Prairieville, LA

For Ascension Parish there are gift programs that provide cash for down payment and closing or eliminate mortgage interest compbined with low interest rates to help a first time homebuyer get into their home. Two of these are rural development financing (a federal program) and Louisiana state bond funding assistance which can provide up to 4.5% of the purchase price, depending on your salary. There are two programs, the Home program and the regular assistance. The home program has a lower interest rate and 4.5% assistance. The regular program has a higher interest rate and 4% assistance. In either of these programs, the seller can help with closing costs, giving the buyer an opportunity to purchase a home with very little cash out of pocket.

Many are wondering if the $8000 tax credit that passed earlier in 2009 can be claimed if one of these gift funding programs is ussed?

The answer is YES, it can. This credit is not related to how a first time home buyer purchases a home or what type of mortgage they use or if they pay cash. Once the home is closed, they become eligible for this additional $8000 tax credit.

Related questions answered in previous blogs:

1. What Is a 1st Time Homebuyer?

2. Do I have to wait until I file my taxes in 2010 to get the credit?

We have all heard the saying, "Who keeps score anyway?" Well, right now, everyone is. Now, more than ever your credit score carries a lot of weight. It was not that long ago, a few blemishes on your credit report did not really affect you much. Beyond a doubt, that has changed. A credit score below 620 can make it very difficult, if not impossible, to be approved for a loan. If you do get approved, it will be at higher rates. So is there anything you can do to improve your score? There is a good chance there is. The first thing to do is know your score.

Credit Scores can range from 300-850. The higher your score, the better your credit rating will be. So how do you find out your score? You can get a free copy of your credit once a year. You can go to AnnualCreditReport.com, which is the only authorized source for consumers to access their annual credit report online for free. Once you have a copy of your report, the first thing to do is check for errors. Errors lower your score and can be corrected. Make sure all accounts listed are yours. Late payments, charge offs, and collections noted on these accounts lower your credit score. Let the reporting agency know these are not yours.

Second, check your account notations. Do any of them list you as late or charged off when you know you weren't? Check for any derogatory notations that are not accurate, like an account being noted as settled when you actually paid in full. Old accounts should fall off after seven years. If they are still showing and have any negative information, ask for them to be removed. Just fixing these mistakes can increase your credit score.

There are some long term goals you can set to help your score as well. Try paying down your credit cards as much as you can. This helps your debt to income liability become more balanced. Most lenders like to see you below 30% of your credit limit. Any amount you pay down the cards will shave a few points off your score even if you cannot achieve the ideal.

It used to be that lowering your credit limit was a good thing, but not anymore. Remember, you do not want to work hard to pay down your card and then lower your limit. This makes it look like you have maxed out your card when actually you have worked hard to pay it down. Another long term goal is making sure you pay your bills on time. Don't panic if you do miss a payment. If you pay history is good, you might ask the lender to remove the late payment as a customer courtesy. All they can do is say no, but it does not hurt to ask. Someone really is keeping score. The more effort you put in to making that score as high as it can be, the more likely you will be able to get the loan and interest rate you want.

If you are looking to score your dream home and don't know where to start, contact Sandy's team at (225) 677-SOLD or email info@sandyco.com We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.

One of the great things about the new 1st Time Homebuyer tax credit is that it can be claimed as soon as you close on your home.

If you have already filed can file an amended 2008 tax return with a 1040X form. This can be done even if a home was purchased early in 2009 and the original tax return claimed the $7,500 credit from last year.

Specifically home buyers use IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. You will want to be sure that you qualify under the limits of the 1st Time Homebuyer tests.

Is it time to stay or time to go? Should you sell your home and upgrade or just remodel your existing home? These are the questions that many homeowners are asking themselves. There are a few things to take into consideration when making that choice. Let's take a look at some things that you may want to think about when deciding which option works for you and your family.

First and foremost, what will give you the most value? When selling your home there are several costs that you need to calculate. Take a look at what you think you could get for your home. Then, look around. If you were moving into it today, what would you have to do to make it appealing enough for you to buy again? If you are not sure what your home is worth (or to verify even if you think you know), contact a real estate agent for a competitive market analysis (CMA). Don't forget to calculate any fees or closing costs that may apply and leave room for anything a buyer may ask you to change or upgrade like carpet or appliances. (Your agent may make some suggestions too.) After figuring the expenses of selling and moving, take a look at what that will leave you to put down on a new home.

Sometimes remodeling may be an option. If you like your neighborhood, renovating may be a way to get the features you want without the hassle of moving. When considering remodeling, you need to think about what you want to change. Make a list of the renovation ideas you have and head out to your local home improvement store. Many stores now have staff trained in interior design or may have someone who can help you lay out your floor plan for remodeling kitchens or baths. (You may want to call first to see if you need to make an appointment to take advantage of those services.) Some jobs, like electrical upgrades, should not be attempted by the average homeowner but should be entrusted to a professional contractor. You will also want to check with your city to find out what building permits you will need for your projects. Don't forget to ask how much the permits will cost. They should also be able to tell you what jobs you can do yourself and what is required to be completed by a licensed contractor. Some cities require the work to be checked by a city inspector.

It may sound like a lot of legwork but in the end you should be glad you took the time to compare the two options. One thing to consider if you are going to remodel: you will be on your own unless you hire an interior designer. You will also have to live in a construction zone for a while as well. If you decide that moving is the better option, you will have the help of a real estate professional to guide you through the process. The downside is you will have to pack and then unpack when you move into your new home! Whether you decide to stay or to go, taking the time to figure out what the best value is for you and your family will pay off in the long run.

If you decide a new home is the way to go, we will be glad to help! Give Sandy's Team a call at (225) 677-SOLD or email info@sandyco.com. We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish. We can help with just about everything but the packing!!

Now that the news is out about the American Recovery and Reinvestment act for 2009 , many questions have surfaced about the $8000 first time homebuyer credit. I will discuss these this week. One of the first I get is "What Is a 1st Time Homebuyer and who is eligible to claim this tax credit?". A first time homebuyer is a person who has not owned a home in the last 3-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 3 years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer. An example is where a parent jointly purchases a home with a son or daughter. In this case the person qualifying as 1st time homebuyer may take the credit. If 2 qualify it may ony be claimed by one or allocated beteen them.