Posts Tagged ‘tax credit’

Homebuyers’ Tax Credit Extended…Sort Of

Tuesday, July 6th, 2010

Homebuyers tax credit Remember the $8,000 first-time home buyers tax credit passed last fall to stimulate the slagging housing market (thanks, in part, to the efforts of readers like you )? Well, it was so popular that it almost didn’t work. Imagine a stampede of Tickle Me Elmo-mad Wal-Mart mothers on the day after Thanksgiving.

Last week, Congress voted to extend the credit (and its sister $6,500 tax credit for home buyers who have owned their current homes for at least five years) until September 30th for those who signed a contract on a new house by April 30, but, because of the mad mother rush on lenders, couldn’t quite break through and close by the original June 30 deadline.

According to NPR :

The fix could help as many as 180,000 people who signed contracts to buy homes earlier this year, but then faced delays in closing the sale.

Lucien Salvant, a spokesman for the National Association of Realtors, told Keith that "the pipelines for lots of lenders got jammed up, so these folks were going to be denied the tax credit through no fault of their own, and that’s a shame."

The bill was passed earlier this week by the House of Representatives, and it was approved unanimously by the Senate.

According to Keith, it won’t open up the tax credit to any new buyers, but for those already in contract, it extends the deadline to close until Sept. 30.

Unfortunately, this doesn’t re-open the window for those of you who are just now finding themselves in position to buy. Rather, it’s simply a corrective measure aimed to help those who tried earnestly to take advantage of the tax credit, but couldn’t for systemic reasons.

Still, while limited, it’s good news for those first-time buyers who did sign in time—and it’s a move that will hopefully continue to nudge the wheezing housing market along. If you started the process during the tax credit window and think you might be eligible, contact one of our Dallas-Ft. Worth housing experts —we’ll help you figure out if you still qualify for this valuable incentive.

Tags: , , , , , ,
Posted in Mortgage News | No Comments »

Dallas Housing Market Takes A Turn For The Better

Monday, April 12th, 2010

Federal Reserve Chairman Ben Bernanke was in Dallas this past week, giving a speech to the Dallas Regional Chamber about the state of his little pet project he calls the United States economy.

His bad news? Unemployment is stubborn, deficits are a real problem, and the housing market is fragile.

His good news? In some parts of the country, the jobs and housing market might soon be ready to roar. And on this point, the chairman couldn’t have picked a more fitting city for his speech.

According to the Dallas Morning News :

The North Texas home market took a turn for the better in March. Sales of pre-owned homes rose 11 percent from March 2009. And condo sales soared by more than 30 percent.

Even more encouraging for the market, median home sales prices increased by 6 percent from a year ago. The upbeat home market data may signal that the worst of the local housing market downturn is in the rearview mirror. [...]

Real estate agents sold 6,036 pre-owned single-family homes in March, according to the latest statistics from the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems. It was the strongest single month for sales since last October.

The median price of pre-owned homes sold last month was $144,900. That’s the best price since last summer. And in one peek at the future, the report indicates that the surge is likely to continue, at least for the short term. Pending pre-owned home sales in the North Texas market – which includes 24 counties – were up 22 percent at the end of March.

Granted, this sort of good news never comes without a flip side.

A hefty federal tax credit is scheduled to expire in April. Worries about future interest rate increases might have also pushed a unnatural rush of homebuyers into the market. The gains were seen primarily in higher-end neighborhoods. And the statistical jump is aided by the fact that it’s being compared to last March, when the housing market was hitting rock bottom.

But all in all, it’s welcome news.

If you’ve been holding off on starting the homebuying process until the Dallas-Ft. Worth housing market improved, start thinking more seriously about what you’d like to do. The market in Texas could be ripe again soon.

Contact our home loan experts to get the process started.

Tags: , , , ,
Posted in Home Loans, Mortgage News | No Comments »

Moving In, Moving Up in Dallas – The Benefits of Urban Living

Monday, March 8th, 2010

Downtown Dallas has been booming—just not in the way housing developers were hoping. Their loss could be your gain.

According to the Dallas Morning News :

"It’s been a challenge for sure," said developer Ted Hamilton, who is still in talks with the lenders that posted the building for forced sale last month. "We didn’t anticipate how many new apartments would be coming on the market in the downtown and Uptown area."

The number of housing units in downtown Dallas has more than tripled in the last decade as thousands moved into the city center. There are about 4,500 residential units inside Dallas’ downtown freeway loop.

Thousands more apartments have opened in nearby Uptown and in the Design District.

City leaders trying to revitalize downtown have hailed the surge in downtown housing construction. But a troubled economy has made it tough for builders to rent all of the new center city apartments at the prices they need."

While many of these problems affect rental apartments the most, there are thousands of condos, townhomes, lofts and other properties for sale in urban Dallas as well — and these might be smart options for several types of potential homebuyers.

Urban living is a popular choice for both young professionals testing out the homebuying experience for the first time, and also for older homeowners looking to downsize after their kids have moved out of the house. It works for people looking to eliminate daytime downtown work commutes, and those wanting to be closer to nighttime entertainment options (if you’re the type who spends hours a day on crawling down choked highways, gas savings could be significant). It works if you’re sick of tending a yard, if you crave a close-knit community, or if you would appreciate the extra security most downtown buildings boast. And don’t forget about the homebuyers tax credit , still available for home loans with a signed purchase agreement by April 30, 2010, and close by June 30.

And—as the DMN points out—the glut of units that sprouted up during the recent construction boom might result in some extraordinary bargains.

Of course, urban living comes with many drawbacks as well, including parking headaches, lack of storage space, the absence of a traditional yard, potential noise problems, pet restrictions, and high association dues. But if you think the growing number of urban living perks (coupled with the current friendly market conditions) sounds attractive — whether in Dallas or any other urban hotspot in Texas — contact our mortgage experts . We’ll help you make the right choice.

Tags: , , , , ,
Posted in Home Loans, Mortgage News | No Comments »

Mortgage Q&A: What things should I consider when planning to buy a home in 2010?

Wednesday, December 30th, 2009

Question: What things should I consider when planning to buy a home in 2010?

Answer: There are many things changing in the mortgage industry in 2010. Consider mortgage rates are currently low because the Federal Reserve has spent almost $1 Trillion in the last year for that purpose. Their spending will stop in March which means mortgage rates may be on the rise in late spring. Also consider the homebuyer tax credit runs out on April 30th 2010 . First time homebuyers and people who have lived in their home for the past 5 years may qualify for tax credits if they buy a home prior to April 30th. For more information about the tax credits see www.federalhousingtaxcredit.com . The federal department of Housing and Urban Development (HUD) has also announced they may tighten the qualifications for FHA home loans sometime soon. With home prices low and for all the reasons above the time is now for you to consider buying a home in early 2010.

Call TexasLending.com for your home loan today, apply online or send your home loan questions by clicking on the “Ask an Expert” link on our homepage of Texaslending.com.

Tags: , , , ,
Posted in Mortgage Q&A | No Comments »

Stormy Housing Market & How to Make the Most of It

Friday, December 4th, 2009

It’s been a tough year for many Dallas-Ft Worth homeowners, we know. And the increasingly dour statistics are starting to reflect that fact.

According to the Associated Press :

A rising proportion of fixed-rate home loans made to people with good credit are sinking into foreclosure, adding to concerns about the strength of the economic recovery.

Driven by rising unemployment, such loans accounted for nearly one-third of new foreclosures last quarter. That compares with 21 percent a year ago, when high-risk subprime loans made during the housing boom were the main reason for default.

At the same time, the proportion of homeowners with a mortgage who were either behind on their payments or in foreclosure hit a record high for the ninth straight quarter, rising to 9.64 percent.

In Texas, the delinquency rate at the end of the third quarter was 9.84 percent, the Mortgage Bankers Association said Thursday. Nearly 2 percent of those loans were in foreclosure by the end of September, compared with 4.5 percent nationally.

Foreclosures in Dallas-Fort Worth rose 23 percent this year, to a record 61,676 filings.

It’s tough to spin it — these numbers are ugly. But until things brighten, all we can do is help you make the most of it, and capitalize on hidden opportunities that arrived amid the black crowds of this crisis.

So let’s look at some silver linings starting to emerge in the current housing market:

  • There are more homes available, for less money.  It’s simple supply and demand.  So if (and we understand that this is a big "If") you can sell, or are a first time homebuyer and don’t need to sell, the current market is the mother of all buyer’s markets.
  • The slumping market increases the likelihood of government help — say, for example, the low interest rates and homebuyers tax credits currently available .
  • We’ll hit bottom soon. Just as prices couldn’t rise forever, there will be an end to the slide as the economy as a whole continues to recover. Prices have now been falling for three years.

Contact our Texas mortgage experts for more information. We’ll help you get through.

Tags: , , , ,
Posted in Home Loans, Mortgage News | No Comments »

Green Home Improvements Can Ease Your Tax Bill

Thursday, November 19th, 2009

Energy Efficient Mortgages We love housing tax credits around here, almost as much as we love innovative ways to build a sustainable environmental future for the Dallas-Ft. Worth area.

So here are two tax credits that can both make your home more energy-efficient and lower your annual tax bill at the same time.

Non-Business Energy Property Credit

Energy Property Credit , the Non-Business Energy Property Credit actually expired after 2007, but has been reinstated to help spur green housing initiatives. The tax credit lets you claim non-business energy property credits of up to 30 percent of the cost of some energy-efficient equipment installed in 2009, including green property like high-efficiency heat pumps, hot water heaters, and air conditioners. Improvements like energy-efficient doors, windows and insulation, some asphalt roofs, and stoves that turn biomass into fuel also might qualify.

  • Labor costs for installing the high-efficiency upgrades can also be included in the 30 percent.
  • The total amount of credit homeowners can claim combined in 2009 and 2010 is limited to $1,500. In other words, $5,000 worth of energy-efficient additions can get you there.
  • This specific credit applies to existing homes only.
  • Improvements made during 2008 don’t apply.

Residential Energy Efficient Property Credit

This credit also covers 30 percent of what the homeowner spends on more advanced green elements. Officially called the "Residential Energy Efficient Property Credit," this means equipment like wind turbines, fuel cells, geothermal heat pumps, solar water heaters and electric systems.

  • Labor costs can again sometimes be covered.
  • Unlike the Non-Business Energy Property Credit, there’s no cap on this credit (except for fuel cell property costs).
  • Both existing homes and new construction apply.

Both credits are good for the earth, and good for your wallet. Contact one of our Texas home loan and mortgage experts for more information, or to ask about a Federal Housing Administration Energy Efficient Mortgage (one more way to both save and sustain).

Tags: , , ,
Posted in Home Loans | No Comments »

Congress Extends Home Buyers Tax Credit (and Doesn’t Stop There…)

Friday, November 6th, 2009

We did it! Okay fine — it probably wasn’t just our efforts alone . But we got even more than we were asking for, and the lucrative Dallas-Ft. Worth homebuying window will stay open a little bit wider and longer.

Not only did Congress extend the current $8k tax credit for first time home buyers (originally discussed here ), but a new $6,500 tax credit for home buyers who have owned their current homes for at least five years will kick in as well.

Good news on both counts.

Combined with historically low interest rates, the tax credit has turned the Great Recession into a golden homebuying opportunity for those who didn’t have to sell in order to buy. Current homeowners still face the selling hurdle before being able to take full advantage, but will still greatly benefit from a healthier and more active housing market.

To qualify, both groups of buyers need to sign a purchase agreement by April 30, 2010, and close by June 30 — a seven month augmentation to the original Dec. 1 deadline.

"This is probably the last extension," Sen. Johnny Isakson, R-Ga. told the Associated Press.

Other details:

  • The first-time buyers $8,000 tax credit is actually a misnomer, as anyone who hasn’t owned a house in the past three years can qualify.
  • The credit is only available for principal homes costing $800,000 or less (no vacation homes). Individuals with annual incomes above $125,000 — and for joint filers with incomes above $225,000 — will see the credit phased out.
  • Members of the military serving outside the United States for at least 90 days get an extra year — until June 30, 2011 — to close on a house.

Contact us to see if the $8k tax credit extension or new $6,500 tax credit could work for you.

Tags: , , , ,
Posted in Home Loans, Mortgage News | 1 Comment »

Why First Time Home Buyer Tax Credit Might Work For You

Wednesday, September 30th, 2009

First Time Home Buyer Tax Credit Accessibility to the housing market for first time home buyers is one of the great silver linings about this year’s recession. Even without a recent, lucrative tax credit, there’s never been a better time for first time buyers to invest in real estate.

With a glut of homes and foreclosed properties twiddling their thumbs on the market, price tags have hit an unprecedented low. Rock bottom interest rates—you can currently get a 30-year fixed mortgage loan with barely more than five percent interest—only increase incentive to buy now.

Basically, if you don’t have to sell a house in order to buy one, the market has turned in your favor.

So if you’re on the fence about buying soon, the expiring $8,000 tax credit might just be the final perk to get you buying (and a perk you’ll have to be quick not to miss).

Here’s why:

Instant Benefits

Part of the economic stimulus package signed by the White House back in February was designed directly to stabilize and boost the tumbling housing market. Specifically, this meant an $8,000 tax credit for first time home buyers—and one that didn’t need to be repaid (unlike a previous credit).

Here are a couple highlights:

  • Despite the name, qualified recipients don’t actually need to be first time home buyers. Rather, you can qualify if you (and your spouse) haven’t owned a home in the past three years.
  • Even if you owe less than $8,000 when you file your next tax return, don’t worry—you’ll receive a refund for the balance of the credit. Look at it as instant fluidity, and one that is especially valuable for middle class or low income buyers, who usually pay very little in federal income taxes.
    Simply put, it’s an extraordinarily good deal for home buyers—and one that’s not going to get better over time if you’re betting on a brighter market future.

Learn more about the federal housing tax credit here .

Time is Slipping Away

This window of opportunity is scheduled to expire on November 30. You know what this means—consider talking with us about the housing credit soon.

The fact is, real estate transactions are taking longer and longer to complete these days.

The market crash led to a credit crunch, which has led to lenders tightening their lending standards to prevent such a crash from happening again. With more due diligence required, it simply takes longer now to get loans approved. Add in typical documentation and negotiation delays, and you won’t want to waste time.

Remember—to qualify for this tax break, you must close on the home by Dec. 1. Many real estate experts suggest allowing 60 days for a deal to go through—especially if the house is a foreclosure or a repossessed, bank-owned home.

Call one of our Dallas-Ft. Worth Metroplex-area mortgage experts , and we’ll help you decide whether or not the stimulus tax credit can work for you.

Tags: , ,
Posted in Home Loans, Mortgage News | 1 Comment »

 
 

Texas Mortgage Banker  TexasLending.com is an Equal Housing Lender
4309 Alpha Road Dallas, TX 75244 - Phone: 972-387-4600
© Copyright 2009 TexasLending.com      Entries (RSS) and Comments (RSS).