Alpine Million Dollar Stimulus Challenge

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Homebuyer Tax Credit Update!

November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time. This expansion allows current and former home owners that have owned a home consecutively for 5 of the last 8 years to qualify for a $6,500 tax credit. To find out more about the tax credits and who is eligible, take a look at this fact sheet from the National Association of Home Builders.

To learn what the new tax credit means to you and your clients, take a look at the concise overview below:

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Tax Credit Versus Tax Deduction

It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

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Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call 541-342-7576 to speak to one of our Mortgage Consultants today.

In addition, you may be able to benefit from additional housing related provisions, including the following:

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Tax Incentives to Spur

Energy Savings and Green Jobs

This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation. The use of an FHA 203k Streamline for either purchase or refinance may be an excellent way to take advantage of this program.

Landmark Energy Savings

This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing

This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance

This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

As always, if you have any questions about your specific situation or would like to discuss how you may benefit from this program, please call 541-342-7576, one of our experienced Mortgage Consultants would be happy to sit down with you. We are continuing our $1,000,000 Stimulus Challenge but have a bit more time to make it happen now. Be sure and check out the listings on this site and our Realtor partners too.

The First Time Home Buyer Tax Credit deadline gets closer every day. To illustrate the limited time remaining, this recent report from myFox in Florida interviewed a First Time Home Buyer and her Mortgage Banker, Chris Brown, the author of Mortgage Chili Blog, a mortgage professional in Orlando. This is one of the best reports on the Tax Credit that we have come across. 

We know there are a lot of people that think the tax credit will be extended and, though possible, this news from the House of Representatives may make that even less likely. The House passed a bill 416 to 0 to extend the tax credit for 6 months. This is what people have been expecting and lobbying for, but there is a twist, this only applies to services members that served a minimum of 90 days overseas in 2009.

This is a great deal for our service members, but makes the probability that Congress will not extend the tax credit for other First Time Home Buyers a bit higher. This bill still needs to be passed by the Senate before it can be sent to the President, but it should sail through with very little disagreement.

If you need assistance in getting started purchasing your first or subsequent home, call one of our Mortgage Advisors  today at 541-342-7576. The time really is running out for the Tax Credit.

We continue to get reports that an extension or a re-vamping of the First Time Home Buyer Tax Credit is being considered. However, at this point in time, the credit is due to expire at midnight on November 30, 2009. Additionally mortgage interest rates have been hovering near the low points and this could be the perfect time to buy.

In recent testimony with the Congressional Small Business Committee, NAR (National Association of Realtors®) that the best thing for the housing market was to extend the tax credit. They also stated that one of the worst things for the housing market was the HVCC (Home Values Code of Conduct).

I don’t know if it will help, but they are trying to keep the housing market moving. So are we with our Stimulus Challenge. To find out more about how you can help our local housing by becoming a First Time Home Buyer, call our office and talk to one of our Mortgage Advisors at 541-342-7576. We will be happy to help you.

In a letter to a Eugene Oregon area Realtor®, Congressman Peter DeFazio had this to say about extending the First Time Home Buyer Tax Credit:

There are over a dozen bills currently proposed in Congress to extend the tax credit or expand it, including legislation to extend the credit until June of 2010. In the House of Representatives, there is a rule that requires legislation to be deficit neutral. This was waived for ARRA and thus did not apply to the current $8,000 first-time homebuyer tax credit. The popularity of the tax credit has driven the cost close to $15 billion this year, nearly three times the estimated cost when it became law. Any extension of this tax credit needs to be paid for, and thus far no acceptable offset has been identified.

It seems pretty clear to me that Congressman DeFazio is against extending the FTHB Tax credit in its current form. It has always been my opinion that the congressman was a mostly fiscal conservative and it is easy to see his reasoning in this area. The expansion of the tax credit to include more than first time home buyers was also addressed in the letter.

There is also legislation that would provide a $15,000 tax credit to all home buyers, regardless of income, which is estimated to cost $50 to $100 billion annually. This expansion of the tax credit is even more difficult to offset.

It is my opinion that the Congress will not extend the tax credit and people that are waiting to see if they will, might be waiting too long to get started on a purchase to take advantage of the current program. Right now, the FTHB tax credit will allow the home buyer to either amend their 2008 tax returns and get the rebate in about 2-3 weeks or file with their 2009 tax return and either offset taxes due or get the rebate then. I was impressed with the following information from Congressman DeFazio:

A recent treasury report, released early in September, showed that 3,500 Oregonians have amended their 2008 taxes to access this credit immediately. The combination of increased affordability of home prices, low interest rates, and the tax credit has helped housing sales

So, now you know how our local Congressman feels about the tax credit, isn’t it time you got ready to take advantage of the program? Call us today at 541-342-7576 and ask to speak with one of our Mortgage Advisors. The program is in its last two months, are you going to miss out?

Oregon Public Broadcasting (OPB) radio is planning a segment on Home Buying and the First Time Home Buyer Tax Credit on Wednesday at 5 p.m. You can get updates on the schedule here. I have talked with Sarah Rothenfluch, Executive Producer of “Think Out Loud,” and I think this should be of a lot of interest to those that may be considering making the plunge to home ownership.

We at Alpine, are committed to bringing as many first time home buyers in as possible in the remaining time for the program, however, we need to make sure it is the right thing for the person too. You can listen to this program on KOAP, AM 1600 in Eugene or check out the other local stations here.

If you have questions about buying your first home, please call one of our mortgage advisors, they will be happy to help you on your way. Even if you can’t qualify for a home prior to the stimulus running out, isn’t it worthwhile to find out what you need to do to get your house (buying) in order? Call us at 541-342-7576 today for more information. 

Kelly Seeley, Off and Running Real Estate, became the first Realtor® Partner to fund a First Time Home Buyer purchase in the Alpine Million Dollar Stimulus Challenge. This will mean another $8,000 in the local economy and $100 donation to Habitat for Humanity by Kelly’s Loan Partner, Fred Chamberlin. The challenge is to help 125 new First Time Home Buyers purchase homes before the Tax Credit goes away at the end of November.

Since it take time to close on a home loan, Alpine is recommending that prospective home buyers get pre-approved for the loan and make their offer before October 15 to be sure of closing before the time limit for the program. Additionally, short sale purchases will probably not close in the time remaining for the program.

“The great thing about this challenge is that we get to help our friends and clients, like Jeff and Tina get into their first home. There is a tremendous amount of satisfaction in what we do,” said Kelly after she was notified of the funding today. “Where else can you help someone reach their dream while working at a career that your really enjoy?” asked Fred. “Since we are only a bit over two weeks into the program, closings may on schedule to meet the challenge. Keep watching.”

If you have questions about the Stimulus Challenge or would like to make an appointment to get pre-approved to purchase your dream home, contact Alpine Mortgage Planning, 541-342-7576, one of the Mortgage Advisors listed above would be happy to help you with your journey.

A road map of the home buying process

Alpine Mortgage Planning Advisors are offering the Pathway to your New Home booklets to all of their new First Time Home Buyer prospects. The booklet goes through the key people helping in the purchase transaction, the Real Estate Agent, the Mortgage Advisor, the Insurance Agent, the Title and Escrow Officer, the Home Inspector, the Appraiser and the Movers. All of these people make the home buying experience what it turns out to be and good people make the home buying experience in the Eugene and Springfield area a good experience. This booklet helps with that process.

The booklet also goes through the sequence of events in the home buying process, from pre-approval to moving into the new home. There are also a number of FAQs about the home buying process, along with worksheets and checklist to help you find that home that is perfect for you.

If you would like to receive one of these free booklets, make an appointment with one of our Mortgage Advisors to discuss your ability to purchase a home. They will be happy to put you on the road to home ownership. You can reach an Alpine Mortgage Advisor by calling 541-342-7576.

Springfield Home Ownership Program added an grant program to assist First Time Home Buyers in the purchase of foreclosed properties in the City of Springfield Oregon. The program will give First Time Home Buyers purchasing a foreclosed property an additional $4,000 grant for down payment and/or closing costs as long as they qualify for the Springfield Home Ownership Program (SHOP). The SHOP program provides up to $10,000 in interest and payment free money for the purchase of a home in the City of Springfield.

The program is designed to encourage home ownership in Springfield by assisting low and moderate income residents with the purchase of their first home. For example, a family of four can have a household income of up to $45,750. Additionally, the home must be located within the Springfield City Limits and must be either owner occupied, vacant or rented by the recipient.  The program will not allow a renter to be moved out of a home to sell it. There are other requirements to qualify for the program which will be discussed at one of the upcoming seminars.

Come to Alpine Mortgage Million Dollar Stimulus Challenge First Time Home Buyer seminar Thursday or Saturday to find out more about the programs. Call Carole at 541-342-7576 for more information about the seminar or to schedule attendance. Space is limited, reservations are required.

Time is running out for Eugene, Springfield and Lane County First Time Home Buyers to take advantage of the First Time Home Buyer Tax Credit of $8,000. In a recent post, CNN Money said exactly the same thing we have been saying, maybe with a bit more urgency, in their  Special Report. The First Time Home Buyer Tax Credit is set to expire on November 30, without action by Congress and Alpine Mortgage is trying to get 125 new First Time Home Buyers to take advanage of the tax credit with their Million Dollar Stimulus Challenge with the cooperation of their Realtor® Partners.

Les Christie, CNNMoney.com staff writer had this to say:

The bad part: It ends on Dec. 1.

Because it usually takes around 90 days to close on a house after a contract is signed, buyers have very little time left to act. As of Thurs., Aug. 27, there were only 96 days left before the credit ends.

Additionally, the article pointed out that in some areas, many of the prime properties had already been snapped up. We are getting reports of increased sales in many areas around the U.S. and it appears that this is also happening in Lane County. There are a lot more pending sales from what I am seeing. Also, Alpine Mortgage Planning is sponsoring a series of First Time Home Buyer seminars, the first of which takes place Thursday. Follow this link for all of the information about the seminars. Alpine has promoted a challenge to close 125 First Time Home Buyer loans before the expiration of the program.

I would also like to point out that many people think they can take advantage of the tax credit on a short sale purchase. However, short sales require the approval of the lien holder and many times that approval does not come through for several months. Home buyers don’t have “several” months to work with now. There is also talk about the extension of this program, however, the bills that would do this are all in committee in the House and most bills die in committee.

Although the article focused on the U.S. as a whole, it is obvious that the Eugene, Springfield, and Lane County area are part of the same level of purchase activity. Also, talking to our Realtor® Partners, slow responses on Short Sales are the norm. However, when working on foreclosures, they are normally a lot swifter results. If you have any questions about how to proceed with getting “pre-approved,” please give one of the Alpine Mortgage Advisors a call at 541-342-7576 or e-mail.

Alpine Mortgage Planning’s goal of enlisting 50 Realtor® Partners in their $1,000,000 Stimulus Challenge reached the half way mark with addition of several new partners. Realtors® are responding to the call that will bring a million dollars to the Eugene/Springfield area in the form of 125 First Time Home Buyer (FTHB) Tax Credits over the next three months.

“Time is running out,” reminds Denise Cuddeback Montgomery, Alpine Eugene Manager. “We really need to have people under contract by Nov. 1 to be fairly  certain of getting the sale funded by the tax credit deadline.”  Alpine has challenged other lenders in the Lane County area to bring it on and match their commitment to the program and also donate $100 to Habitat for Humanity for every FTHB loan closed before the deadline.

Check out the Realtor® Partner page on this website to see who the latest additions to the challenge will be. If you are interested in learning more about the FTHB programs, there are three seminars scheduled to explain some of the special programs available for FTHBs. Read about them here. To reserve a spot in one of the seminars, contact Carole Sylliaason, Alpine Mortgage Planning, 541-342-7576, fill out the form at the top of the page or e-mail her.