Cristina McBreairty

FREE FIRST-TIME HOME BUYER WORKSHOP

SATURDAY ~ June 6, 2009

Contact Cristina McBreairty at (207) 653-1604 for more information!

Space is limited!!! So call to reserve your seat today!!!

Learn More About:

- The $8,000 Tax Credit

- First-Time Buyer Programs

- Qualifying for a Mortgage

- What to Expect at a Home Inspections

- Tax Advantages of Home Ownership

- And Much More!!!

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Visit www.CristinaTheREALTOR.com for all your online real estate needs!
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Real estate mogul Sam Zell believes that the decrease in real estate inventory and building slowdown will soon increase demand.

He predicts that the U.S. housing market will turn around this summer because the building slowdown is increasing demand. "I can't tell you if it's June 29 or Aug. 1," says Zell, who made billions in commercial real estate by buying up distressed property.

Zell said the housing downturn is international, but "the U.S. will recover and recover first around the world because we have a culture and we have an environment where we face up to reality quickly and effectively."

If Zell's predictions are accurate, this may be the best time buy ever! For those of you that have been waiting to buy, you might want to start making a move soon!

Many states have already started making bridge loans available to households who want to claim the First-Time Homebuyer Tax Credit! With the announcement earlier this week that the U.S. Department of Housing and Urban Development will allow consumers to obtain a bridge loan, repayable with proceeds from their tax credit, to help cover their down payment, consumers are anxious to "get movin'".

HUD Secretary Shaun Donovan stated that guidelines for the new policy will be released shortly. But even before the announcement, nearly a dozen states were one step ahead of the department by providing similar bridge loans through their housing finance agencies.

Many state REALTOR® associations were behind these proactive efforts and worked with state officials to set up programs. The Washington REALTORS® association was able to convince treasury officials that the money loaned to home buyers would not only be paid back when tax credits took effect, but also increase the state's funds. According to their calculations, every 1,000 home sales represented approximately $140 million in new tax revenues. To help close the deal, the association put up $400,000 to help cover the risk. Thus far, the initiative has been successful, with thousands of loans granted to first-time home buyers.

There are currently 10 states that have a program similar to Washington's, and that number is expected to increase following Secretary Donovan's announcement.

This is great news for first-time homebuyers that want to use their tax credit as a down payment!

The U.S. Department of Housing and Urban Development announced this week that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers could not receive the funds until after they filed their tax return, and that deterred some people from using the credit. If consumers have access to the home buyer tax credit funds when they close on their home loans the cash can be used as a down payment.

Now FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

At this point there aren't yet any procedures in place to accommodate the "bridge" loan. But this should be available shortly. For those of you who qualify for the First Time Home Buyer Tax Credit should start looking for a home now. This should prove to be a significant benefit to the Real Estate purchase market. It won't be long before excess inventory begins to diminish, which will result in rising home prices in a short period of time.

President Obama's "Stimulus Bill" (The American Recovery and Reinvestment Act of 2009), which was signed on February 17, 2009, made significant changes to the energy efficiency tax credits. These changes apply to products "placed in service" in 2009.

The highlights are:

• The tax credits that were previously effective for 2009 have been extended to 2010 as well.
• The tax credit has been raised from 10% to 30%.
• The tax credits that were for a specific dollar amount (i.e. $300 for a CAC), have been converted to 30% of the cost.
• The maximum credit has been raised from $500 to $1,500 total for the two year period (2009-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
• The $200 cap on windows has been removed, but the requirements for windows has been increased significantly. Keep in mind that not all ENERGY STAR qualified windows will qualify.

Click here for more specific information on what is covered by the tax credits.