Rates on 30 Year Mortgages Below 5%

Mortgage rates declined for the third straight week. Great news for all home and condo buyers but really great news for first time home buyers who qualify for the $8,000 tax credit and long time homeowners who want to buy a new home and qualify for $6400 tax credit. Both expire in a few months so buyers must go under contract for their new home by April 30. Look for condos in Aventura, Miami Beach and Sunny Isles Beach where the number of sales have increased while home prices are beginning to bottom out.

Need help finding the right home or condo for you? Call me or go to my website property search at www.feinrealtor.com.

Homebuyer Tax Credit passes House and Senate

This just in from the Florida Association of Realtors... WASHINGTON – Nov. 5, 2009 – The $8,000, first-time homebuyer tax credit has not yet been extended beyond its Nov. 30 end date, but it’s very close to gaining a longer life.The extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama’s signature to become law, and the White House has indicated it will sign it, perhaps as early as tomorrow. Until the president signs the bill, however, it is not law.In addition to extending the tax credit for first-time homebuyers under the current rules, the bill adds a smaller tax credit for move-up homebuyers who have lived in the house for five of the past seven years. The bill also increases the income limits of homebuyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.Florida downpayment assistanceAfter the president signs the bill and extends the tax credit, the Florida Homebuyer Opportunity Program – a downpayment and closing costs assistance program relating to the federal tax credit –automatically gets extended too. The state still has about $28 million available for homebuyers. The money is essentially a loan to first-time buyers; they receive it upfront, use it for a downpayment or other costs, and pay it back once they get their federal refund.For more information on the Florida Homebuyer Opportunity Program, visit the Homebuyer Center on floridarealtors.org: http://www.floridarealtors.org/AboutFar/homebuyercenter/index.cfm

Florida's $8k program effective today but not available yet, according to FAR

This just in from the Florida Association of Realtors re:

Florida’s $8K program effective today but not available yet

TALLAHASSEE, Fla. – July 1, 2009 – Florida created a program to help first-time homebuyers get their federal tax credit early, allowing them to use up to $8,000 toward a downpayment. The effective date for the program is July 1; however, it will probably be another few weeks before the funds are available. As a result, some Realtors struggling to help homebuyers find the system confusing. While most first-time homebuyers qualify for the tax credit (given by the government as an income tax rebate regardless of tax owed), they once had to buy a home first, submit the info to the IRS through their tax return, and wait for the $8,000 rebate. To help these buyers get the money early enough to use it as a downpayment, the State of Florida created a program of bridge loans, the Florida Homebuyer Opportunity Program (FLHOP), where money can be borrowed from the state and then paid back after the new homeowner receives his tax credit.

If you want to take advantage of the $8k tax rebate for first time home buyers [or if you haven't bought or lived in your primary residence for more than 3 years, call me or start your search on line at www.lorifeinsells.com

First time homebuyer $8000 Tax credit

Mortgage rates are at an all time low, sellers are motivated, owning a home is a great investment in your future, and can lead to many, many years of happy memories.

And now….. Another great reason to buy a home now – an $8,000 tax credit for first time homebuyers!

If you qualify and buy your primary home residence before December 1, 2009, then you’re eligible for the credit—allowing you to deduct 10% of the purchase price of your home up to $8,000 when you file your taxes. A lot of people thought the $8,000 tax credit would be available for closing costs or to supplement the down payment of the purchase. Not so unless you live in Florida.

In Florida, the buyer can now access a down payment program (DAP) that is funded by the State of Florida based on a bill the Governor signed May 29. However, don't get too excited as it comes with strings attached, according to Michele Baena, Senior Home Mortgage Consultant, Florida Home Finance Group, LLC, An Affiliate Of Wells Fargo Home Mortgage.

She reminds us that the buyer can only use the down payment assistance [DAP] with an FHA loan and the Buyer must still come up with the first 3.5% down payment from their own funds (just like they do today). The DAP can be used to pay for closing costs, pre-paids, discounts points to lower rate or additional down payment. Lender also has to review tax returns carefully to make sure borrower will be eligible for the $8000 tax credit. DAP will also need to be counted as a second lien at the time of purchase and may have a monthly payment calculated into the ratios.

Michelle offers a simpler solution that accomplishes the same thing as the new legislation and is a lot less complicated.

Have the buyer go FHA and come up with their own 3.5% down payment (Gift or otherwise) just like you would have to under the new legislation. Have the SELLER pay the closing costs and pre-paids. Once the loan closes the buyer can wait until they file their 2009 tax returns in 2010 or they can easily file an amended tax return right after closing at no cost and get the $8000 tax credit right after they close.

If you use conventional financing, [most often you will need 20% down], or if you pay cash for the purchase, you would file an amended tax return for the $8,000 tax credit.

Want more information about the tax credit? Go to www.irs.gov or www.HousingMarketFacts.com, from the National Association of Realtors, for more information.

Ready to get started and search for your new home in South Florida, go to www.lorifeinsells.com to search properties for free.