It Passed! Details on the Extended and Expanded Tax Credit for Homebuyers

Did you hear it? That big woosh of air was all of those buyers, sellers, REALTORS, loan officers and title representatives that had a purchase agreement with a November 30, 2009 closing date breathing out a collective sigh of relief. An extension for the tax credit for first time homebuyers was approved by both the house and senate and is scheduled to be signed by the president today. Professionals in the industry were worried about the potential bottleneck of all the closings trying to happen before the original deadline because we all know, S*** Happens on the way to the closing table from time to time. (Yep that stands for STUF…wink, wink!) Most closings will go off without a hitch but occasionally there can be delayed a day or so. However, not closing on time could have cost some first time buyers big bucks had the extension not passed.

But, as many buyers, sellers and real estate professionals had hoped, the Homebuyer Tax Credit was not only extended but expanded to include homebuyers who have owned homes in the past. Specifically someone who has owned a home and lived in it for five consecutive years of the last eight, you could qualify for the up to a $6500 tax credit. There are guidelines and limitations so understanding the program is essential.

Here are a few key details of the plan:

1. First time buyers qualify for up to $8000.


2. Current Homeowners qualify for up to $6500.


3. Purchase agreements must be written by April 30, 2010.


4. Closing must be finalized by July 1, 2010.


5. Income Limits are $125,000 for a single person or $225,000 for married couples.


6. Home must not cost more than $800,000

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Pohlad Grant Deadline Looming~Now FHA Approved!

The deadline is looming! Not just for the tax credit for first time homebuyer. Anyone interested in buying a home in the 55106 Dayton’s Bluff area, needs to pay attention to the December 31st deadline for this program too!

It’s been a few weeks since I had checked the Dayton’s Bluff website for information on the Pohlad Homebuyer Assistance Incentive Program. This is the program that caused so much excitement for buyer’s in the 55106 zip code earlier this year. But this morning when I clicked over I got a very pleasant surprise! The funds are now approved for FHA financing!

If you haven’t heard about it yet, this is a great program for homebuyers looking to buy in St. Paul’s 55106 zip code and available through the Pohlad Family Giving Foundation. However, they are not just giving away money here. The funds are distributed at the time of the purchase of the home as a forgivable loan. So it is not as simple as a homebuyer purchasing a house and walking in to the Dayton's Bluff Neighborhood Housing Services of St. Paul to collect an $8000 check. That said, this is still an awesome opportunity if you want to live on the east side of St. Paul!



Here are some of the program's highlights:



*The funds up to $8000 are distributed in the form of a 7 year forgivable deferred loan.



*The loan will have an interest rate of 0%.



*Homebuyers must occupy the property as their principle residence for 7 years.



*Single family homes and duplexes purchases are eligible.



*The funds will be distributed on a first come, first served basis.



*It is only available in the 55106 zip code in St. Paul or 55411 zip code in Minneapolis.



* The funds can be used for down payment and/or closing costs including prepaids.



*First time homebuyers will have to take an approved homebuyer education class.



*Successful, prior homeowners will not have to take a homebuyer class.



*Funds are available to both first time homebuyers and previous homeowners alike.



*There is no maximum household income for the program.



*All homes must close prior to December 31, 2009.



If you are a home buyer interested in buying a home in the Dayton’s Bluff area and want to take advantage of this program, you NEED to be working with a REALTOR® and loan officer that understand the details of how the funding will best work for you. Must of the application process is supplemented by information provided from the mortgage lender or loan officer. Be certain that the people you select to work with really understand how the program works so you don’t miss out on this opportunity.

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Does a Buyer in Anoka County NEED to Take a First Time Homebuyer Class?

People who have never owned a home before are excited about the new $8000 tax credit for first time buyers. They want to learn as much as they can and as fast as they can because this credit is only available for those who buy a home before December 1, 2009. Every day I am talking to excited potential home buyers and friends wondering where they can take a class to learn more about buying a home. They want a class that will fit their schedule and get them out searching for their dream home very quickly.

Well, I will let you in on a little secret. You don’t need to sit in a class on someone else’s schedule with a bunch of others to learn to buy a home. There is no class requirement for receiving the 2009 $8000 tax credit.

What I tell all of my friends and referred clients is that if you are serious about buying a home and taking advantage of this credit, let me be your guide.

As an experienced and professional REALTOR® with hundreds of extremely happy clients, I can educate you quickly on the process of buying your first home and at no cost to you.
Contact me  and request your homebuyer success package. As soon as I receive your information, I will send you a list of seven simple steps to home ownership, a Q&A sheet to address the $8000 tax credit and booklet containing all the information you need to buy your first home. In minutes you will have all you questions answered on the home buying process.

Copyright 2009 Teri Eckholm http://www.terieckholm.com/