Lodi / Stockton CA Homes For Sale & Real Estate Information

Here is a little more information about the first-time homebuyer tax credit extension and revision to include existing homeowners.

The extension and expansion of the homebuyers tax credit that passed Congress November 5 allows more first-time buyers to qualify and creates an entirely new credit for existing homeowners who buy a new home.

The effective date is Tuesday, December 1 for the enhanced first-time buyer credit and for the new credit. It is not retroactive. However, first-time buyers who have been rushing the meet the November 30 deadline for the existing program need not worry. They can qualify under the new one. Existing homeowners who are also in the process of buying a home should consider delaying closing until December 1 or later to qualify for the credit.

Both credits expire next spring. Buyers must have a contract on a home before May 1, 2010 and they have until June 30, 2010 to close in order to qualify.

Key Provisions

Amounts:

• The first-buyer credit remains 10 percent of the cost of the home or $8ooo, whichever is less.

• The credit for existing homeowners is 10 percent of the value of the new home or $6500, whichever is less.

Definitions:

• A first-time homebuyer cannot have owned a home during the past three years.

• Existing homeowners must have owned and lived in their current home five out of the preceding eight years.

• Only principal residences qualify. No second homes or investment properties.

Income limits:

• The measure raises the income limits for those claiming the credit to $125,000 a year for individuals and $225,000 for couples, up from $75,000 and $150,000 in the previous first-time buyer credit. After that, the value of the credit phases out.

• The cost of the new home cannot exceed $800,000.

Cost:

• Expanding the home buyers’ credit will cost about $11 billion. The total cost of extending the first-time buyer credit and adding the existing owners’ credit is $16.7 billion.

How to Apply::

• Use IRS form 5405, which you file with an amended tax return.

• For more information on applying, go to http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Make it a great day!

The wait is over!  Yesterday, President Obama signed into law to extend the home buyer $8,000 tax credit until April 30,2010.  This is expected to contribute nearly $22 billion to our economy.

Originally, the tax credit was designed for first-time home buyers, but this new plan will now make it possible for more people to participate.  Current home owners who have lived in their home for five of the last eight years will be eligible for a tax credit of $6,500.

The income limits have been increased to $125,000 for single buyers and $225,000 for couples.  There is a cap on the price of the home at $800,000.

I am hopeful that this extension in the tax credit will help keep the real estate market growing in the right direction.  Especially in the Stockton, CA area where we have an abundance of great deals on homes just waiting for a buyer.

If you’ve already purchased a home this year (Congrats!) and would like a copy of the IRS Form 5405 for the tax credit, you can obtain one at www.IRS.gov

Make it a great day!

Randy

Has the real estate market hit bottom and now on the rise again?  Not likely.  I believe the rising home prices right now in some areas is a temporary occurrence due in part to homebuyers scrambling to get the nice homes in nice neighborhoods at significantly lower prices than they were back in 2006 and those home prices are being driven up by multiple offers.

Along with still lower interest rates, the first-time homebuyer tax credit, and good weather coming to an end, it makes sense for all homebuyers and investors to get off the fence and purchase real estate now.  It’ll make even more sense to buy real estate in the months to come when there will be even more foreclosures and great deals galore.  Great places to buy real estate right now are in Lodi, CA and in Stockton, CA.  There are even great deals on homes for sale in surrounding areas such as Galt, Elk Grove, Manteca, and Salida.

Here is a link to recent article about the current national real estate prices… Click Here

Make it a great day!

Randy

I actually would think that since we’re nearing the deadline of the First-time Homebuyers Tax Credit of $8,000 that we’d be seeing a sharp rise in mortgage applications.  Perhaps that’ll happen over the next few weeks as we get closer.

But instead, with the mortgage rates rising I’m thinking this might be causing people to think a little longer about whether they should buy a home now, or not buy one at all.

There’s also lots of news of the number of foreclosures rising and that’ll create not only more choices, but lower prices on homes.

Here is an article I read recently that talks a little more about the topic of rates and mortgage apps… http://bit.ly/6QLI6

What are your thoughts about the tax credit?  Do you think it should be extended?

Make it a great day!

Do you pick up pennies you find on the street?  (Whether it’s Heads or Tails?)  Would you grab a $1 bill if you saw it in the trash?  How about if you found $8,000 in a trash can…would you snag that up, or just leave it there?

Well, a lot of people are going to be throwing away $8,000 each very soon now.  The first-time homebuyer tax credit is about to come to an end.  If you are thinking of buying a home right now, could you use $8,000 toward your closing costs to make the decision a little easier?

Here is a link to a good article that needs your attention… CLICK HERE

Read it now and pass the information along to your friends who have been waiting to buy.  Interest rates are still low for now, and lending guidelines are getting tougher.

Dont just make it a great day…make it a great year!

Randy