Going Away

For future blog updates, visit my newest blog at http://outandaboutchicago.tumblr.com/!

Turns Out It WASN'T Your Last Chance for $8000... or $6500!

Just today, President Obama signed into law a new unemployment insurance bill, which includes an amendment to the First Time Homebuyer Tax Credit. The new law includes the following exciting changes that now even affect buyers who have already owned a home:

• The tax credit has been expanded to include homebuyers who are selling a home that they've lived in as a primary residence for 5 consecutive years of the past 8 years (repeat buyers)
• Repeat buyers are now eligible for up to $6500
• The new deadline for the credit is April 30, 2010 (instead of Nov 30, 2009). This deadline will now apply to all sales with binding contracts signed by this date - not just properties that have actually closed by this date. This means that if you plan to close by April 30 and the closing gets pushed back a few days, you may still qualify for the credit since you already have a binding contract.
• First time homebuyers are still eligible for up to $8000
• Income limits have been increased to $125,000 for single filers and $225,000 for married filers
• The maximum home purchase price to be eligible for the credit is $800,000

Some FAQ about this credit:

Q: I am a "repeat buyer". Must the new house that I purchase cost more than the old house I sold?

A: No, repeat buyers also include those who are "downsizing", or spending less on the purchase than they got on the sale.

Q: I owned and lived in my home for 10 years. 2 years ago I sold it and have been renting. If I buy a home before April 30, 2010, will I still be eligible for the $6500 (assuming I meet all other criteria)?

A: Yes. You owned and lived in your home for 5 consecutive years of the last 8 years so you qualify as a repeat buyer in that respect.

Q: I am purchasing a home for $815,000. Am I still eligible for at least a portion of the $6500 repeat buyer credit (assuming I meet all other criteria)?

A: No. The credit limits the purchase price at $800,000. This is a hard maximum (not a phase-out), so any purchases above $800,000 will disqualify you from claiming this credit.

As always, please consult your tax professional to discuss your eligibility for either of these credits and your particular situation. Do not hesitate to contact me if you'd like to discuss the possibility of buying or selling property in time to claim this credit. I'd be happy to discuss your situation with you or refer you to a great agent in your area!

$8000 Tax Credit Explained

I wish I'd found this video sooner. It explains the tax credit really clearly. We have about a week and a half left for anyone wanting to make the plunge in time to claim the credit! So there's still time if you're ready to move quickly. http://www.blip.tv/file/2724367

Your last chance to qualify for $8,000!

On Wednesday, Oct 14 at 7:00PM, Wells Fargo & Coldwell Banker will be hosting a webinar for potential homebuyers to learn about financing options, 3.5% down payment loans, buying foreclosures, tax incentives, and more!

This is also a LAST CHANCE opportunity for first time homebuyers to learn about the $8,000 Homebuyer Tax Credit! This credit expires on November 30, 2009 so don’t miss this informational presentation!

You may attend our webinar from the comfort of your home!

Topics Covered:

· $8,000 First Time Homebuyer Tax Credit

· 3.5% Down payment loans and other financing options

· Benefits of owning property, such as tax deductions and property appreciation

· Buying foreclosures and short sales

· How YOU can benefit from current market conditions

· Why NOW is the ideal market for first time buyers

· … and MUCH MORE!

Register for this informational webinar at www1.gotomeeting.com/register/343644008.

After registering, detailed instructions will be emailed to you.

$8000 FOR YOUR DOWNPAYMENT

I apologize for the blogging hiatus. Terry - I also apologize personally to you. I know you were very sick of looking at the giraffe print house every day in hopes that I'd have a new blog update. I will say that I think my blogging frequency is directly related to the condition of the real estate market - the busier I am, the less time I have to blog!

However, I am back on track...

This update is really important so I wanted to make sure I got this posted ASAP.

The news is related to the $8000 First Time Homebuyer Tax Credit. Originally, you'd have to close on the property before you could fill out the tax form and receive the tax credit. This meant that you could not use it directly toward your downpayment.

The new guidelines - which are still being developed - say that you can use the $8000 tax credit for your downpayment on FHA loans. FHA loans allow you to put down a minimum of 3.5% downpayment.

How would this work? The $8000 would be lent to you as an advance - so that you could use it at the closing table. It would come from certain eligible lending agencies - not from the IRS. This $8000 advance would act as a loan that you then repay from the $8000 tax credit you'd receive from the IRS when you file for it after closing.

If you bought a $200,000 home with an FHA loan, your minimum downpayment would be $7,000 which would be more than covered if you qualify for the $8000 tax credit. This means NO OUT OF POCKET COSTS TO COVER YOUR DOWNPAYMENT. This is only good through the end of November of 2009 so WHY WAIT? Even if you have to break a lease to buy a home, why not consider it - what's cheaper - breaking your lease, or losing out on $8000? You may even be able to get a seller to buy out your lease in this market filled with motivated sellers.

Honestly, I can't imagine that it's going to get better than this. When they announed that the previous $7500 credit was increased to $8000 and didn't have to be repaid anymore, we thought it was too good to be true. NOW, you can use that $8000 directly at the closing table and you might not even have to come up with a downpayment.

Terry

Animal prints are so last year...

Just found this up north... I am speechless.

First Time Homebuyer Info

So, I've told you about the new $8000 "Obama money" for first time homebuyers. But how exactly do you get it? It doesn't just magically appear in your bank account. And how do you know if you qualify?

Come to our info session Tuesday March 24 from 6-7PM to learn more! You'll also meet a lender who can tell you about 3.5% downpayment Federal loans, and you'll hear from a real estate attorney who can answer all of your questions.

Not only will we cover the $8000 tax credit, but I can tell you all about how to find a deal with foreclosures & short sales, and MUCH MORE.

Date: Tues 3/24

Time: 6-7PM

Location: 1840 N Clark, Chicago

Why: Because you want $8000 in free cash. And because we'll give you free food.

RSVP to me! (773) 467-5345 or eileen.mcauslan@cbexchange.com

FHA Financing - First Steps!

Federal Housing Administration (FHA) loans are the next big thing in real estate financing. The reason? These are the only low downpayment loans that have survived the turmoil of the lending world. First time buyers are particularly fond of these since they require only 3.5% downpayment. For that, you pay a slight premium usually in the form of a slightly higher interest rate, but for some buyers this type of loan is the only option.

The issue we run into with FHA loans is that the property has to actually qualify for the loan. This gets troublesome at times, especially in the condo world.

If you're going to be getting an FHA loan and you're interested in buying a condo, you have two options:

• Only look at condo buildings that are fully FHA approved
• Only look at condos that might qualify for FHA spot approval

The building management company can usually tell you if the building is FHA approved, or you can search online for approved buildings at https://entp.hud.gov/idapp/html/condlook.cfm.

If the building is not FHA approved, there are a number of criteria the condo itself must meet in order to get a spot approval on the individual unit. Without going through the entire spot approval process, you should start by finding out:

1) Does the condo association hold the Right of First Refusal? If they do, this condo will not be able to get an FHA spot approval. Skip it. On the flip side, if you're trying to sell your condo in a building that has the first right of refusal, you might consider talking to the association to see if they can change this rule in the condo by-laws. This might open the market for you and draw a larger buyer pool to your condo. But do this right away - because changing the by-laws might require getting past some red tape and take a little time.

2) What percentage of the condos in the building are owner-occupied versus rented? The building must be at least 71% owner occupied in order to be considered for an FHA spot approval. So if you're interested in a building full of renters and you're getting an FHA loan, forget it. Move along to the next building.

If you'd like help finding FHA approved condos, I know many in the Chicagoland area and am happy to help. Contact me anytime!

My Next House

"America's First Green Mansion", located Manalapan, Florida:

• 1.6 acres of gardens
• 15,000 square feet of mansion
• 7 bedrooms
• 11 baths
• Featuring: an aquarium wet bar, waterfall spa, floating sun terraces, bedroom ocean views you could only dream to witness, and more!

And the green factor -- it's entirely energy self-sufficient!

How does a 15,000 square foot mansion provide enough energy to power itself entirely? Well... it probably helps to have enough solar panels to cover two basketball courts, and a water system that collects enough runoff to fill a swimming pool twice a month, and environmentally conscious lighting system that also takes advantage of natural light.

Really?

I honestly sometimes wonder about some agents. The other day I tried to show a condo. The listing agent gave me the lock box code so that I could get the key to show it (unit #2); she warned me that the lock box was sticky and I'd have to mess with it a couple of times to get the key out.

So I drive Zack to the property to show it to him and the lock box is definitely stuck. So stuck, in fact, that neither of us could get the key out even after trying for close to 5 minutes. I called the listing agent to no avail - all I got was her voicemail. There was definitely no way we were going to be able to see unit #2.

Luckily we were taking a look at another unit (unit #3) in the building so it hadn't been a complete waste of time to drive there. The listing agent for unit #3 actually met us there to let us in. I told her that I'd tried to show unit #2 and couldn't get the key out. She told me that she wasn't surprised - many people had told her that; she didn't think unit #2 had ever actually been shown because no one could get in and unit #2's agent never returns calls or has even tried to put on a new lock box. Really?? I can not believe it when I hear things like this - if that was my listing, you better believe I'd have a brand spanking new lock box on that unit before you can say the words "lazy agent". No, wait, I wouldn't even have done that - I would have personally accompanied every showing to be sure that the buyers can get in to see the unit!

Meanwhile, the poor owner for unit #2 has had his property on the market for over 200 days. And in that time, the price has been reduced and reduced and is now down to $209,000. And the worst part is, I'm sure he has no idea that his agent is not actually even showing his property.

And here's another kicker... I see photos like this all the time on listings. Really? As if in the age of digital cameras, you couldn't take the time to snap ONE MORE decent shot of the building without your finger covering the lens?