Warner Robins, GA

Note: This is intended to provide an overview only - for specific information or individual concerns, please contact your lawyer, accountant and/or financial advisor.

Who Qualifies for $8,000 Tax Credit

• 1^st Time homebuyers: Haven't owned a home in the past 3 years
• ^1st Time homebuyers who purchases a home between Jan 1, 2009 and Nov 30, 2009
• Must be used for primary residence for at least 3 years 

Who does not qualify for $8,000 Tax Credit

•  Buying a home from a close relative
•  Non resident aliens
•  Anyone who stops using the home as main residence
• Purchaser's whose gross income exceeds $95,000 (Single) and $170,000 (Married) 

Repayment

•  2009 Tax Credit does not have to be repaid as long as you live in the home for 3 years

Refundable Tax Credit

• $8,000 Tax Credit is a refundable tax credit
• Refundable Tax Credit: Tax credits may be characterized as either refundable or non-refundable. Refundable can reduce the tax owed below zero, and result in a net payment to the taxpayer beyond their own payments into the tax system, appearing to be a moderate form of negative income tax. This means you can receive money back. 

Limitations

•  Homes can be a Condo, Single Family Residence, Co-op, or townhouse
• New Construction homes must be occupied by Dec 1, 2009
•  Vacation, Investment, and Rental homes not eligible
• Tax Credit equals 10% of purchase price with max of $8,000
• Homes less than $80,000 will receive less than $8,000 respectively
• Purchaser's whose gross income exceeds $75,000 (Single) and $150,000 (Married) will receive a proportionally reduced tax credit as income approaches $95,000 (Single) and $170,000 (Married).

When can someone file to receive their $8,000 Tax Credit

• 2008 Tax Return
• Amended 2008 Tax Return
• 2009Tax Return

Many homebuyers looking at homes in Warner Robins  say they are waiting to find the right home before getting pre-approved with a lender, and I let them know that is a bad idea. Everyone should get pre-approved before starting to look for a home, because it helps narrow down their search into homes they can afford, helps their negotiating ability, and helps them find the most home for their money.

A good faith estimate from a lender can make a big difference in negotiating an offer because it helps in writing that offer. If you know how much the closing costs and prepaid items will be, then you can ask the seller to help pay for these items. Not being pre-approved hurts the buyers negotiating ability by not having all the information such as loan type, closing costs, pre-paids, and interest rate, when the offer is written. Also giving the seller a copy of the pre-approval letter with the offer helps give the offer more credibility. Waiting to find the right home and then getting pre-approved slows down the offer process and hurts the chances of getting that home, because if someone else submits an offer on the same home with a approval letter, then they have a better chance of having their offer accepted. 

Last but not least, waiting to get financing until after finding the right home decreases the amount of time the homebuyer has to shop around for the best lender/financing available. Homebuyers should get pre-approved first, then look for a home, shop around with different lenders while looking at homes, find the right home, and then decide on a lender within 1 or 2 days of writing an offer on a home.

$1,800 Tax Credit for All Georgia Residents Buying a Home

On May 11, 2009 Governor Sonny Perdue signed House Bill 261 into law allowing Georgia Residents to receive a $1,800 Tax Credit on homes purchased between June 1, 2009 and Nov 30, 2009. This tax credit is not limited to 1^st Time Homebuyers; it is for All Georgia Residents purchasing a single family home or condo used as primary residence after June 1, 2009 and no later than Nov 30, 2009. Only certain homes qualify for the $1,800 Tax Credit - the home must be on sale prior to May 11, 2009 and still for sale or must be in default on or before Mar 1, 2009, or already foreclosed and held by a bank or mortgage company. The Georgia Tax Credit is $1,800 or 1.2 percent of the purchase price whichever is less. The Georgia Tax Credit can be claimed on end of year Georgia State tax return over 3 year period including 2009, 2010, and 2011. Total tax credit allowed in a single tax year shall not exceed the taxpayer's income tax liability or one-third of the total amount of the credit allowed. The $1,800 Georgia Tax Credit can be used in addition to the 1^st Time Homebuyer Tax Credit as the two tax credits are completely separate and neither affects the other. This means that 1^st Time Homebuyers who are a Georgia Resident can receive up to a total of $9,800 total in Federal and State tax credits if they purchase a home that qualifies for the Georgia State Tax credit within the next 6 months.

The Mossy Creek Festival is this weekend - April 18th and 19th and is open from 10 a.m. till 5 p.m. I went to the Mossy Creek Festival last Fall and it was fun with arts and crafts, items to buy, food, drink, petting zoo, and animal rides for the kids. Here is a link with more information http://www.mossycreekfestival.com

Georgia Dream Neighborhood Stabilization Program (NSP)

Are you planning on buying a Foreclosed property in Warner Robins GA that is now Bank Owned or Real Estate Owned (REO) by Fannie Mae, Freddie Mac, HUD, or VA?

Then the Georgia Dream Neighborhood Stabilization Program (NSP) may be right for you.

$14,000 for Repairs, Rehabilitation, and Down Payment Assistance

The Georgia Dream NSP Purchase Program is funded with proceeds from an allocation of federal funds from the Housing and Economic Recovery Act of 2008 (HERA). Funds may be used for down payment and rehabilitation assistance on NSP eligible properties. Funds may not be applied to closing costs, discount points, or prepaid items.

• Does not have to be a 1st time homebuyer
• Cannot be combined with any other type of down payment assistance
• Must be used with a fixed rate FHA or VA first mortgage
• Can be used to rent current property and upgrade to nicer home
• Properties purchased under this program must meet the discount requirements of HERA. In order to determine the statutory purchase discount, an appraisal must be completed within 60 days prior to an offer made for the property is required.
• The sales contract must reflect the NSP Purchase Discount and supporting documentation must be submitted to DCA to support this provision.
• The purchase discount must be at least 15% from the current market appraised value of the home or property as determined by the required appraisal.
• Subject property must meet HUD’s Housing Quality Standards (HQS) Inspection Requirements · Funds must be used towards repair, rehabilitation, and down payment assistance.
• NSP funds must be used first for repairs to bring the property up to Housing Quality Standards (HQS). Any remaining funds must be used for down payment assistance. If repairs are not needed or are not made a part of the financing, the entire $14,000.00 must be used for down payment assistance. The Georgia Dream NSP Purchase Program loan will be provided in the form of a subordinate lien that will be released over a five year period at a rate of 20% each year.
• Subject property must be in an area of greatest need.
• Mobile Homes are not eligible