Marguerite Wherry

In todays business section of the Los Angeles Times was an article written by Kenneth R. Harney that stated FHA insured morrtgages could be on the verge of becoming more expensive and tougher to obtain. A independent study found that the FHA's insurance fund reserves are far below the congressionally mandated minimum.

This can affect the housing market greatly. According to his artilce some of the possibilities could be higher down payments and tougher credit standards.

This has to affect first time home buyers. What is the general feedback if the 3.5% down payment increases to 5% or 10%.

November 6, 2009 President Barack Obama has approved the first time home buyer tax credit extension which will extend the tax credit until April 30, 2010. The extension is part of a $24 billion economic stimulus bill that will extend the $8000 tax credit for home buyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6500 to homeowners who have lived in their current home for at least five years and are seeking to relocate.

Effective Dates: The eligibility period for the tax credit is for homes purchased after Nov 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.

Who is Eligible: First time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three year period prior to the purchase, may be eligible for up to an $8000 tax credit.

Existing homebuyers who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (repeat buyer), may be eligible for up to a $6500 tax credit.

All US citizens who file taxes are eligible to participate in the program.

Income Limits: Home buyers who file as single or head of household taxpayers can claim the full credit ($8000 for first time buyers and $6500 for repeat buyers) if their modified adjusted gross income is less than $125,000.

For married couples filing a joint return, the combined income limit is $225,000.

Single or head or household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.

The credit is not available for single taxpayers whose modified adjusted gross income is greater that $145,000 and married couples with a modified adjusted gross that exceeds $245,000.

Types of Homes that Qualify: All homes with a purchase price of less than $800,000 qualify, including newly constructed or resale, and single family detached, townhouses or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases DO NOT qualify.

Tax Credit is Refundable: A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.

Payback Provisions: The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

Go to www.federalhousingtaxcredit.com site for more details on the new tax credit. For more information, visit www.nahb.org.

Westside Ballet will present "The Nutcracker" at Pepperdine University's Smothers Theatre on Nov. 28 at 2 pm and 7pm, and Nov 29 at 1:30pm and 5:30pm. For more information go to www.westsideballet.com or by calling 310.828.6211.

Westside Ballet traditional holiday production of the "The Nutcracker" will offer performances at Pepperdine University's Smothers Theatre on Nov. 28 at 2 pm and 7pm, and Nov 29 at 1:30pm and 5:30pm. For more information go to www.westsideballet.com or by calling 310.828.6211.

Westside Ballet's "Nutcracker" is the longest running stage production in Los Angeles history and showcases the talents of the school's best dancers, in which many go on to careers with the country's top dance companies.

The Marine Life Protection Act Blue Ribbon Taskforce unanimously approved a propasal banning fishing of all kinds in ocean water off the Malibu Point Dume coast. The restriction covers a stretch of ocean form Westward Beach to just outside Paradise Cove. Also the area from Westward Beach to Lechuza Beach was proposed for a designation that would allow limited fishing. The proposal does not restrict public access or recreational activities such as boating, swimming, diving or kayaking.

The Marine Life Protection Act Blue Ribbon Task Force's decision on Point Dume and the rest of California coast from Point Conception in Santa Barbara to the Mexican border will go to the California Department of Fish and Game Commission, which will meet Dec. 9th at the LAX Radisson Hotel, for final approval.

Maps and descriptions of proposed MPAs are to be posted at www.dfg.ca.gov/mlpa/index.asp.