1st Time Home Buyer
Why 1st Time Homebuyers Need to Buy NOW
August 30th, 2010 categories: 1st Time Home Buyer, Real Estate News
FHA with the ever wisdom of Congress with FHA Commissioner David H Stevens pushing for helping the First Time Homebuyers decided to SAVE the homebuyer money. WRONG! Let me tell you why if you are a homebuyer who will be getting an FHA loan, you need to buy a house NOW.
According to the recently passed Bill by Congress HR 5872 and HR 5981, FHA will be giving the homebuyer a break on one hand and socking it to the homebuyer with the other hand. If home buyers have not found a house, been accepted by the seller and ordered their appraisal by Oct. 4, 2010 homebuyers will be paying MORE on their monthly house payment than they would if they bought a house before October 4th.
It is IMPERATIVE that FHA homebuyers have a case number BEFORE Oct. 4, 2010 (this number is given when an appraisal is ordered)
WHY, you ask? Well, again the government in their great wisdom are decreasing what’s known as the MI but increasing the home buyers annual premium from .55 to 1.55. I know that sounds like gibberish to you so let’s put this in an easier way to understand.
Let’s say as a 1st Time home buyer you buy a house and need a loan today for $200,000. Perhaps, you pay 5% interest on that loan of $200,000. Your payment per month without taxes and insurance would be $1,192 per month.
Now, if you decide to buy a house as a First Time Home buyer and get an FHA loan but you put off looking and selecting a home, thinking prices will go down. This is what you can expect to pay on that same loan of $200,000 with 5% interest, if you miss the October 4th deadline that Congress passed….$1,344 per month.
I don’t think Congress or Commissioner David H Stevens actually looked out for the best interest of the FHA home buyer nor the recovery of our current real estate market.
What’s my advice? Call your REALTOR ® today:
- Get PreApproved by a Lender
- Find a house to buy
- Get Into Contract
- Order and Pay for that appraisal BEFORE Oct. 4, 2010
And save yourself over a $100 a month on your mortgage payment! I can think of lots of things I’d rather do with an extra $100 per month, can you?
Give me a call and let’s get moving and save you some money.
Articles and Video for First Time Homebuyers:
Why Home Buyers End Up With No House
Who Is A First Time Home Buyer
Home Buyers Want to Know: What is Contingency Period
Two Very Lucky Home Buyers in Roseville CA
What Every Sacramento Home Buyer Must Know
What Does A Realtor Do When I Want to See A House or Condo?
First Time Homebuyers Check- Off List – Part II – Write An Offer
First Time Homebuyer’s Check-off List – Part 1
Why is Buying a House Stressful?
| Discussion: Comments »
Sacramento Home Buyers Will Get FREE Money!
April 5th, 2010 categories: 1st Time Home Buyer
Sacramento 1st Time Home Buyers will be eagerly placing offers on homes for sale in order to take advantage of CA First Time Homebuyer tax credit that begins May 1, 2010 and ends December 31, 2010.
Who doesn’t love FREE money? What a nice package this is for all those eager Sacramento home buyers and First Time Home Buyers!
This is not to be confused with the Federal Home Buyer Tax Credit ending completely on July 1, 2010 where the home buyer must have an accepted contract from the seller by April 30, 2010.
This new CA Home Buyer tax credit is a little different than the Federal tax credit.
The State of CA has a total of $2 million dollars to help First Time Home Buyers and Home Buyers who want to buy up or move in to a smaller home and the State is breaking the $2 million up into two sections.
- $1 Million will be available starting May 1, 2010 for 1st Home Buyer who are buying existing homes and allowing up to $10,000 or 5% of the purchase price toward their CA taxes. (Watch Video & See if YOU are a First Time Home Buyer)
- $1 Million will be available starting May 1, 2010 for Home Buyers purchasing a brand new home from a builder. You don’t have to be a 1st Time Home Buyer for this tax credit.
There is no double dipping with this CA home buyer tax credit so if you were eligible in 2009 you won’t be eligible for this one.
It’s important to note here that if you are a home buyer interested in a NEW Home from a builder be sure to contact a Realtor ® before going out to see new homes. You need representation and not rely on the builder to represent you.
What makes this tax credit different from the other home buyer and first time home buyer tax credits is that there is no income limitations nor price caps placed on how much the home costs. Unlike the Federal tax credit, this is not a one time shot at free money from the state. The CA tax credit must be split over 3 years in equal installments. There is a requirement that the house be the primary residence and you must live in the house at least 2 years or you forfeit the tax credit and pay it back to the State of CA. This home buyer tax credit does not apply to relatives of the seller.
When the $2 million allocated for this tax credit has been exceeded, it’s over. First come, first served! You must have a Certificate of Allocation and fill out an application in order to apply for any of the home buyer tax credits. Be sure to read and the State of CA Franchise Tax Board 2010 Tax Credit for New Home/First Time Buyer where updates and the application will be available starting May 1, 2010.
The biggy to remember is that home buyers MUST have an accepted contract by Dec. 31, 2010 to be eligible and close before August 1, 2011.
Can’t wait to help home buyers in and around Sacramento get their FREE tax credit. As always, be sure to check out all the homes for sale and let me know when you are ready to get started!
Other Helpful Home Buyer Articles:
What EVERY Sacramento Home Buyer MUST Know
First Time Homebuyer’s Check-Off List – Part 1
First Time Homebuyers Check-Off List – Part II – Write An Offer
| Discussion: 2 Comments »
Sacramento Home Buyer Tax Credit YIPPEE!
March 24th, 2010 categories: 1st Time Home Buyer
IT’S OFFICIAL, California Governor Schwarzenegger signed the Home Buyer Tax Credit!
YIPPEE!!
Yesterday, KCRA reported California has extended the home buyer tax credit. There is $200 million dollars alloted for this bill which according to everything I have read, allows up to $10,000 or 5% of the sales price whichever is lower for 1st Time Home Buyers. This 1st Time Home Buyer tax credit would run until the money runs out and includes new home subdivisions as well as those re-sale homes.
So, in other words, first come, first served. This home buyer tax credit appears to be for First Time Home Buyers only and credit would be given over 3 equal payments within 3 tax paying years.
Since the Federal Tax Credit ends April 30th, this is good news for California home buyers. This 1st Time Home Buyer tax credit is set to start on May 1, 2010 until December 31, 2010.
For those looking to buy a new home from a new home subdivision, be sure to have a Realtor ® present with you otherwise the builder represents himself and you. It doesn’t cost you to be represented.
Although KCRA announced this it still needs Governor Schwarzenegger’s signature but he is expected to sign the new tax credit for CA home buyers.
More later…as the details become more clear.
You probably want to know why I feel elated when Education has been cut and current State employees are furlowed as well as unemployment at a record high of 13%. I agree that the cuts are horrible but you need to look at what will bring in revenue and the more new homeowners there are, the more revenue will be generated. Property taxes, trash, water, electrical, the local stores near the property sold, etc. Homeowners bring money into the economy and back to the coffer of the State where it is once again dispersed.
The home buyer tax credit will end up bringing in money for education and jobs so I say YIPPEE!
| Discussion: Comments »
New Home Buyer Requirements Hurt Home Buyers
February 19th, 2010 categories: 1st Time Home Buyer, Sacramento Real Estate Videos
When the two first time home buyers I am currently working with found themselves looking into the face of perhaps losing the home they wanted, they were devastated. These home buyers spent money having a home inspection and time gathering all the information for their loan thinking all would go as they had planned, perfectly.
Unfortunately, that was not to be the case. Their lender informed them that although they had letters from their employers stating they were promised a job in Elk Grove, the underwriter didn’t feel that was good enough. You see these 1st time home buyers live in the Bay Area and are relocating to Elk Grove but thought they could take their time, painting and putting in new carpet while waiting for their new positions. It was going to be an easy move, stress-free.
The underwriter for this FHA loan decided that these two first time home buyers needed to be provide a letter from their employer stating their new start date and it had to be right away. This meant rushing and finding a position immediately closer to the Elk Grove home they intended to buy.
These home buyers were forced to start a job in a location sooner than they had wanted plus the job they took wasn’t even the job they will ultimately end up with and they will be forced to travel even further since they intend on staying in the Bay Area until the house is painted and carpeted.
This is when a rule doesn’t make sense and ends up defeating the very essence of what FHA was attempting to accomplish. There are so many new rules that make no sense and end up hurting the homebuyer. This is just one of many.
Don’t even get this Elk Grove Realtor ® started on the HVCC rule…
Related Articles:
What Do Pigs in Perfume Have In Common with FHA?
Rules for $8000 Fist Time Home Buyer Tax Credit
1st Time Home Buyers Using Tax Credit for Downpayment
Is You Condominum FHA Approved?
New Facts About Home Buyer Tax Credit
| Discussion: 1 Comment »
A Letter to Banks for Sacramento Homebuyer
October 21st, 2009 categories: 1st Time Home Buyer, Real Estate News
Yes, Short Sale and REO banks you received offers from this Sacramento home buyer couple. They have submitted many offers and yes, they were all very good offers. In fact, not only were they well over the asking price but this Sacramento homebuyer couple never asked you to pay a dime on their behalf.
The kicker here each time has been that they are obtaining a VA loan. No they are NOT a VA “no, no.” In fact they have a lot of cash but wish to spend the cash fixing the Short Sale home for sale and the REO home for sale just the way they want it.
This Sacramento home buyer couple are not strapped for funds but it just so happens that he is a United States Veteran and wants the ability to use what is rightfully coming to him. He served this Country in good faith and was awarded the honor of using a VA mortgage loan.
This Sacramento VA homebuyer couple sent me an article showing that this is not just happening to them but to many others. Be sure to read, Are VA Loans Working for Troops?
But, you Short Sale and REO bank have denied him each and every time he has made an excellent offer on a home for sale. Even Congress extended the tax credit for service members who are first time homebuyers but hey, what the heck good is it when you won’t allow them to buy a house for sale? Just so happens that this Sacramento homebuyer couple makes too much money to qualify for the tax credit.
Are you worried the house won’t appraise? If that’s the case…SHAME on you. You certainly didn’t mind taking TARP funds from the American public. Are you American? You sure don’t act like it.
Does Congress need to give you more TARP funds in order for you to start accepting VA offers?
It’s a crying shame to see how we treat our Veterans. I hope you think about this and change your ways…between giving outrageous bonuses and discriminating against the Veterans, I’m ready to pull my money from your bank as I hope every true American will. We are sick of it, BANKS and we won’t take it anymore!!
Sincerely and With Great Thought,
Gena Riede, Real Estate Broker
If you like what you read here on Sacramento Real Estate Voice simply click and subscribe 
to get the latest articles sent to your email.
. As a Certified Distressed Property Expert, I am here to help you avoid foreclosure. Let’s talk and see if you qualify for a Short Sale. Your Short Sale agent.If you have a real estate question that you would like an answer to by Gena Riede, Sacramento Realtor ® specializing in helping home buyers and home sellers be sure to check out 
and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate Voice
| Discussion: Comments »
Time Is Running Out for Home Buyers
August 17th, 2009 categories: 1st Time Home Buyer, Real Estate News, Real Estate Tips
Sacramento, CA
Not much time is left for First Time Home Buyers to take advantage of the $8,000 tax credit. The clock is ticking.
As of today, August 17, 2009 First Time Home Buyers have 105 days until the 1st Time Homebuyer tax credit ends.
This is like money falling from the sky and many of my first time home buyers have been lucky enough to have taken advantage of this.
Click if you are one of the lucky First Time Home Buyers who needs the First Time Homebuyer tax credit form 5405.
With anything there are rules,and this home buyer tax credit is no exception. Let’s go over the rules for the 1st Time Home Buyer Tax Credit and see if you qualify.
1. This tax credit is for 1st Time Home Buyers…who is a First Time Home Buyer?
Anyone who has NOT owned a house in the past 3 years
2. The house you buy MUST be your primary residence…what is a primary residence?
The place you live most of the time and where your bills typically are mailed.
3. Can I use the $8,000 tax credit as my downpayment on a house or condo?
No, you must have 3.5% of what you are paying for the house as your downpayment. You can use the $8,000 toward your closing costs and you can add it to the 3.5 % money that you already put down on the house or condo.
The tax credit does not have to be repaid as long as you live in the house or condo you buy as your primary residence for 36 months.
There are income restrictions so it is always best to contact your tax consultant and ask if your income would qualify for the 1st Time Home Buyer tax credit.
For more information from a reputable safe site please read HUD’s explanation when using tax credits as a 1st Time Homebuyer.
Considering how long it takes to close on a Short Sale and as a Short Sale agent, I recommend you don’t delay or you may not be able to use this $8,000 tax credit in time. With most of the listings on MLS being Short Sales, you really don’t want to put off getting your first home or condo.
We don’t know if the $8,000 tax credit will be extended at this point so give your Realtor a call and get started finding your first home or condo so that you can take advantage of your own little stimulus package!
If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.
. and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate | Discussion: Comments »
Cross Your Fingers Sacramento Home Buyers
July 8th, 2009 categories: 1st Time Home Buyer, Home Buyer, Real Estate News
Sacramento, CA
Sacramento Home Buyers are waiting for Capitol Hill Senate and House to extend the 1st Time Home Buyer tax credit scheduled to end November 30, 2009.
Not only are we hoping that the first time home buyer tax credit is extended for first time home buyers through 2010 but also make it available for ANY home buyer. On top of that we are also hoping that the income limits will be removed.
It’s my understanding that Senate Georgia Republican Johnny Isakson Senate Georgia Republican Johnny Isakson has introduced a bill to double the home buyer tax credit to $15,000 for any home buyer regardless of their income.
Senator Isakson has a real estate background and people need to listen to him…
Apparently, sources say that it is unlikely we will see anything happen until the Fall where the original $8,000 First Time Home Buyer tax credit may be extended.
Increasing the tax credit amount, allowing ALL home buyers not just 1st Time Home Buyers and having no income barriers is going to be a monumental battle.
So, keep those fingers crossed and write your Congress person to gain support. Senator Isakson’s bill will help stimulate real estate which in turn will stimulate the economy.
If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.
. and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate | Discussion: Comments »
Rules for $8000 First Time Home Buyer Tax Credit
June 1st, 2009 categories: 1st Time Home Buyer, Real Estate News
Sacramento, CA
This is a great time for Sacramento First Time Home Buyers.
Money is falling from the sky!
$8000 tax credit for 1st Time Home Buyers is a great way to start the year!
There are some stipulations and there will be SCAMS out there trying to scam their way to you so KNOW your rights and understand the rules so you are NOT a victim.
Don’t believe people just because it is what you want to hear. KNOW what the facts are and don’t be taken advantage of. Remember, to use a reputable Lender and stay away from those INTERNET lenders. Read the U. S. Department of Housing and Urban Development letter for an understanding of the rules.
As a home buyer you can NOT use the $8000 as part of your mandatory 3.5%down payment with FHA. You MUST have 3.5% down from other sources. You can use the $8000 toward your closing costs and you can add it to the 3.5 % down payment making for more down.
The ONLY way you can use this money at the time of close is by being given a second or what we call a bridge loan from any Federal, State or local agencies and any FHA mortgagee or FHA approved nonprofit organization.
Remember, it is FRAUD if anyone tells you that you can use the $8000 before you close on the house you are buying unless it is given to you as a loan through the entities I mentioned above. It is very specific.
Remember, you need to buy a house BEFORE December 1, 2009 to claim the tax credit on either your 2008 or 2009 tax return. This applies to any first time home buyers closing on a purchase after April 8, 2008. And a first time home buyer is anyone who has NOT owned a home in the past 3 years.
This tax credit does not have to be repaid as long as you live in the house and it is your primary residence for 36 months. You can claim up to 10% of the purchase price but only up to $8,000 or $4,000 for married individuals filing separately.
However, if your adjusted gross income is more than $75,000 or $150,000 for joint filers than you may find this tax credit does not apply to you. Always check with your tax consultant.
You can wait and get your $8000 tax credit after your home or condo closes.
What a nice gift that would be! Need carpet, want to paint, need appliances or furniture? This could be a God send for all those little things you might like to have when you move into your new home.
Better yet, with this economy, put it in the bank and save it for a rainy day!
Remember, the scammers will be out there like flies to honey so BEWARE!
If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.
. and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate | Discussion: Comments »
1st Time Home Buyers Using Tax Credit for Downpayment
May 14th, 2009 categories: 1st Time Home Buyer, Real Estate News
First Time Home Buyers…there have read blog articles recently stating that 1stTime home buyers can use the $8,000 tax credit toward your FHA down payment when buying a house.
This information is incorrect, at this time. FHA has very distinct requirements for down payments and where they can come from:
- Your Own money
- Employer may contribute as an employee contribution
- FHA approved non-profits
- up to 100% gift from relative/family member
- Federal, State & Local Government agencies
The tax credit cannot be used as a down payment.
The tax credit can be loaned as a second lien by HUD approved lenders.
It is a loan against the tax credit. Specific approved agencies can loan money to the buyer as a second lien to the home buyer (a bridge loan). Some approved HUD lenders may offer bridge second loans against the property for repayment when tax credit is received. This is still up in the air at this point.
For more information here is HUD’s explanation for using tax credits as a 1st Time Homebuyer. Here is the First Time Homebuyer Credit, Form 5405 of the Internal Revenue for those First Time Homebuyers who purchased a home or condo this year. Be sure to check with your accountant for futher information.
There may be some changes to this down the line. If and when that happens I will let you know.
If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.
. and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate | Discussion: Comments »
Why Home Buyers End Up With No House
April 24th, 2009 categories: 1st Time Home Buyer, Sacramento Real Estate Videos
This video should be watched by every home buyer so they avoid loosing the house they thought they were buying.
It is so sad to see a home buyer spend time finding just the right house, going through the disclosure period, paying for a home inspection, signing all the papers at Title only to hear those HORRIBLE words…the bank has DENIED your loan.
Watch this video and find out how you can avoid hearing those words from the bank.
If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.
. and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate | Discussion: 2 Comments »
Monthly Newsletter
Categories
- Fun Things
- Golf Course Homes
- Sacramento County
- Sacramento Real Estate Videos
- Foreclosure
- Short Sale
- El Dorado County
- Placer County
- Yolo County
- Home Buyer
- Investor
- Seniors
- Realtor
- Seller
- Real Estate
- Mortgage
- Condo
- Statistics by City
- Living Green
