Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit
Question: Existing homeowner credit: Must the new house cost more than the old house? Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit. Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit? Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement. Question: I am a firsttime homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit? Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout range). Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit? Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling. Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests? Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility. Question: I am an eligible firsttime homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me? Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
Beautfiul 40 acres of rolling hills, trout stream, hardwoods & wildlife! Plus, a Gorgeous Home w/a unique floor plan has a lg open concept adjoining living rm, kitchen & dining area w/access to the root/wine cellar. Enjoy the fabulous view of nature from the windows from every room. Main floor master has a beautiful patio overlooking the hot tub & stream, full tile walk-in shower & cedar sauna. Loft master has hardwood floor, cedar lined walk-in closet, full bath & walk-out to patio.
| ADDITIONAL REMARKS |
For your hobbies or business, property offers a 4500+ sq ft Commercial Bldg w/powered overhead door, wood heat & insulated w/fire rated drywall. Building also has a 12x60 ft upper level business or hobby workrm/display area & a 700 sq ft 1 bedrm apt w/carport. The backyard also offers a unique summer kitchen which is partially screened w/a brick floor, loft & a fieldstone fireplace. Enjoy all the property has to offer including wildlife, cherry trees, beautiful Rajek Creek w/great brook trout fishing & flowing waters yr-round, rolling hills for ATVing & snowmobiling. Your possibilities are endless!
Harvest Fest
Saturday, October 10th 10:00am-2:00pm
Visit the City Square for an autumn celebration for the entire family. Activities throughout the day include: a pumpkin patch, Wild Wausau petting zoo, scarecrow decorating, polka band, hay rides, food and craft vendors and more!
Activities:
The lender will require you to have homeowners insurance on the property that covers the amount of the replacement cost of the property.
The lender may require a survey, or plot plan, of the property to confirm that the property's boundaries are as described in the sales contract.
If the property is not served by public water and sewer facilities, you will need local government certification of the private water source and sanitary sewer facility. Properties with well and septic water sources are usually governed by county codes and standards.
If the lender or the appraiser determines that the property is located within a defined flood plain, the lender will require a flood insurance policy.
Certificate of Occupancy or Building Code Compliance Letter
If your home is newly constructed, you will have to have a Certificate of Occupancy, usually from the city or county, before you can close the loan and move in. The builder will obtain the certificate from the appropriate authority.
Within 24 hours prior to your closing, you and your real estate agent should make a final inspection of the property to make sure any required repairs have been completed, all property included in the purchase contract, such as kitchen appliances, carpeting and draperies are present and that no recent fire or storm damage has occurred.
Every lender requires title insurance. The company issuing the title insurance policy will research legal records to make sure that you are receiving clear title, or ownership, to the property.
Problems with title can limit your use and enjoyment of real estate you have purchased, as well as bring financial loss. Each year, millions of dollars are involved in title disputes.
Basically, title insurance protects you from losses as the result of claims on the ownership of your real estate. Unlike other insurance policies, such as homeowners and auto, title insurance protects you from things that may have happened in the past.
Title insurers, through an extensive search of the public records, provide you with a detailed list of the claims that other parties may have in the real estate, such as:
But even the most careful preventative work cannot locate hidden hazards of title. Hidden hazards can show up after you buy your real estate, causing an unpleasant and costly surprise. Title insurance offers you financial protection against these hidden hazards. Examples of hidden hazards are:
The cost of title insurance varies. It is a one-time payment that safeguards you against loss arising from hazards and defects already existing in the title. You are protected by title insurance for as long as you own the real estate.
Wausau WI. Real Estate Information That Is Straightforward, Honest And To The Point. YOUR NEEDS ARE ALWAYS MY #1 PRIORITY
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