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

Existing Home Sales Rebounding!

In April, sales of existing homes in the US grew 2.9 percent in April, recovering from a decline in March. The National Association of Realtors (NAR) reported that the sales were due in large part to the low prices on new builds.

NAR said sales of homes increased to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. They had initially estimated the March rate at 4.57 million units. The April sales exceeded the forecast of 4.65 million units.

This is good news, depite the fact that sales this April were 3.5 percent below the 4.85 million-unit level in April 2008.

Buyers all over the country are being spurred on by lower prices. "We have definitely seen an uptick in both interest and home sales here in Mint Hill" said Rich Ferretti of Jamison Realty, "it is a great time to buy, especially for first-time homebuyers."

First-time homebuyers, buyers who have not owned a home in three years, are eligible for a temporary federal housing tax credit of up to 8,000 dollars for principal homes bought this year through November 30.

Home mortgage interest rates are hovering at historic lows, causing the buying surge. Freddie Mac reports that mortgage rates fell in April to a low last seen in 1971, at 4.81 percent for a 30-year fixed-rate mortgage, compared with 5.92 percent a year ago.

The housing market is certainly showing new life, and yet there remains a great opportunity for buyers to get a phenomenal deal.

Rich Ferretti
Jamison Realty

Want more information about the Mint Hill 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

Refinance with the Home Affordable Refinance Program

President Obama's Housing and Economic Recovery Act (HERA) has allowed Wells Fargo to be able to offer the HARP (Home Affordable Refinance Program). This program allows borrowers whose loans meet the following criteria to refinance thier loans regardless of their current credit score and value of their homes (to a maximum loan value of 105% of their home value).

The impact is huge as homeowners in Mint Hill and around the country who have seen the values of their homes fall, along with their credit scores, are still able to benefit from the historically low interest rates we are experiencing.

The criteria are as follows :

--> Conforming loan amount where the first mortgage was originated without private mortgage insurance

--> Fannie Mae or Freddie Mac was is the investor (i.e. not FHA or VA loans)

--> No late mortgage payments in the last 12 months

For more information, contact Rich Ferretti

Would you like more information about the Charlotte area, or Mint Hill real estate market? Check out www.richferretti.com

Is Home Ownership For You?

Are you considering taking advantage of this buyer's market by becoming a homeowner in Mint Hill or Matthews?

Buying a home is the largest purchase most people will ever make. Home ownership has great benefits, and it also comes with certain responsibilities. Are you ready for home ownership?
Look at your current situation and determine if:

-->You have a steady, reliable source of income and a steady employment history for at least two years. Freelancers, consultants and other self-employed people should talk to a mortgage broker to work out the details.

-->You have a credit history--and a decent credit score. Banks need to know that you have a proven track record of borrowing money and paying it back.

-->Your total debt is manageable and you can afford to take on the costs associated with home ownership. Nobody wants to see a potential buyer default. It is great to shoot for the moon, but plan your purchase according to your wallet.

-->You have money saved for a down payment and closing costs or you have access to other sources of funds, such as an employment bonus, tax refund, or a gift from a relative.

And remember, the mortgage is not the only expense you need to consider. Your new home comes with other potential budget items such as repairs, maintenance, taxes, landscaping, etc.

Home ownership is an investment in the future, and I don't think there is any better investment right now than a house in Mint Hill or Matthews. Mint Hill and Matthews are popular, affluent towns near Charlotte, NC. Currently selling at amazing prices, a home in Mint Hill or Matthews will likely have a good resale value in the future. With a selection new and existing homes, these areas are perfect for retirees, young people, or a family, and the quick drive to Charlotte makes it perfect for a commute.

If you would like to consider home ownership in Mint Hill or Matthews, please give me a call at 704-846-3663. There are currently incentives for first-time homeowners and record low interest rates to take advantage of, so call today!

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

Mint Hill Homes

Mint Hill continues to grow. The new Mint Hill High School is the talk of the town. Learn more at http://www.onehighschoolforminthill.com/

People ask me all the time, "why do you love Mint Hill" I feel right at home here. It's where Mayberry meets the 21st century.

When was the last time you went to the movies on the lawn of town hall or stopped by and had some home made ice cream? How about breakfast at Penny's or dinner at Jimmies???

This is home town living.

I'd love to share my passion with you about Mint Hill,, call or email me today.

Rich Ferretti
Mint Hill Homes

Rich@RichFerretti.com

Why Get Mortgage Pre-approval?

Dear Rich:

I am interested in buying a home in Mint Hill (I am a first time home-buyer) and I am wondering if you think it is necessary to get a pre-approval - or just a pre-qualification? My credit is good and I just got a raise in my job, so I don't know if this is a necessary step or what I would do to get this before I start the home search.

Ralph

Dear Ralph:

Starting a home search? Go into it with a pre-approval, not just a pre-qualification, for a mortgage.

A pre-qualification is a simple and informal process where you get an estimate from a bank regarding how much you will likely qualify for if you apply for a mortgage with that bank. It gives a ballpark figure, but it’s not a solid commitment. Many factors, such as credit scores and outstanding debt, may actually affect how much you’ll be approved for.

A pre-approval is a much more reliable. The bank draws up a letter pre-approving a mortgage up to a certain amount. To get that pre-approval, you’ll supply a statement of earnings and assets, and the bank will pull a credit report.

If you have a pre-approval in hand, it demonstrates you are serious. It also gives you an edge in several ways:

--> If you are one of two sets of buyers looking at the same house and making approximately the same offer, guess who usually wins? You got it! The ones who have a pre-approval typically get the house.

--> Buyers with a pre-approval often have more bargaining power. If the sellers know they have an interested pre-approved buyer, they are more likely to be open to negotiation.

--> Possession of a pre-approval can speed up the closing.

One word of caution: If any of your conditions change from the time you apply for a pre-approval to the time you go for the mortgage (such as employment status or debt load), the pre-approval may no longer be valid.

In the long run, getting a pre-approval is worth the additional time and effort.

Good Luck!
Rich Ferretti

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