$ 8,000 Tax Credit Is Still Going Strong!

Well kids, you still have time to get one of the greatest gift from Uncle Sam! A new Senate proposal will offer a first time home buyer an $8,000.00 tax credit. This program has been widely popular, and this is probably the final extension. You can take advantage of this up to April, as long as you are under contract by April 30, 2010. The former deadline was November 30, 2009 – but the program has proven so popular that the government has kept things around for a few more months…. Single taxpayers with incomes of up to $125,000 and married couples with incomes up to $225,000 are eligible to receive the full tax credit.

Current Charlotte Homeowners looking for a replacement primary residence can also qualify for a $6,500 (up to $3,250 for a married individual filing separately) under the new “long-time resident” provision. They must have lived in the same principal residence for a five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. (Shew!) This new provision also only applies to homes purchased after Nov. 6th 2009.

The IRS has stepped up compliance checks involving the home buyer credit for those with past homes and they must provide a mortgage Interest Statement, Property tax records or Homeowner’s insurance records, to prove compliance with past residency criteria.

To get into the fine print – if you plan on claiming the new home buyer credi… For qualifying purchases, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. A new version of Form 5405, First-Time Home buyer Credit, is now available on the IRS website. Taxpayers claiming the credit on their 2009 returns, will not be able to file electronically because of the added documentation requirements, but instead will need to file a paper return by using the new version of Form 5405. A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.

Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com

Don’t (Necessarily) Say No To A Foreclosed Home - and other reasons to BUY NOW!

Sometimes during our search for real estate in the Charlotte area, we might overlook foreclosed homes--since there are so many great properties available. The forclosure seizure often leaves a stigma on these properties, but one that is fairly misunderstood. Foreclosed homes are often in just as good of condition as any other home on the market. But the benefits of buying a foreclosure home have never been better, thanks to two major factors. Home prices are at record lows and rare government incentives are available for a limited time…But neither factors will last forever!

Record levels of foreclosures hitting the market at the same time in Charlotte is keeping their prices low, and dropping. While their isn’t much wiggle room or bargaining with these properties, they are always deeply discounted… Many at a rock bottom price, and they probably won’t last, so consider buying now. The economy is already beginning to rebound, and the foreclosed homes will not stay on the market for long.

Now to the tax credit…The foreclosure tax credit gives buyers of foreclosed properties a $7,000 tax credit. This credit is to be divided equally between the two years following the home’s purchase. (For married couples filing separately, the credit will be divided into $3,500 per person.) One catch is that the credit is only available for real estate bought as your principle residence – not as investment property. You’d have to use the home as your home for the 24 months following the purchase date in order to receive the full $7,000 credit.

Would you like more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out http://www.minthillrealty.com/

Tax Credit News

Did you know:

The First-Time Homeowner Tax credit can be used for a down payment on a new home -- but there are some stipulations.

Homeowners may apply a federal tax credit of up to $8,000 toward the purchase of a home with an FHA-backed mortgage, however, the tax credit can't be used to meet the FHA's 3.5 percent minimum down-payment requirement.

The tax credit can be used as an additional down payment and for other closing costs, which can help borrowers obtain a lower interest rate.

In the Charlotte area, the FHA limit is currently $303,750 for qualification for the credit. Great news, for home buyers here in Mint Hill looking to buy that first home.

Would you, or someone you know like more information on taking advantage of this limited-time tax credit, please contact me at rich@richferretti.com.

Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com

Tax Credit for First Time Home Buyers

As part of the American Recovery and Reinvestment Act of 2009, a.k.a. the Stimulus Bill or ARRA, first time home owners are now eligible for a tax credit of $8,000. This credit, alongside some fabulous opportunities in the market, makes it an incredibly keen time to buy. Homes in Mint Hill and Matthews are still showing excellent resale value, so buying now when the market is accommodating is a key. The staff of Jamison Realty has spent time looking over the ARRA, and has all the answers for the consumer.

The following list summarizes the eligibility requirements of this credit:

When – Home owners who purchase their house between January 1, 2009 and December 1, 2009 are eligible for the credit.

Who – The law states that the credit is available to first time home buyers. However, the law is a bit more flexible and allows anyone who has not owned a home for three years to qualify. For example, if you sold your home on May 24, 2006, you will have to close on your new home subsequent to May 24, 2009 to qualify. The closing date in this situation would make a significant difference on your wallet. It certainly makes purchasing a home in beautiful Mint Hill, NC a stunning investment!

How – You will receive the tax credit when you file your individual tax return. As part of this filing, you will need to complete Form 5405 which determines the amount of credit you will receive. The credit can be claimed on either your 2008 or 2009 tax return. If you already filed your 2008 tax return, you can amend the return to obtain the credit. And…you can buy up to the end of 2008 and still ask for the amendment. For example, say after months of looking you and your realtor finally find a home in Matthews, NC. By the time you have gone to closing with your new piece of Matthews' real estate, it is nearly Christmas. That is no problem, the ARRA bill provides for that and you can amend your 2009 return and receive the cash back. Or, you simply file it on 2009!

What – Everyone should understand that this is a credit to the tax payer, not a deduction. A tax credit is a dollar for dollar benefit to the tax payer. So a first time home buyer should be $8,000 wealthier as a result of this credit. A deduction merely decreases your taxable income. Furthermore, this tax credit does not have to be repaid to the government like the “credit” available to first time home buyers in 2008. If you have questions, the staff at Jamison Realty can provide the answers.

And - The credit shall be equal to 10% of the purchase price of the home, not to exceed $8,000. Since the median home and condominium price in Charlotte, North Carolina is significantly more than $80,000, most will receive the full $8,000 credit.

Also - Single taxpayers with incomes up to $75,000 and couples with income of up to $150,000 qualify for the full credit.


It's a great time to buy!
Rich Ferretti

Want more information about the Charlotte area real estate market? Check out www.minthillrealty,com

5 Reasons to Buy A New Home This Year

Homeownership is probably the most intrinsic part of the American Dream. Owning a piece of land, however small or modest, is an ironclad investment, a lifetime legacy, and a boost to the ego unmatched by many modern fads. I’ve compiled 5 unbelievably solid reasons to dive into the pool, and buy a home.

1. FHA limits for the Charlotte area have been raised to $303,750, and with FHA loans, you only need 3.5% down and a minimum credit score of 620. (Conventional loans are still more restrictive, typically 5% down on conforming loans and a credit score of 700 or above.)

2. You have a large inventory to choose from. Real estate in Matthews and Mint Hill, always exceptionally popular locations for the discriminating buyer, are at an incredibly affordable rate and there is a plethora of welcoming properties. The team at Jamison Reality has "helped people home" in both lovely towns, and they can take work with you to make sure your selection appeals to tastes and pocketbook.

3. Nationally, the housing market, while still down sharply from its peak, has shown signs of stabilizing, a step toward recovery. When the housing market moves back up, your home will increase in value with no real effort on your part. As the economy continues to thrive, the discounts, incentives, credits and rebates will end. If you buy now, you will get in on the ground floor or a bargain that could eventually lead to an investment windfall for you.

4. Mortgage rates are historically low. Long-term mortgage rates this week reached the lowest level since at least 1970, falling for the third consecutive week. Freddie Mac’s weekly rate report says the average 30-year; fixed-rate mortgage fell to 4.78 percent, matching a low set April 7. It is the lowest rate on such mortgages since Freddie Mac started keeping track in 1970.

5. You can get a federal tax credit: The Fed's have revised the Tax Credit from last year to a much better program. Effective for purchases on or after January 1, 2009 and before December 1, 2009, Purchaser will receive up to $8,000 tax credit. This program is available to anyone who has not purchased in the last three years. If the home is sold within three years, the full amount will be recaptured on sale of the home. Otherwise, this is a great program and should help spur more sales during the months ahead.

Rich Ferretti
Mint Hill & Matthews, NC

Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com