Time is Running Out For the $8,000.00 Tax Credit...

Mortgage and Lending with Alcova Mortgage LLC NMLS #159635 TN# 100251

Time is running out for your clients who want to purchase a home this year and utilize the $8,000.00 tax credit.  To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.   Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.) Applying for the credit is easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

If you have anyone that has been sitting on the fence, NOW is the time to get them out looking at homes and using this deadline of closing by November 30th as a tool!!  With the new Reg-Z requirements requiring the borrower to have the initial disclosures for 7 business days prior to closing it is requiring that we have loans submitted and approved by the 3rd week of the month to insure that the loan will close by months end.  To be safe and make sure your clients close in time to qualify and claim the tax credit we are recommending these loans be in contract and submitted no later than November 16th in order to get the appraisals, home inspections, etc. completed for loan approval.

This weeks bond report has mortgage backed securities off .50 basis points today which has resulted in rates moving up about 1/8 to ¼ point since this morning.  Bonds have improved over the last couple of weeks but are now at their worst levels in 5 days.  Existing home sales were reported at 5.24M, better than expectations of 5M.  The inventory of unsold homes is still at a 9.4 month supply, a lofty level but the best levels in over a year.  The housing market is continuing to show signs of improvement and stabilization and even though I don't see home prices bouncing higher, the significant price drops we have seen over the last several months may taper off.

I hope everyone has had a rewarding and successful week and I wish you a happy and fun filled weekend!  If I can ever be of assistance to you or your clients do not hesitate to call me.  For those of you that I do business with on a regular basis...thank you for your business and confidence in me to handle your clients in a professional manner that will shed a good light on you and I both.  For those of you who have not used me, I would love the opportunity to earn your business.  See why so many to producing real estate agents choose to do business with me and Mortgage Investors Group.  Visit me on the web to see the great programs we have to offer.  www.migonline.com/Ken.Phillips

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