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Whats New in Real Estate?
New Homebuyer Tax Credit
As part of the government's economic rescue plan, congress made $8000 available to
every first time homebuyer who purchases a primary residence before December 1, 2009.
Qualified homebuyers who already purchased a home after January of this year also
qualify for the tax credit. The credit is equal to 10% of the purchase price upto a
maximum of $8000. First time buyers who's income is $75,000 or less ($150,000 if
married) qualify for the tax credit, which does not have to be repaid.
In order to receive the credit all the homebuyer needs to do, is file a tax return
and apply for the credit. But, what makes this such an appealing program, is that the
government has given authority to state housing agencies (like CalHFA) to advance
the full amount of the credit which would help homebuyers by putting cash in their
pocket right away. The advance though would be treated as a loan backed by proceeds
from tax exempt bonds.
New homeowners who purchased a home between April 9, 2008 and January 1, 2009 still
qualify for some tax credits too. The maximum credit for these buyers is $7500. This
credit though, is treated like an interest free loan which is paid back to the IRS
over 15 years.
Mortgage Rates Down
Freddie Mac said 30-year fixed-rate mortgages averaged 6.04% this week. That's down from 6.14% last week and below the 6.20% rate at this time last year.
New Mortgage Application more than double
Mortgage applications more than doubled last week, a mortgage bankers' group said Wednesday, as government bailouts led to sinking interest rates that made refinancing especially more attractive.