Suzanne's Blog

First-Time Home Buyer Tax Credit

Suzanne Horsburgh (Buy America Real Estate Services) — Tue, 21 Jul 2009 13:17:00 -0500

The $8,000 First-Time Home Buyer Tax Credit Expires December 1, 2009

If you're planning to claim use the credit and haven't started looking for a home, your clock is officially ticking. You must be closed on your new home on or before December 1.

Because purchase closings come 60-days standard, therefore, your $8,000 is in jeopardy unless you go under contract prior to October 2, 2009. That's 73 days from now.

Use it or lose it. The First-Time Home Buyer Tax Credit is part of the American Recovery and Reinvestment Act of 2009. In it, Congress authorized a first-time homebuyer tax credit of up to $8,000 for home buyers meeting certain qualifying criteria. The program's goal was to stimulate entry-level home purchases and, by most measures, the plan has been successful.

First-time home buyers accounted for about one-third of all home resales in May.

Now, the IRS definition of "first-time home buyer" may be different from what you expect. According to the IRS, a first-time home buyer is anyone who has not owned a "main home" in the last 3 years with "main home" defined as a home in which a person has lived "for most of the time". Main homes can include traditional homes, houseboats, trailers and other residence types.

For couples -- married or otherwise -- both home buyers must be first-timers to be tax credit-eligible.

Moreover, not every first-time home buyer is eligible for the $8,000 First Time Home Buyer Tax Credit. Some notable exclusionary cases include first-time home buyers who:

File taxes separately and whose adjusted gross income exceeds $95,000
File taxes jointly and whose adjusted gross income exeeeds $170,000
Acquire property from a mother, father, sibling or child
Acquire property from an entity in which they're a majority owner
Acquire the home by gift or inheritance

And then, the First-Time Home Buyer Tax Credit may not deliver the full $8,000.

The tax credit is limited to 10 percent of the home's purchase price and it also diminishes as home buyer income rises. Tax credit phase-outs start at $75,000 for homebuyers filing separately and $150,000 on joint returns.

Assuming you qualify, though, the good news is that it's easy to claim your tax credit.

Buy and close on a new, "main" home before December 1, 2009.
Submit IRS Form 5405 with your 2009 tax returns in April 2010.

That's it.

Meanwhile, the program does come with some gotchas. For example, If you sell your home, or cease to use it as your "main home" within 36 months of purchase, the IRS will require a full payback. There are only a few allowable exceptions to this policy and you shouldn't count on being granted one.

Not moving in the next 3 years? Don't worry about it.

---Good News!---As of July 1st 2009---

Suzanne Horsburgh (Buy America Real Estate Services) — Fri, 26 Jun 2009 12:42:40 -0500

Loans with a balance between $417K and 729K will no longer be subjected to a 1% add to the rate. This is a great improvement as we move towards ending the recession in the housing industry.

The lenders still require loans to be fully documented and clients have to have a high FICO score with an equitable position of less than 80%. This is an excellent opportunity for folks who want to refinance or buy a single family residence in Southern California. The rate today 6/26/09 is 5.375 fixed for 30 years.

Further information; please call 714-404-6099

RE License # 01508012

Tax Relief for California First-Time Homebuyers

Suzanne Horsburgh (Buy America Real Estate Services) — Tue, 28 Apr 2009 09:52:13 -0500

For California home-buyers, tax time can now be called tax relief time too.

Two recent laws, a California home-buyer may qualify for $18,000 in tax credits for buying his or her piece of the American dream. The two tax credits are a first-time home-buyer credit up to $8,000 under federal law, and a new home credit up to $10,000 under California law.

For more information please contact me and I can provide a quick view chart with tax credit laws, and appropriate website links.

This information is from the C.A.R. legal Department.

Foreclosures in Orange County, California

Suzanne Horsburgh (Buy America Real Estate Services) — Sun, 12 Apr 2009 11:19:20 -0500

The Buy America Team would like to assist you in finding your prefect property.

We back our knowledge in the real estate foreclosure marketplace, with years of experience. The most important variable is keeping updated on the ever-changing lender climate. We are always aware of new and updated loan programs that help first time home buyers and or investors.

We cannot think of a better place to live than in Southern California's beautiful Orange County. We think you will agree!

Contact Suzanne, today, for a full spectrum of properties and loan options available that meet your needs and your dreams.

Freddie Mac Mortgage Relief Refinance

Suzanne Horsburgh (Buy America Real Estate Services) — Tue, 31 Mar 2009 11:15:08 -0500

You heard it here first!

This is HOT! A new streamlined rate/term refinance program that will actually help homeowners.

•· 105% Loan to Value and unlimited Combined Loan To Value

•· Fico Scores above 620

•· New borrowers can be added

•· Stated Income-Stated Asset ( Banks may require additional documentation)

•· Closing costs can be included in new loan

•· Reduce the interest rate of the first mortgage

•· Replace an ARM, Interest Only Mortgage

If you want more information, please do not hesitate to contact me.

Are You A Veteran?

Suzanne Horsburgh (Buy America Real Estate Services) — Fri, 27 Mar 2009 12:55:04 -0500

Did you know you could use your VA to buy a home or receive help if you are having trouble making your mortgage payments?

There are many benefits of a VA home loan

Equal Opportunity

Loan Limit $625,000.00 CA

No Down payment, (unless required by the lender or the purchase price is more than reasonable value of the property.

Negotiable interest rate

Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5%

An assumable mortgage

Right to repay without penalty

Lastly, existing VA loans are eligible for VA Assistance to veteran borrowers in default due to temporary financial difficulty.

Zero Capitol Gains.

Suzanne Horsburgh (Buy America Real Estate Services) — Wed, 18 Mar 2009 11:40:25 -0500

Congressman ® John Campbell has proposed a great idea for California, and that is to eliminate Capitol Gains for any real estate purchased in 2009. In other words, if you bought any type of real estate in 2009 and kept the real estate for a short or long period. Regardless of when you sold, there will be zero Capitol Gains.

Now, let us look at what the market is offering.

Historically low interest rates

Huge inventory

Zero Capitol Gains (if escrow closes in 2009)

I strongly recommend we get behind the congressional representatives proposal because this helps all homeowners.

If you would like to hear more, please contact me, and I will send you the link to John Campbell's laptop library.

Suzanne

714-404-6099

Did You Win The Lottery?

Suzanne Horsburgh (Buy America Real Estate Services) — Sun, 28 Dec 2008 12:32:13 -0600

Mortgage Interests Rates have fallen. A fixed rate loan for 30 years is below 5.000%, and Prime has dropped to 3.500%. Are you ready to take advantage of this once in a lifetime opportunity?

It is true; banks have tightened their guidelines. That is why I am reaching out to you to let you know, this is the time to get your loan file ready to lock at the lowest rate possible.

If for whatever reason, I cannot help you refinance, there will be no cost to you.

What are you waiting for? Call a seasoned loan broker that will save you money.

Cell direct 714-404-6099

Did Somebody Say REFI?

Suzanne Horsburgh (Buy America Real Estate Services) — Wed, 10 Dec 2008 16:38:58 -0600

Did I Hear Refi Boom?

Rates Are Falling and are under 5.000%

This could be a really big refi market- Are You Prepared?

Prepare Now, and Qualify for the New Lending Policies.

Now is the time to contact me and schedule your appointment! Take advantage of the new conforming loan limit of $625,500.00

Conforming ($417.000.00) rates plunge this week to a new low 5.25% fixed for 30 years.

Suzanne Horsburgh (Buy America Real Estate Services) — Sun, 30 Nov 2008 11:50:47 -0600

Conforming ($417.000.00) rates plunge this week to a new low 5.25% fixed for 30 years. Many lenders are accepting applications now for the conforming loan limit increase to $625,500.00 ahead of scheduled publication in January 2009

The only caveat is that the applicant would have to schedule closing after January 1 2009, but there is a strong possibility that refi mania is on its way.

To my mind,refi mania may start slow because of home equity issues, but as demand continues and lenders become confident that the market can sustain the momentum, property values are likely to increase and the pent up demand will force property values upwards.

I have noticed that some lenders are allowing cash out with well-qualified buyers, so one could essentially combine first and seconds to reduce monthly mortgage commitment substantially. If you have any questions or have an actual scenario, you would like to share with me. I am at your service.

Landlords are you tired of getting organized for taxes?

Suzanne Horsburgh (Buy America Real Estate Services) — Fri, 21 Nov 2008 12:39:57 -0600

I know it takes countless hours to manage property finances, especially when tax season comes around.

Try clicking on my website and use the world's easiest property management software, its completely free!

You can organize rental income and expenses for your properties and be ready for taxes in one click.

It is very easy to use, and I am sure it will save you time and money.

www.BuyMoreAmerica.com

If you don’t have a loan, you can’t buy a home.

Suzanne Horsburgh (Buy America Real Estate Services) — Mon, 06 Oct 2008 13:42:05 -0500

That is the mantra for home ownership in the fall of 2008.

The recently economic downturn has simply restricted borrowing. A prudent buyer will confirm that their loan program is still available before making an offer.

My suggestion is that you have your loan officer take a proactive measure and have the file fully approved before you submit any offer to purchase. In so doing it will help negotiations and at times beat out other offers that are on the table.

What is loss mitigation?

Suzanne Horsburgh (Buy America Real Estate Services) — Mon, 18 Aug 2008 14:31:11 -0500

Loss mitigation is an intervention program designed to help

homeowners save their homes from foreclosure, through third-party

negotiations with the lender. Loss mitigation is often the better

choice for homeowners that are trying to save their homes from

foreclosure

Down Payment Assistance That You Don't Pay Back!!

Suzanne Horsburgh (Buy America Real Estate Services) — Fri, 06 Jun 2008 13:39:05 -0500

10 Reasons to Buy to a Home

•1. This is a buyers market

•2. You get more for your money

•3. You have access to financial assistance

•4. Interest rates are at a 40 year low

•5. Tax benefits that you simply don't having renting

•6. Inventory!

•7. Equity that builds your future financial security

•8. Many properties are energy efficient, and that equates to more savings each month

•9. Amenities that are not often available when renting

•10. Room, space to grow you family

This is the time to make your dream of homeownership a reality

Swim out to the wave....

Suzanne Horsburgh (Buy America Real Estate Services) — Fri, 25 Jan 2008 12:46:48 -0600

I have often walked my dog along the shores of many Southern California beaches, often stopping to look at the surfers, as they ready to swim out to meet the next wave.

I watch, as the surfer's look for the perfect wave, and then they swim out to meet it. They meet the wave, let the swell lift them and ride the wave back to shore.

I think this is a good analogy for today's Real Estate and Refinance market. Interest rates are at a 24 year low. Those who swim out to the wave will be the ones who benefit.

One must remember, as in nature, once the wave has come to shore. One has to wait for another perfect wave. In the financial world, it maybe 24 years before these low interest rates come again.

Suzanne Horsburgh

Thoughts for the day....

Suzanne Horsburgh (Buy America Real Estate Services) — Thu, 29 Nov 2007 14:39:07 -0600

The next 6 months will be the sweet spot for purchasing. I suggest you take time to finish your financial house keeping. Pay off bills, Pay any liens or judgments, and limit your spending over the holidays.

The best plan is to have a pre-approval, before you go house hunting. That will take all the uncertainty out of the experience.

NAR is trying diligently to persuade the Senate to increase the FHA and Fannie Mae loan limits, before the end of the year.

The Feds may have to lower the discount rate, one more time, this year.

When you add all the factors together.....there is likely to be a tsunami of purchasing going on in 2008. Get their first!

Life isn't about waiting for the storm to pass,
it's about learning how to dance in the rain!!

Listen Up, First Time Home Buyers

Suzanne Horsburgh (Buy America Real Estate Services) — Sat, 06 Oct 2007 11:57:55 -0500

Pent-Up Demand Will be Unleashed

Consider this - four million net job additions in the past two years during the housing market

slump. Yet, home sales have fallen. As home sales fell, people doubled and tripled up because

apartment rents increased at their highest pace in five years. These people are waiting to buy a

home. Then there are the approximately two million marriages that occur each year. Those

newlyweds are waiting to buy a home. About four million babies are born each year - forcing

some families to consider trading up from a smaller house or condo to a larger

Information provided by NAR 10/05/2007

Patriot Express

Suzanne Horsburgh (Buy America Real Estate Services) — Thu, 04 Oct 2007 12:50:58 -0500

Any solder who wishes to start their own company, and needs financial assistance, can, if qualified receive funding through SBA.

For more information, please go to their website: http://www.sba.gov/

FHA Reform passes House and Senate Banking Committee

Suzanne Horsburgh (Buy America Real Estate Services) — Tue, 02 Oct 2007 21:58:58 -0500

FHA Reform passes House and Senate Banking Committee

In the month of September, both the House of Representatives and the Senate Banking Committee passed versions of an FHA reform package that NAR has been strongly supporting for several months. The House version, entitled "Expanding American Homeownership Act of 2007" passed with a strong majority of 348-72, and includes provisions that would eliminate the 3% down payment requirement, increase the loan limits, streamline condominium purchases, and eliminate the cap on Home Equity Conversion mortgages (HECMs). The House bill also includes provisions for a National Affordable Housing Trust fund, and provisions allowing risk based pricing on FHA insured loans. A similar, but not as far reaching, bill passed the Senate Banking committee but has yet to be considered by the full Senate, although it is expected to be brought to the floor in October. After it is passed, it will be sent to a conference committee where the two versions of the bill will be reconciled. NAR staff created a comparison document that outlines the differences between current law, the bill that passed the House, and the bill that passed the Senate banking committee. Contact Megan Booth or Jerome Nagy with any questions

Information provided by NAR

Are you thinking about purchasing your first home?

Suzanne Horsburgh (Buy America Real Estate Services) — Wed, 26 Sep 2007 15:53:09 -0500

Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover

Don't buy if you can't stay put.

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner

Don't worry if you can't put down the usual 20 percent.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price

. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history

Information provided by NAR

It really is becoming a better time to buy a home.

Suzanne Horsburgh (Buy America Real Estate Services) — Wed, 26 Sep 2007 15:46:42 -0500

It really is becoming a better time to buy a home. Over the past two days, actions by both houses of Congress to reform FHA programs, and the Federal Reserve to decrease interest rates, should make borrowing more affordable and money more available. With reduced housing prices and increased housing inventory, interest rates that are near historic lows, and now with Fannie's and Freddie's increased ability to lend, we may see positive movement in the housing market," said Combs

Information provided by: The National Association of REALTORS®, "The Voice for Real Estate," is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

I am sure you will agree being at the right place at the right time happens very rarely.

Suzanne Horsburgh (Buy America Real Estate Services) — Wed, 19 Sep 2007 21:48:02 -0500

I am sure you will agree being at the right place at the right time happens very rarely.

It is my great pleasure to inform you that Mr. Bernanke, Federal Reserve chairperson has lowered the prime by .50 basis points and there is an expectation of further reductions in the months ahead.

This is the time to analyze your credit position. By doing so now, will allow you to take full advantage of the interest rate reductions in the near future

This rate reduction will lower your monthly payment on homes loans and lines of credit. The prime rate has been reduced to 7.750%

Bush Announces FHA-Secure Plan to Assist Subprime Borrowers

Suzanne Horsburgh (Buy America Real Estate Services) — Sat, 08 Sep 2007 11:03:31 -0500

Bush Announces FHA-Secure Plan to Assist Subprime Borrowers

On August 31, 2007, President Bush announced a new initiative called FHASecure, which will give the Federal Housing Administration (FHA) flexibility to help more families keep their homes in light of the decline of the subprime market and impending interest rate adjustments affecting numerous borrowers in both the subprime and Alt-A markets. The FHASecure program will help people who have not made all of their payments on time because of rising mortgage payments but who otherwise have good credit. NAR applauded President Bush's statement of support for giving homeowners greater flexibility to refinance their loans through the FHA. At a white house conference call on the initiative, the administration specifically signaled out NAR for our timely support of the initiative. NAR has been advocating regulatory changes to the FHA program. On April 9, 2007, NAR sent a letter to Alphonso Jackson, Secretary of Housing and Urban Development, asking that FHA waive the requirement that a homeowner's mortgage be current to refinance into an FHA loan product. NAR also supports legislation that would give FHA greater flexibility by increasing loan limits, eliminating the statutory 3 percent minimum cash down payment, allowing FHA flexibility to provide risk-based pricing, and revising the condominium program. Contact Jerry Nagy of the Regulatory and Industry Relations division with any questions. Read NAR's press release

Information provided by National Association of Realtors

Beat High Gas Prices

Suzanne Horsburgh (Buy America Real Estate Services) — Fri, 24 Aug 2007 21:30:19 -0500

Use the web

The first logical way to save on gas is to find the best

prices. A great way to do this is www.gasbuddy.com.

Enter your address to find the best gas prices in your

area.

Avoid drive-thrus

Idling your vehicle wastes roughly one quart of gas,

every 15 minutes--or one quart every 2-3 McDonalds

trips. Next timw you go to a fast-food restaurant, skip

the drive-thru, and walk in.

Information provided by: The Sloan Team, Fidelity National Title

Orange County Investment Pools Rated Tops in State

Suzanne Horsburgh (Buy America Real Estate Services) — Thu, 23 Aug 2007 22:13:41 -0500

Orange County Treasurer Chriss W. Street announced on August 16 that the $1.5 billion dollar Orange County Investment Pool and $1.8 billion dollar Orange County Educational Investment Pool were ranked as California's top government pools for the first quarter of 2007 according to TRACS Financial Research, an independent firm that monitors the monthly performance of state, county and local investment pools.

The Orange County investment pools were ranked as the nation's #3 and #4 government investment pools in 2006 according TRACS Financial Research. The top rated funds have increased their return by over twenty five basis points over the last six months and now yield 5.31% and 5.29% respectively.

"Our focus is to provide safety of principal and liquidity to our investors," said Treasurer Chriss Street. "I am pleased we are able to provide our constituents with competitive returns while maintaining our Moody's AAA rating and conservative investment style. The real winners are the taxpayers and school districts which benefit from the higher revenue."

"We have a bunch of hard working professionals in the office. We have given them a professional environment and the tools they need to succeed," said Street. "I am proud of what we have been able to accomplish."

Information Provided by:

Street Cents is a taxpayer oriented newsletter focusing on financial and local government matters.