Expanded Version of Tax Credit Will Allow More Homebuyers to Qualify

Expanded Version of Tax Credit Will Allow More Homebuyers to Qualify

RISMEDIA, November 9, 2009—President Obama recently signed an expanded version of the $8,000 first-time homebuyer tax credit that was set to expire on November 30. “The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. “Although the tax credit remains at $8,000 for homebuyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for homebuyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up homebuyers did not qualify.” Consider these three examples:

Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.

Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.

Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight.

The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. “If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010,” Nicholas said. “It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.”

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. “This means that more people will qualify for the credit – especially in parts of the country with higher costs of living,” Nicholas said. “This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit.”

There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:

-The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence – you could live in one unit and rent out the others

-If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit).

-The credit applies even if you have co-signers on your mortgage loan

For more information, visit www.CMPSInstitute.org.

Read more: http://rismedia.com/2009-11-08/expanded-version-of-tax-credit-will-allow-more-homebuyers-to-qualify/#ixzz0WTkr6IKw

National Night Out is October 6

Joint the North Richland Hills Police Department in celebrating the 26th Annual National Night Out crime, drug, and violence prevention program oon the evening of October 6, 2009. National Night Out is an annual worldwide event that brings together citizens, law enforcement agencies, local officals, and local businesses to increase anti-crime awareness and strengthen community partnerships. Residents are encouraged to turn on their proch lights and gather with their neighbors to show unity against criminal activity. Please contact the Police Department at 817-427-7021 to register your neighborhood event.

3 New Traffic Signals under construction

Construction recently began on 3 new traffic signal lights in North Richland Hills. The new signal lights will enhance overall safety at the following intersections:
*Precinct Line Road at Rumfield Road
*Precinct Line Road At Amundson Drive
*Davis boulevard at Bursey Road
The new traffice signal lights should help decrease delays for traffic on the side streets and improve access to several neighborhoods along Precinct Line Road and Davis Boulevard. The City of North Richland Hills anticipates the signal lights will be activated and fully operational later this year. As with any new traffic control device, motorists should exercise extra caution when approaching the intersection until all drivers become more familiar with the signal operation.

Thinking of Buying a Home?

I am giving away a free FHA home appraisal on a property valued at $150,00 or higher, sponsored by our trusted lender 1st Advantage Mortgage. Call me for details at 817-881-5059!

Testimonial!

Thanks Cindy! Congratulations and great job!!! I hope I have another opportunity to refer you and I would love to work with any referrals you may have.


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Tina Broderick

Federal Reserve Loses Lawsuit!

Federal Reserve LOSES LAWSUIT - MUST ACCOUNT FOR PAYOUT'S - 08.26.09
Watch Video
Single family home sale are up - but why? Federal Reserve loses lawsuit and must show the country where all the money has gone. Swiss cooperates with IRS - No more tax free Swiss banks and it's time to pay!

Watch this video http://www.thinkbigworksmall.com/mypage/player/tbws/15029/1078526

School is almost here!

Well, it is that time again, getting ready for school to start. Time to buy school clothes and school supplies. It is weird this year because I am not doing that since my daughter is going to college. I can't believe we take her to Tech this weekend. It will be interesting. Good luck parents, have a great school year!