Home Buyer Tax Credit

The new First Time Home Buyer Tax Credit is incredible!! I know there are a lot of people with a lot of questions right now so, check out FAQs and I also suggest talking to a tax professional.


That said... here are a couple of highlights that I think are very important.


*This is a true credit and does not have to be paid back unless you sell within 3 years of purchase.


* Even if you buy in the first quarter of 2009 you should be able to claim this credit on your 2008 taxes.


* Even if you have already filed your 2008 taxes you should be able to file an ammended return.


* A person qualifies as a first time home buyer if they have never owned a home or if they have not owned a home in the previous 3 years.





Again, I highly suggest you talk to a tax professional about this credit but I personally think this is a great opportunity for buyers.





Give me a call today if you need to find a home and claim your $8,000 credit!

Brandi Nelson, Realtor

Century 21 Signature Real Estate

306 S. 16th Street, Ames, Iowa

515-291-0914

www.hill-nelson.com

Each office independently owned & operated.

Licensed salesperson in the state of Iowa.

Internet Home Buying #2

Let's cover another pitfall of internet home buying and searching. When you search for the perfect home online you may be missing out. The internet is black and white, cut and dried... if you search for 3 bedroom, 2 bath between $200,000-250,000 then you might miss out on the perfect 3 bedroom 1 and 3/4 bathroom that's priced to sell at $199,000. Also some search engines take 2-3 days to pull new listing information. You may miss out on the perfect house that was a steal just because another buyer's Realtor called them the second the house was listed and offered for sale, you didn't even know it was for sale yet. Many Realtors also know of homes that will be coming up for sale soon too. Maybe the sellers are still cleaning and decluttering, or they are waiting until the weather gets better... these homes you won't find on any website until they're ready.

Brandi Nelson, Realtor

Century 21 Signature Real Estate

306 S. 16th Street, Ames, Iowa

515-291-0914

www.hill-nelson.com

Each office independently owned & operated.

Licensend salesperson in the state of Iowa.

Internet Home Buying

Internet home buying and research is more and more common everyday. Although I do recommend using the internet to supplement your search and help narrow down the possibilities, I still feel that Realtors are a beneficial part of the process.

Pitfall #1 of Internet home buying... thinking you can do it all yourself. The internet makes all of us feel extremely capable! We can take on the world, afterall Google told us we could! Buying a home or property is a very big decision in your life and can have huge financial consequences. There are also a lot of legalalities involved. Both buyers and sellers should seek the help and opinions of a good Realtor that knows the current, local market and a legal attorney who works with the real estate sector and laws as their main business.

Brandi Nelson, Realtor

Century 21 Signature Real Estate

306 S. 16th Street, Ames, Iowa

515-291-0914

www.hill-nelson.com

Each office independently owned & operated.

Licensed salesperson in the state of Iowa.

Lease to Purchase

If you have poor credit, no credit or just have "issues" with getting traditional financing for a house, you still have options. Buying on contract or lease to purchase arrangements are available and I have a good source for you. If you are interested in more information on how these programs might work, just give me a call!

Brandi Nelson, Realtor
Century 21 Signature Real Estate
306 S. 16th, Ames, Iowa
www.hill-nelson.com
515-291-0914

Each office independently owned & operated.
Licensed salesperson in the state of Iowa.

The market might be turning around...

I think this real estate market might be turning around... in the last 10 days I've missed out on buying two homes for my clients. Both homes had not been on the market very long, were priced right and sold shortly before my clients were ready to write offers.

Brandi Nelson, Realtor
Century 21 Signature Real Estate
306 S. 16th, Ames, Iowa
www.hill-nelson.com
515-291-0914

Licensed Realtor in the state of Iowa
Each office independently owned & operated.

Home Buyer Tax Credit: How It Works

Daily Real Estate News December 29, 2008

Home Buyer Tax Credit: How It Works

First-time homebuyers in 2008 can take an income-tax credit on their purchase, thanks to passage in Congress earlier this year of the first-time home buyer tax credit.

The definition of first-time homebuyer is generous. To get the credit, the homebuyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.

The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify.

If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.

The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full creditHomebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven.

[Editor's Note: The credit is set to expire in mid-2009, although industry groups, including the NATIONAL ASSOCIATION OF REALTORS®, are encouraging Congress to extend it. NAR is also encouraging Congress to make the credit available to all buyers and to eliminate the repayment requirement. More detail on how the credit works is available from NAR on REALTOR.org.

Source: Chicago Tribune, Mary Umberger (12/28/2008)

Brandi Nelson - The Hill-Nelson Real Estate Team
Century 21 Signature Real Estate, Ames, Iowa
Each office independently owned & operated.
515-291-0914 (cell phone) www.hill-nelson.com

You can still get a mortgage...

You can still get a mortgage... in fact in many cases you can still get nothing down or low down payment mortgages. There are great options for first time home buyers too. Your first step should be to contact a reputable mortgage lender or banker to see what your options are at this point. Many times people are scared they don't have good enough credit but with small changes your credit score can be improved.

I highly recommend Bailey Mortgage Company in Ames. You can apply online or call 515-598-5626 . Jason and Jayme Kupka will take great care of you - just tell them I told you to call!

Brandi Nelson, Realtor

Century 21 Signature Real Estate

306 S. 16th Street, Ames, Iowa

The Hill-Nelson Real Estate Team

www.hill-nelson.com

515-291-0914

Each office independently owned & operated.

Licensed Realtor in the state of Iowa

Home buyer tax credit

This is a great source for an explanation on the new 1st Time Homebuyer Tax Credit that the government recently enacted.

http://www.bankrate.com/baw/news/mtg/20080918-homebuyer-tax-credit-a1.asp

Brandi Nelson, Realtor

The Hill-Nelson Real Estate Team

Century 21 Signature Real Estate

www.hill-nelson.com

515-291-0914

Each office independently owned & operated.

Licensed sales agent in the state of Iowa.

You fix you!

Yesterday I heard the best description of the economic bailout plan yet. I highly suggest and encourage you to use the link below and listen to the highlights from Monday's Dave Ramsey Show. Dave is definitely putting the ball back in our courts!

http://www.daveramsey.com/tdrs/index.cfm/2008/10/6/YOU-fix-you

Brandi Nelson, Realtor

The Hill-Nelson Real Estate Team

Century 21 Signature Real Estate

515-291-0914

www.hill-nelson.com

Each office independently owned & operated.

Licensed salesperson in the state of Iowa

1st Time Home Buyer Tax Credit

Wow, have I been a bad blogger!! Sorry - I'll work on it. Here's a little article that explains the new 1st Time Home Buyer Tax Credit that's been all over the news... note it is a loan, not a true credit!

Daily Real Estate News August 4, 2008How the New First-Time Buyer Tax Credit Works
Under the new housing bill, home buyers who have not owned a home in the last three years will be eligible for a tax credit equal to 10 percent of the property up to a maximum of $7,500.Here’s how it works:
The credit is $3,750 for married couples filing separately. Unmarried people who jointly purchase a home will be able to divide the $7,500 credit.
This program is actually a loan, which home buyers must repay over 15 years at zero percent interest beginning in the second year after they purchase the home. A home buyer who qualified for the whole credit would pay $500 for 15 years or about $41.67 per month.
The credit applies only to homes purchased on or after April 9, 2008, and before July 1, 2009.
High-income home buyers don’t qualify: Eligibility begins phasing out for single filers with adjusted income of more than $75,000 and $150,000 for joint filers. It completely phases out at $95,000 for singles and $170,000 for married couples filing jointly.Source: The Washington Post, Michelle Singletary (07/03/08)


Brandi Nelson - The Hill-Nelson Real Estate Team
Century 21 Signature Real Estate, Ames, Iowa
Each office independently owned & operated.
515-291-0914 (cell phone) www.hill-nelson.com

Rates

Hey Everyone - I get a daily rate update from one of my lenders, Bailey Mortgage Company, and mortgage rates are going up!! If you or someone you know is thinking about buying or refinancing you should really, really look into it right now. Don't wait!

Brandi Nelson - The Hill-Nelson Real Estate Team
Century 21 Signature Real Estate, Ames, Iowa
Each office independently owned & operated.
515-291-0914 (cell phone) http://www.hill-nelson.com/

Buyer Beware

Buyers beware... interest rates are going up. Two weeks ago we saw rates under 6% and this week rates are around 6.5%.

If you are on the fence on whether you should buy now or later, keep this in mind... a $200,000 house at 6% fixed over 30 years would be a payment of $1,199.10 P&I, the same house at 7% interest would have a P&I payment of $1,330.60. That's a difference of $131.50 per month.

Another way to look at it is... if you want to keep your P&I payment around $1,200 each month you can afford a $200,000 house at 6% but only a $180,000 house at 7% interest.

Please don't wait. Interest rates are still very good and there are a lot of homes to choose from on the market right now.


Brandi Nelson - The Hill-Nelson Real Estate Team
Century 21 Signature Real Estate, Ames, Iowa
Each office independently owned & operated.
515-291-0914 (cell phone) www.hill-nelson.com