"Move-Up" Tax Credit

1. Who is eligible to claim the $6,500 tax credit?
   Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.
2. 
   What is the definition of a move-up or repeat home buyer?
   The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. That is, both spouses must qualify as long-time residents, with at least five years of principal residency for each. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
3. 
   How is the amount of the tax credit determined?
   The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
4. 
   Are there any income limits for claiming the tax credit?
   Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

New GFE & HUD-1

The feds now require a multi page GFE & HUD-1. It's intended to provide clarification of fees but expect a very confusing form. Make sure your escrow officer and Realtor are on top of any fee adjustments as it will now take longer to amend the GFE and likely required loan docs to be redrawn, causing a delayed close of escrow!

Just for fun: December 2008 & 2009 SOLD #’s

Marin County Single Family Residence SOLD
December 2008: 91
December 2009: 176

Marin County Condo’s/Townhouse SOLD
December 2008: 36
December 2009: 44

Sonoma County Single Family Residence SOLD
December 2008: 413
December 2009: 355

Sonoma County Condo’s/Townhouse SOLD
December 2008: 59
December 2009: 80

Big Banks, Short Sales, Kick Backs and Fraud

Here's an interesting online article from CNBC about naughty short sale practices. When will they learn? Here's the link: http://bit.ly/ssfraud

Is This The Start?

As we move further away from the holiday's sellers and buyers start to make decisions. Last week mortgage applications in the U.S. rose 14%, with refinancing up 22% and purchases up .8%.

How was 2009?

As we are in the New Year many friends have asked “how many sales did you do this year?” It was wonderful, 14 successful transactions this year. Pretty good in this market for sure. It’s funny though, I don’t think of what I do as “sales”. I naturally take the approach of helping families achieve their real estate goals by providing credible information, market stats and guidance they need to make informed decisions whether purchasing or selling. So yes, I did 14 transactions but I didn’t “sell” anything.

What does 2010 have in store for us? Well, hard to know but stats are looking up and we all hope for a continuing stabilizing market. I should have my Q4 stats and enewsletter to you by the end of January.

Until then – be good and don’t hesitate to contact me if you need anything.

Cheers,
Mike