The Senate has decided to extend the first time home buyer $8,000 tax credit. To be eligible, buyers must be under contract by April 1, 2010 and close by July 1, 2010. They are also going to be offering a $6,500 tax credit for homeowners who have lived in their homes for a consecutive 5 year period in the past 8 years. Also there has been reports of abuse of the tax credit and the IRS is getting more involved in the process.
www.JonSutton.com
A new wave of novice investors has emerged with the increase in foreclosures and bank REOs and they must keep these three tips in mind before diving head first into the business. Just because the property seems like it is a steal of a deal, they think hurry up and buy it but when in realty there is much more homework that needs to be done before hand.
First, you must understand the local market and where prices are headed along with the demand for real estate in that particular area. Due diligence is the key here. Look into the City and Government's future use plans for that area. The more you know about that market the better off you will be.
Second, purchase properties with a written business plan in effect. This is how the professionals do it, this is how you should to. Make sure you incorporate an entrance strategy as well as an exit strategy for many different scenarios.
Lastly, analyze all of the costs of ownership upfront. Everything. Not just the price you paid for it and what it is worth but how much income it will bring in, what repairs are needed, taxes, insurance, sales commissions, management costs, rental maintenance, etc. You must know everything upfront because surprises in Real Estate aren't really surprises, they are more like a blow to the head.
The extension of the first time home buyer tax credit is at the top of Congress' list of things to do legislative aids say. After a meeting between President Obama, House Speaker Nancy Pelosi, and Senate Majority Leader Harry Reid that was held on Wednesday a comment was released that the governemnt should "continue efforts to strengthen the housing market by extending the home buyer tax credit. Economist Mark Zandi at Moody's Economy.com says not extending the credit as more foreclosures continue to hit the market will only continue to drive home prices down.
Bond 74
Overview of Tax Exempt Mortgage Revenue Bonds and advantages to borrowers include:
A 4% Second Lien Deferred Forgivable Loan May Be Used For Down Payment and Normal and Customary Closing Costs:
Requirements for the home buyer:
So in a nutshell, this program will replace the short term bridge loan program for using the $8,000 tax credit towards the down payment and closing costs and replace it with a second forgivable lien. For additional information contact me immediately as this is a first come, first serve program.
Located 1000' East of the interstection of Southlake Blvd and Whites Chapel
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
