$8,000 Tax credit extended and EXPANDED!

The Senate today voted unanimously Wednesday night to extend the $8,000 tax credit for home buyers beyond its scheduled November 30, 2009 expiration date.

The credit would be available until April 30, 2010. Under the new legislation the credit will also now apply to home buyers who are buying their second or subsequent home. The credit currently applies only to first time home buyer.

The Senate vote was 98 to 0

Under a compromise reached late last week, the tax credit for veteran homeowners will apply only to those who have lived in their current residence for at least five years. The credit for these buyers will be capped at $6,500 while first time buyers will continue to receive $8,000.

Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively. Above those limits there are diminishing credits available.

The bill was passed as an amendment to legislation extending unemployment benefits. The House is expected to vote on the bill before the end of the week.

Bill Seeks Expansion of Home Buyer Tax Credit

by Jann Swanson
If Congress enacts legislation currently in front of the House Ways and Means Committee, the current popular First Time Home Buyer Tax Credit will be extended beyond its current expiration date and greatly expanded.

HR 2801, Home Ownership Moves the Economy (HOME) Act of 2009, introduced by Howard Coble (R-NC) would continue the availability of the credit into 2010 and allow all home buyers to take advantage of the program. The credit is due to expire on December 1, 2009.

The current legislation grants a one-time credit of 10 percent of the home’s purchase price up to a maximum of $8000 to first time homebuyers or those buyers who have not owned a house in the last three years. Homebuyers can chose to claim the credit either retroactively on their 2008 return or on their 2009 obligation. If the buyer does not owe enough taxes to cover the credit the balance will be refunded to them in cash.

The full tax credit is available to U.S. citizens with incomes under $75,000 or $150,000 for couples filing jointly and a reduced credit applies to buyers with incomes up to $95,000 and $170,000.

Unlike an earlier housing stimulus program, the credit does not have to be repaid unless the homeowner sells the house in less than three years.

Congressman Coble’s legislation would remove both the income restriction and the requirement that the home be a first-time purchase.

There have been calls from a number of quarters, to extend the program to buyers who close on a house beyond the current December 1 deadline.

The National Association of Realtors and the National Association of Homebuilders among other credit the program at least in part with the recent rebound in housing sales.

The homebuilders group has been urging its members to lobby for just such a program as that proposed by the Home Act claiming that were the tax credit to be extended one year and made available to all home buyers it would increase home sales by 383,000 units and create nearly 350,000 jobs

Home Inventory is down again!

INVENTORY IS ONLY 6 MONHTS


We found out last week that our current inventory supply for the Coachella Valley is at 6 months. This means that if no other properties were listed for sale, all homes for sale would be gone in 6 months.

Lending continues to get tougher. If you are preapproved now, you may not be down the road. Don't wait thinking prices will drop, you could lose out, and may end up paying more in your loan costs than what you would save in the price reduction of the home.

So if you are looking, now's the time. We are still seeing bank owned properties getting multiple offers. You need to be ready and act fast to get the home you want.

We are expecting to see an inflow of new properties over the next several months. So be ready. Call me today!

Learn how I can save you at least $5,000

on the purchase of your home, guaranteed!!!

Call Free 24-Hours a day

800-218-7889 Ext: 2016





P.S Call me today to set up your buyer consultation. Find out if now is the right time for you to buy! 760-464-8138

Making Home Affordable program may enable millions to refinance mortgages

Borrowers hoping to refinance who do not have at least 20 percent equity in their homes may qualify for the Obama administration’s “Making Home Affordable” program. Through June 2010, borrowers whose loans are owned or guaranteed by Fannie Mae or Freddie Mac may be able to refinance for up to 105 percent of a home’s value.



Homeowners must be current on their mortgage payments and may qualify with credit scores as low as 620. Borrowers who do not meet the criteria for the refinance program may be eligible for another Obama administration plan that focuses on loan modifications.



For more information about the eligibility requirements and how the programs work, please visit www.makinghomeaffordable.gov

U.S. renters turn buyers as homes become affordable

Record-low interest rates and favorable home prices have resulted in some first-time home buyers realizing that it costs the same or less to own a house as it would to rent a comparable place to live.


MAKING SENSE OF THE STORY FOR CONSUMERS



· According to an executive at John Burns Real Estate Consulting, out of the 76 metropolitan area markets across the U.S. tracked by the company, approximately 50 percent show that a person can buy a house for less than renting when considering the after-tax cost of homeownership.



· In some areas of California, especially in Riverside and San Bernardino counties, monthly mortgage payments on single-family detached homes are significantly lower than apartment rents.



· By most measures, affordability is at a record high. The NATIONAL ASSOCIATION OF REALTORS®’ housing affordability index rose 13.6 percentage points in January to 166.8; the highest since tracking began in 1970. The CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) First-time Buyer Housing Affordability Index stood at 59 percent in the fourth quarter of 2008, meaning that more than half of California households could afford to purchase an entry-level home in the state.

Mortgage rates drop to record low

Rates on 30-year, fixed-rate mortgages averaged 4.85 percent for the week ending March 26, following an announcement by the Federal Reserve that it is launching a new effort to assist the U.S. housing market. The rate marked a record low in the history of the Freddie Mac survey. The previous low was 4.96 percent set during the week of Jan. 15.

C.A.R. launches mortgage protection plan for first-time home buyers

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers.

Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.

To qualify for the Mortgage Protection Program, applicants must:

· Be a first-time home buyer – someone who has not owned a home in three

or more years

· Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009

· Use a California REALTOR® in the transaction

· Purchase the property in California

· Be a W-2 employee (cannot be self-employed)



To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.