Now Is The Time To Buy

Friday, December 05, 2008

by Ellen Bithell, CRS

This week we have Justin Miller from Resource Mortgage Group as a guest blogger to keep us updated on the ever changing mortgage market and the options that are available out there!

Ellen Bithell, CREO, CRS

SELLING SOUTH FLORIDA

Click Here For A Free MarketSnapshot

With 2009 approaching very quickly it is important to remember if you are looking to buy a home, now is the time to do it and this is why:

Effective for all FHA case numbers assigned on or after January 1^st, 2009 FHA will be increasing their required down payment from 3% to 3.5%.
In order to get your Homestead Exemption in for 2009 you will need to have purchased the property prior to January 1^st, 2009. This is very important especially if you are looking to purchase a foreclosure. Foreclosures tend to have a high tax rate b/c the seller most likely purchased the property for much more, the property was assessed based upon that value, and it may not have been a Homestead property. If you purchase after the 1^st of the year your property won’t be reassessed based upon that purchase price until the end of 2010 or beginning of 2011 and you will not get your Homestead Exemption until the end of 2010. Remember, property taxes in Florida are paid in arrears. Feel free to visit http://www.bcpa.net/homestead.asp to find out more information on how it works and your savings.
If you are a first-time homebuyer and eligible for the first-time homebuyer’s tax credit you must purchase a property before the 1^st of year to claim that on your 2008 tax returns. If you purchase after the 1^st of the year you will not get this credit until you file your taxes in 2010 for 2009. Here is how the tax credit works:
- Please make sure to consult your CPA/Accountant.
- It is an interest free loan for 15 years.
- The amount of the tax credit is $7,500 or 10% of the purchase price, whichever is lesser.
- Must not have owned a home within the past 3 years.
- The income requirements are as follows:
  - If you are single and made less than $75,000 you will get the full credit. It is phased out up to $95,000
  - If you are married and made less than $150,000 you will get the full credit. It is phase out up to $170,000.
- It is for purchase transactions that occurred on or after April 9, 2008 and on or before June 30, 2009.
Rates are extremely low due to the Fed agreeing to purchase up to $600 billion in mortgage-backed assets.