Great News for First Time Home Buyers – Home Stimulus Package Now Expanded!

06. May 2011 · Write a comment · Categories: General Tax · Tags: , , , , , , , ,

Has it been three years since you last purchased a home as your primary residence?  Are you now thinking about buying a new home but are worried about the perilous state of the housing market and the financial burdens of making a down payment and making your monthly mortgage payments?  If so, there is great news for you.  The federal government will help you pay a portion of your down payment so you don’t have to come up with the full 10 percent on your own.  To further sweeten the deal, interest rates have been slashed by a couple of percentage points.  And to top it all off, you can get a tax credit of ten percent of the purchase price of your home – that’s up to ,000 in your pocket!  

If you’ve been keeping up with the latest developments, the news just keeps getting better.  The deadline for entering into a contract for buying a home was extended until April 30th of next year.  (You actually have until June 30th of next year to close).  If you are a member of the armed services, Foreign Service, or Intelligence community serving overseas you get an extra year.  This means you have until April 30th, 2011 to enter into an agreement and until June 30th, 2011 to close.  The income limits for qualifying for the tax credit have also been increased for purchases made after November 6th, 2009.  This means more people will now qualify.  Are you picturing your dream home yet?

President Obama and the federal government want the housing market to get back on its feet so if you are seriously thinking about buying a new home, now could very well be the best time.  The incentives will not last forever so make sure plan accordingly, do all your research, and take action.  There are some caveats and restrictions that could impact your eligibility for the tax credit so make sure you familiarize yourself with those provisions.  If you are confident in your financial future, however, you really have nothing to lose and everything to gain by taking advantage of the first time home buyer stimulus package.

Buy Your First Home Now and Get the Federal Government to Help Pay for it – Don’t Miss this Boat!

05. May 2011 · Write a comment · Categories: General Tax · Tags: , , , , , , , ,

Buying a new home is a huge commitment in any economy let alone one where foreclosures and job cuts are running rampant.  Ordinarily, you would be quite right to be wary about purchasing a home under these circumstances.  The good news, however, is that President Obama’s stimulus package has really sweetened the deal for prospective first time home buyers or buyers who haven’t purchased a home in the last three years.  There are essentially three ways the government can help you, which in conjunction with one another, could very well make this the perfect time to buy a new home.

Firstly, if you are worried about coming up with the down payment to buy your new home, the government will help you pay for it.  You will not have to come up with the full 10 percent on your own.

Secondly, the Obama government is lowering home interest rates for you.  Interest is always a huge consideration when you finance your home but with the federal government slashing the rate by a couple of percentage points, the financial burden becomes much easier to manage.

Thirdly, you can receive a tax credit of 10 percent of the purchase price of your home (up to ,000) on your tax return.  This is a dollar by dollar reduction in taxes you owe or increase in your tax refund.  You do not have to pay this money back unless your home ceases to be your primary residence in the three years following your purchase.  Some restrictions and conditions do apply but this is still a great deal if you qualify.

If you act now, you can potentially save thousands of dollars because President Obama and the federal government want to kick-start the housing market.  Opportunities such as this are hard to come by so make sure you take advantage of it while it lasts to fulfill you dream of having your own home.

Why Buying your First Home should be in 2009

26. April 2011 · Write a comment · Categories: General Tax · Tags: , , , ,

If you are a first time buyer you should be salivating at the perks available to you, Barack Obama recently passed a bill that was created to assist individuals looking to purchase there first home.   The reinvestment act of 2009 guarantees that if you meet certain criteria you will rewarded with up to 00.0 in refundable tax credits.  Think about it like you are getting paid to purchase your first home, I can’t remember a time in the past where there were so many perks available for first time buyers.  

     Let me delve a little into what qualifies you as a first time buyer, well the first criteria would be that you of course have not purchased a home of any kind before.  This fact is very clear, but the hazy part is what if I have owned a property before, the criteria for this is that you could have purchased a home in the past but as long as you have not had any type of home ownership in the previous 3 years you can still qualify for the first time buyer refundable tax credit. 

    How the credit works is really simple you will receive a 10% credit up to 00.00 maximum, the credit is based on the actual sales price.  I will do a quick set of examples to make sure that you understand how the credit works, you decide to purchase a property with a price of ,000.00 your credit will be 00.00, on the opposite spectrum if you purchase a home with a selling price of 0,000, your credit will be the maximum of 00.00. 

   This credit/grant is fully forgiven if you hold the property as your primary residence for 3 years, every year 33 1/3% of the credit or grant is forgiven, if you sell before the 3 year window is completed the amount of the grant given will be recouped in the form of a tax penalty or lien on the property.

    Attention all first time buyers this program will only last for 365 days, so if you thought you may be interested in buying your home, now is the right time, it will all end on December 31, 2009.  Stop procrastinating; stop making excuses, no money, no problem, down payment assistance programs available for some, marginal credit, not a problem we have a program designed to assist you in obtaining you your home.  

 For More information Contact

Chris Shaw

CEO

My First Michigan Home

 www.Myfirstmichiganhome.com

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The First Time Home Buyer Credit

23. April 2011 · Write a comment · Categories: General Tax · Tags: , , , ,

Imagine getting a loan that is 100% interest free for your first home. The federal government has done some revamping of the First Time Home Buyer tax credit, which is exciting news for first-time home buyers. With it, you could save up to ,500 on your first home purchase. This is an interest free loan that you have 15 years to repay. Add to that falling home prices and you have the chance to buy a home that will repay you with thousands in equity when the market turns around.

If you have owned a home in the past, don’t despair! You may still qualify if that home ownership is 3 or more years behind you. However, if you’re married, you may want to ensure that your spouse also has not owned a home for 3 years prior to your home purchase, as having a spouse who is or has been a homeowner in the last 3 years disqualifies you from the credit. If you’re planning on, say, buying a home with a parent or child, there is still some luck in store: as long as you’re unmarried, the credit can be applied to the party who is a first-time home buyer.

You have to be intending to live in the house you buy to qualify for this credit and have to buy said residence between January 1, 2009 and December 1, 2009. However, if you’ve jumped the gun a little and bought between April 9, 2008 and January 1, 2009, you can still qualify for a tax credit up to 7,500.

There are income limits to this tax credit. If you earn more than 75,000 a year for singles or 150,000 a year for couples, you cannot qualify for the full credit. There is some leeway of 20,000 for people who earn a bit more than the above amounts and you may qualify for a partial credit if this is your case.

This credit is open to a wide variety of real estate. In addition to single family homes, it covers condos, townhomes, mobile homes, houseboats and new construction. If you’re choosing a home that is to be constructed, whether you qualify for the credit will be determined by the settlement date.

The credit must be paid back, but you have 15 years to do so. In the meantime, it will not be accruing any interest charges or late fees.

The First Time Home Buyer Credit is a great way to alleviate some of the expenses involved with buying a home. Using it wisely will mean that you may be able to buy a house sooner than you expected and deal with house purchase costs. It’s only here for a short time, so if you’re looking to buy a home, perhaps now is the best time ever!

First Time Home Buyer stimulus

22. April 2011 · Write a comment · Categories: General Tax · Tags: , , , ,

First Time Home buyer stimulus

In response to the sub prime crisis which has crippled the US as well as world economy, the federal government has come up with different responses that have been fairly successful in encouraging the home buyer to go ahead with his purchase. The biggest and best target that the government has in mind has been the first time home buyer, most of whom have been postponing their plans to purchase their dream home, due to recession and also expecting the markets to lower real estate rates.

Of the various programs introduced, the stimulus in the form of tax credits has been most promising in terms of result achieved. The tax stimulus has been aimed at making the home more affordable to the common man, considering the fact that most citizens always have dreamt of purchasing their own house. The latest version of the tax credit package, which is designed for the period of 209 has in it, different advantages to facilitate easier purchase.

To start with, the policy aims at giving tax credits to any first time home buyer, who purchases a home in the period starting from 1st January 2009 to 31st December 2009.  The upper limit for the tax credit is 00 and is calculated as ten percent of the value of the home purchased. This is a very useful advantage as this helps the citizen to save on his taxes, apart from using that amount to invest in other interest earning mechanisms. Another important reason that a person would want to use this policy is the fact that the interest rates have touched a bottom level and the government is making all efforts to keep the rates at that level for some time to come. The government is also assisting in down payments by either reducing the down payments required or by way of financial assistance. The criterion to be eligible as a first time home buyer is that the person should not have made any property purchases in the last three years.

The only catch as far utilizing this package is that the salary of the buyer should not exceed 000 for a single buyer or 0000 for a joint buyer. This is infact a good condition as such a step would help the government and real estate companies tap into the hitherto untouched middle class and upper middle class segment of the population.

Real estate has always been considered as a strong driver of the economy and hence all steps taken by the government to stabilize the real estate market and generate good returns shall, on the long run, translate into a better and strong economy.

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