Charlottesville Real Estate Talk

The house voted today to extend the First time Homebuyers Tax Credit deadline to close.

In a vote of 409 to 5, the house approved a bill to extend the closing date for the tax credit for another three months.  Currently the contracts have to be closed by tomorrow June 30 in order to qualify for the tax credit.  This bill still has to be approved by the Senate which could vote as soon as tomorrow.  If the extension does not occur the National Association of Realtors extimates that 180,000 first time homebuyers with homes under contract could miss the deadline.

I have a first time homebuyer whose contract has gone down to the wire.  We are due to close tomorrow morning at 11:00.  I am keeping my fingers crossed that everything goes smoothly and this client will be able to enjoy homeownership.

First time homebuyers must file for their tax credit on paper not on line.

The first time homebuyers filing for the $8,000 tax refund are required to use IRS form 5405 and must file on paper.  There are instructions on the form outlining what documentation is needs to accompany the form.  The stricter filing regulations are intended to prevent  fradulent claims. According to the US Treasury 90,000 taxpayers falsely applied for the credit.

Realty Times had a comprehensive article today outlining the documentation that first time homebuyers will need to include with their return and also the documentation that existing buyers requesting the $6,500 tax credit will need.

The First-Time Homebuyer Tax Credit has been extended and expanded.

The $8000 tax credit for first-time homebuyers has been expanded to April 30, 2010.  These homebuyers have until April 30 to get a ratified contract and until June 30,2010 for that contract to close.  A first time homebuyer is an individual who has not owned a home during the past 3 years.  For a married couple both spouses must meet this criteria.

The tax credit has been expanded to include a $6,500 tax credit for existing homeowners.  These homeowners must have lived in their current home for 5 consecutive years out of the last 8.

There are income guidelines which apply to both groups.  Individuals my earn up to $125,000 and married couples may have a joint income of $225,000.

The Charlottesville VA real estate market has a large inventory of homes on the market for the first-time homebuyer to choose from.  I would be happy to talk to you about current deal homes as well as opportunity homes on the market. 

Now is a great time to buy and Charlottesville is a wonderful area in which to live.

Contact Pam Dent, e-PRO, SRES, NHD, REALTOR®, Real Estate III, Charlottesville, Virginia at 434 960-0161 to buy a property in the following areas in Central Virginia: Charlottesville, Albemarle County, Keswick, Glenmore, Ivy, Crozet, Earlysville, Free Union, Cismont, Scottsville, Fluvanna County, Palmyra, Lake Monticello, Louisa County, Louisa, Mineral, Spring Creek, Orange County, Gordonsville, Orange, Barboursville, Greene County, Ruckersville.  Email Pam Dent.

View all of the Charlottesville Virginia homes for sale.

 View my website Charlottesville Horse Farms or visit my blogs Charlottesville Real Estate Talk and Charlottesville Horse Farms and Country Homes for more information on Charlottesville Virginia horse farms, homes, events and real estate. 

Copyright © 2009 by Pam Dent, all rights reserved, "First-Time Homebuyer Tax Credit Extended And Expanded".

The VHDA Homebuyer Tax Credit Plus program provides a solution to help more Charlottesville VA first time hombuyers purchase a home.

The VHDA Homebuyer Tax Credit Plus program enables borrowers to take advantage of the $8000 First Time Homebuyers Tax Credit to finance their down payment and closing costs of up to 5% of the sale price by means of a second mortgage.  This second mortgage will help cover the down payment and closing costs with a zero interest loan and no payments for the first 12 months.

The borrower can choose from three payment plans for the second mortgage

• They may pay off the second mortgage when they receive their First Time Homebuyer Tax Credit.
• They may pay off the second mortgage over 29 years and save the Tax Credit to use in another way.
• They may make principal payments on the secomd mortgage during the first year before the payment period begins thus reducing the amount of the monthly payments for the remaining 29 years.

The loan which combines a VHDA FHA-insured first mortgage with a VHDA second mortgage offers a fixed interest rate on both mortgages.  During the first 12 months there is no interest rate on the second mortgage and beginning on month 13 the interest rate will be the same as the first mortgage.

This information is curtesy of the Virginia Housing Development Authority.

Don't forget that is you are planning to use the $8000 First Time Homebuyers Tax Credit to purchase a Charlottesville Virginia home it is required that the sale close by November 30.  This means that now is the time to start seriously looking. 

Contact Pam Dent, e-PRO, SRES, NHD, REALTOR®, Real Estate III, Charlottesville, Virginia at 434 960-0161 to buy a property in the following areas in Central Virginia: Charlottesville, Albemarle County, Keswick, Glenmore, Ivy, Crozet, Earlysville, Free Union, Cismont, Scottsville, Fluvanna County, Palmyra, Lake Monticello, Louisa County, Louisa, Mineral, Spring Creek, Orange County, Gordonsville, Orange, Barboursville, Greene County, Ruckersville.  Email Pam Dent.

  View all of the Charlottesville Virginia homes for sale.

 View my website Charlottesville Horse Farms or visit my blogs Charlottesville Real Estate Talk and Charlottesville Horse Farms and Country Homes for more information on Charlottesville Virginia horse farms, homes, events and real estate. 

 Copyright © 2009 by Pam Dent, all rights reserved, "First Time Taxpayer Tax Credid Plus helps Charlottesville VA first time homebuers.

Could you be a first time homebuyer and not know it?

That sounds like a pretty silly question...Of course you know if you have ever owned a home or not.  However, for the purpose of the $8,000 First Time Homebuyer Tax Credit, you are considered a first time homebuyer if you have not owned a home in the past three years.

So if you have owned your own home in the past, but have not been a homeowner for the last three years you are eligible to take advantage of the $8,000 First Time Homebuyer Tax Credit.  You must work quickly to identify the home that you want to purchase and get it under contract.  In order to get the credit the purchase of your home must close by November 30.  To be sure that your home will close by the deadline, you should get it under contract no later than September 30.  In the current market it is taking an average of 60 days to get a home from ratification to closing.

This is just another reason why now might be the perfect time to buy.  The are  lots of Charlottesville VA homes for sale to chose from, prices are down, interest rates remain low, and you still have time to take advantage of the First Time Homebuyer Tax Credit.

Contact Pam Dent, e-PRO, SRES, NHD, REALTOR®, Real Estate III, Charlottesville, Virginia at 434 960-0161 to buy a property in the following areas in Central Virginia: Charlottesville, Albemarle County, Keswick, Glenmore, Ivy, Crozet, Earlysville, Free Union, Cismont, Scottsville, Fluvanna County, Palmyra, Lake Monticello, Louisa County, Louisa, Mineral, Spring Creek, Orange County, Gordonsville, Orange, Barboursville, Greene County, Ruckersville.  Email Pam Dent.

View all of the Charlottesville Virginia homes for sale.

View my website Charlottesville Horse Farms or visit my other blog Charlottesville Horse Farms and Country Homes for more information on Charlottesville Virginia horse farms, homes, events and real estate. 

Copyright © 2009 by Pam Dent, all rights reserved, "Do You Know If  You Are A First Time Homebuyer"?

You may be thinking about buying a Charlottesville home.  You have probably seen the First Time Homebuyer Tax Credit mentioned, but many of you are probably not sure what this tax credit really includes.

The following facts have been presented to me courtesy of Lynda Mills at PHH Mortgage:

To begin with a first time homebuyer is a purchaser (or their spouse) who has never owned a home or has not owned a home within the past three years.

• The amount of credit available is the lesser of 10% of the cost of the home or $8,000
• Any single family residence (including condos, co-ops and townhouses) that will be used as a principal residence is eligible.
• It reduces or can eliminate the income tax lisbility for the year of the purchase.  Purchasers will receive a refund for the unused amount when the tax return is filed.
• The full amount of credit is available for individuals with an adjusted gross income of no more than $75,000 or $150,000 on a joint return.
• Purchasers who finance the home with state/local bond funding can use the credit.
• There is no repayment for purchases that occur on or after January 1, 2009 and before December 1, 2009.
• If the home is sold within three years of purchase, the entire amount of credit is recaptured on the sale.  This applies only to homes purchased in 2009.

If you are a first time homebuyer, the First Time Homebuyer Tax Credit, in combination with the historic low mortgage rates, the large inventory of homes from which to choose, and lower home prices makes this the perfect time to buy.

Contact Pam Dent, e-PRO, SRES, NHD, REALTOR®, Real Estate III, Charlottesville, Virginia at  434 960-0161 , pam@JumpintoGreenerPastures.com, to list your property for sale or to buy a property in the following areas in Central Virginia: Charlottesville, Albemarle County, Keswick, Glenmore, Ivy, Crozet, Earlysville, Free Union, Cismont, Scottsville, Fluvanna County, Troy, Palmyra, Lake Monticello, Louisa County, Louisa, Mineral, Spring Creek, Orange County, Gordonsville, Orange, Barboursville, Greene County, Ruckersville.

To view all of the Charlottesville, Virginia and Central Virginia Homes for Sale click here and click on the mls search button.

Visit my website  Jump into Greener Pastures or read my other blog Charlottesville Horse Farms and Country Homes for more information on Charlottesville homes, farms, events and real estate.