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Download the app and enter our code 6300 to search by map location, price, size and much more!
Owners didn’t plan to move but a transfer took them out of town so you benefit from their upgrades!
Walking distance to the new Novak Elementary School!
Check out all the details here:
http://listings.cedarrapidsmlsonline.com/idx/6300/details.php?idxID=148&listingID=1005634
Any questions don’t hesitate to contact me!
On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time. To learn what the new tax credit means to you and your clients, take a look at the concise overview below.
In addition, we’ve put together a script featuring wording you can cut and paste as needed to beat out your competition by connecting with clients who may be able to benefit from the new plan details!
Who Gets What?
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Qualifying buyers may purchase a property with a maximum sale price of $800,000.
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible. As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.
According to the IRS, factors that would demonstrate the ownership of the property would include:
1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.
Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.
Yes, provided that the child meets the other requirements for the tax credit.
For all your Residential and Commercial Real Estate needs in Cedar Rapids, Marion or Eastern Iowa contact Bob Randklev
For your information and a site to bookmark!
Des Moines, IOWA — The Iowa Department of Public Safety, Division of Criminal Investigation is launching its newly updated Sex Offender Registry and Web Site.
This re-design will enable Iowans to more easily monitor their neighborhood and surroundings.
The Wall Street Journal reported yesterday the First Time Home Buyers Tax Credit may get extended! Of course this comes with controversy and challenges but overall it would be great for the real estate market overall.
Click here to view the article and read more:
Recently we listed a 4 plex for sale on the SE side of Cedar Rapids.
List price is only $119,000 and the property has a newer roof, permanent siding and garages!
Click below for more details and images of the property. Contact me with any additional questions.
Although this link below was created and intended for Realtors it’s great information on the importance of extending the tax credits for first time home buyers.
Click here: http://takeaction.realtoractioncenter.com/campaign/hbtc?qp_source=website
The National Association of Realtors announced mortgage rates have held steady nationwide!
Even in these uncertain economic times you can get an 30yr mortgage with an interest rate around 5%
Click here to read more:
http://www.realtor.org/RMODaily.nsf/pages/News2009092503?OpenDocument
Here’s some great news!
RISMEDIA, July 24, 2009-Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors®.
Existing-home sales-including single-family, townhomes, condominiums and co-ops-increased 3.6% to a seasonally adjusted annual rate of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2% lower than the 4.90 million-unit level in June 2008.
Read more: http://rismedia.com/2009-07-23/signs-of-change-existing-home-sales-rise-36-in-june/#ixzz0MAw2yhMN
Below is an update on the Federal Home Mortgage Disclosure Act:
The Federal Home Mortgage Disclosure Act has changed. Changes were signed by the President last July (2008) that took affect in May 2009 affecting appraisers and the ordering process and the communication they can have with lenders is regulated as of May 2009 for all lenders. In July 2009 the Truth In Lending changes take place which include provisions such as the Mortgage Disclosure Improvement Act. HERA is the Housing Economic Recovery Act and HOEPA is the Home Ownership Equity Protection Act. To try to boil it down for you, it was meant as an overall improvement on the transparency for the consumer with regards to mortgages. It affects ALL lenders (and brokers) doing closed end loans secured by real estate. Some of the things you will notice about the paperwork are some changes to the HUD (4 pages now) and the Truth In Lending Disclosure (4 pages now).
Why is this happening? It was meant to provide a more transparent, level and fair regulation of our industry, prevent deceptive business practices, create consistent lending practices among all lenders, protect consumers and make them better informed during the transaction in hopes of making them more confident of their decisions. This is all good for the consumer. The important part is for us to prepare them for the "new" era of lending and point out the pitfalls of where a transaction can get sideways so as to try to avoid missing closing dates since the timelines are set under the Federal guidelines.
The attached information is provided for you to get some high points. With this sweeping change, of course we will all have some learning curves to get in sync with the new process. As we learn better how to work with the new system, we can put identifying marks in our calendar to try to avoid pitfalls and missed closings. As you will see, things like a customer with an unlocked rate, changes in loan amounts, a product change, rates returned to float and relocked due to market improvement, a change in closing date or changes to fees (inclusive of settlement agent fees) are just a few of the things that can affect the closing date. New construction potentially has the issue of missing closing dates if the home is not finished ahead of schedule (sometimes they finish the day prior or day of). They may be delayed with appraisal completion and disclosure timelines or last minute price changes.
Now more than ever communication between all parties will be critical. The lender and the agents and the borrowers all must work together to make sure that changes in price of the home, changes of closing dates, changes to down payment or product changes etc etc will need to be communicated as soon as possible between all parties. With that said, please review the calendar in the attachment, consider the buyer if you are the listing agent and write offers with firm closing dates well out in excess of 30 days (safety of contract helps both sides). I know this goes towards moving backwards from the past years of speeding the process up, but we all have to play when it comes to Federal Regulation. Given the volume, time for appraisals, title and any unforseen issues of title clearing, the disclosure time frames, underwriting turn times and new Federal Guidelines, together if we all stay informed from borrowers to the agents to the title company, we can still do the great job we have all done over the years for our clients.
If you have any questions feel free to contact me!
Thanks,
Bob
Skogman Commercial Group
411 1st Ave SE Ste 300
Cedar Rapids, IA 52401
