You've got questions? I've got answers! First-Time Homebuyer Tax Credit

I have run into a lot of people that have questions about the $8,000 first-time homebuyer tax credit. Here are a few answers:

Q: Who qualifies?

First-time homebuyers who puchase homes between January 1, 2009 and November 30, 2009.

To qualify as a "first-time homebuyer" the purchaser or his/her spouse may not have owned a residence during the three years before the purchase.

Q: Which properties are eligible?

The 2009 first-time homebuyer tax credit may be applied to primary residences, including: single-family homes, condominiums, town-homes and co-ops.

Q: How much will the credit be?

The maximum allowable credit for homebuyers is $8,000. Each homebuyer's tax credit is determined by two factors:

1. Price of the home- the credit is equal to 10% of the purchase price of the home, up to $8,000.

2. Income- single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 may receive the maximum tax credit.

Q: If the buyer(s)' income exceeds these limits, can he/she still get a credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for homebuyers filing jointly.

The amount of the tax credit decreases as his/her income approaches the maximum limit. Homebuyers earning more than the maximum qualifying income- over $95,000 for singles and over $170,000 for couples- are not eligible for the credit.

Q: Will the tax credit need to be repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

Q: Is it too late to start the homebuying process in time to take advantage of this credit?

No, but you need to start soon. What we're hearing from mortgage brokers is that it takes anywhere from 45-60- days to get to the closing table of a normal transaction. If you start today, you'll still have time. If you want to take advantage of this amazing tax credit, contact me today!


















Source: Realtor.org

Unemployed Home Owners May Get Assistance

The Obama administration has opened a dialogue with major lenders, economists, and government officials over the possibility of extending a financial lifeline to home owners who no longer can afford their mortgages because of job losses.

Possible strategies range from encouraging loan servicers to allow unemployed borrowers to skip some payments to providing grants or loans to temporarily cover mortgage obligations for home owners who become unemployed.

The talks have drawn praise from some real estate groups and other interests, who say that without aid to this subset of homeowners, the housing recovery could lose momentum.

Source: USA Today, Stephanie Armour (09/18/09)

© Copyright 2009 Information Inc.

Homebuyers cashing in $8,000 tax credits

NEW YORK (CNNMoney.com) -- Hundreds of thousands of first-time homebuyers across the country have begun to claim their tax credits, according to new government data released on Friday.

So far, nearly 315,000 people have claimed the tax credit after filing an amended 2008 tax return, according to a Treasury Department report on the status of the Recovery Act.

California led all states with 42,304 claimed credits.

Eligible first-time homebuyers can claim the credit of up to $8,000 -- or 10% of the home's value, whichever is less -- on either an amended 2008 return or on their 2009 return.

Treasury's figures more than likely sharply underestimate the real number of people who have taken advantage of the credit because many homebuyers have not yet claimed it on their tax return.

According to a recent National Association of Realtors survey, about 1.1 million first-time homebuyers have used the credit. NAR expects that number to grow to about 1.8 million by the time the credit expires on Nov. 30.

The discrepancy between Treasury and NAR probably stems from the fact that a majority of eligible first-time homebuyers have opted to wait to file for the credit on their 2009 returns, which they can file in early 2010.

State-by-state data. The Treasury figures show how some of the hardest-hit states during the housing downturn are now among the states with the largest numbers of claimed tax credits.

California, Georgia, Florida, Arizona and Michigan are all in the top 10, when it comes to claiming the credits. Though part of that is likely skewed by population figures, other large states like New York and Virginia have been left in the dust.

"We're seeing some big increases in many of the areas with the biggest price corrections," said NAR spokesman Walter Maloney. "That's no coincidence."

A National Delinquency Report from the Mortgage Bankers Association showed that California, Florida, Arizona and Nevada combined accounted for 44% of all foreclosure starts during the quarter. Last quarter, the Cape Coral metro area in Florida recorded the largest decline in home prices: 52.8% to $84,000, according to a NAR report.

After California, Texas and Florida were the next states with the largest number of claims, with over 29,000 each. Arizona had nearly 9,300 claims and Nevada rounded out the top 20, with 5,259.

Most of the smaller states made up the bottom of the list, with Vermont's first-time buyers bringing up the rear, claiming just 351 credits.

Applying for the credit is as easy as filing income taxes. First-time homebuyers just have to claim it on their return -- no other forms or papers have to be filed.

National Association of Realtors estimated an extra 350,000 sales will occur this year, solely because of the credit. The National Association of Homebuilders, more conservatively predicted 165,000 extra home sales. To top of page

Mecklenburg County Clean-Energy Company to Add 61 Jobs

SCR-Tech LLC, a leading national provider of cost-effective emissions control solutions for power plants, will expand and add an additional facility in Charlotte. The company plans to invest more than $12.4 million over the next five years in capital and lease payments for the expansion and for new technologies. During the next three years, the company plans to create 61 new jobs in Mecklenburg County. The announcement was made possible in part by a $90,000 grant from the One North Carolina Fund.
“North Carolina is a national leader in promoting clean, green technologies,” Gov. Perdue said. “Companies like SCR-Tech are expanding to tap into the emerging market for green-friendly products while enjoying our state’s top business climate and knowledge-based workforce.”
The 61 new jobs will pay an overall average wage of $49,372, not including benefits.
SCR-Tech is wholly owned by CoaLogix Inc., which provides innovative solutions for clean energy production with a focus on cost-effective emissions control solutions for the coal and gas-fired power generation industry. The company, with headquarters in Charlotte, currently provides selective catalyst reduction (SCR) regeneration technologies and SCR management services to reduce its customers’ environmental footprint.
For more information about SCR-Tech, including employment opportunities, visit http://www.coalogix.com.






Source: Office of Governor Bev Perdue