Updates to TAX CREDITS for HOME and CONDO BUYERS in Smyrna

Who is Eligible

• First-time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit. 
• Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit. 
• All U.S. citizens who file taxes are eligible to participate in the program. 

Income Limits

• Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.  
• For married couples filing a joint return, the combined income limit is $225,000. 
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.  
• The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000. 

Effective Dates

• The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.  

 Types of Homes that Qualify

• All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.   

 Tax Credit is Refundable

• A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference. 
• For example:  
  • A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time home buyer tax credit).  
  • A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit). 
• All qualified home buyers can take the tax credit on their 2009 or 2010 income tax return. 

Payback Provisions

• The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

Mortgage rates down!

BOND YIELDS PUSH MORTGAGE RATES DOWN SLIGHTLY THIS WEEK

McLean, VA - Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.08 percent with an average 0.7 point for the week ending September 3, 2009, down from last week when it averaged 5.14 percent. Last y

FHA Streamline Refinance Mortgages are Popular Now

FHA streamline refinance mortgage

The FHA streamline refinance program is good news for homeowners who currently have an FHA insured mortgage. This program is the closest thing mortgage lenders have to a “no-doc” loan with decent interest rates. The basic premise of the program is simple; if borrowers are lowering their monthly payments, it must be good for them. FHA streamline refinances are a popular choice for a number of reasons.



Here are some of the features of the program:



1.For borrowers with FHA mortgages with a good payment history

To be eligible for the FHA streamline refinance program, borrowers must currently have a mortgage insured by the Federal Housing Administration (An FHA loan). They must have a good payment history in the last 12 months. (Good generally means not late 30 days more than once in the last 12 months. Additionally, the current FHA mortgage must not be behind at the time of application.

2.FHA Streamline Refinance does Not use a Credit Score

While the lender will run your credit report to check the mortgage history, the report is not used to determine eligibility for the FHA streamline refinance program. In other words, a borrower’s credit score isn’t used. Neither are late payments, collections or judgements on accounts other than the mortgage being refinanced.

3.No Income or Asset Verification

Income and assets of the borrower are not verified for the FHA streamline refinance program. It is important to note that the customer must have a job and must have a bank account.

4.No New Appraisal

A new appraised value is not used. Decreasing home values have been a barrier to refinancing for many borrowers in this environment. The FHA streamline refinance eliminates this barrier. Even if the customer’s home value is less than the amount of the mortgage, it’s still okay.

5.Secondary Financing Okay

Second mortgages and home equity loans are fine in conjunction with the FHA streamline refinance program, even if they are above the value of the house. The second-mortgage lienholder (the bank that the customer makes payments to) must agree to subordinate the loan. That means that the second mortgage will take second lien position behind the new FHA mortgage.

6.30 Year Fixed Interest Rates

The FHA streamline refinance program is offered with 30 year fixed and 15 year fixed interest rates, which are very competitive. Often, the rates are as low as, if not lower than, conventional conforming interest rates.

7.Closing Costs can be Rolled into the Mortgage

Borrowers can choose to roll their mortgage closing costs into their new FHA streamline refinance if they choose to. However, the new loan amount can not exceed the original FHA mortgage loan amount.

8.No Cost and Low Cost Mortgages Available

FHA mortgage lenders have the ability to pay a portion or all of the closing costs incurred with the FHA streamline refinance program. Generally, borrowers pay a slightly higher interest rate than if they pay the closing costs directly, or roll them into the mortgage amount.

9.No Cash Out

The FHA streamline refinance program does not allow for cash out.

10.Borrowers Must be Bettering their Situation

The FHA streamline refinance must result in a lowering of the borrowers principal and interest payments.

For borrowers that have an FHA mortgage currently, the FHA streamline refinance program may be a good way to lower their mortgage payments. Call us at 770-792-7979 ext 107 or click here to email us Today!

Meet Congressman Tom Price to discuss Healthcare

This just in from Cobb Chamber of Commerce:
Congress is currently considering legislation, that would significantly change healthcare in America. These drastic changes in policy are sure to affect all businesses. We invite you to share your thoughts and concerns on this issue, by participating in a conference call led by Congressman Tom Price.
The call will be held on Wednesday, July 29 at 9:30 a.m. Please R.S.V.P. to Thomas Beusse at (770) 565-4990 or thomas.beusse@mail.house.gov.

Where's your mortgage rate headed this week?

What's Ahead For Mortgage Rates This Week : July 20, 2009Mortgage markets had a tuff week last week as a combination of strong economic data and stand-out earnings results led investors into more risky investments. The Dow Jones Industrial Average was up 7 percent.Mortgage rates, unfortunately, didn't fare as well. As the first week since June in which mortgage rates rose, rates were up by a lot. Mostly for three reasons.The week's first big mortgage rate bump came Tuesday, right after Goldman Sachs released its blowout quarterly numbers. As one of the world's largest financial firms, Goldman's strong showing hinted that the financial crisis may finally be finished.Next, rates were impacted by the release of the Fed Minutes from its June meeting. In the report, it was revealed that Ben Bernanke & Co raised the economic forecast for both 2009 and 2010, noting that the recession should be ending soon.Lastly, June data showed that Retail Sales is expanding and that jobless claims are falling -- two potential positives for the U.S. economy that relies so heavily on consumer spending.This week, without much data, the mortgage market should continue to take its cue from the stock market. If stocks improve, rates are expected to worsen. And vice versa.The week's key events are Fed Chairman Bernanke's Tuesday testimony on Capitol Hill and Thursday's Existing Home Sales data. Mortgage rates remain volatile so if you're offered a rate that comfortably fits your household budget, consider locking in before the market can change.
Posted by Capital Credit at 11:28 AM

The First-Time Home Buyer Tax Credit : Use It By December 1, 2009 Or Lose It

The First-Time Home Buyer Tax Credit : Use It By December 1, 2009 Or Lose It

The government's First-Time Home Buyer Tax Credit expires December 1, 2009.

If you expect to use the program in conjunction with a home purchase, therefore, you may want to consider yourself officially "on the clock".

Assuming a 60-day window between contract and closing, there are now 77 days left to find a home and go under contract for it.

The First-Time Home Buyer Tax Credit refunds up to $8,000 at Tax Time for qualified home buyers. A few of the program's qualification criteria include:

• Home buyer must not have owned a primary residence in the past 36 months
• The home may not be purchased from a family member
• The household adjusted gross income must be below $95,000 for single tax filers and $170,000 for joint tax filers

The tax credit itself is limited to $8,000 or 10% of the purchase price, whichever is less.

Remember, though: The refund is a true tax credit -- not a deduction. This means that a taxpayer owing $8,000 to the IRS and claiming the $8,000 First-Time Home Buyer Tax Credit would owe the IRS nothing on April 15, 2010.

The complete list of qualifying criteria is posted on the IRS website.

HTTP://WWW.ATLLOANS.COM PETER BRIGHT

Ready to go Green?

Ready to go Green? You can do this!

We stumbled across a resource recently that could be utilized by anybody. www.localharvest.org provides a search to find nearby farmers’ markets, family farms and others sources of sustainably grown food where your residents can buy produce, grass-fed meats, honey products and many other goodies, including gift baskets.


Hope to see you Green this month.

Ready to go Green?