Westfield, NJ

Tempting Tax Credits for First-Time Home Buyers

What could you do with $8,000? How about using it to finance a home? In order to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.

Just last year, home buyers and owners were able to take advantage of the housing and Economic Recovery Act's $7,500 tax credit. This credit served as a 15 year interest free loan for those who purchased their home after April 9, 2008 and before July 1, 2009. With the new and improved $8,000 tax credit plan in place, buyers have the opportunity to receive a good chunk of cash which, unlike the last year's tax credit, does not have to be repaid.

If you're interested in taking advantage of this opportunity, you only have a short while to act. Determine whether or not you qualify for this tax credit by reviewing the following requirements and by contacting Omega Financial Services today at 908-933-0253 or online at fhaomega.com.

Are You Eligible?

First-Time Home Buyer:
Have you leased your home for the past three years? If so, then you may qualify for the tax credit, as the plan defines a first-time home buyer as a "buyer who has not owned a principal residence during the three0year period prior to the purchase."

Purchase Date:
Buyers are encouraged to act fast as the cutoff date for this $8,000 credit is December 1st, 2009; not at the end of the year, as you might expect.

If you purchased your home before the New Year, you're out of luck, though you may qualify for the housing and Economic Recovery Act Tax Credit. Contact us today at 908-933-0253 to learn more about your tax credit and mortgage program options.

Principle Residence:
According to the plan, a "main home" is "any home that will be used as principle residence," and includes "single-family detached home, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats." Multiple home owners, or those looking to purchase their second, third, or even fourth home, will not qualify for this particular tax credit.

Income Limits:
Those buyers with a modified adjusted gross income (MAGI) of less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return will receive the full tax credit amount. If it is more, the tax credit amount is reduced until your MAGI meets or exceeds $95,000, at which point you are no longer eligible for the credit. Call your Omega Financial Services mortgage professional at 908-933-0253 to discuss your current financial situation and to determine whether you make a good tax credit candidate.

Stay Put:
In order to qualify for the tax credit, plan to stay put in your new home for a minimum of three years. Buyers cannot move, sell or otherwise leave their home for at least three years after they purchase.

Price:
The plan states that the buyer receives 10% of the purchase price of the home or $8,000, whichever is less. So the monetary amount you're awarded is determined by your new home's price. In order to receive the maximum credit of $8,000, the buyer must purchase a home for $8,000 or more.

Participating in the tax credit program is simple. Determine your tax credit amount by completing the IRS Form 5405 and claim the tax credit on your federal income tax return. With home prices and mortgage rates at all time lows, buyers incentives and tax credits greatly contribute to your goals of homeownership. Discuss your home loan, tax credit and buyer incentive options with your Omega Financial Services professional and to discover the grogram that is best for you.

Keeping You Informed
Omega Financial Services is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at fhaomega.com, or call today at 908-933-0253, to obtain custom loan options designed to fit you needs and help you obtain you home ownership goals.

Victor M. Jaramillo

Omega Financial

(908) 933-0253 Ext. 328

Before After

Staging your house to sell is more affordable than you think. Call on The Team of ReStyled to Sell at 732-995-3425 to schedule your initial in home consultation.

Phyllis Pafumi-ReStyled to Sell Staging Homes NJ

I have spoken to several potential sellers in the past few weeks and all of them share one thing in common. They are not happy with the price they can get for their house compared to what they could get just 5 or 6 short months ago.

Here in the Cranford, Westfield, Union County NJ area, we saw a 10-15% price drop in a VERY Short period of time from the 4th quarter last year through 1st quarter this year. For sellers who were counting on $500k for their listing before the holidays, when they find out they can get 450k now, it really throws a kink in their plans. There is GOOD NEWS!!!

What I have tried to explain to all of them is that if they are also buying in the same area, the seller they are buying from is taking the same hit, or even more of a dollar amount hit if its a higher priced home.

My advice is to take the 'punch in the stomach' on the sale, and lock up your buyer, so you can make your offer on your purchase with confidence, and lock in your savings on the purchase, at a GREAT interest rate.

I understand however, that this 'punch in the stomach' will affect the cash you can put down, and will also affect in some cases whether or not you will have enough equity to even sell. This advice is meant for those of you who have the equity position to make your move work, despite the difference in sales price. You will make the equity back in the purchase over time.. Here's how...

Helpful Tip: ask your Realtor to show you what homes were selling for 6-8 months ago in the area you want to buy. I am confident you will find that the home you are buying is also at a discount. If its not priced well, make a fair offer. If it is priced well..buy it, and CONGRATULATIONS, you made a smart decision.

The Math:

If you sell your house for 450k and it used to be worth 500k, that is a 10% loss and $50,000

If you buy a house for $550k and it was probably worth $610k, that is roughly the same 10% decline, but a savings of $60,000. Congratulations, you just likely added $10000 of long term equity.

SEAN CARROLL, WESTFIELD NJ REALTOR EARNS PRESTIGIOUS DESIGNATION TO HELP HOMEOWNERS IN DANGER OF FORECLOSURE

SEAN CARROLL of TEAM CARROLL of RE/MAX CLASSIC GROUP has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by "distressed" homes in the foreclosure process.

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

In the Union County, NJ area, more the number of homes in danger of foreclosing is clearly on the rise. As job losses mount, and real estate prices have come down, more distressed properties are surfacing in the area. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.

"This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales," said Sean Carroll. "It is so rewarding to be able to help sellers save their homes from foreclosure."

To provide free information for homeowners in distress, Team Carroll has even created a website designed specifically to help these clients at www.HomeOwnerHelpSite.com. Sean Carroll says of this website: "We've tried to layout an easy to read informational website for clients who want information about short sales vs. foreclosures, and other options such as mortgage modification

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Sean Carroll with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

"Our goal is to educate as many people as possible so we can help as many homeowners as possible," Charfen said.

For more information about CDPE designation or to find a certified distressed Realtor in your area, please call 1-800-482-0335.

Hey everybody! There are some terrific deals out there for you first time buyers. If you want to save a bunch of time and not bounce from website to website only to find incomplete information, check out this link below.

For a complete list of homes (Including Property Addresses!!!!) along the NYC Train Line in these and other great NJ Towns log onto:

http://www.NJAreaRealEstate.com

No phone calls....no hassles....just the information you are looking for!

a free service provided by

RE/MAX Classic Group

908-898-0800