About Edina's East Edina

HOMEBUYER TAX CREDIT FAQ #9

Q: Does a married couple qualify for any home buyer tax credit in the following situation?

Spouse A has lived in and owned the same principal residence for at least five years.

Spouse B has lived in and owned the same principal residence for less than five years.

A: In this situation, the couple does not qualify for any home buyer tax credit. Because the couple is married, the law tests the ownership history of both spouses. Spouse A clearly does not qualify for the $8,000 first-time home buyer tax credit, so neither does Spouse B.

Spouse A does appear to qualify for the $6,500 repeat buyer credit, but because Spouse B has not owned and lived in the same principal residence for at least five years, neither of them can claim the repeat home buyer tax credit.

Source: National Association of Home Builders (NAHB)

REALTOR NEWS UPATE- RE FANNIE MAE HOME PATH PROPERTIES

Just a note so that you know, Fannie Mae recently announced that it will pay 3.5% seller concessions that can be used toward closing costs or the buyers choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010.

If you are unaware of these properties you can view a complete listing of all qualifying properties at www.homepath.com, in addition to this benefit, home path properties qualify for special financing through Fannie Mae that has NO MONTHY MI, and NO APPRIASAL. Which means that if Fannie and the Lender approve it you don’t need to worry about a MI company turning it down. It does follow all other Fannie Guidelines, and very few lenders offer the financing.

In addition, Home Path mortgages can be gotten by investors (Non Owner Occupied purchases), for a long term hold, the loan cannot be used to flip properties, and the purchase would not qualify for the sales concession, but to by an rental property with 10% down, 30 year fixed rate and no MI? Well that’s just plain ridiculously good!



We do have Home Path financing available. Please call me with any questions.


See Complete Press release below…


News Release


January 28, 2010



Fannie Mae Announces 3.5 Percent Seller Assistance on HomePath® Properties

Incentive Part of Ongoing Effort to Stabilize Neighborhoods
WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today that people purchasing a Fannie Mae-owned HomePath® property will receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010.
"Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home."
Properties eligible for this incentive are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3 percent down.






Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.






Fannie Mae Resource Center Telephone 1-800-7FANNIE
(1-800-732-6643)

With buyers scarcer, sellers must up the ante to convince them that their property offers what many want most — top value for dollar expended. Here are eight fast fixes:

1. Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special—such as big flower pots or an antique bench — to help viewers remember house A from B.

2. Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t let sellers get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.

3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel. Room service, anyone?

4. Add old-world patina. Make Andrea Palladio proud. Install crown molding at least six to nine inches in depth, proportional to the room’s size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It’s all in the details, after all.

5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.

6. Clean out, organize closets. Get sorting—organize your piles into “don’t need,” “haven’t worn,” and “keep.” Closets must be only half-full so buyers can visualize fitting their stuff in.

7. Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.

8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.

Sources: Ernie Roth, Roth Interiors, Los Angeles; Angel Petragallo, abr, Group One, Boise, Idaho; Melissa Galt, Galt Interiors, Atlanta; Steve Kleiman, CEO, Oakington Realty, Houston; Sid Davis, Sid Davis & Associates, Farmington, Utah, and author of First-Time Homeowners’ Survival Guide (Amacom, 2007); Steve Hochman, Friendly Note Buyers, Roxbury, N.Y.; Margi Kyle, designer and spokesperson for Hunter Douglas.

Increases in internet use and online sales is nothing new. The rising trend has been elevated and more recently emphasised due to the economic downturn. What does this mean for the individual? What does this mean for the small business, and how does this affect the large organisation? I've put together a brief overview of my thoughts for the year ahead which I'll be exploring in depth in future articles.

Prediciton 1: The Internet - Small Business Revolution

The economic dowturn and cultural changes towards entrepreneurship, will mean opportunities for employees who have been made redundant. Those with sufficient funds will be considering setting up in business and are likely to focus on online initiatives. The internet is the ideal vehicle because of its relatively low cost and easy access to global markets. Furthermore, the best innovations happen in a downturn when businesses are seeking ways to cut costs. While many businesses in restricted industries may fail, there will be small businesses who are better placed to offer lower costs to their clients, and for this reason, we predict 2009 to be the year of the small business entrepreneur.

Prediction 2: Social Media Overload

Organisations and individuals are already feeling overwhelmed by the number networking sites, tools and strategies for marketing using social media. What will they think of next? Those individuals who have not tired of social networking sites, will be more discerning about where to invest their energy. Businesses will continue to look at innovative and productive strategies for social media. We predict that there will be new innovations around consolidating social media tools, through one port of entry, one single sign-on and one action does all.

Prediction 3: Widget Wizardry

Widgets, which are little online tools that allow chunks of code from a web site to be distributed onto third-party web sites. These have far reaching opportunities for online sales, as well as online PR. Lets have a look a trusted travel brand for example, who might benefit from a widget that extracts special offer travel information. Instead of advertisers placing the travel company's banner ads on their web site, they place the travel widget in its place. When the travel company changes an offer, or adds more offers, the widget is updated automatically, across multiple advertiser web sites. Check our own E-Business Advice Column Widget.

Prediction 4: Customer Chooses Content

Forward thinking organisations such as the BBC and PriceWaterhouseCoopers have already implemented ways to allow web site visitors to choose the content they see. This is nothing new. But how will personalisation capabilities affect e-commerce sites and advertising? E-Commerce sites will be looking one step ahead of targeting products and services based on customer behaviour. Forward thinking businesses will allow their loyal customers to choose which products they want to see when they go to their web site. This not only involves the customer in the marketing process, thus reinforcing trust, but will ensure better targeting of products and services and increase sales.

Prediction 5: Product Pricing Wars and E-Commerce

Manufacturers who traditionally sold to a mix of large and small retailers globally, may consider more carefully who they distribute to. Lets examine an electronics manufacturer, for example, who distributes to large and small retail outlets, as well as e-commerce stores. Search engines and price comparison tools have made it much easier for consumers to compare products, and in an economic downturn, they will be even more price sensitive. When less reputable retailers lower their prices to just above the distribution price, this not only diminishes the value of the electronics brand, but also places stress on the manufacturer and other retailers. We predict that manufacturers may choose to work with only more established retail brands who have both a web channel and a store channel. If the manufacturer is not already online, they may wish to cash in on the internet market, by setting up their own e-commerce channel.

Author: Deborah Collier, 4th February 2009