Suzanne Horsburgh

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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You heard it here first!

This is HOT! A new streamlined rate/term refinance program that will actually help homeowners.

•· 105% Loan to Value and unlimited Combined Loan To Value

•· Fico Scores above 620

•· New borrowers can be added

•· Stated Income-Stated Asset ( Banks may require additional documentation)

•· Closing costs can be included in new loan

•· Reduce the interest rate of the first mortgage

•· Replace an ARM, Interest Only Mortgage

If you want more information, please do not hesitate to contact me.

Did you know you could use your VA to buy a home or receive help if you are having trouble making your mortgage payments?

There are many benefits of a VA home loan

Equal Opportunity

Loan Limit $625,000.00 CA

No Down payment, (unless required by the lender or the purchase price is more than reasonable value of the property.

Negotiable interest rate

Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5%

An assumable mortgage

Right to repay without penalty

Lastly, existing VA loans are eligible for VA Assistance to veteran borrowers in default due to temporary financial difficulty.