2010 Tax Credit for New Home / First-Time Buyer
Important Update(08/06/10): FTB to accept First-Time Buyer applications through 8/15/10.
"As shown in the numbers below, we have received First-Time Buyer applications totaling more than $100 million. We announced in June that we would accept at least 28,000 applications since many we had received were duplicate, revised, or invalid applications. Since that time, we have received more and more duplicate, late, and invalid applications. So that we do not risk cutting off the program too soon, we will accept First-Time Buyer applications until midnight on Sunday, August 15, 2010. This will insure that we have more than enough First-Time Buyer applications to allocate the full $100 million. These additional applications must be timely, meet all requirements, and will be subject to the availability of remaining credits. We will only issue approved certificates of allocation until the $100 million is exhausted. Applications received more than 14 days after the close of escrow will be denied. We will continue to accept New Home reservation requests and applications." (Updated 08/06/10)
"We have not processed any applications yet, but our computer system is now completed, and we are ready to begin processing both New Home and First-Time Buyer applications. We will provide weekly updates on the number of certificates that have been mailed and the amount of credits that have been allocated starting August 19." (Updated 08/06/10)
Full story - http://www.ftb.ca.gov/individuals/new_home_credit.shtml (If you are looking for more information regarding the 2009 New Home Credit, see FTB Publication 3528, New Home Credit, or search using the “Forms & Publications” available at website.)
Thursday, August 12, 2010
Tuesday, August 10, 2010
"Puttin' on the Ritz" or How can I showcase my home for sale
If you want to market your property properly, you must stick to the basics. The goal is to sell it quickly for the highest price possible while investing as little as possible in renovations. You can greatly increase your home's appeal by focusing on what prospective buyers can see on their first visit.
Tip #1: Refresh the exterior
First impressions count when it comes to selling a home. Most buyers won’t even leave their car if they don’t find the exterior appealing. The best ways to improve your home’s exterior include:
-Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway.
-Painting siding, trim and shutters and lamp and mailbox posts.
-Pressure washing vinyl siding, roofs, walkways and the driveway.
-Washing windows.
Tip #2: Spruce up the lawn and landscape
Home buyers associate the condition of your lawn and landscaping with the condition of your home’s interior. By improving the outside, you affect buyers’ impression of the entire property. The best ways to enhance the yard include:
-Mowing and edging the lawn.
-Seeding, fertilizing and weeding the lawn.
-Keeping up with regular lawn maintenance by frequent watering.
-Trimming and/or removing overgrown trees, shrubs and hedges.
-Weeding and mulching plant beds.
-Planting colorful seasonal flowers in existing plant beds.
-Removing trash, especially along fences and underneath hedges.
-Sweeping and weeding the street curb along your property.
Tip #3: Create an inviting entrance
The front door to your home should invite buyers to enter. The best ways to improve your entry include:
-Painting the front door in a glossy, cheerful color that complements the exterior.
-Cleaning, polishing and/or replacing the door knocker, locks and handles.
-Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers.
-Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.
Tip #4: Reduce clutter and furniture
A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include:
-Holding a garage sale to prepare for your move, getting rid of unnecessary items.
-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements.
-Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier.
-Removing any visibly damaged furniture.
-Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.
-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.
-De-personalize rooms as much as you can.
Tip #5: Clean, clean, clean
The cleanliness of your home also influences a buyer's perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best ways to improve these areas include:
-Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances.
-Cleaning carpets, area rugs and draperies.
-Cleaning inside the refrigerator, the stove and all cabinets.
-Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout.
-Eliminating house odors, especially if you have pets.
-Considering air fresheners or potpourri.
Tip #6: Make minor repairs
The small stuff does count, especially with first-time home buyers. Without dismissing the importance of repairing major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include:
-Repairing ceilings and wall cracks.
-Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile.
-Caulking and grouting tubs, showers, sinks and tile.
-Adding fresh paint to ceilings, walls, trim, doors and cabinets.
-Tightening door handles, drawer pulls, light switches and electrical plates.
-Lubricating door hinges and locks.
Tip #7: Showcase the kitchen
The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include:
-Replacing cabinet doors and hardware.
-Installing under-cabinet lighting.
-Replacing light fixtures.
-Replacing outdated shelving with pantry and cabinet organizers to maximize space.
-Baking cookies or cupcakes for a showing, to create a homey smell.
Tip #8: Stage furniture
Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include:
-Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups.
-Creating a reading corner in the master bedroom.
-Clearing an empty room to set up a reading space.
-Turning an awkward space into a home office.
-Setting the dining room table with your best china.
-Set wine glasses in front of the fireplace or next to a Jacuzzi tub.
Tip #9: Light up the house
Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try:
-Opening shades and drapes to let the sunshine warm and brighten rooms.
-Installing brighter light bulbs in rooms that tend to be dark.
-Adding additional lamps for ambient lighting.
-Turning on all the lights for a showing.
Tip #10: Add fresh touches
You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include:
-Placing fresh floral arrangements in the entry and master bedroom.
-Placing bowls of bright-colored fruit in the family room and the kitchen.
-Filling an empty corner with a potted leafy plant.
-Setting new hand soap in the bathrooms.
-Displaying fresh towels near sinks.
These tips were provided by Lowe's through Rismedia August 10, 2010
Tip #1: Refresh the exterior
First impressions count when it comes to selling a home. Most buyers won’t even leave their car if they don’t find the exterior appealing. The best ways to improve your home’s exterior include:
-Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway.
-Painting siding, trim and shutters and lamp and mailbox posts.
-Pressure washing vinyl siding, roofs, walkways and the driveway.
-Washing windows.
Tip #2: Spruce up the lawn and landscape
Home buyers associate the condition of your lawn and landscaping with the condition of your home’s interior. By improving the outside, you affect buyers’ impression of the entire property. The best ways to enhance the yard include:
-Mowing and edging the lawn.
-Seeding, fertilizing and weeding the lawn.
-Keeping up with regular lawn maintenance by frequent watering.
-Trimming and/or removing overgrown trees, shrubs and hedges.
-Weeding and mulching plant beds.
-Planting colorful seasonal flowers in existing plant beds.
-Removing trash, especially along fences and underneath hedges.
-Sweeping and weeding the street curb along your property.
Tip #3: Create an inviting entrance
The front door to your home should invite buyers to enter. The best ways to improve your entry include:
-Painting the front door in a glossy, cheerful color that complements the exterior.
-Cleaning, polishing and/or replacing the door knocker, locks and handles.
-Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers.
-Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.
Tip #4: Reduce clutter and furniture
A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include:
-Holding a garage sale to prepare for your move, getting rid of unnecessary items.
-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements.
-Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier.
-Removing any visibly damaged furniture.
-Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.
-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.
-De-personalize rooms as much as you can.
Tip #5: Clean, clean, clean
The cleanliness of your home also influences a buyer's perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best ways to improve these areas include:
-Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances.
-Cleaning carpets, area rugs and draperies.
-Cleaning inside the refrigerator, the stove and all cabinets.
-Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout.
-Eliminating house odors, especially if you have pets.
-Considering air fresheners or potpourri.
Tip #6: Make minor repairs
The small stuff does count, especially with first-time home buyers. Without dismissing the importance of repairing major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include:
-Repairing ceilings and wall cracks.
-Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile.
-Caulking and grouting tubs, showers, sinks and tile.
-Adding fresh paint to ceilings, walls, trim, doors and cabinets.
-Tightening door handles, drawer pulls, light switches and electrical plates.
-Lubricating door hinges and locks.
Tip #7: Showcase the kitchen
The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include:
-Replacing cabinet doors and hardware.
-Installing under-cabinet lighting.
-Replacing light fixtures.
-Replacing outdated shelving with pantry and cabinet organizers to maximize space.
-Baking cookies or cupcakes for a showing, to create a homey smell.
Tip #8: Stage furniture
Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include:
-Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups.
-Creating a reading corner in the master bedroom.
-Clearing an empty room to set up a reading space.
-Turning an awkward space into a home office.
-Setting the dining room table with your best china.
-Set wine glasses in front of the fireplace or next to a Jacuzzi tub.
Tip #9: Light up the house
Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try:
-Opening shades and drapes to let the sunshine warm and brighten rooms.
-Installing brighter light bulbs in rooms that tend to be dark.
-Adding additional lamps for ambient lighting.
-Turning on all the lights for a showing.
Tip #10: Add fresh touches
You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include:
-Placing fresh floral arrangements in the entry and master bedroom.
-Placing bowls of bright-colored fruit in the family room and the kitchen.
-Filling an empty corner with a potted leafy plant.
-Setting new hand soap in the bathrooms.
-Displaying fresh towels near sinks.
These tips were provided by Lowe's through Rismedia August 10, 2010
Monday, May 3, 2010
Mortgage Fraud - Let's be careful out there
Even in this day and age, you too can become a victim. There are many, many scammers out there trying to steal your property and/or equity. Don't be fooled! Arm yourself with the best information available. Remember that the one with the most information normally wins..........Click the link for the full story
http://money.cnn.com/2010/04/26/real_estate/mortgage_fraud_rose/
http://money.cnn.com/2010/04/26/real_estate/mortgage_fraud_rose/
Thursday, February 4, 2010
They're changing the rules on Loan Modifications
The U.S. Dept. of the Treasury and the Dept. of Housing and Urban Development (HUD) recently announced changes to its Home Affordable Modification Program (HAMP). The changes, designed to help improve the conversion from trial loan modifications to permanent modifications, take effect June 1. Mortgage servicers may elect to implement the changes sooner.
•Under previous guidelines, homeowners were not required to document their incomes prior to receiving a trial mortgage modification. The trial modifications typically lasted three months, during which time the servicer was supposed to collect documents to verify the homeowner’s income. If the borrower met the monthly obligations, and submitted the required paperwork, the modification was supposed to be made permanent. However, many homeowners failed to provide the necessary paperwork, or the loan servicer lost the paperwork, resulting in just 66,465 permanent modifications out of the nearly 1.2 million trial modifications.
•The updated process requires that servicers collect three documents prior to granting a trial mortgage modification: A formal application, including a description of the hardship created by the mortgage; proof of income, such as two recent pay stubs or the most-recent profit and loss statement for self-employed borrowers; and a form authorizing the Internal Revenue Service to release tax data to the servicer.
•If the borrower meets the modified payment requirements for three months, the modification automatically will be made permanent. The Treasury Dept. also said it will allow servicers some discretion in making loan modifications permanent only if minor paperwork is missing. This discretion will help address a large backlog of incomplete modifications.
•Under the plan, servicers also will be required to respond within 10 days to an initial request for a modification. Once documents are provided, the servicer will have one month to let borrowers know whether they qualify for a trial modification.
•Servicers also must calculate whether the lender or current owner of the loan will benefit from a mortgage modification, or if foreclosing on the property is in the loan owner’s best interest. If the loan owner will benefit from a modification, the servicer is required to grant the modification. Requiring borrowers to provide financial documents upfront will enable servicers to decide if a modification or foreclosure is the best option.
Questions about this or any other article, please email me Roger@RogerASullivan.com
Keep the faith!
Full story was in the L. A. Times
•Under previous guidelines, homeowners were not required to document their incomes prior to receiving a trial mortgage modification. The trial modifications typically lasted three months, during which time the servicer was supposed to collect documents to verify the homeowner’s income. If the borrower met the monthly obligations, and submitted the required paperwork, the modification was supposed to be made permanent. However, many homeowners failed to provide the necessary paperwork, or the loan servicer lost the paperwork, resulting in just 66,465 permanent modifications out of the nearly 1.2 million trial modifications.
•The updated process requires that servicers collect three documents prior to granting a trial mortgage modification: A formal application, including a description of the hardship created by the mortgage; proof of income, such as two recent pay stubs or the most-recent profit and loss statement for self-employed borrowers; and a form authorizing the Internal Revenue Service to release tax data to the servicer.
•If the borrower meets the modified payment requirements for three months, the modification automatically will be made permanent. The Treasury Dept. also said it will allow servicers some discretion in making loan modifications permanent only if minor paperwork is missing. This discretion will help address a large backlog of incomplete modifications.
•Under the plan, servicers also will be required to respond within 10 days to an initial request for a modification. Once documents are provided, the servicer will have one month to let borrowers know whether they qualify for a trial modification.
•Servicers also must calculate whether the lender or current owner of the loan will benefit from a mortgage modification, or if foreclosing on the property is in the loan owner’s best interest. If the loan owner will benefit from a modification, the servicer is required to grant the modification. Requiring borrowers to provide financial documents upfront will enable servicers to decide if a modification or foreclosure is the best option.
Questions about this or any other article, please email me Roger@RogerASullivan.com
Keep the faith!
Full story was in the L. A. Times
Saturday, January 23, 2010
Repeat Buyers need to act fast to capitalize.......
By now it is well documented that today’s affordable housing prices, historically low interest rates and federal home buyer tax credit have combined to create one of the most attractive first-time buyer markets in recent memory. What many Americans might not realize is that a recent expansion of the buyer tax credit has created an equally desirable opportunity for existing homeowners.
This past November, Congress elected to expand the home buyer tax credit to repeat buyers after seeing the success the temporary financial incentive had on the housing market and overall economy. As a result, current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.
“The expanded tax credit offers a great financial opportunity for existing homeowners, particularly those looking to trade up,” said James M. Weichert, president and founder of Weichert, Realtors, one of the nation’s largest independent real estate companies. “Not only can you receive a large sum of money from the government, you’ll also likely purchase your next home for less money and at a lower interest rate than you could have in years past or years to come.”
To qualify for the tax credit, the repeat buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits, $125,000 for single buyers and $225,000 for couples. In addition, the sale price of the home being purchased can not exceed $800,000.
There is no requirement that existing homeowners must have sold their home to be eligible for the $6,500 tax credit. However, Weichert encourages existing homeowners who want to benefit from this incentive to move quickly, particularly those who prefer to first sell their current home before purchasing a new one.
“Typically, it takes three months or longer to sell a home. That’s why it is critical repeat buyers put their home on the market right away. Otherwise they might not leave themselves enough time to both secure a buyer for their current house and find a new home by the April 30 deadline,” added Weichert.
Keep the faith!
Reprinted from Rismedia
This past November, Congress elected to expand the home buyer tax credit to repeat buyers after seeing the success the temporary financial incentive had on the housing market and overall economy. As a result, current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.
“The expanded tax credit offers a great financial opportunity for existing homeowners, particularly those looking to trade up,” said James M. Weichert, president and founder of Weichert, Realtors, one of the nation’s largest independent real estate companies. “Not only can you receive a large sum of money from the government, you’ll also likely purchase your next home for less money and at a lower interest rate than you could have in years past or years to come.”
To qualify for the tax credit, the repeat buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits, $125,000 for single buyers and $225,000 for couples. In addition, the sale price of the home being purchased can not exceed $800,000.
There is no requirement that existing homeowners must have sold their home to be eligible for the $6,500 tax credit. However, Weichert encourages existing homeowners who want to benefit from this incentive to move quickly, particularly those who prefer to first sell their current home before purchasing a new one.
“Typically, it takes three months or longer to sell a home. That’s why it is critical repeat buyers put their home on the market right away. Otherwise they might not leave themselves enough time to both secure a buyer for their current house and find a new home by the April 30 deadline,” added Weichert.
Keep the faith!
Reprinted from Rismedia
Thursday, January 21, 2010
Loan Modifications help now - might hurt later
Of course you need to have that loan modified to allow you to salvage the time, effort, energy and expense that went into acquiring your home. The place you raise the kids, create memories....the place you call home.
You found out about a loan modification, applied and were successful. This allowed you to avoid moving and stabilize your life and those of your family members.
Everything is going pretty good, you're getting caught up on your bills and you decide the family needs a ssafer vehicle to get around. You go shopping on theweekend only to find that your credit scoring has gone down the tubes because of the loan modification reported to the majoe credit agencies....Read the full story
http://rismedia.com/2010-01-18/can-loan-modifications-cause-trouble-down-the-road-2/
Keep the faith!
You found out about a loan modification, applied and were successful. This allowed you to avoid moving and stabilize your life and those of your family members.
Everything is going pretty good, you're getting caught up on your bills and you decide the family needs a ssafer vehicle to get around. You go shopping on theweekend only to find that your credit scoring has gone down the tubes because of the loan modification reported to the majoe credit agencies....Read the full story
http://rismedia.com/2010-01-18/can-loan-modifications-cause-trouble-down-the-road-2/
Keep the faith!
Friday, January 1, 2010
ABC's of buying a house and making it your dream home
The big three on the hot sheet for a home are location, condition and price...we all know or have heard that.
A) Price is dictated by Location and Condition.
B) Location - Where one wants to live or needs to live is a major part of the decision that must be made by you and your family and is important to everyone for different reasons ..... school districts for the kids, parish or designated area for your preferred house of worship, commute, shopping, recreational activities.... and so on.
C) If the house your looking at has good bones but it is aesthetically challenged or just doesn't quite meet your minimum standard of acceptability....have no fear...the 203K is here. Sure you can keep looking for that perfect home but in the long run you might just be paying someone else for work you can be in somewhat control of and end up with a product that suits your needs perfectly.
I have just assisted clients in contracting for a home that hit every item on their wish list but was a little lacking in eye appeal, didn't have any of the energy efficient appliances they wanted and had a number of issues that had to be repaired under FHA guidelines before the loan could fund to complete the contract. Considering they made a great offer and it was accepted, money spent fixing these things would not be excessive. Money could heal everything but ..... they didn't have it. Enter the experienced agent, I have a referral tree that allowed the clients to select a lender to assist in an FHA application for a special loan program wherein they could borrow the additional money needed to perform the work and then select trade professionals to provide estimates and perform the work under FHA guidelines. Batter up - Home Run!
This is possible under the FHA 203K Streamline loan program. For more information on the program, visit www.hud.gov or contact me roger@rogerasullivan.com
If you'd like to hit the same home run but with my referral teams players on base, let me assist you in making it a grand slam.
A) Price is dictated by Location and Condition.
B) Location - Where one wants to live or needs to live is a major part of the decision that must be made by you and your family and is important to everyone for different reasons ..... school districts for the kids, parish or designated area for your preferred house of worship, commute, shopping, recreational activities.... and so on.
C) If the house your looking at has good bones but it is aesthetically challenged or just doesn't quite meet your minimum standard of acceptability....have no fear...the 203K is here. Sure you can keep looking for that perfect home but in the long run you might just be paying someone else for work you can be in somewhat control of and end up with a product that suits your needs perfectly.
I have just assisted clients in contracting for a home that hit every item on their wish list but was a little lacking in eye appeal, didn't have any of the energy efficient appliances they wanted and had a number of issues that had to be repaired under FHA guidelines before the loan could fund to complete the contract. Considering they made a great offer and it was accepted, money spent fixing these things would not be excessive. Money could heal everything but ..... they didn't have it. Enter the experienced agent, I have a referral tree that allowed the clients to select a lender to assist in an FHA application for a special loan program wherein they could borrow the additional money needed to perform the work and then select trade professionals to provide estimates and perform the work under FHA guidelines. Batter up - Home Run!
This is possible under the FHA 203K Streamline loan program. For more information on the program, visit www.hud.gov or contact me roger@rogerasullivan.com
If you'd like to hit the same home run but with my referral teams players on base, let me assist you in making it a grand slam.
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