Gwenn Tanvas - Wisconsin Mortgage Expert - FHA Loans - VA Loans - USDA Rural -

The Government Affairs division of the NAR just released Answers to a few important questions that have come into light as the result of the $8,000 tax extension and the expansion to of a $6,500 credit to buyers who are NOT qualified as first time home buyers. I was also able to find a few more great answers from Robert Dietz, economist for the National Association of Home Builders.

We feel it is important to provide this valuable information in a timely manner. Please keep in mind that the bill is scheduled to be signed into law today and the fact are unfolding as I post this imformation......

Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit

Question: "When does the program start? I already signed a contract, it closes in December & have owned our house for 11 yrs.... Do we qualify for the $6,500 credit?"

Answer: You qualify, says Robert Dietz, economist for the National Association of Home Builders. The bill will become law when the president sigAnswerns it, which was expected to be Nov. 6. In general, Mr. Dietz says, home buyers who close on their house after the bill is signed qualify.

Question: - Existing homeowner credit: Must the new house cost more than the old house?

Answer: - No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. IfPresident Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a first time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout range).

Question: "My husband and I were transferred from (Texas) to (Indiana) over the summer for his job. We had owned our home in (Texas) for 11 years. We closed on our new (Indiana) home in August 2009. If the tax credit will be retroactive, we qualify in every other way. Anyone know if we will qualify for this tax credit, or if we're going to get taken for $6,500 just because we bought a few months too soon?"

Answer: Unfortunately, the bill has no "grandfather" clause, Mr. Dietz says. "If you're an existing homeowner, and they've closed prior to the date of enactment, when the president signs the legislation, they simply do not qualify."

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.

Question: I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?

Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

Question: "I sold my first house of 7 years this past July. I am currently building a new house and it is scheduled to be finished in the next few weeks. If I officially close on it in December can I qualify for the $6,500 or did [I] just fall through both cracks?"

Answer: It depends. If you are purchasing the lot from the builder and close after the bill is signed, they should be eligible, Dietz says. If instead the home buyer owns the lot, he or she will have to occupy the building before the bill's sunset date of April 30, 2010.

For a comparison chart provided the NAR - please visit this link:

http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf

The NAHB, National Association of Home Builders has put together the most comprehensive site and is sure to provide answers to may questions you may have. Please visit the links below -

Tax Credits At A Glance -

FAQ - First Time Home Buyers -

FAQ - Repeat Home Buyers -

It will be official soon - Reuters is reporting that the $8,000 Tax Credit extension and expansion of a new $6500 credit for all buyers, has been approved by the House and now heads to President Obama to be signed into law.

On Wednesday, the Senate voted to extend and expand the tax credit to include many buyers who already own homes. Guess what, home buying pie just got a little sweeter, how about $6,500 sweeter! Today it was approved and off to the Oval Office where it is expected to be signed, sealed and delivered!

Here it is in a nut shell - I will continue to provide updated information as it becomes available....

People buying a new or "step-up/down" home and have owned their current homes at least five years would be eligible for tax credits of up to $6,500.

The First-time home buyers; which include anyone who hasn't owned a home in the last three years, can continue to get up to $8,000.

The details indicate that in order to qualify, buyers in both groups mentioned above, will be required to enter into the purchase agreement no later than April 30, 2010. The new law also states that the transaction MUST close on or before June 30.

It has been reported that nearly 1.4 million first-time home buyers have benefited from the tax credit. This number is from August, so the number sure to grow as many pushed to meet the now extended deadline. The NAR (National Association of Realtors) has estimated 350,000 of the buyers would not have purchased their homes without the credit.

I myself have enjoyed helping scores of new buyers over the course of the past several months and look forward to new activity that is sure to pop up as the result of this extension and expansion.

If you are not familiar with the details of the original tax credit, here are a few helpful links.

Top 21 Questions Answered on the $8,000 Tax Credit for 1st Time Home Buyers

Burning Question Answered! Is a Duplex or Multi-Family Dwelling Eligible for the New $8,000 First Time Home Buyer Tax Credit?

I will continue to provide updated information as it becomes available. Happy House Hunting......

On August 4th, 2009 Taylor, Bean & Whitaker (TBW) were abruptly shutdown by the Feds. As the result consumers who have Mortgage Loans have been in the dark with regard to the future servicing of their accounts - This is especially troublesome to the people who had automatic payment withdraws setup. We recently learned that TBW has not drafted any automatic payments since August 10th. If your mortgage payment was scheduled to be drafted after this date, you may be in jeopardy of a late payment and additional fees.

In a memo issued by Taylor, Bean & Whitiker (TBW) on August 20th (Click Here to Download), Taylor, Bean & Whitaker provided information and contact information regarding the future of loan servicing and updated contact numbers. Below is a screen shot of the memo in its entirety -

Please pass this important information onto your customers, colleagues and friends. If anyone needs assistance with Wisconsin loans that were in process when this unfortunate event occurred, please feel free to contact me. We have set-up a special priory program to assist in finding remedy -

Think Big Work Small has released a great new Video on HVCC - Watch this great video - They tell it like it is.... Share it, Re-Post it, Get it Out -

HVCC is wreaking havoc in our industry - It is doing more harm than good. We need to stick together and work for resolution so our industry may see recovery.

Do not miss the Active Rain Bonus at the end of the Video - It features Active Rain Blogs.....

ENJOY!

Click on the image or follow this link http://www.thinkbigworksmall.com/mypage/player/tbws/14538/1095856

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Credit Restoration and Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

Wisconsin Realtors, Grab Your Opportunity to Get Gwennie's Revolutionary New Property Marketing Technology Tool and it is FREE for the asking!!!! http://www.WisconsinPropertyPromoter.com - Check it out!

Is a Government Insured Mortgage Right for You?
series of articles - part 1

Risky mortgages backed up by small down payments are a thing of the past. In today's world, most lenders aren't underwriting mortgages unless you have a significant down payment, and a high credit score. Did you know that there is a decades-old loophole can still put home buyers in a house with little money down and in some cases . . . just $100... In fact here in Wisconsin every county in the state has areas that qualify for zero down financing. The programs I am referring to are an FHA Insured Mortgage and USDA Insured Mortgages. They have been in existence for many years; and in the case of FHA, it is likely that your parents or grandparents had an FHA Insured Loan when they purchased their first home.

Mortgages insured by the Federal Housing Administration (FHA) allow borrowers to get approved with a down payment as small as 3.5% of the agreed selling price of the house and don't require a high credit score. If you happen to run across a home for sale that is owned by HUD, FHA offers a special $100 down payment program as an incentive to purchase a HUD owned home.

The looser terms of FHA-insured mortgages have helped make them more popular. Did you know that FHA-insured mortgages make up about 25% of the mortgage market? This figure is up from 3% in 2006, In a speech earlier this month, FHA commissioner David Stevens said "In June, the FHA insured 194,000 loans - the highest monthly total in the agency's history". For fiscal year 2009, the dollar amount of FHA-insured mortgages is likely to reach 30% of mortgage origination's, up from around 4% in 2005 and 2006, says Stu Feldstein, the president of SMR Research, a mortgage-data tracking firm.

The bottom line is that FHA, USDA, and other government insured loans are a viable option in today's market. They are a specialty product that requires in-depth knowledge of the rules and guidelines. It is imperative that you work with a qualified mortgage loan person who specializes in Government Insured Mortgages. In doing so, you will place youself in a position for success in obtaining a great home financing plan that is sure to provide you and family with tremendous benefit for years to come.

In today's ever-changing lending environment, it is absolutely essential that anyone looking to take advantage of these great loan programs and great interest rates, work with a LOCAL person who specializes in Government Insured programs.

I hope this has been of benefit to you - Please come back for the series on Government Insured Mortgage Opportunities -

How to determine if an FHA-insured mortgage is right for you; Do you meet the qualifications?

If you are looking to purchase or re-finance in the state of Wisconsin and would like to discuss your options, please feel free to contact me via email, or simply pick up the phone and give me a call. I am happy to help..... Make it a great one....:)

Don't forget about the $8,000 credit for first time home buyers for people who have NOT owned a home in the last 3 years. Time is running out - For details and answers go to the Top 21 Questions Answered on the $8,000 Tax Credit for 1st Time Home Buyers article.