Tim Mikel

Very Inspirational Video..click below

How does up to $8000 tax credit sound after purchasing your new home?

This is exactly what will happen if you qualify and file for the $8000 credit as I explain below.

This first time home buyer program is available until December 1st, 2009.

What is it? It is a tax credit up to 10% of the purchase price of the home up to $8000 whatever is less. To be a first time home buyer you must have not owned a “main home” for the last 3 years. A “main home” is defined as a home which a person has lived “for most of the time.” For married couples it applies to both home buyers.

Also, there are some income restrictions. If you filed taxes separately and your adjusted gross income was over $95,000 the first time home buyer tax credit is unavailable to you. The same  goes for married couples who filed taxes jointly and your adjusted gross income exceeded $170,000.

Officially the first time home buyer tax credit is under the American Recovery and Reinvestment Act of 2009. Unofficially it is a great opportunity to help replenish the down payment of your new home.

Let me clarify this: you can not claim the tax credit until after you close your escrow. That means that you still need to come up with the funds needed for the down payment on your own. But after you close escrow, you can take the refunded tax credit and put it back into your savings.

How do you get your tax credit? First you must buy a home before December 1st, 2009.  Second you submit IRS Form 5405 with your 2009 tax returns by April 2010.

What exactly will you get as a refund. This depends on your tax situation. Let’s look at 3 different scenarios:

1. You owe $4000 in taxes. You had taxes withheld from your paycheck and at the end of the year had paid $4000 in taxes. Since you have already satisfied your obligation, you will receive the entire tax credit you qualify for (remember 10% of the sales price up to $8000 whichever is less).

2. You owe $4000 in taxes. But you overpaid by $1000 with the taxes withheld from your paycheck. You now qualify to receive the overpaid amount of $1000 and the full tax credit you qualify for.

3. You owe $4000 in taxes. But you underpaid by $1000 with the taxes withheld from your paycheck. You now will qualify for the full tax refund minus the $1000 you owe. If you qualified for the full $8000 you will receive $7000.

Finally, do no wait until December 1st to buy your home.  As a first time home buyer, you need to start the process at least 60 days prior to December 1st. Why, because once you put a house into escrow it could take at least 60 days to close escrow and you have to close on your new home prior the this date. If you are buying a short sale or foreclosure, this could even take longer.

Bottom line, if you are a first time home buyer, and have been thinking about buying, this is a golden opportunity to get some assistance. Please realize that I am not an accountant, please refer to your tax preparer for specifics to your situation. Also, work with a professional mortgage planner to obtain your financing and seek out a Realtor who can help navigate the process for you.

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Choosing a home mortgage loan is no small task. As one of your largest financial investments, this is an important decision that deserves full attention. Here’s what you need to know…Continue reading

Are you a seller that is listing a property and do not want to drop the price again? Do you need to get more buyers who are qualified to look at your property?

Are you a buyer who fell in love with a property only to find out that the monthly income needed to qualify is too high?

Have rates risen so that dream home is no longer affordable?

If the description above fits, then you must watch this video.

The seller buydown strategy is a win/win for both buyer and seller.

It not only allows the buyer to purchase a property with a lower monthly payment than without the buydown (potentially savings hundreds of dollars each month), but it reduces the income needed to qualify. Also for the seller it allows them to sell the property at maximum price and increases the pool of qualified buyers by reducing the income needed to qualify of the buyers who are looking  to purchase their home.

In today’s market, with rates rising the past few weeks to the highs for the year, this strategy has even more significance. The seller buydown strategy is a must in order to bring back those buyers that no longer qualify due to the increase in rates, With this strategy the buyers are back in the game.

If you want to learn more about how this can benefit you, please call me directly and I will be happy to walk you through a scenario.

If you would like to follow mortgage rates daily, follow me on www.twitter.com/watchurmortgage.

“Relying on yourself is a lost art.”

-Frank Shorter