Revised First-Time Homebuyer’s Credit

Written by Kevin Jacobs on November 5, 2009 in Uncategorized - No Comments

Below you will find links explaining the extension of the first-time homebuyer’s credit.  The bill was passed in the Senate today and will likely be voted upon in the House tomorrow or early next week.  This bill extends the qualifying date from December 1st, 2009 to June 30th, 2010 (a purchase agreement must be signed by April 30th, 2010).

Also, this bill offers a home buying credit of $6,500 to those who have lived in their home for 5 years.  You can find more details if you follow the web links below.

http://blogs.wsj.com/developments/2009/10/29/qa-the-home-buyer-tax-credit-extension/
http://news.yahoo.com/s/ap/us_homebuyers_tax_credit
http://www.opencongress.org/bill/111-h3548/show

First-Time Homebuyer’s Credit Fraud

Written by Kevin Jacobs on July 31, 2009 in Home Buying, Tax Planning - No Comments

This morning I received an e-mail from the IRS and it explained how they are starting to prosecute those who are committing first-time homebuyer’s credit fraud.  The main point of the article was to remind taxpayers and preparers that you can’t claim the credit until after your house has closed.  With this being the case, do not count on using the $8,000 tax credit for closing costs!  Also, a first-time homebuyer for credit purposes is someone who has not owned a home in the last three years.  If the tax payer is married, this rule applies to their spouse as well.

I have spoken to a few local realtors and mortgage brokers in my area and they are saying that closings are taking longer then they did last year at this time.  Their warning is:  if you qualify for the first-time home buyer’s credit and you plan on buying a house to receive the tax credit for 2009, you need to start the process NOW!  Remember, to qualify, you have to have closed on your house by December 1st, 2009.

http://www.irs.gov/newsroom/article/0,,id=211399,00.html?portlet=6

To Refinance or Not

Written by Kevin Jacobs on July 21, 2009 in Home Buying, Security - No Comments

I was recently asked if I could comment on the feasibility of refinancing.  I thought my response to that question would make for a good blog entry.  Keep in mind my answer will just barely approach the subject and that it is important that you have someone look over the exact facts of your situation to evaluate if you should refinance or not.  I strongly recommend working with a fee-only financial advisor before you meet with a mortgage broker.  A fee-only advisor can be your advocate and help you to better understand if refinancing is right for your individual needs.  A mortgage broker will only benefit from your business if they actually “sell” you the refinance.  Why not get an objective opinion before you move on to meeting with the commissioned salesperson?

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