Need to Hurry Your Home Purchase Before $8k Tax Credit Expires?

How to Buy a Home Before $8K Tax Credit Deadline

With the $8,000 first time home buyer tax credit expiring November 30, and that it can take 30-45 days to close a home, here are 5 tips to expedite your home purchase in order to take advantage of the tax credit.

1. Get Pre Approved for Mortgage.

2. Make sure you are liquid

Have enough money available for your down payment and closing costs as your mortgage requires.

3. Avoid “Short Sale” Listings

A short sale occurs when a homeowner owes more on their home loan than what they are selling the home. Because the current lien holder has to approve the sale and the loss, these properties can take months to close.

4. Don’t go on a shopping spree before you close

Avoid making any big purchases on a credit card or with any financing programs. Big purchases may affect you home loan and your ability to qualify.

5. Work with a Realtor®

source: smartmoney.com 

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The Trey Affolter Team at Keller Williams Realty always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate.  

253-222-6000

http://www.TreySellsHouses.com

Your Tacoma Real Estate Professional

3 New Home Owner Tax Breaks You Need to Know

New Tax Breaks to Save You Money

In the attached video, Suze Orman highlights three new tax breaks that every home owner should know. Tax breaks for owner’s selling their home as a “Short Sale,” owners with Private Mortgage Insurance (PMI), and owners who lost a spouse and are looking to save taxes on Capital Gains.

1. Loan Forgiveness Tax Break

For owners who need to sell their home at a price for less than what is owed to the bank, they do what is called a Short Sale. The new law does not require income tax owed on the amount of loan forgiveness for a primary home bought or improved upon between 1/1/07 – 12/31/09. The loan forgiveness is the amount of debt relieved.

2. PMI – Private Mortgage Insurance Tax Deduction

PMI is required on loans when a borrower puts less than 20% down on a home. PMI tax deduction is extended through 2009 if the homeowner’s income is less than $100,000 a year.

3. Capital Gains Tax Exemption

There is also a new tax law change to the $250,000 per person Capital Gains tax exemption. A married couple is able to claim up to $500,000 exemption, up to $250,000 each. The new law offers help to cover a lost loved one’s exemption. Now, if the home has been a primary residence, the homeowners have lived there 2 of the past 5 years, and they sell the home within 2 years of the spouse passing, they can claim the additional $250,000 exemption.

Watch the attached video for further details and consult your accountant or financial advisor to determine if you can take advantage of these new tax breaks. 

 

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

 

253-222-6000

http://www.TreySellsHouses.com

Go get your $7,500 15-year interest free loan from the government

ACT NOW!  $7,500 Tax Credit available… 

Tax benefits of buying a home

 

Tax credit offered to new homebuyers

Expires June 30, 2009!

 

 

1.       Who is eligible?

·         First-time homebuyers or any homebuyers who have not owned a principal residence in the last three years.

2.       Who does it work?

·         Eligible purchasers can claim the $7,500 credit on their annual tax return form.

·   Amount of credit: 10% of cost of home or a maximum of $7,500.

3.       Repayment:

·         Two years after the credit is claimed, the homebuyer will have to start paying it back.

·         15 equal annual installments will have to be paid back to the IRS every year.

·   6.67% of the borrowed amount or a maximum of $502.

·         If home is sold before 15 years, the remainder of the loan will have to be repaid to the IRS upon sale.

·   Part of the liability can be forgiven if the gain on the sale is less than the amount of the loan.

4.       Restrictions:

·         Home purchase time limit:

·   Homes purchased on or after April 9, 2008 and before July 1, 2009.

·         Home must be a single family residence (including condos, coops) that will be used as a principal residence.

·         Home must be located in the United States.

·         Home cannot be financed through mortgage revenue bonds.

·         Income restriction:

·   To qualify for a full $7,500 credit, the taxpayer must make no more than

a.       $75,000 for single returns

b.      $150,000 for joint returns

·   To still qualify for credit but at a lesser amount, the following income caps apply

a.       $95,000 for single returns

b.      $170,000 for joint returns

 

  

 

For more information on the tax credit:

http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf

http://www.federalhousingtaxcredit.com/faq.php

  

 

                              

Call The Trey Affolter Team @ 253-222-6000

to take advantage of the tax credit

before it expires June 30, 2009!

 

 

——————- Additional Featured Articles —————–

 

Need Down Payment Assistance to Buy a Home?

 

Home Buyers Can Find Home Loans – The Right News!

 

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The Trey Affolter Team always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com