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Liz Warren

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Displaying blog entries 1651-1660 of 1876

States Where Prices Are Up Nationally

Saturday, March 28, 2009
by Liz Warren

There are a handful of states where prices are up from 2007 to 2008 according to First American Corelogic, a mortgage data company: 

These states are:

West Virginia-4.2%

Texas - 3.6 %

 

South Dakota – 3.6 %

 

Montana – 2.6 %

 

Mississippi – 1.7 %

 

Utah - 1.5 %

 

New Mexico - 1.3 %

Home prices during the same time frame dropped in 70% of states.

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Mt. Hood Wilderness Bill Passes Congress

Wednesday, March 25, 2009
by Liz Warren

The Mt. Hood Wilderness Bill has passed Congress and is on its way to Obama's desk for signature. Here is a map from the U. S. Forest Service showing the added acreage to be included in the Mt. Hood Wilderness

For addtional details about this bill, hit this link.

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Buying on Mt. Hood? Know your credit score limits

Wednesday, March 25, 2009
by Liz Warren

Every day is an education day in the tightening world of mortgages and credit. Today we were notified that if you do not have a credit score of at least 620 you will not be able to get a loan anywhere. So, homebuyers for Government Camp, Welches, Brightwood, and Rhododendron....know your credit scores!

Also, if you are looking for a cash out refi on a non owner occupied property, in other words a second home or investment property, lenders will probably only give you maximum 65% of the appraised value of the home.

If you have an FHA loan, the maximum cash out refinance amount you will receive is 80% of value.

The box just got smaller for credit.

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New and Existing Home Sale Numbers

Tuesday, March 24, 2009
by Liz Warren

Take a look at this information to see NAR, the National Association of Realtors, info based upon the Bureau of Census, and their predictions for home sales through the end of the year and into 2010

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Monday Morning Coffee

Monday, March 23, 2009
by Liz Warren
Monday Morning Coffee

INSPIRATION FOR TODAY:

"If you take too long in deciding what to do with
your life, you'll find you've done it."
-George Bernard Shaw

"Before enlightenment - chopping wood, carrying water.
After enlightenment - chopping wood, carrying water."
- Buddha

FEELING STRESSED?

Oh - the frustration of it all. The first quote for today deals with the importance of having direction - goals - in your life. You know - we've all heard it for years - our life will be happier, more prosperous, more meaningful if we have a plan, know where we're going, and work systematically at getting there.

If you've tried to do that, you've undoubtedly met with a great deal of frustration along the way. It's like the expression "Life is what happens to you while you're planning other things." No matter how hard you work at your plan, there are those constant interruptions that get in the way, and make it seem so difficult. You are not alone.

As important as the first quote is, think about the second one. A modern paraphrase might go like this: "Before setting and achieving your goals, and having control over your life, your days are filled with trivia, interruptions, hassles, disappointments, family responsibilities, etc. After working your plan and achieving all your dreams and goals - your life is filled with trivia, interruptions, hassles, disappointments, family responsibilities, etc."

Taking control of your life can result in great personal satisfaction, provided you understand it does not bring you to perfection. Intertwined in our desire to achieve peace, success, and enlightenment, there is still plenty of wood to chop and water to carry. The day-to-day responsibilities of life do not disappear. We simply gain the strength to bear them more readily - and with a smile.

So - carry on with your plans and your dreams. They are vital to a great life. Yet remember the words of Jules Renard, who said, "There are moments when everything goes well; don't be frightened, it won't last."

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Mt. Hood Buyers, Know Your Credit Scores!

Saturday, March 21, 2009
by Liz Warren

It's time to buy a home on Mt. Hood in Welches, Brightwood, Government Camp or Rhododendron. What is one of the most important things you need to know? Answer: your FICO score or credit score.

Why is this so important? Depending upon what your credit score is, your interest rate will be determined by this score.

Here is an example of Oregon interest rates as related to FICO credit scores:

As you can see this is nearly a 2% difference on your interest rate of your loan and a big difference for your payment.over the life of the loan.

This next chart will show you nationally where credit scores currently sit. This is taken directly from www.myfico.com which is an excellent source to lean about credit scores.

If you have a low credit score, work on getting this higher now. Not only will this have an impact on home buying but also car purchases, insurance rates and any other purchases where you need credit!

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Credit Ratings to Purchase on Mt. Hood

Friday, March 20, 2009
by Liz Warren

Are you looking to purchase a home in Welches, Government Camp, Rhododendron, or Brightwood? Know your credit score! Sun Trust one of the main lenders through Fannie Mae and Freddie Mac is requiring a minimum credit score of 660 to receive ANY loan. (loans under $417,000) Loans greater than this amount fall into the Jumbo catagory. Brokers are telling us the rest of the lenders will follow this trend. FHA loans will still allow 620 credit scores.

It is advisable for any buyer to go out and get a lender approval prior to purchasing a home so you know, not ony what you can afford, but which type of loan you will qualify for.

Credit is VERY IMPORTANT! Watch your credit score.

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Mt. Hood First Time Homebuyer Tax Credit Info From First American Title Company

Friday, March 20, 2009
by Liz Warren

Here are some FAQs on the First Time Home Buyer Tax credit from First American Title Company

Frequently Asked Questions:

First Time Home Buyer Tax Credit of $8,000

 

1.    Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

2.    What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3.    How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

4.    Are there any income limits for claiming the tax credit?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

5.    What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6.    If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phase-out limits.

7.    Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase out to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

8.    How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

9.    How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

10. What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

11.   I read that the tax credit is "refundable." What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

12.   I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.

15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
No. You can claim only one.

16. I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

17. Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

18. I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.

 

19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.

Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a down payment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

 

20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

 

21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phase-out would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

 

 

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Mortgage Fraud is on the Rise!

Thursday, March 19, 2009
by Liz Warren

Mortgage and other types of fraud are on the rise in these  tough financial times. Mortgage fraud is up 26% in 2008 over 2007! This covers fraudulent credit reports, tax returns, employment, appraisals and loan applications. The information comes from a report prepared by the Mortgage Asset Research Institute.

There are many other types of fraud creeping up in connection with leasing, contract sales, illegal wraparounds of underlying property liens, rental deposits, lease options, foreclosure consultants and other assorted issues associated with home ownership and home buying. Lots of people are walking off with other people's deposits, renting out their foreclosed home, walking away with lease option deposits and the list goes on. It's a mine field out there!

 

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Mt. Hood Condo Buyer Info

Thursday, March 19, 2009
by Liz Warren

Interested in purchasing a Mt. Hood Condo? There are some great units for sale at Collins Lake or the Grand Lodges in Government Camp, or Fairway Estates,Clear Hills, and Shadow Hawk in Welches. What you need to know, if you are getting a bank loan is that Fannie Mae and Freddie Mac are changing regulations for mortgage loans on these units.

Here are a couple things you should know:

If the homeowner's are 15% or greater delinquent in homeowners association fees they will not lend on the project.

If 10% or more of units are owned by a single entity, they will not lend on the project.

As of April 1st, if a buyer does not but at least 25% down, they will be paying an extra 3/4% of the loan amount in a closing cost fee to protect against buyer defaults.

Check with the condo association president prior to making an offer or even looking at a project to save time. If the condo unit does not go conventional there may be alternative financing but I am sure it will cost you in a higher interest rate or fees.

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Displaying blog entries 1651-1660 of 1876

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