Is the Tax Credit Working?

April 19, 2009 · Adam Chinn · 7 Comments

new-construction I recently came across an article by the (CBIA) California Building Industry Association entitled, “New-Home Sales Still Historically Slow in February”. The title does suggest that this is indeed another sub-par month for the real estate business as well as our economy but as I read on I did find some very positive news that will hopefully bring us closer to the bright future. Positive news such as, us finally seeing the bottom of the housing declines.

I am current working with some clients who are interested in purchasing their first home in a New-Home Community. They would be Eligible for both the $10,000 New-Home Tax Credit as well as the $8,000 First Time Homebuyers Tax Credit. This of course would make a huge difference for them financially, who wouldn’t want an extra $18,000 in credit when purchasing a home?

If you would like to view the article please visit California Building Industry Association.

Highlights of the 2009 First-Time Homebuyer Tax Credit

April 16, 2009 · Annie Chang · 5 Comments

tax-credit_faq Recently, I have received many questions from prospective homebuyers about the 2009 homebuyer tax credit bill — which provides $8,000 tax credit to first-time homebuyers for the purchase of their principal residence between January 1, 2009 and December 1, 2009. I wanted to share with you a very informative FAQ (http://tinyurl.com/b8mysm)from National Association of Realtors (NAR) to address many of your questions and concerns about the details of the bill.

Here are some highlights:

You must be a “first-time” homebuyer, which is defined as someone who has not owned a home in 3 years prior to the day of your 2009 purchase.
The 2009 tax credit is refundable (i.e. IRS will send you a refund check if your tax liability is less the $8,000).
The income restriction for a full tax credit is $75,000 for individuals and $150,000 for married couples.
You may receive partial credit for income up to $95,000 for individuals and $170,000 for married couples.
The home must be your principle residence and owner-occupied.
You do not have to repayment 2009 tax credits; However, if you sell the property within 3 years of the purchase, your are required to pay back the full amount of any credit, including any refund you received from it.
You can claim your 2009 tax credit when filing your 2008 tax returns by April 15, 2009.
Close of escrow must occur on or before Dec. 1, 2009; if the property is under construction when purchased, you must occupy the home before Dec. 1, 2009.

It is starting to trickle down?

April 15, 2009 · Mark Hasha · 7 Comments

money-falling A question that comes up when talking about today’s housing market is if the recent economic stimulus packages and federal bailouts that we are all paying for will actually help the average homeowner. I wish I could tell you that I understand how it all is suppose to work. You wonder how pumping billions of dollars of taxpayer dollars into bleeding financial institutions will actually trickle down and help average hard working families who are struggling to keep ahead of their daily expenses and keep a roof over their family’s heads. I can’t tell you how it is all suppose to work but I can tell you that I can now see it on my newest mortgage statement. Read more

“You’re The Best”

April 14, 2009 · Lee Ginsburg · 5 Comments

That is a comment I received recently. Can you guess from whom? After 30 years of marriage my wife does not tell me that anymore. My mom; maybe; but she didn’t. This comment came from an agent I was in contract with. I removed contingencies on time. Wow!! I lived up to my legal obligation and she took the time to comment “You’re The Best”. It should not be that way. We as Real Estate professionals should live up to our legal obligations and we should treat each other and our clients with more respect. We should all live up to our legal obligations or request an extension in a timely manner. This should be the norm not an oddity. Read more

Is it a “Buyer’s Market” or a “Buyers Market”?

April 13, 2009 · Julie Cleland · 4 Comments

The short answer is BOTH! What’s the difference and how can the market be both? A buyer’s market refers to a market where the conditions are more favorable toward the buyer. In real terms, the buyer has an upper hand in negotiations due to conditions. But what do I mean when I’m referring to a “buyers market”?

I’m referring to the incredible number of buyers we are now seeing in our local market signaling what may be the end of the the real estate free fall, at least in parts of the bay area. Just this morning, in my office’s weekly meeting, we discussed open house traffic over the weekend. Read more

Real Estate Jargon…What Do All of These Terms Mean?

April 6, 2009 · Kathy Wall · 11 Comments

We Realtors often bandy about tons of real estate jargon. We talk to our clients and friends about short sales, REO’s, contingency periods, etc. I have come to realize, however, that just because we know what all of this stuff means, not everyone does, so I thought it would be helpful to describe some of the terms we use. Hopefully, this will give you some idea of what we’re talking about as we rattle on and on and your eyes are going bleary! Here goes:

Contingency Periods: We, generally, refer to these when doing our contracts. As an example, we tell you that you will have a 10 day period to “remove your property condition contingency” or 20 days to remove loan and appraisal contingencies. What this really boils down to, is that these are the time frames during which you will have the right to get your deposit back if you cancel the contract. Once you “remove these contingencies,” you are no longer entitled to get your deposit back, unless you can prove some sort of fraud. Read more

VA Loan Questions and Answers

April 5, 2009 · Dean Rizzi · 4 Comments

Can I get a VA loan if I have had a bankruptcy in the last few years?
VA credit standards state that a veteran with a bankruptcy less than 3 years ago would generally not be considered a satisfactory credit risk unless: the veteran or spouse has obtained items on credit since the bankruptcy and has paid the obligations in a satisfactory manner for a continued period; and the bankruptcy was caused by circumstances beyond the control of the borrower, which would have to be verified. A bankruptcy discharged 3 to 5 years ago must be given some consideration in the underwriting of the loan. A bankruptcy discharged more than 5 years ago may be disregarded. These are the minimum standards that mortgage companies must follow when making a VA loan. In 95% of the cases, companies make the decision to approve a loan without VA’s prior approval. Keep in mind that mortgage companies also have money at risk in giving you a VA loan, so they may have stricter credit standards than those mandated by VA.

How large of a loan can I get? If my guaranty entitlement is $36,000, does this mean I am limited to a $36,000 loan? Read more

Mortgage Protection Program for First-Time Homebuyers!!

April 3, 2009 · Jean Joh · 4 Comments

news Great news for California home buyers! As if the $8000 tax credit, historically low interest rates, and affordable home prices were not enough, the California Association of Realtors Housing Affordability Fund (C.A.R.H.A.F.) is making the pot even sweeter by offering a mortgage protection program for first-time home buyers. Wow!

Back in January, I posted a blog on my personal blogsite (http://budurl.com/5vpd) about the Hyundai Assurance Program (if you lose your job or have another hardship within 12 months, you can give your new car back) and commented that it would be an interesting idea if we could have the same sort of thing for buying homes. The basic idea – buy a new home, and if you lose your job, you can give the home back without penalty. Well, it seems that someone out there was reading my blog…okay, maybe not, but this new program is not too far from the same line of thinking. So what does it entail exactly?