Sound Mortgage Planning Blog

Here are the highlights for the newly extended First-Time Homebuyer Tax Credit per H.R. 3548, dated November 4, 2009:

• Extended to May 1, 2010
• Must be under contract before May1, 2010 and the purchase must be completed before July 1, 2010
• Homebuyers that have occupied a principal residence for any 5-consecutive-year period during the 8-year period ending ont he date of the purchase of a subsequent principal residence, such individuals will be treated as a first-time homebuyer.
• Long-time residents of same principal residence will be eligible for $6,500 if single or married filing jointly, if married and filing separately $3,250.
• Higher income limits to $150,000 for a single person and $225,000 for married couples.
• Maximum purchase price of a principal residence is $800,000.

Extension of First-Time Homebuyer Credit for Individuals On Qualified Official Extended Duty Outside the United States

Qualified Official Extended Duty applies to: a member of the uniformed service; a member of the Foreign Service of the United States, or; an employee of the intelligence community.

• must have served outside the United States for at least 90 days during the period beginning December 31, 2008, and ending before May 1, 2010, and, if married, such individual's spouse.
• must be under contract by May 1, 2011 and have purchased by July 1, 2011.

Provisions to enhance the Administration of the First-Time Homebuyer Tax Credit

• Minimum age is 18 years as of the date of purchase.
• If the taxpayer is married, the taxpayer shall be treated as meeting the age requirement if the taxpayer's spouse meets the age requirement.
• Must include the settlement statement used to complete the purchase. (This can be obtained through your loan officer or through the escrow company.)
• Waiver of recapture rule for any purchase of a principal residence after December 31, 2008.

I hope this has been helpful. Please contact me if you have additional questions.

As a mortgage professional, it is my responsibility to alert you to market conditions that you can both take advantage of or alert you to when certain conditions exist. Now is one of those times. If you are thinking of restructuring your mortgage, do it now. Rates are poised to rise, a lot!

Just as your financial advisor or CPA subscribes to services to assist them in shaping the advice they offer you, I do the same. One of the tools I use to help me protect you and your financial assets is RateWatch. RateWatch tracks and monitors real time mortgage backed securities (MBS) prices which in turn impact the rates I have the ability to offer you.

I won't overwhelm you with technical information but I would like to show you a chart to explain why I am reaching out to you.

Below is a chart showing prices of one Mortgage Backed Security (MBS). The first thing to keep in mind when viewing this is that the higher the markings on the charts, the lower the rates I have the ability to offer you.

We've added staff,

created streamilined processes,

and all of this is for you!

We want you to receive the

highest level of service available!

There are 27 days remaining to take advantage of the first time home buyer tax credit and this doesn't take into account weekends.

If a first time home buyer were to meet with us by November 11th, 2009, we can still close their purchase in time as long as they provide their information in full and provide all documentation up front.

This would mean the borrower must provide the following documentation on day one:

• Copy of Identification (driver license/state issued id, military id and social security card if needed)
• 2-months account statement for all asset accounts that funds to pay closing costs and/or down payment will come from. (all pages)
• Tax returns with W2s for most recent 2 years (all pages)
• Most recent pay stubs covering last 30 days
• Names and addresses of each employer for the most recent 2 years of employment
• Landlord contact information for the past 2 years

Additional items will be required depending on the circumstance:

• Bankruptcy
• Copy of Bankruptcy papers (all pages)
• Paying/receiving child support and/or spousal support
• Copy of child support order and/or spousal support order
• Receiving disability income
• Copy of award letter

There may be other items needed and that will be discovered at the time of the interview.

The need for these items up front is to identify any potential obstacles that could delay a speedy closing and to ensure a solid approval.

NOTE: There are some loan programs that cannot close quickly enough to meet the November 30th deadline, but most can and those are the programs that we are speaking of.

Our goal is to close the transaction as quickly as possible so you or your referral can take advantage of the first time home buyer tax credit.

Call today or complete an application while you are visiting my website.