As the April 15 deadline to file 2009 federal tax returns approaches, the National Association of Home Builders (NAHB) is providing answers to some of the questions home buyers are most frequently asking about the home buyer tax credit.
NAHBs website that provides information about the home buyer tax credit, www.FederalHousingTaxCredit.com, has received more than 8 million visits, said NAHB Chairman Bob Jones, a builder and developer in Bloomfield Hills, Mich. We are doing everything we can to make sure home buyers are informed about this outstanding opportunity to benefit from buying a home before it expires April 30.
Some of the more commonly-asked questions, and the answers, include:1. How does a home buyer claim the tax credit?
The credit is claimed when the home buyer files or amends their federal income taxes. For qualifying homes purchased in 2009 or 2010, the taxpayer must complete IRS Form 5405 and attach a copy of the settlement statement. In most cases, the settlement statement is a properly executed Form HUD-1.
In circumstances where a HUD-1 is not provided, such as purchasing a mobile home or a newly constructed home, the IRS will accept an executed retail sales contract (mobile homes) or a copy of the certificate of occupancy (new homes).
2. Does the home buyer have to sell their current home in order to qualify for the $6,500 repeat home buyer tax credit?
A home buyer does not need to sell their current home in order to be eligible for the repeat buyer credit. They can continue to own both homes, and rent or use their former home for something else, as long as it no longer serves as their principal residence. The taxpayer is required to use the new home as their principal residence, and live in it for at least 36 months, or they will have to repay the credit.
3. Do married couples both have to meet the eligibility requirements in order to claim the credit, even if they file taxes separately?
Both spouses must fully meet all the eligibility requirements for either the $8,000 first-time home buyer tax credit or the $6,500 repeat buyer tax credit, regardless of if they file joint or separate tax returns. However, if an unmarried couple purchases a home and only one person qualifies, the eligible person may claim the full credit.
4. Do all home purchases need to be completed by April 30, 2010, in order to be eligible for the credit?
There are two exceptions to the April 30 deadline. If the buyer enters into a binding contract by the deadline, they have until June 30, 2010, to complete the purchase. The deadline has been extended a year, to April 30, 2011, for members of the uniformed services, Foreign Service or employees of the intelligence community who have been on qualified extended duty outside the United States for at least 90 days between January 1, 2009, and April 30, 2010.
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There are many steps that one needs to take in the home buying process and I want to talk about the first ten today.
The first step is to visit a loan officer and get a pre-approval before you start looking for a home in the Burlington, Vermont area. The second step is to contact me for an initial interview so we can determine your needs and wants for your home purchase. The third step is to meet face to face with me so we can set up a game plan on how the process will work and review online all the available properties in your price range and locations on where you want to be. The fourth step is to begin to look at property. Visiting homes that could be your final destination with me will be fun and informative. The fifth step is to make an offer on a property that you are comfortable with. I will go over all the necessary paperwork and put you in a position to purchase. The sixth step is negotiating the deal. Once we have made an offer, there may be some negotiating that will take place before we get to the final sales price and terms of the contract. The seventh step is having an inspection on the property to make sure that the property is everything that we expect it to be. Once that is complete the eighth step is possibly renegotiating parts of the contract due to the inspection. Sometimes there are unexpected items that need to be handled after the inspection. The ninth step is proceeding to the bank with your application to get things going. Sometimes this is started before the inspection takes place if you are confident the home will pass the inspection. The tenth step in the process is getting your financing approved.
There are many steps involved with this piece alone and there is more to come. If you have questions or comments, please e-mail me Brian French, Realtor firstname.lastname@example.org.
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If you have been sitting on the couch and looking out your window contemplating making a move, then now is the time to do it. The hardest part of winter is over and the interest rates recently dropped below 5%. The inventory is great and it is still a buyer's market. The federal government is still offering an $8,000 tax credit to first time homebuyers that qualify and a $6,500 tax credit to move up buyers that qualify, but the clock is ticking. If you don't have your next home under deposit by April 30th, then you have missed the incredible deal. Don't procrastinate any longer. Drop me a line, and I can help you through the process. Contact me at email@example.com today.
This year has started out with a much different level of confidence than we had last year at this time. According to the National Association of Realtors, less mortgages are becoming delinquent and going into foreclosure. This bears well for our local real estate market and economy. In Burlington, Vermont and our surrounding area, we are experiencing a much better mortgage delinquency rate than in most other areas of the country. Our deposits are ahead of last year and we are working with a number of people that are looking to purchase homes. Business has definately picked up and we feel that the economy has taken a turn for the better. Run a VT MLS Searchor view new listings this week!
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All indications are that consumer confidence is up in Burlington, Vermont and the real estate market is more active this year than last year during the same time period. More people are thinking of making a move which will increase the inventory and buyer options on the market.
The interest rates are still extremely low and the Federal Government is still offering tax credits for those individuals that qualify and make the move in the required time frame. Don't get left behind wishing you had done something a few months from now. Drop me a line and I can help you through the process. Contact me Brian at Brian@c21-advantage.com and I can help you with your real estate move.
View what's on the market in Burlington, Vermont.
South Burlington, Vermont - CENTURY 21 Advantage Recognizes Its Top Producing Sales Associates For February. Shawn Kelley and Brian French, sales associates with CENTURY 21 Advantage, were named the offices top producers for February.
CENTURY 21 Advantage is pleased to recognize Shawn and Brian with this honor. They approach everything they do with passion and professionalism and have truly become a fixture within the Chittenden County and surrounding Champlain Valley area that they serve within these local real estate communities.
In today's world, there are a number of things that can go wrong in order for your real estate transaction not to close. The process has gotten more difficult and the rules for getting financing approval are constantly changing. Therefore, your real estate agent can be critical in making sure that everything is in order for you to close. One area where you hope you don't have difficulty is with your seller.
Recently, a seller in the South Burlington, Vermont area decided that the appraisal process was taking too long and that he was not going to extend the financing deadline for the buyer. All the paperwork had been taken care of and the only outstanding item was that the bank needed a hard copy of the appraisal. Needless to say, the seller finally conceded to give a few more days for the approval and it all worked out. He closed on his home in South Burlington and the new buyer got to move into their dream home. Sometimes waiting can be difficult, but the ultimate goal is to close and you never want to be the one getting in the way of your own deal closing. If you would like some help in selling your home. contact Brian at firstname.lastname@example.org your real estate advantage.