Who is Eligible
*First-time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
*Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.
*All U.S. citizens who file taxes are eligible to participate in the program.

Income Limits
*Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
*For married couples filing a joint return, the combined income limit is $225,000.
*Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
*The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.

Effective Dates
*The eligibility period for the tax credit is for homes purchased after Nov. 6, 2010, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.

Types of Homes that Qualify
*All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.

For more information on the tax credit visit the Federal Housing Credit Website next week.

Source: National Home Builders Association

The House is scheduled to vote on a bill today that will give home buyers who have owned their homes for at least five years a tax credit of up to $6,500 on a new home and first-time homebuyers will get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30. Now is the time to buy! Call me today to start your search!

A type of ownership where individuals actually own the building or unit they live in, but common areas are owned jointly with the other members of the development or association. Contrast with condominium, where an individual actually owns the airspace of his unit, but the buildings and common areas are owned jointly with the others in the development or association.

Source: Real Estate ABC

An alternative financing option that allows home buyers to lease a home with an option to buy. Each month’s rent payment may consist of not only the rent, but an additional amount which can be applied toward the down payment on an already specified price.

Source: Real Estate ABC

It is that time again… Don’t forget to set your clock backs one hour!

Why do we turn our clocks back?

Daylight Saving Time

In the US, Daylight Savings Time starts on the second Sunday of March (Spring Foward) and ends on the first Sunday of November (Fall Back).

One of the biggest reasons we change our clocks to Daylight Saving Time (DST) is that it reportedly saves electricity. In general the use and demand for electricity and lighting our homes is directly connected to when we go to bed and when we get up. Bedtime for most of us is late evening through the year. When we go to bed, we turn off the lights and TV. In the average home, 25% of all the electricity we use is for lighting and small appliances like TVs, VCRs and stereos. Daylight Saving Time puts the sunset one hour later and helps to reduces the period between sunset and bedtime by one hour. This means we have more sunlight and we use less electricity and we also tend to plan outside activities during the longer days which decreases the use too. We may use a little bit more electricity in the morning because it is darker when we get up, but that is usually offset by the energy savings in the evening. It may seem like a little, but it all adds up to a large amount!

Be Safe!!

As we get ready for the Trick-or-Treat event tomorrow I wanted to share a website that I found. It provides a few safety tips for the kids and I thought I would share. Be Safe!

*Pick out or make a costume that will be safe. (fire proof, the eye holes should be large enough for good peripheral vision, etc)

*Make sure that pumpkins with candles are are far enough out of the way so that kids costumes won’t accidentally be set on fire.

*Make sure your child is carrying a prop, such as a scythe, butcher knife or a pitchfork, that the tips are smooth and flexible enough to not cause injury if fallen on, not the real deal!

*Teaching your kids basic everyday safety such as not getting into cars or talking to strangers, watching both ways before crossing streets and crossing when the lights tell you to, will help make them safer when they are out Trick or Treating. Talk to them and even if they are older, remind them about the basic safety rules when out at night!

For more information visit Halloween Safety Guide

The third quarter proved to be fruitful for the economy as a whole. The numbers grew 3.5 %; which is the best growth seen in a while. A lot of the growth is contributed to the government-supported spending on cars and homes, but it’s the strongest signal yet that the economy has entered a new, though fragile, phase of recovery and that the worst recession since the 1930s has ended. This would mark the first increase since the spring of 2008, when the economy experienced a short-lived growth.

Consumer spending soared at an annualized rate of 22.3%, the most since the end of 2001. The jump largely reflected car purchases spurred by the “Cash for Clunkers” program that offered a rebate of up to $4,500 to buy new cars and trade in old gas guzzlers.

This does not mean that we are out of the woods yet, but it is definite positive growth. With the winter seasons coming the economist predict a slow down in growth, but they are still hopeful for continued improvement through the first of 2010.

For more information visit The Atlanta Journal Constitution

Of course home prices are nothing like what we had in the height of the housing boom, but we are seeing compelling evidence that the prices are towards the bottom!

In August home prices rose another 1% following the July rise of 2.3%. Zach Pandl, an economist at Nomura Global Economics, expects prices to fall to the lows from earlier this year before recovering in early 2010.

Congress is still considering extending the tax credit for first-time buyers at 10% of the sales price, up to $8,000. The discussion is looking good to extend the credit and do a slow phase out by the end of the year.

So if you are planning to buy a home, get off the fence and buy before prices rise and lets not forget the interest rate that will follow!

Source: The Associated Press

Here are ten ways to get savings this season:

1. Clean the Gutters
2. Block the Leaks
3. Check Your Insulation (about 12 inches in the attic)
4. Inspect Your Furnace
5. Make Sure the Ducts are Sealed
6. Add Storm Windows
7. Get Your Chimney Ready
8. Reverse the Ceiling Fan
9. Wrap Your Pipes
10. Check All of the Alarms

Source: MSN Real Estate