Tax credit fuels skyrocketing Dallas-area preowned home sales
12:08 PM CST on Monday, December 7, 2009
By STEVE BROWN/ The Dallas Morning News
The North Texas housing market came roaring back in November. Preowned home sales rose by 31 percent last month from a year ago – one of the biggest such increases on record. Also Online
Interactive map: Dallas-area home sales and prices
And median home sales prices were up 5 percent.
The big jump in residential transactions came as large numbers of homebuyers rushed to take advantage of the federal home buying tax credit, which has been extended.
Real estate agents in October sold almost 5,500 preowned homes through their multiple listing service, according to statistics released Monday by the North Texas Residential Information Systems and the Real Estate Center at Texas A&M University.
And condo and townhouse sales were up more than 60 percent from a year ago.
November’s robust sales activity is the latest in a string of recent indicators, which show that the North Texas home market has bottomed out and is turning the corner.
Through the first 11 months of 2009, North Texas home sales are down 12 percent from the same period of last year. And median home sales prices are unchanged year to day from 2008.
November was the second consecutive month that Dallas-Fort Worth area home sales rose from the previous year – ending more than a year of consecutive declines.
Some neighborhoods that weren’t impacted by the federal homebuying incentives saw dramatic spikes in home sales last month.
In the Park Cities, preowned home sales soared 81 percent in November from a year ago.
Sales in close in North Dallas neighborhoods rose 48 percent.
And at the end of November, the inventory of unsold homes on the market fell below 6 months which is considered a balanced market.
Wednesday, December 9, 2009
Tuesday, November 10, 2009
Expanded Version of Tax Credit Will Allow More Homebuyers to Qualify
Expanded Version of Tax Credit Will Allow More Homebuyers to Qualify
RISMEDIA, November 9, 2009—President Obama recently signed an expanded version of the $8,000 first-time homebuyer tax credit that was set to expire on November 30. “The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. “Although the tax credit remains at $8,000 for homebuyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for homebuyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up homebuyers did not qualify.” Consider these three examples:
Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.
Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.
Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight.
The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. “If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010,” Nicholas said. “It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.”
The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. “This means that more people will qualify for the credit – especially in parts of the country with higher costs of living,” Nicholas said. “This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit.”
There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:
-The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence – you could live in one unit and rent out the others
-If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit).
-The credit applies even if you have co-signers on your mortgage loan
For more information, visit www.CMPSInstitute.org.
Read more: http://rismedia.com/2009-11-08/expanded-version-of-tax-credit-will-allow-more-homebuyers-to-qualify/#ixzz0WTkr6IKw
RISMEDIA, November 9, 2009—President Obama recently signed an expanded version of the $8,000 first-time homebuyer tax credit that was set to expire on November 30. “The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. “Although the tax credit remains at $8,000 for homebuyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for homebuyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up homebuyers did not qualify.” Consider these three examples:
Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.
Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.
Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight.
The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. “If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010,” Nicholas said. “It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.”
The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. “This means that more people will qualify for the credit – especially in parts of the country with higher costs of living,” Nicholas said. “This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit.”
There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:
-The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence – you could live in one unit and rent out the others
-If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit).
-The credit applies even if you have co-signers on your mortgage loan
For more information, visit www.CMPSInstitute.org.
Read more: http://rismedia.com/2009-11-08/expanded-version-of-tax-credit-will-allow-more-homebuyers-to-qualify/#ixzz0WTkr6IKw
Thursday, September 3, 2009
Thinking of Buying a Home?
I am giving away a free FHA home appraisal on a property valued at $150,000 or higher, sponsored by our trusted lender 1st Advantage Mortgage. Call me for details at 817-881-5059!
Tuesday, September 1, 2009
Testimonial!
Thanks Cindy! Congratulations and great job!!! I hope I have another opportunity to refer you and I would love to work with any referrals you may have.
Thanks again, ~Tina
Tina Broderick
Thanks again, ~Tina
Tina Broderick
Wednesday, August 26, 2009
Federal Reserve Loses Lawsuit!
Federal Reserve LOSES LAWSUIT - MUST ACCOUNT FOR PAYOUT'S - 08.26.09
Watch Video
Single family home sale are up - but why? Federal Reserve loses lawsuit and must show the country where all the money has gone. Swiss cooperates with IRS - No more tax free Swiss banks and it's time to pay!
Watch this video http://www.thinkbigworksmall.com/mypage/player/tbws/15029/1078526
Watch Video
Single family home sale are up - but why? Federal Reserve loses lawsuit and must show the country where all the money has gone. Swiss cooperates with IRS - No more tax free Swiss banks and it's time to pay!
Watch this video http://www.thinkbigworksmall.com/mypage/player/tbws/15029/1078526
Monday, August 17, 2009
School is about to begin!
Parents are getting their kids ready to go back to school. I am going to miss buying school supplies this year for the first time since my daughter is going to college. We pack her up and move her in this weekend. It is going to be very weird around our house. Can't wait to hear how it goes the first week. Good luck to all the parents out there that have school children!
Thursday, July 30, 2009
$8,000 Tax Credit
$8,000 TAX CREDIT – Soon To Be Available As A Down Payment – 5 – no, make that 6 – Things You Need To Know
Written by Carl Medford, Agent in Fremont
May 14, 2009 9:25 AM Home Buying in Fremont
28 comments1,901 viewsWhile I normally refrain from cutting and pasting news into this post, the following news update from the National Association of Realtors “Realtor Magazine”, May 12, 2009, deserves to be posted in its entirety:
“Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings&Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.”
Here are my thoughts:
1. On the surface, COOL. REALLY GOOD NEWS.
This is great news for first-time buyers who have been looking at the market, wanting to get in but have not had any capital to do so. This will open the doors for yet another level of prospective buyers to get into the market. For responsible individuals who just haven’t been able to get together a down payment, this is the great news they’ve been waiting for.
2. On second look, NOT SO MUCH.
While this may be good news for first-time buyers who have no cash, it is a return to the scenario that got us into this mess to begin with. This will be, in reality, a return to 100% financing. FHA programs require 3.5% of the purchase price as a down payment. 3.5% on a $230,000 home is $8,050.00. I’ve sold a number of homes in the past 12 months that easily fit into this price category. In addition, FHA guidelines allow the seller to credit up to 6% of the purchase price for closing costs.
I like Warren Buffet’s concept of “skin in the game.” Although I’m just like the next guy and love a free ride, having watched the recent meltdown, I know there is no such thing as a free lunch. Those who participated in the previous 100% financing schemes that had nothing personal invested in their homes were the very ones who walked away the moment they got upside down.
In addition, the question needs to be asked, “Why don’t they have a down payment?” We’re not really talking a lot of money here. I understand that life gets in the way and expenses happen, but I also have watched a generation grow up that believe that excessive consumer debt is their god-given right of passage.
My opinion is this:
“If you don’t have the discipline, dedication and skills to build up a small down payment, then I believe the odds that you will get into serious financial difficulty in the near future are significantly increased.”
If that’s true, maybe you should wait to buy a house until you learn how to control your debts. Just a thought.
3. Funds not going where they were intended.
One of the realities of the tax credit that made sense for many first-time buyers was the fact that it provided much needed cash to improve their homes once they moved in. Most of the homes being snapped up by those eligible for the tax credits have been foreclosed properties. Many of these need carpet, paint and so on to make them nice places to live. If the tax credit is used up front, then instead of having the rebate to help fix up their homes, many will most likely rely on plastic to “get-er done.” This takes us back to point number 2 above.
Secondly, the tax credit was intended to help fuel local economies. If used up front as a down payment, the money will not make it to the local businesses that truly need a financial shot in the arm; businesses like home improvement stores, furniture companies, contractors, etc.
4. An additional layer of complexity.
For those who’ve never had the joy of working with FHA loans, I’d suggest you sign up to work on an Alaskan crab boat for the Discovery Channel’s Deadliest Catch series. That way, you could experience thrills, excitement, pain and even death WITHOUT having to deal with the FHA. For those of us not so lucky, we know what’s coming.
This suggestion actually means adding another moving part to an FHA loan.
A bridge loan of some kind. Another layer of complexity in a process that is already WAY too complicated. Even more governmental involvement in a process that’s already extremely arduous. I feel like I just clicked my heels and ended up back in Kansas (I was born there and don’t plan on returning any time soon …). Someone PLEASE tell me it’s not just me …
5. An Extension?
Lastly, if this is the direction we are going, can an extension to deadline for the tax credit be very far behind? We’re talking about the government here, and this proposal will take time to implement. It really makes no sense to go to all the trouble of making this accessible to thousands more without adding more time for it to actually happen.
6. NEWS FLASH … It’s Been Retracted!!!
Since this post was originally launched, the possibility of using the credit for a down payment seems to have been rescinded! At least for now. My guess is that someone at HUD read my blog, saw the wisdom and changed their minds! I know, I’m being silly … quit dreaming. Here’s the scoop:
Those receiving FHA loans to purchase a home have very strict guidelines attached to where they can and cannot get their minimum 3.5% down payment monies from. These include:
Funds they’ve saved themselves
A gift from a relative
Employer contributions
Secured borrowed funds (example your 401K)
From governmental agencies
FHA approved non-profit organizations
The bridge loan as proposed for the $8,000 tax credit does not qualify. Therefore, until they can work out some bugs, this is off the shelf for now.
SO … good news, right? Maybe … maybe not … we’ll see.
Written by Carl Medford, Agent in Fremont
May 14, 2009 9:25 AM Home Buying in Fremont
28 comments1,901 viewsWhile I normally refrain from cutting and pasting news into this post, the following news update from the National Association of Realtors “Realtor Magazine”, May 12, 2009, deserves to be posted in its entirety:
“Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings&Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.”
Here are my thoughts:
1. On the surface, COOL. REALLY GOOD NEWS.
This is great news for first-time buyers who have been looking at the market, wanting to get in but have not had any capital to do so. This will open the doors for yet another level of prospective buyers to get into the market. For responsible individuals who just haven’t been able to get together a down payment, this is the great news they’ve been waiting for.
2. On second look, NOT SO MUCH.
While this may be good news for first-time buyers who have no cash, it is a return to the scenario that got us into this mess to begin with. This will be, in reality, a return to 100% financing. FHA programs require 3.5% of the purchase price as a down payment. 3.5% on a $230,000 home is $8,050.00. I’ve sold a number of homes in the past 12 months that easily fit into this price category. In addition, FHA guidelines allow the seller to credit up to 6% of the purchase price for closing costs.
I like Warren Buffet’s concept of “skin in the game.” Although I’m just like the next guy and love a free ride, having watched the recent meltdown, I know there is no such thing as a free lunch. Those who participated in the previous 100% financing schemes that had nothing personal invested in their homes were the very ones who walked away the moment they got upside down.
In addition, the question needs to be asked, “Why don’t they have a down payment?” We’re not really talking a lot of money here. I understand that life gets in the way and expenses happen, but I also have watched a generation grow up that believe that excessive consumer debt is their god-given right of passage.
My opinion is this:
“If you don’t have the discipline, dedication and skills to build up a small down payment, then I believe the odds that you will get into serious financial difficulty in the near future are significantly increased.”
If that’s true, maybe you should wait to buy a house until you learn how to control your debts. Just a thought.
3. Funds not going where they were intended.
One of the realities of the tax credit that made sense for many first-time buyers was the fact that it provided much needed cash to improve their homes once they moved in. Most of the homes being snapped up by those eligible for the tax credits have been foreclosed properties. Many of these need carpet, paint and so on to make them nice places to live. If the tax credit is used up front, then instead of having the rebate to help fix up their homes, many will most likely rely on plastic to “get-er done.” This takes us back to point number 2 above.
Secondly, the tax credit was intended to help fuel local economies. If used up front as a down payment, the money will not make it to the local businesses that truly need a financial shot in the arm; businesses like home improvement stores, furniture companies, contractors, etc.
4. An additional layer of complexity.
For those who’ve never had the joy of working with FHA loans, I’d suggest you sign up to work on an Alaskan crab boat for the Discovery Channel’s Deadliest Catch series. That way, you could experience thrills, excitement, pain and even death WITHOUT having to deal with the FHA. For those of us not so lucky, we know what’s coming.
This suggestion actually means adding another moving part to an FHA loan.
A bridge loan of some kind. Another layer of complexity in a process that is already WAY too complicated. Even more governmental involvement in a process that’s already extremely arduous. I feel like I just clicked my heels and ended up back in Kansas (I was born there and don’t plan on returning any time soon …). Someone PLEASE tell me it’s not just me …
5. An Extension?
Lastly, if this is the direction we are going, can an extension to deadline for the tax credit be very far behind? We’re talking about the government here, and this proposal will take time to implement. It really makes no sense to go to all the trouble of making this accessible to thousands more without adding more time for it to actually happen.
6. NEWS FLASH … It’s Been Retracted!!!
Since this post was originally launched, the possibility of using the credit for a down payment seems to have been rescinded! At least for now. My guess is that someone at HUD read my blog, saw the wisdom and changed their minds! I know, I’m being silly … quit dreaming. Here’s the scoop:
Those receiving FHA loans to purchase a home have very strict guidelines attached to where they can and cannot get their minimum 3.5% down payment monies from. These include:
Funds they’ve saved themselves
A gift from a relative
Employer contributions
Secured borrowed funds (example your 401K)
From governmental agencies
FHA approved non-profit organizations
The bridge loan as proposed for the $8,000 tax credit does not qualify. Therefore, until they can work out some bugs, this is off the shelf for now.
SO … good news, right? Maybe … maybe not … we’ll see.
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