Archive forMortgage Advice
Significance of the Home Buyer Tax Credit Extension and Changes
UPDATED - November 7th, 2009 **It is LAW - signed by Obama on Friday**!
The Florida First-Time Home buyer Tax Credit may soon be known as the Home Buyer Tax Credit… being opened to non-first time buyers for the first time.
As you have likely already read on My FHA Mortgage Blog - the Florida First-Time Home Buyer tax credit is on the verge of extension. I noted there that there are a few exciting changes that benefit you - the home buyer! Here is an explanation as to their significance. Those noteworthy changes between the current tax credit and the proposed tax credit are:
- Change in the deadline. From November 30, 2009 to April 30, 2010. MORE IMPORTANTLY, however is what has to “happen” by the deadline date. As it is now, you ahve to close by Nov. 30th. The extension has wording that states you need to be under contract by April 30th. HUGE difference - especially if you are looking at an Orlando Short Sale, Orlando Foreclosure, or Orlando Bank owned property. The difference can not be overstated! It does not remain open-ended however… you have 60 days from 4-30-10 to close on that property.
- There is also a possibility that the tax credit would be opened up to non-first-time buyers. It looks like non-first time home buyers could be eligible to receive a $6500 credit for homeowners that have lived in their home for 5 years or more. This is big since many of the Orlando homes for sale are not suited for the first time home buyer market. This allows those that own to sell and move up - furthering the impact the housing market can have on the sputtering economy.
- Income limits are also possibly effected. Right now to receive the full benefit, the income limits are $75,000 and $150,000 for single/married income earners [respectively]. That may jump to $125,000/ $225,000. This furthers the number of folks that fit the parameters and can be the key to making this effort work!
Understand that as this gets enacted, it will get crazy busy for folks in the industry, so it is of vital importance to let those you care about know about this blog post so that they can get the groundwork done before it gets nuts!
It is important to note that - while it is not yet through he entire process, the momentum seems to be behind the extension of the Florida First-Time Home Buyer Tax Credit until April 30, 2010 if it makes it to the President and is signed. Here is what needs to happen. [In case you missed it from my syndicated blog post on MyFHABlog.com.]
Contact me ASAP to review the best scenario for you and the people you care about.
Chris Brown
Orlando Mortgage Pro
Direct: 407 - 377 - 0500 x 210
Chris@OrlandoMortgagePro.com
_____________________________________________________
Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the many leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, the newest contributor to Lenderama and has been recently featured on Fox35 News.
Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210
Not sure how to connect? Find out at FindChrisBrown.com
Fox 35 News Report Video: True Story on the First Time Home Buyer Tax Credit
Andrea Tlumacki was one of the “action takers”. With the deadline of the $8000 First Time Home Buyer Tax Credit looming - it is important to have a game plan. Many folks are focused on the Nov. 30th deadline. Okay… but many are not “reverse-engineering” the calendar in order to determine milestones that one needs to meet if they wish to capitalize on the Tax Credit. This can be done by employing the advice of seasoned real estate professionals - both a Realtor and a Certified Mortgage Planning Specialist.
Andrea Tlumacki did. Expert real estate advice from Robert Brown of Prefer One Realty proved invaluable. Not only was she able to secure an amazing interest rate of 4.500%, but she got stellar direction from Robert Brown’s corporate-world negotiating skills to get a surprisingly low purchase price.
We all know that the last week of November is Thanksgiving week, but there seems to be a disconnect regarding that fact and the banker’s hours of that week. Banks will be closed 4 of the last 5 days of the month of November - hence making closing any of those days an impossibility. In her interview with Andrea, Tracy Jacim points out that the time crunch is upon us and the time to postpone has past.
Many of us are familiar with Student Syndrome - where work seems to expand to the time allowed in which to complete it… well the “24-hours before the term paper is due” is here! The need to:
- get approved for a mortgage,
- identify a home you wish to purchase, and
- go-under-contract
…has a time limit of about a week from the time of this post. Sure, things can be closed a bit quicker, but as volume increases for the mortgage companies, the length of time it takes to actually close will be elongated.
In other words… it is important to engage in the Orlando Real Estate process quickly if you hope to benefit from the First-time Home Buyer Tax Credit before it expires.
Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and proudly the newest contributor to Lenderama.
Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210
Florida - The First-Time Home Buyer Tax Credit Dates to know…
As covered on Fox 35 News:
Email Chris your questions now.
The government’s $8000 First-Time Home Buyer Tax Credit available for Lake Mary Real Estate expires Nov. 30 — a short sixty-ish days from now.
When you consider that in the “New World” of Lake Mary Real Estate financing, closings can take up to 45-60 days, first-time buyers have 2 weeks at most to find a home.
Buyers that do not have a fully-executed contract by Oct. 15 have little chance of meeting the November 30 deadline and, therefore, little chance of claiming the tax credit. At best - they are rolling the dice.
Email Chris your questions now.
This is especially true for Lake Mary real estate purchases involving short sales… in fact if you are not under contract by around Oct. 7th - you can forget closing on a short-sale in time! My Opinion.
Congress passed the First-Time Home buyer Tax Credit program as part of the 2009 economic stimulus plan. IRS Form 5405 outlines the program criteria and includes the following stipulations:
- A Home buyer can’t have owned a “primary home” in the past three years
- The home can’t be bought from a family member such as a parent, spouse, or child
- The adjusted gross income [AGI] for the household must be below $75,000 [single tax filers] and $150,000 [joint tax filers]
The credit is capped at $8,000 or 10% of the purchase price, whichever is less. And don’t forget – the First-Time Home Buyer Tax Credit is a true tax credit. It’s not a deduction.
Email Chris your questions now.
Follow me here - this means that a tax filer who claims the full $8,000 and whose typical tax liability is $5,000 would receive $3,000 cash from the IRS and have their $5000 obligation wiped out. If you have already paid your 2008 taxes and are filing an amended tax return to receive the credit, you would get the whole $8000 from the US Treasury.
If you can’t close by November 30, 2009, though, you can’t claim the credit.
The clock is ticking. If you’re planning to use the First-Time Home Buyer Tax Credit, the time to act is now.
Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.
Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210
Clock is Ticking on Orlando’s $8,000 First-Time Home Buyer Tax Credit.
If you plan to use Orlando’s First-Time Home Buyer Tax Credit program, time is running out. The program expires November 30, 2009 and closing on a home can take 45 - 60 days.
That leaves you less than 100 days from today to find a home and go under contract.
The $8000 First-Time Homebuyer Tax Credit program was passed as part of the 2009 economic stimulus plan. It credits up to $8,000 in tax payments to qualified buyers. There are a lot of Frequently Asked Questions about the credit but the basic qualification criteria are as follows:
- Buyer may not have owned a “main home” in the past 36 months
- The home may not be purchased from a parent, spouse, or child
- Adjusted gross income for the household must be below $95,000 for single tax filers and $170,000 for joint tax filers
Furthermore, not everyone who’s qualified will get the full $8,000. The credit can’t exceed 10 percent of a home’s purchase price, for example, and households with income approaching program limits get lesser benefits, too.
Meanwhile, an interesting note about the First-Time Home Buyer Tax Credit is that it’s a true tax credit and not a deduction. Let that sink in. A person or couple claiming the $8,000 credit whose “normal” tax liability is $2,000 would get back $2,000 or whatever had been withheld for federal income taxes plus an additional $6,000 from the US Treasury when their tax return is processed by the IRS.
In other words - you will realize the full $8000 benefit. You don;t even need to wait to file your 2009 taxes. Why, they are allowing for an amended 2008 tax return to be submitted so taht you get the infusion that much faster! Super-cool.
Don’t let the “tax tail wag the dog” but if you are already thinking about buying, the tax credit may be the nudge you need. But don’t delay. You can be sure that as the deadline approaches things will take longer to filter through the system simply because of capacity! at
Better to be ahead of the deadline than chasing it.
Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.
Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210
Orlando Mortgage Rates - Get Ready.. Get Set… Wait, No Move, No wait…
Orlando Mortgage rates are suffering through another volatile week, causing problems for mortgage rate shoppers and Orlando home buyers.
After falling Monday and Tuesday, mortgage rates surged Wednesday and Thursday. The momentum higher appears to be carrying into the weekend, too.
There are several data-related reasons for the mortgage market’s spastic activity this week:
- Unemployment claims fell
- Leading economic Indicators went up
- Inflation readings remained stable
But while the up, down, and flat data points above fueled Orlando mortgage rate volatility, it’s not the data that’s making markets move the most. It’s the psychological impact of the data.
See, data tells us about the past. It measures and reports on what’s already happened. Unfortunately for rate shoppers, mortgage markets are not made on data from the past – they’re made on the expectations of what will happen next - on the now and on the ‘yet to come’.
Therefore, Orlando Mortgage rates and Orlando FHA Mortgage Loans reflect Wall Street’s opinion of the future.
In reading the papers and watching the news, you’ll notice ongoing debate about the U.S. economy. It’s unclear whether the recession is worsening or improving.
On one hand, data is weak and sub-optimal. On the other hand, the data is not nearly as weak as it was 6 months ago and, in some cases, it’s strong. To some, this is a signal that a recovery is already underway.
Or, it may just be a blip.
We can’t be certain in which direction the economy is headed and the same can be said for Orlando mortgage rates. Because sentiment is changing so often, though, it forces us to be on our toes. Huh, who saw American’s being fickle!?
The last few months have been marked by large mortgage rate swings across small windows of time. A rate that’s offered in the morning, for example, is rarely available in the afternoon. Therefore, do your Orlando rate shopping in a compressed period of time and be ready to lock your rate at a moment’s notice.
When markets move, they tend to move quickly. If you are a Orlando first time home buyer looking for the tax credit? Don’t wait too long!
I am not sayin… I’m just sayin… =0)
$8000 FIRST TIME HOME BUYER TAX CREDIT CLOSER TO BEING USED FOR DOWNPAYMENT?
FHA plan will stimulate new Orlando home sales and help stabilize Orlando housing market
Today, while speaking to the National Association of Home Builders, U.S. Housing and Urban Development [HUD], Secretary Shaun Donovan announced that the Federal Housing Administration (FHA) will indeed allow homebuyers to apply the $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said today’s action will help stabilize the nation’s housing market by stimulating home sales… we will see.
The 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 so that borrowers can immediately apply those funds to their down payment. Home buyers using an Orlando FHA-approved lender can apply the tax credit to their down payment in excess of 3.5 percent of appraised value - or towards their closing costs, which can help achieve a low, below market, interest rate. To read the FHA’s new mortgagee letter, visit HUD’s website.
“We believe this is a real win for everyone,” said Donovan. “Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation’s housing market. Families will now be able to apply their anticipated tax credit
toward their home purchase right away.”
Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 % downpayment on the purchase of their home. Current law does not permit approved lenders to ‘monetize’ the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today’s announcement, lenders can monetize the tax credit for use as additional down payment, for other closing costs, or buy down their low mortgage interest rate. In addition to the borrower’s own cash investment - which appears to still be the standard 3.5%, FHA allows Orlando First-time Home Buyer parents, employers and other governmental entities to contribute towards the downpayment over and above that 3.5%.
This is good news and can help the struggling housing sector. It should be interesting to see how they intend to implement this covertly complex initiative at the street level.
Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve. Chris can be found at Orlando FHA Loans, Chris[at]OrlandoMortgagePro[dot]com, or by calling 407.377.0500 x 210
You read it right - Orlando Mortgage Rates went up over .500% yesterday!
The country’s, including Orlando, mortgage rates rose by 0.625 percent yesterday [Wednesday] - Ouch! Yes, you read it right. Zero-point-six-two-five percent.
The surprise surge in pricing started shortly after 1:00 P.M. ET, then continued all the way until the market’s closing. It was the sharpest one-day surge in mortgage rates in recent history. Perhaps ever.
For Orlando mortgage rate shoppers swept up in the surge, monthly payments are now higher by $29 per $100,000 borrowed.
That’s a significant shift.
For as rare as Wednesday’s events were, though, middle-of-the-day, 0.625 percent rate changes don’t just happen. Yesterday, the action was the result of a confluence of factors, including:
- Rising oil prices and gas prices
- Optimistic predictions about the end of the recession
- Concerns over the U.S. total debt load
- Fears of inflation
In addition, momentum-trading played a role.
As markets worsened, selling begat more selling, amplifying Wall Street’s total losses. As mortgage bond prices fell, mortgage rates went up. By a lot.
Mortgage markets are notoriously fickle and yesterday’s events proved it. Days like Wednesday are precisely why insiders recommend shopping for mortgage rates in a compressed timeframe. The faster you finish, the lower the risk of losing low interest rates to new market conditions.
If nothing else, this illustrates why you need a trusted advisor watching for your best interest - we were able to lock in several people before the shift, others - that second guessed, got hammered.
________
Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.
Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210
Is the Mortgage Industry due for a Mortgage Revolution?
A revolution’s time is realized when considerable change benefits the masses. If there is any question if the time is right for a mortgage revolution, then you haven’t been paying attention.
There has been a lot of speculation and even more commentary on how we have landed in the predicament we find ourselves in. There seems, however, to be one thing for sure… many parties appear quite satisfied to lump the blame on the mortgage broker community. I am in agreement that the mortgage community needs a Code of Conduct, what can be lost by that? The good news, is that there are enough mortgage bankers and brokers that agree that our community is best served by both existing on equal footing… the key is getting these independent thinkers unified – hence the Revolution.
Have you heard of:
Brian Brady Originator, America’s #1 Mortgage Broker
Chris Brown Originator, MortgageChiliBlog.com
Victoria Del Frate Coach, I Can Coaching
Mortgage Cicerone Originator, Mortgage Blogger
Dan Green Originator, Mortgage Blogger, BringtheBlog.com
Mark Green CRM Expert, Top of Mind Networks
Brian Larrabee Originator, Estate of Mind Charts
Mark Madsen Originator, MyFHAMortgageBlog.com, Syndicated Blogger
Maggie Reames Industry Specialist, Top of Mind Networks
Bill Rice Syndicated Mortgage Blogger, Lenderama.com
Trace Richardson Site Development, LeadPress.com
Bob Rutledge Originator - Top Producer
Chad Weber Originator -Top Producer
Chances are, a name or two rings a bell, but many will not. Why? Because this is not a top-down event – it is a grassroots, street level, knuckle-to-knuckle event for producing LOs by producing LOs. Each member brings a unique set of skills that is masterfully placed into today’s market.
As the committees within the original fourteen work feverishly to piece together an event with huge impact and implemental content, lets take a look at what we do know so far…
Who:
This event is for those that love our battered mortgage business and are committed to making it regardless of the current climate.
What:
Provide a forum for 1,000 ethical mortgage professionals to network, learn, teach, share and dad-gum-it… just blow off some steam. Note, our venue only has room for the first 1000. Click here for the interest list and updates on Twitter.
Where:
Cobb Galleria – Atlanta, Georgia
Why:
Hellooooo – is this mic on!? Have you been paying attention at all? It is to provide a new breed of leadership and direction to a beaten and battered industry. Not to replace the old, but to complement them with today’s unique industry challenges for the mortgage broker and banker alike. Oh, and if that were not enough – Anything above-and-beyond the cost of the event, yeah – not a profit… it goes straight to charity. The goal? To raise $250,000 for charity & give the traditional media something nice to say about mortgage professionals. How ‘bout that for a 180!?
When:
January 2010
How:
These 14, well 13, street level super-stars [personally I feel I got in because they thought that 13 was an unlucky number or something] simply feel the time for change has come. We, like those of the American Revolution, are committing our time, energy and honor with no regard for monetary compensation for the sake of our mortgage broker/banker community as a whole. We have several different committees formed by, honestly, some super-smart people to create a curriculum that adds 5-star content for those we work shoulder-to-shoulder with day in and day out.
In conclusion, leadership is not a financial decision – it is a decision based on what is right – and right now, our industry is ripe for a revolution.
Are you bold enough to stand for your industry or will you shrink into the shadows like the 70% that are already gone?
The decision is yours.
Humbly,
Chris Brown
Getting Started With an Longwood First-Time Home Buyer FHA Mortgage
Being an FHA licensed Longwood mortgage company, we at Trinity Mortgage feel honored to offer our First-Time Home Buyers with Longwood Government-backed FHA programs that can truly provide for the American Dream of home ownership.
With low down payment requirements, competitive mortgage interest rates, flexible credit history guidelines, and common sense underwriting practices, FHA mortgage loans are designed to meet the primary needs of many First-Time Home Buyers.
Buying your first home can be, simply put, overwhelming at times… that is why is is imperative to make sure that you are not solely focused on just rates, but in getting sound mortgage advice as well. Seeking only rate has been one of the main contributers to the mortgage mess we now find ourselves in.
There are literally hundreds of questions that our clients uncover as they start their initial mortgage and Longwood real estate related searches.We invest a significant amount of time and effort in updating our blogs and home buyer packets with the most relevant and valuable information necessary so you feel confident that you are making the most informed decisions. Our goal - earn your trust through communication and service and the lowest cost of borrowing money over time.Please feel free to contact us directly at any time via phone, email, or online FHA mortgage application form if you desire no-nonsense mortgage insight to gain a better understanding of some of these complex details.
Floridas 1 FHA Mortgage Lender 407-377-0500 x210
Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.
Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210
