Free First Time Home Buyer Workshop - Baltimore - March 14, 2009
March 14, 2009 at 11:00AM
8712 Bel Air Road
Baltimore, MD 21236
Seating is limited, so please RSVP by calling or emailing:
Bob Lowery, Consultant
Prosperity Mortgage Company
410.248.1762 Tel
443.653.1720 Mobile
Bob.Lowery@prosperitymortgage.com
· FREE Home Buyer's Guide
· FREE credit analysis
· Special Savings and Coupons just for attending
· $8,000 First Time Home Buyer's Tax Credit
I am available seven days a week.
For all your purchase and refinance needs, feel free to contact me at 410-248-1762 or bob.lowery@prosperitymortgage.com.
Bob Lowery, Mortgage Consultant
Prosperity Mortgage Company
410.248.1762 Tel
443.653.1720 Mobile
Bob.Lowery@prosperitymortgage.com
The following has been approved by Congress and is expected to be signed in Obama early this week. While the majority of the $800 billion dollars will not stimulate the economy, this should have a direct impact on the housing economy and get things headed in the right direction.
FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications Shaded
February 2009
|
FEATURE |
CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 |
REVISED CREDIT - EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 |
|
Amount of Credit |
Lesser of 10 percent of cost of home or $7500 |
Maximum credit amount increased to $8000 |
|
Eligible Property |
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. |
No change All principal residences eligible. |
|
Refundable |
Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. |
No change Purchasers will continue to receive refund for unused amount when tax return is filed. |
|
Income Limit |
Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). |
No change
Same income limits continue to apply.
|
|
First-time Homebuyer Only |
Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase. |
No change Still available for first-time purchasers only. Three-year rule continues to apply. |
|
Revenue Bond Financing |
No credit allowed if home financed with state/local bond funding. |
Purchasers who utilize revenue bond financing can use credit. |
|
Repayment |
Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. |
No repayment for purchases on or after January 1, 2009 and before December 1, 2009 |
|
Recapture |
If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. |
If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. |
|
Termination |
July 1, 2009 (But note program changes for 2009) |
December 1, 2009
|
|
Effective Date |
Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. |
All revisions are effective as of January 1, 2009 |
With low rates, reduced values, and this tax credit; it truly is a good time to buy. You will not know when the bottom of the market has hit until it has already passed. Foreclosures will continue through 2009 and 2010, but it is I believe banks and the Feds will continue to work with these homeowners. Confidence will be restored and the economy will begin to rebound in 2009.
For all your purchase and refinance needs, feel free to contact me at 410-248-1762 or bob.lowery@prosperitymortgage.com.
Bob Lowery, Mortgage Consultant
Prosperity Mortgage Company
410.248.1762 Tel
443.653.1720 Mobile
Bob.Lowery@prosperitymortgage.com
The Senate is currently working on passing the 2009 stimulus bill. The House passed their version last week. There are many parts to this bill, which is why it is close to $900 billion and there is a lot of wasteful spending in the bill, however, there are two excellent parts of the bill. Congress is now working to get some of the waste out of the bill.
The first part of the bill I agree with are the tax cuts...they are always good. However, this blog is about the Home Buyer tax credit. In 2008, Congress passed the $7,500 tax credit for First Time Home Buyers. Unfortunately, it had little affect on the housing market since it had to be paid back and was basically a 15 year interest free loan. Congress realized its ineffectiveness, therefore, the introduction of the 2009 stimulus bill. While the bill still needs to be finalized by the Senate and approved by the President, some form of this stimulus bill will be approved.
The one thing that both parties have agreed to is the $15,000 tax credit for ALL home buyers. The tax credit will equal 10% of the sales price or $15,000, whichever is less. And, the credit will not have to be paid back as long as the home is not resold within 24 months of the purchase.
Some of the great features are:
1. Increased tax credit from $7,500 up to $15,000.
2. It will not have to be repaid unless home is sold within 24 months of the purchase price.
3. It is for everyone that purchases a primary dwelling, whether they are a first time home buyer or not.
4. The income limits will be removed.
5. It will extend the tax credit from July 1, 2009 to September 1, 2009.
6. It will take affect the day the President signs the bill.
I do not like to mortgage our children and grandchildren's future, but some of this is necessary. A tax credit in the 1970s was similar to this tax credit and helped stabalize the housing market as I feel this will help, too. Some experts say this could have a 10% increase in 2009 real estate sales. This will stablelize values and hopefully rejuvenate our economy.
Please remember that this bill has not been finalized and is subject to change. However, I feel some version of this bill will be signed into law. This along with current interest rates will make it an excellent time to buy. Don't be one to miss the bottom.... the bottom may be here.
For all your purchase and refinance needs, feel free to contact me at 410-248-1762 or bob.lowery@prosperitymortgage.com.
Bob Lowery, Mortgage Consultant
Prosperity Mortgage Company
410.248.1762 Tel
443.653.1720 Mobile
Bob.Lowery@prosperitymortgage.com
The Senate is currently working on passing the 2009 stimulus bill. The House passed their version last week. There are many parts to this bill, which is why it is close to $900 billion and there is a lot of wasteful spending in the bill, however, there are two excellent parts of the bill. Congress is now working to get some of the waste out of the bill.
The first part of the bill I agree with are the tax cuts...they are always good. However, this blog is about the Home Buyer tax credit. In 2008, Congress passed the $7,500 tax credit for First Time Home Buyers. Unfortunately, it had little affect on the housing market since it had to be paid back and was basically a 15 year interest free loan. Congress realized its ineffectiveness, therefore, the introduction of the 2009 stimulus bill. While the bill still needs to be finalized by the Senate and approved by the President, some form of this stimulus bill will be approved.
The one thing that both parties have agreed to is the $15,000 tax credit for ALL home buyers. The tax credit will equal 10% of the sales price or $15,000, whichever is less. And, the credit will not have to be paid back as long as the home is not resold within 24 months of the purchase.
Some of the great features are:
1. Increased tax credit from $7,500 up to $15,000.
2. It will not have to be repaid unless home is sold within 24 months of the purchase price.
3. It is for everyone that purchases a primary dwelling, whether they are a first time home buyer or not.
4. The income limits will be removed.
5. It will extend the tax credit from July 1, 2009 to September 1, 2009.
6. It will take affect the day the President signs the bill.
I do not like to mortgage our children and grandchildren's future, but some of this is necessary. A tax credit in the 1970s was similar to this tax credit and helped stabalize the housing market as I feel this will help, too. Some experts say this could have a 10% increase in 2009 real estate sales. This will stablelize values and hopefully rejuvenate our economy.
Please remember that this bill has not been finalized and is subject to change. However, I feel some version of this bill will be signed into law. This along with current interest rates will make it an excellent time to buy. Don't be one to miss the bottom.... the bottom may be here.
For all your purchase and refinance needs, feel free to contact me at 410-248-1762 or bob.lowery@prosperitymortgage.com.
Bob Lowery, Mortgage Consultant
Prosperity Mortgage Company
410.248.1762 Tel
443.653.1720 Mobile
Bob.Lowery@prosperitymortgage.com
Is this the right time to buy? I have been asked this question so many times, I felt the need to blog about it. I do believe its a great time to buy and there are a lot of buyers waiting for rates and values to hit bottom. There are several reasons why now is a good time to buy including:
1. Interest Rates are low. Interest rates have recently been as low as 4.75% with no points or origination fees. While they have risen recently, they are still extremely low based on history. With rates at 5.5%, you would save $18,600 on a $250,000 purchase, which allows you to spend this additional money on a home or pocket the savings. Below is a chart that shows the savings at 5.5% and 4.75%.
No one knows how long rates will remain this low. I already have buyers kicking themselves for missing out on 4.75%. And, one day, I will have customers kicking themselves for missing 5.5%.
2. Homes are more affordable now. Estimates claim home values in the Baltimore metropolitan area have declined 15-25% since 2007. If this is the case, a $250,000 home was once selling for somewhere around $300,000 or more in 2007. This is another $50,000 in savings.
3. Inventory is high. With supply so high, the average home is not selling for list price or above list price. Prior to 2007, many homes were selling for list price or even higher. This is additional savings. While these differ per transaction, I would think it would be safe to say this is another 2-5% in savings. Each seller and each transaction is different.
4. We are in a buyer's market. Most sellers are negotiable and willing to help buyers with closing cost assistance. While not every seller is willing to pay closing costs, many are. If a seller contributes $10,000 towards closing costs, this is another $10,000 in savings.
5. Lastly, there is a tax credit for 5% of the sales price or $7,500 for all first time home buyers. But, you must settle by June 30, 2009 to qualify for this tax credit.
6. There are mortgage programs available. You don't need perfect credit or 20% down. If you have any financing questions or would like to be prequalified, please give me a call.
With all these savings, a house that costs $250,000 will cost you $80,000-$100,000 less or more than if you had purchased two years ago. If you wait for the market to bottom out, you will already have missed the bottom. No one knows when the bottom has hit until it has already passed.
For all your purchase and refinance needs and questions, feel free to contact me at 410-248-1762 or bob.lowery@prosperitymortgage.com.
Bob Lowery, Mortgage Consultant
Prosperity Mortgage Company
410.248.1762 Tel
443.653.1720 Mobile
Bob.Lowery@prosperitymortgage.com
Specializes in FHA, VA and Conventional purchases and refinances. Services Baltimore and surrounding counties! Available 7 days a week!!!
Life long resident of Baltimore and Harford Counties.
Over eighteen years of experience within the mortgage industry. Successful track record of originating and managing a sales force and operations; including processing, underwriting and funding departments.
FOR MORE INFORMATION OR A FREE PRE-APPROVAL, PLEASE VISIT: www.marylandhomeloansonline.com
Specializes in FHA, VA and Conventional purchases and refinances.
Wells Fargo Home Mortgage (our parent company) has over 150 years of experience in mortgage lending and they are the most stable and secure mortgage lenders in the county.
Wells Fargo holds over 95% of the loans they originate so they will, most likely, always service your mortgage.
Wells Fargo has been the #1 retail Mortgage lender in the USA for the last 15 years and is the only AAA Rated Bank in the world.
Prosperity Mortgage is Wells Fargo's largest joint venture and we are the 4th largest lender in the Baltimore/Washington area.
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