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

Phew - I am sure glad the last blog-post subject line had a question mark in it!

Guess what disappeared… the mortgagee letter that was on HUDs website about this ability to “use the $8000 First Time Home Buyer Tax Credit” - yeah… its gone!

As of today you can not use the tax credit for a down payment.  True, there has been a lot of discussion on this, but as of now it is not currently an option.    Those statements were made by the Secretary of HUD yesterday and a HUD/FHA letter was published on the website Monday night.

Then…the new Director of HUD pulled that Mortgagee letter this morning and is no longer even available on the HUD website.  [Notice ML 09-15 has been pulled]. This theoretical program is not something that is deliverable as of yet. Sometimes I wonder if they are intentionally trying to sabotage the marketplace. They, once again, have gotten people worked up in a frenzy over something that might - maybe - possibly - happen… then they act as if it was not said at all!?  OMG, are you kidding me?

This is why, more than ever, it is important to have a trusted mortgage broker in your corner.  I will deliver the news to you as it comes out and if/when they change it, you will know about it first - here.  Thank you for the trust you place in me, it is not something that I take lightly.  If you have any questions don’t hesitate to call me, for now…..and if anything should come to market officially you will see it here.

Just as an FYI - before this could happen, there would need to be:

• …State agencies approved and funded for the down payment ‘float’
  
• …a Change to the HUD guidelines on the time frame that is allowable for a loan. [Currently must be amortized over 10 years with no balloon.]
• …and a change to the IRS guidelines allowing your refund to be re-assigned to a state or non-profit entity

How long do these things take?  Oh my, your guess is as good as mine.  With the tax credit due to expire on Nov. 30th, 2009, this may never even see the light of day.  Wanna know what happens - Subscribe to the blog to keep in the loop

Is Zero-down back for Lake Mary’s First Time Home Buyers?  Could be.  This is the next best news to working with Florida’s #1 FHA Mortgage Broker.  This info was released right at the close of business yesterday - getting it to you ASAP!

Hot off the press!

4:47 PM ET -  Shaun Donovan, secretary of the U.S. Department of Housing and Urban  Development, said that the Federal Housing Administration [FHA] is going to permit its  lenders to allow homeowners to use the $8,000 First Time Home Buyer Tax Credit as a down payment.  According to Donovan, the FHA’s approved lenders will be permitted to ‘monetize’  the tax credit through short-term bridge loans. This will allow eligible home  buyers to access the funds immediately at the closing  table.

For more information on this email me, or call me at 407 377 0500 x 210.  Or, you can get prequalified now with the online mortgage application.

As an Orlando Mortgage Broker in Seminole County, I have had the experience of working with many insurance carriers -some good - some bad. As the largest private property insurer makes the move to pull out of Florida, home owners are wondering - what do we do now? I personally have been using State Farm since day one… so you and me, yeah… same boat here!

The most pivotal, yet most overlooked thing, is likely the urgency to move QUICKLY!

“But Chris, this is supposed to happen over a period of a few years… what’s the rush?”

Glad you asked!

The Answer - Capacity.

Effectively, when State Farm pulls out, the other carriers are going to be inundated with folks that need their homes insured. While this is a welcome event for those carriers, it is not all roses for them. Imagine these carriers are like a sponge. As they soak up these other policies abandoned by State Farm, they will begin to saturate. Once they max out, home owners without insurance will be left with less options.

It is safe to assume that the best, most competitive companies will fill up first, is it not?

At the end of the day, those that do not hesitate will end up with the most options and therefore the best options. Meaning, those policy holders that act the fastest will have the best and broadest options available to them - those that wait and hold on to the Farm the longest will be left with the lessor of the options and likely pay more for their home owner’s insurance for years to come.

Here are 3 EASY STEPS to take to make sure that you get the very best that is out there.

STEP 1: LINE UP THE DUCKS - Pull out your current policy and have it handy when you contact possible insurance companies. DON’T HAVE THEM? Call your current carrier and ask for copies of your “Declaration Pages”. Commonly referred to as “Dec Pages” show the coverage that you have and will assist your hunt for a new provider. [Sample of what you should get from State Farm.]

STEP 2: PICK UP THE PHONE - With the Dec pages in hand - ACT NOW. It is likely best to find an independent insurance company that can write insurance with MANY carriers. Why? Because an insurance company that can write for many [rather than just one] can do the shopping for you and find the very best coverage for the cost. Since the best companies for the money are likely to fill quickly, time is of the essence. Here is the company I chose, personally. The gal I connected with was Sarah - email Sarah here: scornwell@iscf.biz.

STEP 3: COMPARE - When you find the best independent carrier, have them provide 2-3 quotes from different companies they represent. Have them walk through the coverages with you and offer their opinions on which is the best value. Cheapest isn’t always best. You want to gain confidence that they company you are with doesn’t follow State Farm’s lead

The folks at ISCF have put together an informative White Paper about the State Farm pull out. I consider it required reading for any current State Farm policy holder.

Related Articles:

State Farm Announces its Intent to Stop Writing Property Insurance in Florida.

State Farm to Florida Homeowner: No Thanks.

State Farm to exit Florida Property Insurance.

NEWS FLASH: THE MAINSTREAM MEDIA is not your friend. Okay, maybe the subject of this Orlando Mortgage Blog Post is a little extreme, but it does prove my point. Sensational sells. Unfortunately, truth doesn’t always carry the same punch if it is not. Despite turmoil on Wall Street, despite the drum beat of doom from the media…the real estate sector continues to deliver good news.

Last month, led by a 22% surge from the West Region, new home sales went UP by 2.7% from August’s numbers. Okay, so the “West region” isn’t exactly Orlando Real Estate news, but the trend is important. Waiting for the bottom? You just might miss it if you don’t perk up and get pre-qualified now.

[A "new home" is a newly-built residence, i.e. a brand-new house.]

The surge in New Home Sales volume is aligned with the other good news we’ve seen from in the real estate market.

Lets count down the good news for real estate that you HAVEN’T HEARD in the last two weeks.

#4: Oct. 8: Homes under contract to sell jumps 7.4%

#3: Oct. 23: Foreclosed homes fall, yeah, you read it right FALL 12% in September

#2: Oct. 24: The supply of “used homes” falls to an 8-mo. low

#1: Oct. 27: The supply of new homes fell by 7%

WHY is this happening?

1. Banks are getting better about selling foreclosed homes… we all saw that needed to change did we not?
2. and builders are wising up and are dumping their excess inventory

This isn’t necessarily good for property values, but it does encourage what the Orlando realty market needs… buyer infusion. Deals are abounding in our Seminole and Orange County markets. In fact as I looked into it, almost 70% of the homes for sale right now qualify for an Orlando FHA Loan.

In addition, because our Lake Mary buyer-to-seller ratio still favors buyers, today’s home seekers… even First-time Home Buyers [Get your 21 FAQ of the $7500 Tax Credit here] enjoy a tremendous amount of negotiation leverage if they are aligned with a local Realtor, making real estate even more attractive.

But, as with everything in business, markets seek balance.

As home supplies dwindle, buyers’ ability to negotiate sales prices and closing costs will fall.

It’s Supply and Demand — as supplies drop, relative demand rises, and prices rise with it.

In every Seminole County neighborhood, homes that are priced “right” [usually because of Realtors not afraid to be candid with their sellers] are selling quickly. And now that banks and builders have figured out… or at least finding out the formula, more homes are going under contract than at any time since 2007.

Much of the current economic climate is being blamed on housing. If the data is accurate, though, we can infer that the climate may not last much longer.

Written by Chris Brown, Orlando Correspondent Lender.

(Image courtesy: AP.org)

As a concerned citizen myself, I try to hunt around the internet to find things that influence our lives here in central Florida. [Besides just Gator Football that is.]

As most of you know, we have an election coming up in November, and while this is not a political post, it is important to know what is on the docket for those of us in FL other than the Presidential Race.

A friend of mine, Rob Arnold, wrote a great post about the amendments that are going to be showing up for us as well.

I recommend everyone go read the official stuff for themselves, but here is a summary of what we will see…

Amendment 1: Touches on property rights of Aliens not eligible for citizenship.

Amendment 2: Would amend the definition of marraige to be one man - one woman.

Amendment 3: Relates to property taxes.

Amendment 4: Also relates to property taxes.

Amendment 5: There is no 5.

Amendment 6: More on property taxes.

Amendment 7: There is no 7.

Amendment 8: Sales tax and community colleges.

Check it out, be informed, and go do your civic duty!

Chris

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