Boynton Beach FL home loans, real estate loans, home finance information – Todd Dawkins, www.MortgageCreditCare.com

Florida Housing Market Repot

November 2009 Newsletter

December 3rd, 2009 11:23 AM

Homebuyer Tax Credit Extended With Changes

The House voted 403 - 12 on Thursday to extend and expand the first time homebuyer tax credit. The legislation to extend unemployment benefits to American workers also contained the provisions for the tax credit, was signed by President Obama on Friday.

The new tax credit is extended until April 30th, 2010. As long as a valid contract is signed by April 30th, 2010 - the actual closing on the house can happen up to July 1st, 2010 and still qualify for the tax credit.

Not only was the program extended but it was also expanded to include long time homeowners and increased the income eligibility limits for both first time homeowners and existing homeowners.

Here are the new changes:

Tax credit for first time homebuyers extended to April 30th, 2010.
Existing Homeowners that have owned a primary residence consecutively for at least 5 of the past 8 years are eligible for a $6,500 tax credit. This is meant to help those people who may have lost their home to foreclosure over the past 3 years or have sold there home and not replaced it yet. You do not have to sell your current home if you plan on keeping it for a rental property or a second home, as long as you move into the home your buying and it becomes your primary residence.
The income limits have been raised from $75,000 to $125,000 for single filers and from $150,000 to $225,000 for married couples. The credit gets phased out over these income limits.
The house purchased can not exceed $800,000.
Military personnel serving outside the U.S. for at least 90 days would have until June 30th, 2011 to take advantage of the tax credit.
You can not be claimed as a dependent to get the tax credit and must be at least 18 years of age.
The property purchased can not be acquired from a relative.
You must attach a copy of the settlement statement to your tax return to claim the tax credit.

These new changes should allow millions of people to qualify for the new homebuyer tax credit that were not eligable before.

But don't hold your breath that the tax credit will get extended again; Because we mean it this time!

To Your Financial Health,
Todd Dawkins

-------------------------------------------------------------------------------------------

Interest Rates

Friday's bond market has opened in positive territory following the release of weaker than expected employment figures. The stock markets are reacting relatively well to the news with the Dow up 10 points and the Nasdaq up 8 points. The bond market is currently up 8/32.

The Labor Department reported Friday morning that the U.S. unemployment rate spiked to 10.2% last month, reaching its highest level since April 1983. Analysts were expecting to see it move slightly to 9.9%. The number of jobs lost during the month stood at 190,000, which exceeded forecasts also. However, offsetting that variance was a downward revision of 49,000 jobs lost during September.

Still, the double-digit unemployment rate has many traders questioning the ability of the economy to maintain its recent growth. The recent weakness in bonds had pushed the yield on the benchmark 10- year Note above its recent trading range. This morning's news and buying gives hope that we may be able to crack that threshold and move lower. If we do, there is a fairly decent possibility of seeing further improvements to in the immediate future. This could mean lower mortgage rates over the next week or so.

Interest rates can move up or down very quickly. I will try to keep you updated if there are any big moves.

-----------------------------------------------------------------------------------------

Please check out my website www.MortgageCreditCare.com

---------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------

Mt. Rushmore from the Canadian side

Mt. Rushmore from the Canadian side
--------------------------------------------------------------------------------------------

Posted by Todd Dawkins on December 3rd, 2009 11:23 AMPost a Comment (0)

Subscribe to this blog