Suzanne Horsburgh

$18,000 IN COMBINED HOMEBUYER TAX CREDITS FOR A LIMITED TIME

Californians have a brief window of opportunity to receive up to $18,000 in combined f ederal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply

Information published on CAR.ORG

I want to share important news for all homeowners who want to sell their home in 2010. As you know, in this economy, home buyers and home sellers have to be smart. In 2009, home buyers started to close escrow and take advantage of the homebuyer's tax credit. We realtors saw home sales start up tick; until in November 2009 when the $8,000.00 tax credit was pulled. At that moment we experienced qualified buyers looking to purchase, slowed to a trickle. It was not until the December when the Senate renewed the $8,000.00 dollars tax credit that we saw modest excitement return to the marketplace. Chief NAR economist Mr. Yu said the tax credit will not be renewed after June 30^th 2010. So, if you want to sell your home quickly and for top dollars, choose a proven professional to market your home.

Please visit my market trends newsletter where you will find many useful tools.

http://ace.housingtrendsenewsletter.com

January Housing Trend Report

The $8,000 First-Time Home Buyer Tax Credit Expires December 1, 2009

If you're planning to claim use the credit and haven't started looking for a home, your clock is officially ticking. You must be closed on your new home on or before December 1.

Because purchase closings come 60-days standard, therefore, your $8,000 is in jeopardy unless you go under contract prior to October 2, 2009. That's 73 days from now.

Use it or lose it. The First-Time Home Buyer Tax Credit is part of the American Recovery and Reinvestment Act of 2009. In it, Congress authorized a first-time homebuyer tax credit of up to $8,000 for home buyers meeting certain qualifying criteria. The program's goal was to stimulate entry-level home purchases and, by most measures, the plan has been successful.

First-time home buyers accounted for about one-third of all home resales in May.

Now, the IRS definition of "first-time home buyer" may be different from what you expect. According to the IRS, a first-time home buyer is anyone who has not owned a "main home" in the last 3 years with "main home" defined as a home in which a person has lived "for most of the time". Main homes can include traditional homes, houseboats, trailers and other residence types.

For couples -- married or otherwise -- both home buyers must be first-timers to be tax credit-eligible.

Moreover, not every first-time home buyer is eligible for the $8,000 First Time Home Buyer Tax Credit. Some notable exclusionary cases include first-time home buyers who:

• File taxes separately and whose adjusted gross income exceeds $95,000
• File taxes jointly and whose adjusted gross income exeeeds $170,000
• Acquire property from a mother, father, sibling or child
• Acquire property from an entity in which they're a majority owner
• Acquire the home by gift or inheritance

And then, the First-Time Home Buyer Tax Credit may not deliver the full $8,000.

The tax credit is limited to 10 percent of the home's purchase price and it also diminishes as home buyer income rises. Tax credit phase-outs start at $75,000 for homebuyers filing separately and $150,000 on joint returns.

Assuming you qualify, though, the good news is that it's easy to claim your tax credit.

1. Buy and close on a new, "main" home before December 1, 2009.
2. Submit IRS Form 5405 with your 2009 tax returns in April 2010.

That's it.

Meanwhile, the program does come with some gotchas. For example, If you sell your home, or cease to use it as your "main home" within 36 months of purchase, the IRS will require a full payback. There are only a few allowable exceptions to this policy and you shouldn't count on being granted one.

Not moving in the next 3 years? Don't worry about it.

Loans with a balance between $417K and 729K will no longer be subjected to a 1% add to the rate. This is a great improvement as we move towards ending the recession in the housing industry.

The lenders still require loans to be fully documented and clients have to have a high FICO score with an equitable position of less than 80%. This is an excellent opportunity for folks who want to refinance or buy a single family residence in Southern California. The rate today 6/26/09 is 5.375 fixed for 30 years.

Further information; please call 714-404-6099

RE License # 01508012

The Buy America Team would like to assist you in finding your prefect property.

We back our knowledge in the real estate foreclosure marketplace, with years of experience. The most important variable is keeping updated on the ever-changing lender climate. We are always aware of new and updated loan programs that help first time home buyers and or investors.

We cannot think of a better place to live than in Southern California's beautiful Orange County. We think you will agree!

Contact Suzanne, today, for a full spectrum of properties and loan options available that meet your needs and your dreams.

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