Senators agree to extend homebuyer tax credit

By STEPHEN OHLEMACHER
The Associated Press
Wednesday, October 28, 2009; 8:00 PM

WASHINGTON -- Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.

The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit.

Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.

The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.

Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash.

Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening.

Popular bills like the one to extend unemployment benefits often attract amendments that would have a difficult time passing on their own.

Republicans were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group ACORN and on requiring that people receiving unemployment insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires.

Majority Democrats have refused to add the amendments.

If the Senate passes the bill, it would go to the House, which passed a similar bill extending unemployment benefits last month. House leaders have also said they support extending the tax credit for homebuyers.

Sen. Chris Dodd, D-Conn., has been negotiating for several weeks with Sen. Johnny Isakson, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate.

Lawmakers didn't release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion.

Industry representatives said uncertainty about the tax credit is hurting new home sales. September's decline was the first since March.

It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors.

"Buyers right now have an incentive to hold off, not knowing whether the credit will be extended," Salvant said.

About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

The tax credit for money-losing businesses is a favorite among Republican lawmakers. Businesses could get tax refunds by using losses from 2008 and 2009 to offset taxable profits made in the previous five years. Under current law, they can only offset profits from the previous two years.

The provision would help a variety of industries, including retailers, manufacturers and home builders, though it's expensive.

"It's clearly a way to put cash in the hands of some major economic players," said Clint Stretch, a tax policy expert at Deloitte Tax.

A similar proposal that was ultimately dropped from the economic stimulus package enacted in February would have cost nearly $20 billion over 10 years. Lawmakers are working to reduce the price tag.

Because people are so strapped for cash, this is a good way to get refunds when businesses need them for operating expenses, said Rachelle Bernstein, vice president and tax counsel for the National Retail Federation.


http://www.washingtonpost.com/wp-dyn/content/article/2009/10/28/AR2009102803959_2.html?referrer=facebook

New Local Stimulus Fund

SALT LAKE CITY (AP) -- Utah Gov. Gary Herbert says he'll use $8 million in federal stimulus funds to help kick start the state's sluggish housing market.

Herbert's office released a statement Friday saying that the state will offer $4,000 grants to 2,000 home buyers.

The program comes on the heels of one started by former Gov. Jon Huntsman, who used $10 million in stimulus funds offer $6,000 grants.

The state awarded those 1,600 grants in less than 12 weeks earlier this year.

The Utah Housing Corporation says the grants have led to home sales of $376.7 million, creating thousands of jobs and millions of dollars in wages.

Velocity of Money

Velocity of money concept is not difficult. In simple terms: when you buy milk, the owner of grocery storee takes the profit and buys a couch, then the furniture store owner buys something else, etc.

So, the same money passes through the economy over and over again, triggering growth, jobsa, & inflation.

The latest Retail Sales Report shows the velocity of money effect has been stagnant...meaning thatgrocery store owner is not running out to buy a couch with his profit.

Once consumer spending starts increasing and the velocity of money does as well, inflation is likely to follow. This will be something to look for as the economy continues to stabilize.

Something else to look for is the approaching end of the Fed's Bond purchase program. Home loan rates have stayed historically low since the program began in January.

Here is another reason that would push Bonds down and mortgage rates up possibly in the future.

Bonds and rates did manage to end last week better than where they began, but there was a great deal of volatility along the way.

Mortgage Programs:

Fannie Mae HOMEPATH Loan


- Minimum 660 middle FICO score required
- Appraisals are NOT required
- Great for first time homeowners AND Investors
- 97% LTV Primary Residence
- 90% LTV Investor (5 plus properties financed limited to 75% LTV)
- No monthly Mortgage Insurance payments
- Owner Occupied AND Investment Property
- Down payment can be 100% gifted
- Property must be listed for sale with the Fannie Mae HOMEPATH program
- NO declining market restrictions


Federal Housing Administration Loans - OK to 580 scores

- Minimum 580 minimum middle FICO score required
- Great for first time homeowners
- 30 Year Fixed Rates Only
- Low, government sponsored, monthly Mortgage Insurance payments
- Owner Occupied Only
- 12 months verified rent history required
- Down payment MUST come from borrowers own funds
- Gifts allowed for all closing costs
- Compensating factors required for 580 scores
- NO declining market restrictions

Federal Housing Administration Loans - 100% Gifts Allowed for Down Payment

- Minimum 620 FICO score required
- Great for first time homeowners
- 3.5% Down Payment can be a gift from relatives, employer, city grant
- VERY LOW 30 Year Fixed Rates
- Low, government sponsored, monthly Mortgage Insurance payments
- 1 Day out of Chapter 13 OK with re-establish credit (2 years with Chapter 7)
- Owner Occupied 1-4 unit only
- NO declining market restrictions

USDA Loans - 100% No Money Down for Qualified Properties

- Minimum 620 FICO Score - buyer(s) must have “reasonable” credit history
- Great for low to moderate income and first time homeowners
- Household Area Median Income Limits Apply
- LOW 30 Year Fixed Rates
- No monthly Mortgage Insurance payments
- Owner Occupied Only
- Property must be located in a USDA defined market

Veterans Administration Loans - 100% No Money Down for Active and Veteran Military

- Minimum 620 FICO score required - buyer must demonstrate ability to pay
- True No Money Down Financing for qualified buyers
- Low 30 Year Fixed Rates
- NO Monthly Mortgage Insurance payments
- No Income Limitations
- Loan Amounts from $75,000 to over $417,000
- Owner Occupied Only
- No declining market restrictions

Conventional Loans (Fannie Mae and Freddie Mac) - 100% Gifts Allowed for Down Payment

- Minimum 700 FICO Required
- Great for the established buyer looking to leverage through financing
- 3% Down Payment can be a gift from relatives, employer or city grant
- LOW 30 Year Fixed Rates
- Median income limits apply (only income from borrower on loan used to qualify)
- Loan amounts up to $417,000
- Owner Occupied Only
- Monthly Mortgage Insurance payments required
- Declining market restrictions apply

common misconceptions about the federal government's tax credit for first time home buyers:

Real estate agent Michael Maher joined FOX 4 Wednesday morning to clarify the most common misconceptions about the federal government's tax credit for first time home buyers:

1. It's only for people who've never bought a home. False! If you sold a home in the past and rented for the last three years, you may qualify.

2.It has to be paid back. False, this is a tax credit. You will receive a check from the federal government four to six weeks after you complete the form at the closing of your home purchase.

3.It's a lengthy and difficult process to get the tax credit. Fase, it's just one form you have to fill out for the IRS.

4. You can use the tax credit for your down payment. False. Some lenders offer some programs which require you to sign over your credit to them, but be very cautious about these. Read all the fine print! Technically, the way the program is structured, the money is not for your down payment.

Again, you do not receive the money at closing. You will receive it four to six weeks after closing.

5. There's plenty of time left to buy. False. You must close on or before November 30th, 2009, to take advantage of the tax credit. Remember that closing on a house takes 30 to 60 days. Leave yourself plenty of time for the inspection, title search and document preparation.

You can find out if the tax credit will work for you at a free seminar, Friday, Aug. 14, at 4 p.m., at the Overland Park Convention Center. To register, call 1-800-441-7699, EXT. 4664

Copyright © 2009, WDAF-TV

TAYLOR BEAN MUST CEASE...

1
PRESS RELEASE
August 5, 2009
TAYLOR BEAN MUST CEASE ALL ORIGINATION
OPERATIONS EFFECTIVE IMMEDIATETLY
OCALA, FLORIDA – TAYLOR, BEAN & WHITAKER MORTGAGE CORP. (“TBW”) RECEIVED
NOTIFICATION ON AUGUST 4, 2009 FROM THE U.S DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT, FREDDIE MAC AND GINNIE MAE (THE “AGENCIES”) THAT IT WAS BEING
TERMINATED AND/OR SUSPENDED AS AN APPROVED SELLER AND/OR SERVICER FOR EACH OF THOSE
RESPECTIVE FEDERAL AGENCIES. TBW HAS UNSUCCESSFULLY SOUGHT TO HAVE THE
TERMINATION/SUSPENSION DECISIONS OF EACH OF THOSE AGENCIES REVERSED. AS A RESULT OF
THESE ACTIONS, TBW MUST CEASE ALL ORIGINATION OPERATIONS EFFECTIVE IMMEDIATELY.
REGRETTABLY, TBW WILL NOT BE ABLE TO CLOSE OR FUND ANY MORTGAGE LOANS CURRENTLY
PENDING IN ITS PIPELINE. TBW IS COOPERATING WITH EACH OF THE AGENCIES WITH RESPECT TO
ITS SERVICING OPERATIONS AND EXPECTS TO CONTINUE TO SERVICE MORTGAGE LOANS AS IT
RESTRUCTURES ITS BUSINESS IN THE WAKE OF THESE EVENTS. WE UNDERSTAND THAT THIS COULD
HAVE A SIGNIFICANT IMPACT ON OUR VALUED EMPLOYEES, CUSTOMERS AND COUNTERPARTIES, AND
ARE VERY DISAPPOINTED THAT A LESS DRASTIC OPTION IS UNAVAILABLE.

You might be ablt to use tax credit ($8,000) IMMEDIATELY!

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.

Shop for Home Loan

Three Mortgage Comparison calculators - and what they are best for:

1. Zillow.com

Best for vetting lenders and brokers. You an sort rate quotes based on user reviews.
The catch is that quotes are posted to your online account, so the rates may be out of date after a few days.

2. Mortgage-Marvel.com

Best for finding the most current rates. The site updates them in real time.
The catch is that the quote tool does not let you input your income. If yours is too low for the loan you want, you may have trouble getting approved.

3. LendingTree.com

Best for narrowing down your options. The site matches you with up to four lenders who get in touch via phone or e-mail to tell your their best rates.
The Catch is that you cannot shop anonymously. Plus, some lenders will pull your credit report, which can hurt your credit score if you don't get a mortgage within 30 days, and check it too often.

Looking for Handyman? A Bit of Help is recommended at 702-228-2332

In today's economy, the referrals of friends are especially important; if you are looking to do some home repairs and/or remodeling, please look no further.

I strongly recommend you to use my father's services: electrical, plumbing, carpentry, tile, etc. Believe me he can do ANYTHING. Even though his business (A Bit of Help) is primarily based in Las Vegas, NV; he occasionally comes here.

You can discuss your needs over the phone and even get the estimate. In today's economy, the referrals of friends are especially important, and I would love to see my family here more often.

Call Vladimir at 702-228-2332 or http://www.myvegashandyman.com/

Short Sale & Credit Score

Short Sale for Sellers: Let's say you have to relocate, my your home value fallen nearly $100,000, and you have to get rid of your home - the question is foreclosure or short-sale?

A short sale, in which you negotiate with the bank to sell your home for less than you owe on your mortgage will have a dramatically negative effect on your credit. A consumer who has been through a short sale could see a drop in his/her credit score of up to 200 points, essentially the same decrease as if the homeowner gone into foreclosure, says John Ulzheimer, president of consumer education for Credit.com. and like a foreclosure, the negative mark will pull down the score for seven years.

That said, if you are underwater on your mortgage and you need to move, a short sale might be a better option than foreclosure. Going through a foreclosure will make it very difficult for you to get a loan for at least 3-5 years; with short sale, you might be able to qualify within 2.

Another thing to find out and consider, the forgiven debt is completely forgiven; or you would be expected to pay taxes on it. (it depends on your mortgage holder)

Short Sales for Buyers: at this point, the process is not regulated, and only banks decide how long it may take, how many offers banks wants to receive, and who essentially would win the auction. If you are patient and determine to get short sale deal, do it! Please remember, the listing price of short sale is usually not what the bank is willing to accept, and there are other deals out there.