Buy a House Fast

Home buyers and homeowners can still benefit from significant tax credit advantages thanks to the Economic Stimulus Package that the Obama government passed in 2009. What’s more, if you’re a first-time home buyer, and have bought a house in 2009, or plan to buy one before April 30, 2010, the housing stimulus can provide a refundable tax credit of $8,000.

So if you’re planning to buy a home and want to save money – your timing couldn’t be more perfect!

To understand the qualifications and implications of this package, read on!

1. Who is a first-time home buyers? – The law defines it as a home buyer who has never owned a home, or has NOT owned a principal residence (rental houses don’t count) for the last three years. If you are married and plan to buy a home together, you will be eligible only if both you and your spouse are first-time home buyers.
2. By when do you need to buy your house? – Originally, to qualify for this tax credit benefit you should have purchased your house between January 1, 2009 and December 1, 2009. It has now been extended to benefit buyers who sign a contract by April 30, 2010 but close the deal before June 30, 2010.
3. Does income matter? – Apparently it does. To qualify, buyers must make LESS than $75,000 for singles or $150,000 for couples. If you belong to a higher income bracket, you may receive a partial credit.
4. How much tax credit will you get? – Despite being called the $8,000 housing tax credit, it is important to note that NOT all home buyers will receive the same amount. The tax credit is calculated at 10% of the purchase price up to the maximum of $8,000. This means that in order to avail of the whole $8,000 as tax credit, your house should stand at a property value of more than $80,000.
5. How does this work? – There is a difference between a tax credit and a tax deduction, this one being the former. An $8,000 credit means reducing this amount from the total tax owed to the IRS and NOT just your total taxable income. Besides, being a refundable tax credit – if your total taxes owed to the IRS are less than $8,000 you can get a refund for the balance amount!
6. How is this different from the $7,500 tax credit? – The $7,500 housing tax credit was more like an interest free loan for 15 years – which has to be repaid by the home buyers. The $8,000 tax credit on the other hand does NOT need to be paid to the IRS. Yes, it is yours to keep!

With so many incentives to buy a house, you really want to take advantage of this law, if you can. If you’re really looking to buy now, you should hurry up with the process – April 30 is just around the corner!

Looking for the perfect affordable home in the DC area, including Maryland or Virginia? Express Realty Services has a great selection of homes to fit your budget. We can even show you our latest remodeled and renovated homes from our sister company, Express Homebuyers!

Just call Express Realty Services at 1-877-9EXPRESS (1-877-939-7377)

If you’re like most soon-to-be new homeowners, just waiting for your house to close, it’s not uncommon to feel preoccupied with projects you can do and things you need to buy to make your DC area home just right. Sometimes it’s just the carpeting that’s too good to wager the seller into a replacement, but it’s ugly or doesn’t match your furniture.  Or maybe you simply have no intention of moving your hand-me-down kitchen table or refrigerator into your new home.  Your inclination is to hit Sears, Lowe’s, or Bonzo’s Carpet and Tile so you can get your hands on all the state-of-the-art gadgets and appliances to match the standards of the new move-in. That’s how it should be, right?

You might be tempted to just pull out your credit card and charge the purchase, or perhaps push it onto a new account.  The plan is to have the installers on their way as soon as you have the keys.  Perfect, right?

Or maybe you need a new car.  You have budgeted for it, but wanted to have your mortgage loan approved before you made the deal.  Good strategy, correct?

Wrong, wrong, wrong! Fannie Mae’s new rules go into effect June 1 (though lenders have the discretion to put them into play at once) that require lenders to pay more attention to changes in your credit report from the day you applied until the day you close.  They must refresh your report to see if your credit balances have changed or if you have acquired a new debt.  They must even check out credit inquiries to see if you succumbed to that persuasive furniture salesman and are obligated to pay back a ‘new’ loan.  Lenders now have access to new fraud detection tools that can determine if you are trying to work around the system or if you have undisclosed debt.

For some borrowers, a bit of additional debt might not make much of a difference, but for most people, it could delay closing. Worst case?  The bank decides against approving the loan, altogether.

If you are buying a home, be forewarned and plan accordingly.  Pay cash for what you need!  If you want to preserve your cash until after closing, wait until then to buy.  If you really can afford the new purchases or the new car payment, or want to take advantage of a 30-60-90 deal or deferred billing, wait till you have the keys in hand.  Don’t even let the store run your credit to see if you qualify.  If you need carpeting installed or want some other project completed before you move in, plan a little slack in your moving schedule.

As exciting as the offers around may seem, you might want to gauge and rethink giving your new refrigerator a home, before you’ve closed on yours!!

Looking for the perfect affordable home in the DC area, including Maryland or Virginia?  Express Realty Services has a great selection of homes to fit your budget.  We can even show you our latest remodeled and renovated homes from our sister company, Express Homebuyers!  Call today or visit the Express Realty Services website.