of 2008.
•6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit? Possibly. It depends on your income.
•7. Can you give me an example of how the partial tax credit is determined? There is a $20,000 difference between those who are eligible for a full tax credit and those where the credit is reduced to zero. If you take the amount you are over the limit by and divide it by the 20,000, this will give you the percentage that you are over the limit by. Subtract that number from 100% and then multiply it times the $8,000. That will give you your tax credit amount.
For example: A married couple has a modified adjusted gross income of $165,000. Their income exceeds $150,000 by $15,000. Dividing $15,000 by $20,000 yields 0.75. This means they are over the limit by 75% and so are eligible for a tax credit of 25%. Multiplying $8,000 by 0.25 shows that the buyer is eligible for a partial tax credit of $2,000.
Please remember that this is an example. You should always consult your tax advisor.
•8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? The most significant difference is that this tax credit does not have to be repaid. This tax incentive is a true tax credit. But home buyers must use the residence as a principal residence for at least three years or face having to repay it. Certain exceptions apply.
•9. How do I claim the tax credit? Do I need to complete a form or application? You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.
•10.What types of homes will qualify for the tax credit? Any home that will be used as a principal residence qualifies for the credit. This includes single-family detached homes, attached homes (i.e. townhomes and condominiums), manufactured homes (also known as mobile homes), modular homes and houseboats. If it qualifies for the capital gains tax on a primary residence, it qualifies for this.
•11.I read that the tax credit is "refundable." What does that mean?
It means that the credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. For example, if you owe $6,000 in taxes and had $4,500 in taxes withheld for the year you still owe $1,500 in taxes. You would receive a check from the government for $6,500. ($8,000 - $1,500 = $6,500.) Or perhaps more common would be that you have a tax liability of $6,000 and you had $7,500 withheld so you would be getting a refund of $1,500 before the credit - the credit gets added to your refund so you would get a refund of $9,500 ($1,500 + $8,000 = $9,500) And you don't have to have any tax liability in the year you claim the credit - but you do have to have income.
•12.I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns.How can I claim the new $8,000 tax credit instead? You may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
•13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit? Yes. The "purchased" date is the date the owner first occupies the house. The date of first occupancy must be on or after January 1, 2009 and before December 1, 2009. In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
•14.Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program? Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
•15.I live in a district where I am already receiving a first time home buyer credit (Washington D.C.) Can I claim both credits? No. You can claim only one.
•16.I am not a U.S. citizen. Can I claim the tax credit? Consult your tax accountant. If you are NOT a nonresident alien (as defined by the IRS), have not owned a principal residence in the past three years and meet the income limits you may be eligible to claim the tax credit for a qualified home purchase..
•17. Is a tax credit the same as a tax deduction? No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
A tax deduction is subtracted from the amount of income that is taxed. Assuming the same $8,000 tax liability from above, a taxpayer is in the 33 percent tax bracket would have their liability reduced from $8,000 to $5,360. ($8,000 minus 33%). So the tax CREDIT is much more helpful to the buyer
•18. I bought a home in 2008. Do I qualify for this credit? No, but you may qualify for another tax credit if you bought your first home between April 9, 2008 and January 1, 2009.
•19. Is there any way for a home buyer to get the money before they file their 2009 tax return? Yes. If you believe you will qualify for the tax credit you can reduce your withholding taxes on your paycheck by adjusting your withholding amount on your W-4 via your employer or through your quarterly estimated tax payment. You can put this saved money aside to use as a downpayment. IRS Publication 919 contains rules and guidelines for income tax withholding. Please note that if the qualified purchase does NOT occur, then you will be liable for repayment to the IRS of income tax and possible interest charges and penalties. Consult your account prior to doing this.
•20. If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return? Yes. The law allows taxpayers the opportunity to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.
•21.For a home purchase in 2009, Can I choose which year to claim the credit (2008 or 2009) to make sure I get the largest credit possible? Yes. You can choose to claim the credit in the tax year that will give you the greatest credit based upon your MAGI. The purchase must take place in 2009.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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