Home BuyersTax Credit Extended

First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!

By Eric Delgado Friday, November 6, 2009

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

• You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
• You do not use the home as your principal residence.
• You sell your home before the end of the year.
• You are a nonresident alien.
• You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

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For all your Real Estate needs, give me a call.

Freddy Solis
RealEstate.com, REALTORS®
Capital Region
8201 Greensboro Drive, Suite 211
McLean, VA 22102
703-943-7844 Direct
Freddy.Solis@Realestate.com



REALTOR® -- a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict code of ethics.

First Time Home BuyersTax Credit Extended

A Sweet Deal for Homebuyers

The ins-and-outs of the Homebuyer Tax Credit

If you are – like many Americans – trying to figure out the best time to make your first home purchase, then you may want to take a closer look at the first-time homebuyer tax credit that has been expanded to current homeowners as well.

CREDIT AMOUNTS
First-time homebuyers: The credit is equivalent to 10 percent of the purchase price of the home up to $8,000.
Current homeowners: The credit is equivalent to 10 percent of the purchase price of the home up to $6,500.

OTHER IMPORTANT NOTES REGARDING THE CREDIT
1. Qualifying for the homebuyer credit As it relates to this credit, a first-time homebuyer is defined as any taxpayer who has not owned a principal (or main) residence for a period of three years prior to the home purchase. Current homebuyers must have used the home being sold as a principal residence for at least five of the previous eight years. The purchase must be of a principal residence.
2. Income limitations First-time buyers: Single filers with modified adjusted gross income of $75,000 or less and married couples with MAGI of $150,000 or less are eligible for the full $8,000 credit. Current homeowners: Single filers with modified adjusted gross income of $125,000 or less and married couples with MAGI of $225,000 or less are eligible for the full $6,500 credit.
3. Purchase window The 2009 homebuyer tax credit is retroactive to January 1, 2009 and covers purchases through April 30th, 2010.
4. Refundable credit The tax credit reduces your final tax liability and you will be refunded whatever portion, if any, of the credit that remains after applying the credit to taxes you owe for that year. For example, let’s say you qualify for the full $8,000 first-time homebuyer credit and your total tax liability (after withholding) is $2,000. Your tax liability will be zero, and you will receive a refund for the remaining $6,000.
5. Purchase limitationsThe tax credit is limited to purchased homes up to $800,000.
6. Claiming the credit Claiming the credit is actually very simple. To take advantage of the first-time homebuyer credit, you’ll need to complete IRS Form 5405 which will help determine the tax credit amount. You’ll then claim that amount on line 69 of your 1040 tax return form. No pre-approval forms or applications are required!

As with most issues related to a home purchase, be sure to consult with your RealEstate.com REALTOR® for additional information or to ensure that you and your prospective purchase qualifies for this homebuyer tax credit.

Freddy Solis
RealEstate.com, REALTORS®
Capital Region
8201 Greensboro Drive, Suite 211
McLean, VA 22102
703-943-7844 Direct
Freddy.Solis@Realestate.com



REALTOR® -- a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict code of ethics.

Luxury Homes at Occoquan

These beautiful water front homes in the town of Occoquan should be on your list to visit, stop by I really liked the details on the exterior and having a place to keep your boat, the best.

Face lift for Old Down Town

Fairfax City gets a new look.

Parts of University Drive has seen many changes lately, this part of Old Fairfax City has new buildings with many new shops that has made Fairfax a place to visit and stop for lunch, shopping or just to enjoy an afternoon walk.
I like the new look, this part of Fairfax needed a change, the old post office building previously located on this lot was an eye sore, now it is fun to drive by this area of down town and see that all the improvements are attracting shoppers and new businesses.
Freddy Solis. RealEstate.com. 703-943-7844 Direct. 703-955-3528 Fax www.Freddysolis.com

FHA 203 (k) Rehab Loans

Info at: www.hud.gov

REHAB MORTGAGE INS 203(k) Summary: Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.
Purpose: Section 203(k) fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. Section 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.
For less extensive repairs/improvements, see Streamlined 203(k). For housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD's Title I Home Improvement Loan program.
Type of Assistance: Section 203(k) insures mortgages covering the purchase or refinancing and rehabilitation of a home that is at least a year old. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed. The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area. The value of the property is determined by either (1) the value of the property before rehabilitation plus the cost of rehabilitation, or (2) 110 percent of the appraised value of the property after rehabilitation, whichever is less. Many of the rules and restrictions that make FHA's basic single family mortgage insurance product (Section 203(b)) relatively convenient for lower income borrowers apply here. But lenders may charge some additional fees, such as a supplemental origination fee, fees to cover the preparation of architectural documents and review of the rehabilitation plan, and a higher appraisal fee. Eligible Customers: All persons who can make the monthly mortgage payments are eligible to apply. Cooperative units are not eligible; individual condominium units may be insured if they are in projects that have been approved by FHA or the Department of Veterans Affairs, or meet certain Fannie Mae guidelines.
Eligible Activities: The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one- to four- unit structure.
The types of improvements that borrowers may make using Section 203(k) financing include:
• structural alterations and reconstruction
• modernization and improvements to the home's function
• elimination of health and safety hazards
• changes that improve appearance and eliminate obsolescence
• reconditioning or replacing plumbing; installing a well and/or septic system
• adding or replacing roofing, gutters, and down spouts
• adding or replacing floors and/or floor treatments
• major landscape work and site improvements
• enhancing accessibility for a disabled person
• making energy conservation improvements HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards. Application: Applications must be submitted through an FHA approved lender.
Technical Guidance: Insurance for rehabilitation is authorized under Section 203(k) of the National Housing Act (12 U.S.C. 1709(4k)). Program regulations are at 24 CFR 203.50. For more information contact the FHA Resource Center. For More Information: A brochure, Rehab a Home with HUD's 203(k), is available online. A set of questions and answers about 203(k) loans is also available.

U.S. Department of Housing and Urban Development
Telephone: (202) 708-1112  
TTY: (202) 708-1455
   
Freddy Solis. Capital Region. RealEstate.com Realtors. 703-943-7844 Direct. 703-955-3528 Fax

Money for Affordable Housing

HUD ANNOUNCES $2,851,767 MILLION FOR AFFORDABLE HOUSING AND COMMUNITY DEVELOPMENT IN PRINCE WILLIAM COUNTY AUGUST 3rd - U.S.
Housing and Urban Development Secretary Shaun Donovan today announced the Prince William County will receive more than $2.8 million to support community development and produce more affordable housing. "This funding represents HUD's continuing investment in helping our local partners improve their communities," said Donovan. "If we hope to lay the groundwork for sustainable growth and prosperity in the future, it's critical that we help state and local communities to make the needed improvements and to produce more affordable housing." The funding announced today includes: • $1,919,609 in Community Development Block Grant (CDBG) funds; and • $847,491 in HOME Investment Partnerships (HOME) funding; and • $84,667 in Emergency Shelter Grant (ESG) funding
• $2,851,767 - Total

Information by  
Toni Schmiegelow (804) 822-4808 www.hud.gov/news
Freddy Solis. Capital Region. RealEstate.com Realtors. 703-943-7844 Direct. 703-955-3528 Fax

12 Hidden Facts about Foreclosed Properties

12 Facts Nobody Told You When Purchasing Bank Owned Foreclosed Properties

What to expect when purchasing Bank Owned Foreclosed Properties

1. In many instances the home will sell AT or OVER the asking price. If they list the property well under value right out the gate, get ready, there will be a flock of people with multiple offers. It's like eBay; John isn't going to let Paul buy the house for pennies on the dollar without putting in a higher bid. Sometimes the house ends up selling for more than market value, just because of the excitement and emotions of multiple offers. The banks will list a home priced below true market value, as an aggressive starting point to attract multiple offers and they are guaranteed the house will sell within one week. When multiple offers occur on a property, they will ask all buyers with offers on the property to then bring their "HIGHEST and BEST offer and the best offer gets the home.

2. Banks accept offers within 5%-10% of asking price within the first 30 days on the market, NOT 50% of their asking price. The most common misconception is that banks are desperate and will take anything. NOT TRUE! The banks will reduce the price every 30 days usually until the house sells. The bank will do one of three things after they receive your offer: They will REJECT your offer, if they feel you are not a serious buyer, ACCEPT your offer, or COUNTER your offer. While these negotiations are happening the bank will be looking at all other offers that come in and they can accept any other offers.

3. The bank will look at the how you will be paying for the property. Cash is always best. When financing they look at the type of loan you are financing the mortgage with: Conventional, FHA or VA, and the amount you are putting down on the property. Conventional mortgages can usually close sooner and have the least amount of contingencies.

4. Banks look for the cleanest offer with the LEAST amount of contingencies. To make your offer strongest you can waive the offer contingent upon a successful inspection, and waive the contingency to get your mortgage obtained.

5. They look for an offer with a large Earnest Money Deposit to ensure you are a very serious buyer.

6. Most banks will ask for a response back from the buyer within 24 hours, if the bank counters your offer or the deal is void.

7. Bank owned homes are sold AS-IS. This means they will not provide any repairs or changes to the home. You are welcome to do a home inspection though.

8. After submitting an offer the bank will respond within 2 days to 2 weeks on average. Usually the better your offer is the faster they respond. If they take two weeks to respond it's usually because it was a very low offer.

9. There are NO sellers disclosures provided with a bank owned home. The bank has no information on the condition of the home or when any repairs or updates have been performed, if any. You can pay to have your own private inspection done by an inspector of your choice.

10. Banks prefer to close on a property within 30 days of an accepted offer.

11. You will need a mortgage PRE-APPROVAL and loan program chosen when making an offer on a property. They will not look at an offer without a current pre-approval from a reputable lender. In fact, most banks require that you get pre-approved through their lender as reassurance you qualify for a loan. You do not have to go through their lender, but some banks require you to be pre-approved by heir own lender of choice to be considered on an offer.

12. Many bank properties have MOLD issues due to no utilities being on, and the potential of a water pipe bursting due to cold weather conditions and flooding may have occurred. This may have allowed mold to form in the drywall. The bank WILL NOT remedy this issue.

Freddy Solis
RealEstate.com, REALTORS®
Mobile: 703-943-7844
FreddySolis.com

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Get the best homes, expert advice, residential listings, and local real estate market news.

All services are done for FREE if you are buying, Take advantage now that the markets are changing, with great benefits for home renters and first time home buyers.

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The Northern Virginia Home Market

Sales Increase, in the Northern Virginia area.

NVAR's monthly statistics report indicate a increase of home sales in the Northern Virginia area. "A total of 1,067 homes sold in February 2009, a 10.11 percent increase above February 2008 home sales of 969."

When you add home sales in the Prince William, Loundon and the Greater Piedmont counties the February 2009 sales are looking much better with an increase of 25.81 percent compare to numbers from 2008. This report shows an eleventh consecutive month of increased year over year sales totals.

We continue to see price declines over the entire Northern Virginia area, but another bright part of the report is the decrease in number of days homes stay listed for sale.

Se the complete report and additional commentary at the NVAR's website monthly statistical reports.

Freddy Solis
RealEstate.com
Realtor
703-943-7844

Search all local homes currently listed for sale at:
http://www.freddysolis.com/

Bargain Prices Homes for Sale Under $250,000

Great Home Prices in Fairfax City VA 22030

Properties Under $250,000**

10123 Mosby Woods Dr.......$147,900 3 BD 1 FB

4029 Roberts Rd..................$187,100 4 BD 3 FB

10110 Mosby Woods Dr.......$199,900 3 BD 2 FB

4148 Addison Rd..................$209,000 3 BD 2 FB

10007 Mosby Woods Dr......$229,000 3 BD 1 FB

4036 Maple St......................$244,900 3 BD 2 FB

4114 Addison Rd..................$250,000 4 BD 2 FB

4023 Chestnut St.................$250,000 3 BD 1 FB

Call for more details.
**Blank reports indicate home was SOLD.

http://www.freddysolis.com/

703-943-7844

Northern Virginia (Prince William Co.)

Prince William County, Manassas Park Home Prices

Best Home Prices in Northern Virginia.

For many years Fairfax County has been one of the most desirable places to live, being so close to the nation's capital, and having one of the best school systems in the country not to mention the job market in this area tends to stay ahead of most metropolitan job market trends nation wide had made this county one of the best all around.

Now Prince William county and Loundon county (the richest county 2008) is giving its neighbor competition when it comes to families choosing where to live in Northern Virginia, with so many new communities in Prince William county that challenge the best and well known in Fairfax county having to drive an extra fifteen minutes commuting does not sound too unpleasant. Look at the City of Manassas Park where prices for homes have come down to levels seen in the mid 1990's many families looking to buy for the first time are finding bargains and buying that first dream home.

Other communities just outside Manassas like the fairly new community of Braemar in Bristow Virginia has attracted many families because of all the the amenities Braemar offers such as the two large pools available for home owners in the summer time and the many walking and biking trails that are available year round, the best part is that the Prince William county transportation department is keeping up with the growing population with many road improvements around Braemar it has made traveling much easier for the residents in this very popular locality, also new shopping centers currently open and more to come has greatly improved Braemar and has made this community one of the best and ideal choices to raise a family or to live here after retirement.

www.FreddySolis.com

703-943-7844