WASHINGTON, D.C. (InmanNews.com) – The Senate approved an amendment to the recent tax credit bill in which homebuyers who were under contract by April 30 will receive an additional three months to finish closing and claim the homebuyer tax credit.
Extending the deadline from June 30 to September 30 will allow lenders to clear the backlog of 180,000 homebuyers nationwide who qualified for the tax credit.
The amendment does not extend the deadline for homebuyers who do not have a contract in place.

"Tax Credit Closing Deadline Extended" was originally posted as a blog post at Shannon Register Real Estate Team on June 19, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

For Active Duty Military personnel living overseas during any part of the $8,000 First Time Home Buyer Tax Credit or the $6,500 Move Up Tax Credit – you are still eligible to take advantage of the tax credits until April 30, 2011.
The $8,000 First Time Home Buyer Tax Credit will be ending soon. You must be under contract by the end of April to qualify for the tax credit and must close on your home by the end of June. To qualify, the purchaser(s) may not have owned a primary residence in the last three years. It does not have to be a resale home, you may purchase from a builder. You should use a Realtor even when you purchase from a builder. It’s free for buyer’s to use Realtors and your Realtor will be representing you and looking out for your best interest. You can receive the maximum $8,000 tax credit if you are single with an income up to $125,000 or married with an income up to $225,000. The amount of the tax credit decreases as home buyers income approaches the maximum limit. Homebuyers earning more than the maximum qualifying income are not eligible for the credit.

There is an existing home buyer tax credit currently in place for $6,500. To use this tax credit you must sell your current primary residence that you have lived in for atleast five consecutive years and purchase another primary residence. If you don’t want to sell your current home, but have lived there for five years and now want to move to a new primary residence, you can still qualify for the tax credit. There are some income requirements, so check with your accountant to be sure you qualify.

Neither of these credits have to be repaid as long as you live in the new primary residence for at least three years.

"TAX CREDIT EXTENDED!!" was originally posted as a blog post at Shannon Register Real Estate Team on June 13, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

1.  Decide how much home you can afford.  Generally, you can afford a home equal in value to between two and three times your gross income. 

2.  Develope a wish list of what you’d like your home to have.  Then prioritize the features on your list.

3.  Select three or four neighborhoods you’d like to live in.  Consider items such as schools, recreational facilities, area expansion plans, and safety.

4.  Determine if you have enough saved to cover your down payment and closing costs.  Closing costs, including taxes, attorney’s fee, and transfer fees average between 2% and 7% of the home price.

5.  Get your credit in order.  Obtain a copy of your credit report.

6.  Determine how large a mortgage you can qualify for.  Also explore different loan options and decide what’s best for you.

7.  Organize all the documentation a lender will need to pre approve you for a loan.

8.  Do research to determine if you qualify for any special mortgage or down payment-assistance programs.

9.  Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

10.  Find an experienced REALTOR who can help you through the process. 

Reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS, Copyright 2005, All rights reserved.

"10 Steps to Prepare for Homeownership" was originally posted as a blog post at Shannon Register Real Estate Team on May 22, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

Don’t be fooled, take advantage of the $8,000 tax credit before it goes away.  It ends at the end of this month.  It’s the best gift Uncle Sam will ever give you!  If you would like to sell your home and buy another home, you may be eligible for the $6,500 tax credit.  Give me a call today so we can get you qualified for your tax credit.  I am not fooling around, these tax credits are a great deal!

"April Fools Day!" was originally posted as a blog post at Shannon Register Real Estate Team on April 1, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

1.  They don’t ask enough questions of their lender and miss out on the best deal.

2.  THey don’t act quickly enough to make a decision and someone else buys the house.

3.  They don’t find the right real estate professional who is willing to help you through the homebuying process.

4.  They don’t do enough to make their offer look good to a seller.

5.  They don’t think about resale before they buy.  The average first-time buyer only stays in a home for four years.

REPRINTED WITH PERMISSION FROM REAL ESTATE CHECKLIST AND SYSTEMS ( http://www.realestatechecklists.com )  REPRINTED FROM REALTOR MAGAZINE ONLINE BY PERMISSION OF THE NATIONAL ASSOCIATION OF REALTORS, COPYRIGHT 2005, ALL RIGHTS RESERVED.

"5 Common First-Time Homebuyer Mistakes" was originally posted as a blog post at Shannon Register Real Estate Team on March 20, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

The $8,000.00 First Time Home Buyer Tax Credit is available until April 2010.  The following are ten tips for those First-Time Home buyers:

1.  Be picky, but not unrealistic.  There is no perfect home.

2.  Do your homework before you start looking.  Decide specifically what features you want in a home and which are most important to you.

3.  Get your finances in order.  Review your credit report and be sure you have enough money to vover your downpayment and your closing costs.

4.  Don’t wait to get a loan.  Talk to a lender and get pre qualified for a mortgage before you start looking.

5.  Don’t ask too many people for opinions.  It will drive you crazy.  Select one or two people to turn to if ou feel you need a second opinion.

6.  Decide when you could move.  When is your lease up?  Are you allowed to sublet?  How tight is the renatl market in your area? 

7.  Think long-term.  Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer?  This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that suit you best.

8.  Don’t let yourself be “house poor”.  If you max yourself out ot buy the biggest home you can afford, you’ll have no money left for maintenance or decoration ot to save money for other financial goals.

9.  Don’t be naive.  Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year.

10.  Get help.  Consider hiring a REALTOR as a buyer’s representative.  Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you.  And often, buyer’s reps are paid out of the seller’s commission payment. 

Reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS, Copyright 2005, All rights reserved.

"10 Tips for First-Time Homebuyers" was originally posted as a blog post at Shannon Register Real Estate Team on March 10, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

If you are a renter, you might be wondering how much mortgage you can afford.  Please use the Rent vs. Buy calculator on my website to figure out what you can afford.  I thought the following information was interesting, so I am sharing it with you.  It is reprinted with permission from the National Association of REALTORS and reprinted from REALTOR Magazine Online.

The following calculation assumes a 28% income tax bracket.  If your bracket is higher, your savings will be, too. 

Rent: _____________

Multiplier:  X 1.32

Mortgage Payment:  __________________

Because of tax deductions, you can make a mortgage payment – including taxes and insurance – that is approximately 1/3 larger than your current rent payment and end up wtih the same amount of income. 

Not only does owning a home give you a haven for yourself and your family, it makes great financial sense, too.  Right now, if you are a first time home buyer you can take advantage of the $8,000 tax credit available.  You must hurry, because it ends in April!  Call me today so we can get started.

"Rent vs. Buy" was originally posted as a blog post at Shannon Register Real Estate Team on March 4, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

AUSTIN (National Real Estate Investor) – U.S. businesses are hoarding cash instead of helping revitalize the down economy through spending and hiring, says Dr. Mark Dotzour.
The Real Estate Center’s chief economist shared his thoughts on why at CCIM Central Texas’ symposium in Austin Tuesday.
“We are used to thinking of the federal government as the solution to these problems for economic growth and they have rapidly become the source of the problem because of the uncertainty that they have created for business people,” Dotzour said.
Take taxes, for instance.
Although proposals to raise the capital gains tax from the current 15 percent to 24 percent have been scaled back to 20 percent, Dotzour said even that hike would reduce initial returns on investments in commercial real estate. That threat of a bigger tax hit will influence many potential buyers to postpone acquisitions until a definite rate is set and can be factored into purchase prices.
Dotzour also said worries about higher income tax rates, increasing energy costs as a result of cap and trade legislation, and the potential impact of health-care reform proposals are weighing on the minds of business owners and would-be entrepreneurs.
For more on what Dotzour had to say, read the National Real Estate Investor article.

"Government Creating Uncertainty, Dotzour Says" was originally posted as a blog post at Shannon Register Real Estate Team on February 28, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

As well as helping people buy and sell properties, I also help families lease homes.  I often refer them to my rent vs. buy calculator so they can see that owning a home does not cost much more than renting a home.  Why pay someone else’s mortgage for them?  There are many reasons to own your own home. 

First of all, when you own your own home you can take advantage of tax breaks.  You can deduct the interest you pay on your mortgage and property taxes.  Houses usually appreciate in value over time, so you gain equity.  Now I know right now houses in most areas are not appreciating, but in general, usually houses do appreciate over time.  When you pay rent, you lose that money.  But when you purchase a home, part of that monthly payment goes towards your equity in the home.  Through the years, you will gain equity and pay down the mortgage.  Usually, after 30 years people can own their homes free and clear.  Building equity is like a savings plan for most homeowners.  If they need money, they can take out a home equity loan and use the equity to make purchases when needed.  Also, your mortgage payments do not increase over the years unless you have an adjustable rate mortgage.  Many landlords do increase rent yearly.  When you own a home you have the freedom to make whatever decorating changes you want. 

There are many reasons to purchase a home instead of renting or leasing a house.  Right now, first time home buyers can take advantage of the $8,000 tax credit.  That is free money from the government that won’t be around much longer – it ends this April.  If you would like to explore your options in home ownership, please call me today so we can get started.  I have helped many renters enjoy the opportunity of home ownership and that is what makes my job as a REALTOR so exciting!

"Why Own Your Own Home?" was originally posted as a blog post at Shannon Register Real Estate Team on February 16, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

HOUSTON (Houston Chronicle) – Housing starts increased 6 percent between fourth quarter 2008 and the same in 2009, according to a Metrostudy report released Wednesday.

 Builders started 4,576 homes last quarter and closed on 6,323. There were 12,164 inventory homes either finished or under construction in the Houston area in December.

 However, there were still 65,925 vacant lots ready for development at the end of 2009. That translates to a 42.3-month supply, well above Metrostudy’s idea of a healthy market equilibrium range of 20 to 24 months.

 Builders are expected to develop and sell between 18,000 and 20,000 homes in 2010. Starts and closings in 2009 totaled 18,687 and 22,902, respectively.

"Houston Housing Starts Increase" was originally posted as a blog post at Shannon Register Real Estate Team on February 14, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

It’s an objective opinion of value, but it’s not an exact science so appraisals may differ.

For buying and selling purposes, appraisals are usually based on market value – what the property could probably be sold for.  Other types of value include insurance value, replacement value, and assessed value for property tax purposes.

Appraised value is not a constant number.  Changes in market conditions can dramatically alter appraised value. 

Appraised value doesn’t consider special considerations, like the need to sell rapidly.

 Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer. 

Used with permission from Kim Daugherty, Real Estate Checklists and Systems ( http://www.realestatechecklists.com ).

Reprinted from REALTOR Magacine Online by permission of the National Association of REALTORS.  Copyright 2005.  All rights reserved.  http://www.REALTOR.org/realtormag

"What Is Appraisal Value?" was originally posted as a blog post at Shannon Register Real Estate Team on February 11, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

MIAMI (Associated Press) – More people were preparing to buy a home in December than in November, according to the National Association of Realtors’ seasonally adjusted index of sales agreements.  Agreements rose 1 percent between November and December to a reading of 96.6, a bit lower than the 97.1 level analysts expected.  The index has risen nine out of the last ten months.

"More People Prep for Homeownership" was originally posted as a blog post at Shannon Register Real Estate Team on February 11, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

DALLAS (Dallas Morning News) – Nearly 1,000 first-time homebuyer tax credit filings in Texas have been flagged for possible ill-use of a taxpayer identification number primarily used by illegal immigrants, who are not entitled to the credit.

 This number represents nearly one-third of the 3,200 suspicious homebuyer tax credit claims submitted by noncitizens around the country, the total of which are valued at $20.8 million, according to the U.S. Treasury Department.

 Russell George, the Treasury inspector general for the tax administration, said that involvement of third-party preparers in some questionable homebuyer claims filed nationwide suggested that there may have been “conspiracies and attempts to cheat the government by more than one person.”

 Of the 1.5 million claims made to the Internal Revenue Service for the tax credit, the Justice Department has filed one criminal case and one civil injunction against tax preparers for submitting false claims for the homebuyer credit. One of these cases was from Mission, Texas.

"1,000 Texas Tax Credit Claims Flagged for Possible Fraud" was originally posted as a blog post at Shannon Register Real Estate Team on January 29, 2010.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2010 | Shannon Register Real Estate Team

Why not? I listed a home on Alp Springs last week and this week it’s already shown. Buyers are out there looking year ’round. This time of year, only serious buyers are out there looking because if they’re not serious, they don’t have time to look at houses! If you have lived in your home for more than five years, you will qualify for the $6,500 tax credit if you buy your next home before the deadline next April. It’s an excellent time to sell. Call me today to see what absorption rates are in your neighborhood and what price you can expect to get for your home. Let’s get it on the market and get it SOLD! My marketing plan works even in a down market. I have proven results!

"Sell NOW?" was originally posted as a blog post at Shannon Register Real Estate Team on December 15, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

7Published in The Houston Chronicle, Sunday, November 22, 2009

It’s official, President Obama has signed a bill that extends the tax credit for first-time home buyers (FTHBs) into the first half of 2010.  In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure opens up opportunities for others who are not buying a home for the first time.

The program gives those who own a residence some additional reasons to move to a new home.  This incentive is a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a Primary Residence for 5 consecutive years during the last 8 years.

Deadlines for all contracts need to be in effect no later than April 30, 2010 and close no later than June 20, 2010. 

Single tax filers who earn up to $125,000 are eligible for the total credit amount.  Those who earn up to $145,000 can receive a partial credit.  Joint filers who earn up to $225,000 are eligible for the total credit amount.  Those who earn up to $245,000 can receive a partial credit.  Maximum purchase price:  $800,000.

What is a tax credit?  A tax credit is a direct reduction in tax liability owed to the IRS.

What is the tax credit for  first-time home buyers?  An eligible buyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home.  If the amount of the home purchased is $75,000, the  maximum amount the credit can be is $7,500.

Who is eligible for  the tax credit?  Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.  This applies both to single taxpayers and married couples.  If either spouse has owned a primary residence in the last 36 months, neither would qualify.  In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.  As mentioned, the tax credit has been expanded so existing homeowners who have owned and occupied a primary residence for a period of 5 consecutive years during the last 8 years are eligible for a tax credit of up to $6,500. 

How do I claim the credit?  For those taking advantages of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405.

Other Restrictions?

If any of these apply, a credit would not be due.

• You buy your home from a spouse, parent, grandparent, child, or grandchild.
• You do not use the home as your principal residence.
• You sell your home before the end of the year.
• You area nonresident alien.
• Your home financing comes from tax-exempt mortgage revenue bonds.
• You owned a principal residence at any time during the 3 years prior to the date of purchase of your new home.

"Government Extends First-Time Home Buyer Tax Credit, Adds Another" was originally posted as a blog post at Shannon Register Real Estate Team on November 24, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

Breaking News/RISMEDIA, November 6, 2009 – After the Senate gave final approval last night without a dissenting vote, the House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the home buyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow.

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close.  First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 tax credit if they close after the November 30 deadline.  The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit.  A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years.  The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

The legislation takes effect December 1 and is not retroactive.  Both credits are available only for primary residences, not second homes or investment properties.

"Congress Approves Home Buyers Tax Credit Extension" was originally posted as a blog post at Shannon Register Real Estate Team on November 17, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

If you are still confused about the $8,000 Tax Credit then you need to keep reading. The tax credit is still available, but will end on November 30, 2009. That means if you are a first time home buyer and have not found a home and negotiated a contract on it, you need to call me today to get started on your path to home ownership and the best thing your Uncle Sam is ever going to give you. Time is ticking away and you need atleast 30 days from the time of contract exection to the closing date. Not sure if you qualify? If you have never owned a home, you qualify. If you have not owned a principle residence in the last three years, you qualify.

What does the credit actually mean for you? The credit from Uncle Sam is 10% of the home’s purchase price up to $8,000. The only repayment required is if you sell the home within three years of the purchase. Are there any income restrictions? The limit on income is $75,000 for a single person or $150,000 for a married couple. Call me today to get started because time is ticking away and your free money from Uncle Sam will be gone!

"Confused about the $8,000 Tax Credit?" was originally posted as a blog post at Shannon Register Real Estate Team on October 19, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

This is from an article in the Wall Street Journal and I thought my readers would find it interesting…

First-time home buyers are scurrying to qualify for a federal tax credit that expires at the end of November — a trend that has been propping up sales following the worst downturn in decades. Because the closing process can drag on, buyers realistically have just a few weeks left to sign contracts; and they are submitting multiple offers to be certain that one goes through. Although lawmakers have proposed to extend and expand the credit, prospects for such a move are dimming as legislators are urged to show fiscal restraint following mega-bailouts of the financial and automobile sectors. Some housing analysts worry that the credit sparked unneeded supply and that its expiration could drag the market back down.

"First-Time Home Buyer Tax Credit Ends Soon…" was originally posted as a blog post at Shannon Register Real Estate Team on September 23, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

If you are a first time home buyer you now only have 73 Days until the Tax Credit Ends.  You must close on your first home before December 1st to use the $8,000 tax credit.  If you need help finding a house and want someone to guide you through your first time home buying experience, call me today.  In most cases it’s free to you to use a Realtor because the seller pays all the real estate fees.  So why wouldn’t you want representation?  Call today for a free no obligation consultation.  You could be a first time home buyer by the end of this year and have money in your pocket from Uncle Sam.

"First Time Home Buyer Tax Credit Ends Soon" was originally posted as a blog post at Shannon Register Real Estate Team on September 19, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

HOUSTON (Houston Chronicle) – The window for first-time homebuyers to take advantage of the $8,000 federal tax credit will close at the end of November.

To qualify for the credit, any transaction involving a first-time buyer must close before midnight on Nov. 30, 2009.

Tax credit guidelines are discussed in the Houston Chronicle and in past issues of RECON.

"Tax Credit Expires Soon" was originally posted as a blog post at Shannon Register Real Estate Team on September 8, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

Only 96 days left to purchase a home using the New Home Buyer $8,000 Tax Credit.  There is talk of extending it past December 1st, but that’s not definite yet.  From the time you execute the contract you will need to allow at least 30 days until closing.  Some transactions are taking 45 days.  If you haven’t found a Realtor and started looking, don’t delay any longer.  I believe it’s the best gift Uncle Sam has ever given a home buyer.  Call me today so we can get started - 832.628.SELL.

"96 Days and Counting Down…" was originally posted as a blog post at Shannon Register Real Estate Team on August 26, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

I have been asked by many first time home buyers, “What is the difference between the $7,500 Tax Credit and the $8,000 Tax Credit?”  

Steve Kaufman is a CPA that published an article titled FREE MONEY in the Houston Realtor Magazine that explained the tax credit in detail.  He included a helpful chart that parallels the differences between the two tax credits, but that magazine is not available to the public.  Using the facts from his article, I would like to explain the difference between the two tax credits to my readers.

Both tax credits can only be used by first time home buyers.  The $8000 tax credit is referred to as the American Recovery and Reinvestment Act of 2009.  This has been defined as someone who has not owned a primary residence during the last three years.  Once you buy the home you must occupy the house as your primary residence for at least three years or the tax credit you receive will be owed back to Uncle Sam.  Both of the tax credits apply to new construction homes, resale homes, manufactured homes, Townhomes, and Mobile homes.

The $7,500 Tax Credit was more of an incentive than a tax credit because it has to be paid back within 15 years, interest free, starting in 2010.  It applies to first time home buyers that purchased their first home between April 9, 2008 and January 1, 2009.  It must be filed with 2009 tax returns for credit to be received. 

The $8,000 tax credit is for first time home buyers that purchase between January 1, 2009 and December 1, 2009 and it never has to be paid back.  It’s just free money from your Uncle Sam.  It can be claimed on your 2008 or 2009 tax return.  So if you are a first time home buyer you will need to close by December 1st which means you should be house hunting now.  It takes atleast 30 days to close on a home unless you are paying cash.

When you file your annual tax return you can claim this credit using IRS Form 5405.  If you claimed the $7,500 and are eligible for the $8,000 tax credit you can ammend your tax return by using IRS Form 1040X.  The maximum credit allowed for the $8,000 tax credit is 10% of the sale price up to the $8,000.  The maximum credit calculation for the $7,500 tax credit is 10% of the sales price up to $7,500.  To receive the maximum credit your income must be below $150K for married couples or $75,000 for individuals. 

Rather than waiting until tax filing for the $8,000, an advance on the credit is available on the credit from the U.S. Dept. of Housing and Urban Development (HUD).  The advance is available for first time home buyers using FHA-Approved lenders.  As an advance, the funds can be applied toward the down payment or closing costs.

Steven offered a great tip in his article.  If you are a first time home buyer and are sure you will purchase by December 1st and qualify for the tax credit, you can go ahead and start taking advantage of the tax credit by adjusting your payroll tax withholding with your employer by filing an updated IRS Form W-4 which will reduce your income tax withholding and will increase your take home pay which can be saved for your down payment.  I consulting with your tax accountant is recommended.

"$7,500 vs. $8,000 Tax Credit" was originally posted as a blog post at Shannon Register Real Estate Team on August 3, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

WASHINGTON (Nation’s Building News) – The Texas Department of Housing and Community Affairs has introduced two loan programs designed to help first-time homebuyers apply the new $8,000 tax credit toward down payments and closing costs.

The 90-Day Down Payment Assistance Program and the Mortgage Advantage Program will allow consumers to receive a short-term loan before filing for and receiving the federal tax credit. Consumers can apply these loans toward down payments and closing costs.

Both programs provide assistance of up to 5 percent on the first lien mortgage, but the 90-day program maxes out at $7,000 while the Mortgage Advantage Program’s limit is $6,000.

Repayment times also vary for the two programs, at 90 days and 120 days, respectively.

More information about these programs is available at the Texas Department of Housing and Community Affairs’ website.

Read more about the $8,000 tax credit in next month’s issue of Tierra Grande magazine.

"New Plans Help New Homeowners Use Tax Credit" was originally posted as a blog post at Shannon Register Real Estate Team on July 15, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

I will be hosting a FREE Home Buyer’s Seminar this Thursday July 16th at 6:30pm.   This quick and informative seminar will answer your questions about the $8,000 Tax Credit and much more.  A representative from Coldwell Banker Mortgage and Access Title will be available to answer your questions.  Other speakers will include an Inspector and Appraisor.  We will have refreshments and door prizes.  Please come out to the Coldwell Banker office at 6905 Cypresswood to learn more about buying your first home while interest rates are low and there’s plenty of inventory on the market so you can get what you want at a great price!

"Home Buyer’s Free Seminar" was originally posted as a blog post at Shannon Register Real Estate Team on July 13, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

NEW YORK (CNNMoney.com) – The U.S. Department of Housing and Urban Development (HUD) announced Friday that its $8,000 incentive for first-time homebuyers has been tweaked from a refund at tax time to cash made available for assistance on down payments or closing costs.

The mechanics of the new program, according to National Association of Home Builders economist Robert Dietz, allow lenders to purchase tax credits from the buyers and then collect the rebate from the IRS.

Homebuyers must still come up with the Federal Housing Administration’s mandatory down payment of 3.5 percent on their own, but they can use the tax credit to lower their principal balance and save on monthly payments.

“Families will now be able to apply their anticipated tax credit toward their home purchase right away,” said HUD secretary Shaun Donovan. “What we’re doing will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”

"$8,000 HOMEBUYER INCENTIVE AVAILABLE IN ADVANCE" was originally posted as a blog post at Shannon Register Real Estate Team on June 2, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

What it means to homebuyers

The Housing and Economic Recovery Act of 2008 will introduce changes in the mortgage industry which will also affect the housing market.  Here is a brief summary of the new legislation and what it means to homebuyers.

Purpose of the legislation:

• Make it easier to buy or sell a home
• Slow down the rate of foreclosures
• Ensure the financial stability of Fannie Mae and Freddie Mac

Highlights:

• Higher permanent loan limits for conventional, FHA and VA Loans (effective January 1, 2009)
• Tax credit for first-time homebuyers – up to $7,500 in the purchase year, for homes purchased between April 9, 2008 and July 1, 2009.
• Modernization of FHA loan programs – including a 3.5% minimum down payment (effective January 1, 2009)
• Fannie Mae and Freddie Mac get a financial boost from the U.S. Treasury, and they will have a new regulator with broader authority
• FHA “HOPE” Rescue Plan – refinancing for homeowners at risk of foreclosure

What this means to homebuyers:

The higher loan limits could help buyers obtain more affordable financing; however, the effects will vary by geographical location – so ask your Mortgage Adviser for details.  Since the new permanent limits are less aggressive than the “conforming plus” limits that expire on December 31, 2008, buyers must act soon to take advantage of current higher limits.

The initial cash savings from the tax credit may be very attractive to many first-time homebuyers; however, buyers must act soon to take advantage of the tax credit by closing on a new home before July 1, 2009.

Help for Fannie Mae and Freddie Mac makes it easier to buy or sell a home by boosting investor and consumer confidence in the housing market.  The FHA “HOPE” Rescue Program may help some homeowners avoid foreclosure, potentially reducing the inventory of homes entering the market.  This is good news for everyone.

"The Housing and Economic Recovery Act of 2008" was originally posted as a blog post at Shannon Register Real Estate Team on January 15, 2009.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2009 | Shannon Register Real Estate Team

I hope everyone got out to vote today. We all know how important this election year is. I was in line to vote early this morning before I went into the office. The lady behind me in line kept complaining about how long it was taking the elderly poll worker to get people signed in to vote, but I just kept thinking to myself how thankful I am to live in America where I can vote and not get shot at while I’m standing in line waiting. It made me think of those first elections held in Iraq while our troops were establishing the new Iraqi government.

I hope you all took advantage of the Starbucks free coffee. I didn’t because I don’t like coffee myself, but I hope all of you enjoyed it just the same.

As I am home tonight mapping the changing colors of red and blue while the polls are closing around the country I am on the edge of my seat. I am not going to get my political intentions involved on my blog, but I do want to use this opportunity to remind you of some of the differences between Obama and McCain on some housing issues.

Looking back on some of the articles written about Obama over the last year he points to the special interests in Washington and corporate greed as the causes of the sub prime credit crisis. He criticized the deal reached in the Senate to freeze some foreclosures, saying a 30-day period wasn’t long enough. His plan against predatory lending included penalizing the lenders, but gave no explanation for how he would actually do that. He said he would provide a tax credit to homeowners to cover 10 percent of the interest on their mortgage every year and make an additional $10 billion in bonds available to help the middle class buy their first home or avoid foreclosure. He also wants to mandate accurate loan disclosure to ensure consumers understand their loan agreements. Now that last one is interesting because I can explain a mortgage or loan document to you over and over again and so can your lender, but no one can understand it for you.

Now on the other hand, there’s McCain who believes it is not the duty of government to bail anyone out, not the big banks nor the individual borrowers who acted irresponsibly, whether knowingly doing so or not. He said any government assistance to alleviate the housing crisis must be temporary and should be accompanied by reforms that aim to make the system more transparent and accountable to prevent a repeat of the crisis. He said no assistance should be given to people who bought houses to rent or as second homes. He does not support federal bailouts unless it has catastrophic effects on the entire financial marketplace nor does he support people buying homes with no money down like lenders have done over the past few years. This simply means people should have skin in the game when they are buying homes which will make them less likely to walk away from them when troubling times come knocking at the door.

Thinking about each of their views, I still come back to the saying that we got into this mess one house at a time and we will get out of it one house at a time. That is why I support the “Save the Dream” campaign. If you’re not familiar with that campaign please check out my earlier blog posts.

I hope we are able to get some rest, even though this close political run for the White House is stirring our minds tonight. As we look towards the new year, it is my belief that no matter which candidate wins, our housing market will improve. Our economy will rebound. Our country’s most sacred investment, our homes, will again accrue in value. It is my sincere hope and belief. It is my prayer.  God Bless America!

"I Voted! Did you?" was originally posted as a blog post at Shannon Register Real Estate Team on November 4, 2008.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2008 | Shannon Register Real Estate Team

• The tax credit is available for first-time home buyers only.
• The maximum credit amount is $8,000.
• The credit is available for homes purchased on or after April 9, 2008 and before
  November 31, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• The tax credit does not have to be repaid.

Purchase a home now and take advantage of a tax credit of up to $8,000.00!  This is a new benefit that makes it easier for you to buy your first home.
Learn more details from your Realtor or visit
FederalHousingTaxCredit.com.

"First-Time Home Buyer Tax Credit" was originally posted as a blog post at Shannon Register Real Estate Team on October 11, 2008.

Shannon Register Real Estate Team named "Best Real Estate Blog in Texas by the Mays Business School Real Estate Research Center at Texas A&M University.

© 2008-2008 | Shannon Register Real Estate Team