•Desert
•Cactus
•Scorpions
•Rattlesnakes
These are all the things that come to mind when you normally mention the name Arizona. Having been born and raised in Arizona, there are many more things to do here. At the time of writing this article it's 113 degrees outside in Phoenix. This is the time of year to find a nearby lake like Lake Pleasant, Canyon Lake or Saguaro Lake and enjoy some water activities. There is also a newly built water park, Wet-N-Wild, that just opened in July to take the kids to for keeping cool. Another popular activity often referred to as "Arizona's Floating Picnic" is tubing down the Salt River.
During the winter months, you can enjoy skiing at Arizona Snobowl in Flagstaff and Sunrise Park Resort in Greer. These facilities are also open in the summer months for activities such as hiking, mountain biking and just enjoying nature on a scenic lift ride. Oak Creek Canyon and Sedona provide nice weekend getaways for golfers, nature enthusiasts and even power shoppers. Sedona is often referred to as "Red Rock Country" because of the beautiful red-rock monoliths named Coffeepot, Cathedral and Thunder Mountain that surround the city.
A popular local hangout is the newly constructed Westgate, in Glendale, located adjacent to the Arizona Cardinals stadium. Westgate offers activities such as dining, shopping, a fountain park for the kids, and a movie theater.
Known primarily for the "Grand Canyon" this beautiful state has much more to offer for someone looking to purchase a home in Phoenix. With real estate prices in some Phoenix neighborhoods dropping to prices not seen since 1997 and favorable interest rates, now may be the time to take advantage and buy the home you have always dreamed about. First-time homebuyer loan programs and the $8,000 tax credit is also currently available to applicants who qualify.
Showing posts with label $8000 Tax Credit. Show all posts
Showing posts with label $8000 Tax Credit. Show all posts
Saturday, July 11, 2009
Thursday, June 11, 2009
First-Time Homebuyer Tax Credit - Can You Access the Money Sooner Than Waiting to File Your 2009 Tax Return?
By now, most of you have heard of the $8,000 tax credit available to first time homebuyers purchasing a primary residence before December 1, 2009. The question that seems to be on everyone’s mind is whether or not the money can be obtained sooner and if so, what can it be used towards? There have been many announcements and subsequent revisions that have made it all a little confusing. Here is a breakdown of some of the current policies set forth.
At the end of May 2009, HUD announced that it will allow “monetization” of the tax credit. This simply means that the anticipated tax credit can be applied towards the purchase of the home immediately rather than waiting to receive the refund. The guidelines authorize the monetization in a few different ways.
For starters, homebuyers that believe they qualify for the credit are permitted to reduce their income tax withholdings. This will allow buyers to accumulate more cash reserves for a down payment by increasing their take home pay. Individuals must be cautious because if the purchase does not occur, the IRS could impose interest and penalty charges on the repayment.
Some state housing finance agencies and other government entities have introduced programs that will provide homebuyers with short-term loans that can be used towards the FHA minimum 3.5% down payment. Longer term loans that are secured by a second lien on the property are also permitted. The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs that can be found at http://www.ncsha.org/section.cfm/3/34/2920. At this time, Arizona does not have any of these programs available.
In addition, FHA approved lenders are allowed to provide bridge financing to the buyer that is secured by the anticipated tax credit. This amount is permitted to cover closing costs, prepaid expenses and down payments above the FHA minimum of 3.5%. Unfortunately, there are no lenders participating in such programs at this time. The broad consensus in the industry is that these loans are not anticipated to surface in the near future.
At the end of May 2009, HUD announced that it will allow “monetization” of the tax credit. This simply means that the anticipated tax credit can be applied towards the purchase of the home immediately rather than waiting to receive the refund. The guidelines authorize the monetization in a few different ways.
For starters, homebuyers that believe they qualify for the credit are permitted to reduce their income tax withholdings. This will allow buyers to accumulate more cash reserves for a down payment by increasing their take home pay. Individuals must be cautious because if the purchase does not occur, the IRS could impose interest and penalty charges on the repayment.
Some state housing finance agencies and other government entities have introduced programs that will provide homebuyers with short-term loans that can be used towards the FHA minimum 3.5% down payment. Longer term loans that are secured by a second lien on the property are also permitted. The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs that can be found at http://www.ncsha.org/section.cfm/3/34/2920. At this time, Arizona does not have any of these programs available.
In addition, FHA approved lenders are allowed to provide bridge financing to the buyer that is secured by the anticipated tax credit. This amount is permitted to cover closing costs, prepaid expenses and down payments above the FHA minimum of 3.5%. Unfortunately, there are no lenders participating in such programs at this time. The broad consensus in the industry is that these loans are not anticipated to surface in the near future.
Tuesday, June 9, 2009
First-Time Homebuyer Tax Credit
With housing prices at an all time low, first-time homebuyers are in a prime position to maximize their opportunities in today’s real estate market, especially with the authorization of the $8,000 tax credit by the American Recovery and Reinvestment Act of 2009. The following is a brief summary of some of the key factors.
1. The tax credit is equal to 10% of the purchase price up to a maximum credit amount of $8,000.
2. Applies to “first-time homebuyers”, which is classified as a buyer that has not owned a primary residence in the last three years.
3. Residence must be purchased after January 1, 2009 and before December 1, 2009.
4. Any single family residence, including condos and townhouses are eligible.
5. The full credit amount is available to individuals with an AGI less than $75,000 ($150,000 for joint return). There is a phase out period for an AGI up to $95,000 ($170,000 for joint return).
6. The tax credit is refundable. The credit amount is used to reduce or eliminate the tax liability and the remaining balance is then refunded to the purchaser.
7. The credit does not have to be repaid unless the home is sold within three years of purchase. Then the entire credit amount is recaptured upon the sale.
At the end of May 2009, HUD authorized the tax credit to be utilized to cover closing costs and prepaid expenses through state housing authorities, FHA approved non-profit agencies and bridge financing. However, at this time there does not appear to be any lender participation in this type of loan.
1. The tax credit is equal to 10% of the purchase price up to a maximum credit amount of $8,000.
2. Applies to “first-time homebuyers”, which is classified as a buyer that has not owned a primary residence in the last three years.
3. Residence must be purchased after January 1, 2009 and before December 1, 2009.
4. Any single family residence, including condos and townhouses are eligible.
5. The full credit amount is available to individuals with an AGI less than $75,000 ($150,000 for joint return). There is a phase out period for an AGI up to $95,000 ($170,000 for joint return).
6. The tax credit is refundable. The credit amount is used to reduce or eliminate the tax liability and the remaining balance is then refunded to the purchaser.
7. The credit does not have to be repaid unless the home is sold within three years of purchase. Then the entire credit amount is recaptured upon the sale.
At the end of May 2009, HUD authorized the tax credit to be utilized to cover closing costs and prepaid expenses through state housing authorities, FHA approved non-profit agencies and bridge financing. However, at this time there does not appear to be any lender participation in this type of loan.
Thursday, May 28, 2009
First-Time Homebuyers Infiltrating the Foreclosure Market
PHOENIX –AZ The foreclosure market in the Phoenix Area has sparked national attention and caused a dramatic increase in home sales. According to an article published by the Arizona Republic, investors trying to reap the benefits of the bargain priced foreclosures jump started the area’s housing market in the first part of 2009. In April, investors consisted of approximately 19 percent of the Valley’s home sales. Recently, the new front runner’s for home purchases belongs to the first-time homebuyers.
Market analysts believe that first-time homebuyers will soon account for half of the area’s home purchases. It is said that the federal housing plan’s $8,000 tax credit to first-time homebuyers and other neighborhood stabilization programs are providing huge incentives to help people purchase these foreclosure homes as primary residences.
The major increase in purchases is for residences priced below $150,000. Many of these properties are receiving multiple offers, which are helping the overall prices to climb. Today the median home price in the Valley is $116,500, which is up 1.3 percent since the end of April. The median price per square foot also increased 2.4 percent, reaching $84.86 per square foot in May.
Where investors dominated the market during the housing boom, accounting for 35 to 40 percent of Phoenix home sales, today lends a very different housing market. Investors are either paying cash or being forced to contribute large down payments in order to receive financing. Mortgage financing is more favorable to individuals purchasing primary residences and placing larger requirements on investors to deter potential future foreclosures.
If you are thinking of purchasing your first home……NOW is the time to seize all of the opportunities available!!!
Market analysts believe that first-time homebuyers will soon account for half of the area’s home purchases. It is said that the federal housing plan’s $8,000 tax credit to first-time homebuyers and other neighborhood stabilization programs are providing huge incentives to help people purchase these foreclosure homes as primary residences.
The major increase in purchases is for residences priced below $150,000. Many of these properties are receiving multiple offers, which are helping the overall prices to climb. Today the median home price in the Valley is $116,500, which is up 1.3 percent since the end of April. The median price per square foot also increased 2.4 percent, reaching $84.86 per square foot in May.
Where investors dominated the market during the housing boom, accounting for 35 to 40 percent of Phoenix home sales, today lends a very different housing market. Investors are either paying cash or being forced to contribute large down payments in order to receive financing. Mortgage financing is more favorable to individuals purchasing primary residences and placing larger requirements on investors to deter potential future foreclosures.
If you are thinking of purchasing your first home……NOW is the time to seize all of the opportunities available!!!
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