WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today that people purchasing a Fannie Mae-owned HomePath® property will receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010.
"Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home."
Properties eligible for this incentive are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3 percent down
President Barack Obama has signed legislation extending the $8,000 first-time-homebuyer tax credit beyond its scheduled Nov. 30 expiration and creating a $6,500 credit for longtime homeowners who buy new homes. With thousands of dollars at stake, it's not surprising that potential homebuyers have lots of questions. We have the answers.
It's simple: The old credit was scheduled to expire Nov. 30, so folks who hadn't already signed a contract faced a daunting task to get a deal closed by the deadline. Some in real-estate were writing provisions into contracts making the purchase contingent on the deals closing in time for buyers to get the credit.
Under the new law, the credits are available to qualifying buyers who sign a binding contract by April 30, 2010, and who close by June 30, 2010. The two-month period should offer plenty of time for last-minute buyers to get to the closing table.
Are the rules the same?
No. There are a few differences that apply to deals closed after Nov. 6, the day Obama signed the bill. First, the similarities:
Now for the key differences:
How does the new $6,500 credit work?
This credit is available to qualifying buyers who sign a binding contract by April 30, 2010, and who close on a new home between Nov. 7, 2009, and June 30, 2010. To qualify, you must have continuously owned and lived in a home for at least five of the eight years leading up to the purchase of a new home.
If you have owned and lived in your current home for at least five years, for example, you can qualify. If you bought the home you're living in now less than five years ago, however, you won't qualify.
The credit is 10% of the purchase price, up to $6,500. As with the first-time-buyer credit, this one is available only for the purchase of a principal residence, not a vacation home or rental property. And if you sell the place or move out within three years, you have to pay back the credit on your tax return for the year you sell or move. Homes that cost more than $800,000 are ineligible for the credit.
Income-eligibility rules are the same as for the first-time-buyer credit. The right to claim the credit disappears as adjusted gross income rises between $125,000 and $145,000 on a single return and between $225,000 and $245,000 for married couples filing joint returns.
In a win for consumers, banks will have to secure customers' consent before charging exorbitant overdraft fees on ATM and debit card transactions, The Associated Press reportsIn other words: No more $35 charges against customers who accidentally overdraw their accounts for a $4 latte. The new Federal Reserve coomittee rules announced today require banks to notify customers of their overdraft services and give customers the option of being covered. If customers don't "opt in," any debit or ATM transactions that overdraw their accounts will be denied. The changes take effect July 1. Overdrafts fees for checks and electronic payments are not prohibited by the new rules.
Fed officials say banks earn as much as $25 billion to $38 billion annually from overdraft fees, the AP reported. That total includes check overdrafts."The final overdraft rules represent an important step forward in consumer protection," said Ben Bernanke. "New and existing account holders will be able to make informed decisions about whether to sign up for an overdraft service."
Legislation Headed to President Obama's Desk
WASHINGTON — The Senate and House are poised to agree on a compromise measure to extend unemployment benefits that also would expand a popular $8,000 tax credit for homebuyers, despite a recent government report on extensive mistakes and suspected fraud in the program.
The latest on President Obama, his administration and other news from Washington and around the nation.
The Senate might pass its version as early as Wednesday, and aides to Congressional leaders say the House could accept it this week, sending the bill to President Obama to sign into law. After weeks of partisan delay in the Senate, Democrats are eager to show progress before Friday, when the October jobless report is again expected to show high unemployment.
The homebuyers’ credit — enacted last year, expanded this year and scheduled to expire Nov. 30 — would be extended to cover homes under contract by April 30. Also, it no longer would be limited to first-time buyers; people who have owned a home for at least five years could get a $6,500 credit on a new residence. Income limits for eligibility would be raised, making many more people qualify.
Extending and expanding the credit would cost an estimated $11 billion, on top of the $10 billion spent so far. It would be a big victory for the housing and real estate lobby and for the Senate majority leader, Harry Reid, Democrat of Nevada, who faces a tough re-election race next year in the state with the most claims for the credit per capita.
Critics complain that most of the credits go to taxpayers who would have bought their homes anyway, which even the industry acknowledges. Also, a Congressional subcommittee released a Treasury Department report last month about suspected criminal and civil abuses of the program.
Government officials testified, however, that many of the problems may be due to confusion among taxpayers and the Internal Revenue Service about the overlapping 2008 and 2009 versions of the tax credit. With Congress likely to change the eligibility provision again, the new measure could present further administrative problems for the I.R.S., although the measure does include several new safeguards.
“It’s not unreasonable to think that this is going to provide some further challenges for them, both in terms of implementing a third version of it and in terms of ensuring taxpayers’ compliance,” said James R. White, director of tax issues for the Government Accountability Office.
The Treasury Department report said that as of Sept. 30, the I.R.S. had identified 167 suspected criminal schemes and was examining nearly 107,000 cases of potential civil violations.
While real estate groups and some economists say the credit has helped stabilize the housing market, critics say it is too costly a subsidy when low interest rates and home prices are incentives enough for most.
Of the 1.4 million claimants of the credit, fewer than a third — about 350,000 to 400,000 — are believed to have bought their homes because of the credit, according to independent and industry-affiliated economists.
Under the new legislation, individuals with income up to $125,000 a year and couples earning up to $225,000 would be eligible. The current income limits are $75,000 for individuals and $150,000 for couples. Under both the House and Senate versions, smaller amounts are available to people of slightly higher incomes until the credit phases out.
The expanded homebuyers’ tax credit was attached to a bill intended to extend unemployment compensation for up to 20 weeks for people who have been out of work for long periods. Another amendment would sweeten a tax break for businesses with net operating losses in 2008 and 2009.
WASHINGTON — Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.
The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit.
Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.
The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.
Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash.
Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening.
Popular bills like the one to extend unemployment benefits often attract amendments that would have a difficult time passing on their own.
Republicans were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group ACORN and on requiring that people receiving unemployment insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires.
Majority Democrats have refused to add the amendments.
If the Senate passes the bill, it would go to the House, which passed a similar bill extending unemployment benefits last month. House leaders have also said they support extending the tax credit for homebuyers.
Sen. Chris Dodd, D-Conn., has been negotiating for several weeks with Sen. Johnny Isakson, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate.
Lawmakers didn't release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion.
Industry representatives said uncertainty about the tax credit is hurting new home sales. September's decline was the first since March.
It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors.
"Buyers right now have an incentive to hold off, not knowing whether the credit will be extended," Salvant said.
About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
The tax credit for money-losing businesses is a favorite among Republican lawmakers. Businesses could get tax refunds by using losses from 2008 and 2009 to offset taxable profits made in the previous five years. Under current law, they can only offset profits from the previous two years.
The provision would help a variety of industries, including retailers, manufacturers and home builders, though it's expensive.
"It's clearly a way to put cash in the hands of some major economic players," said Clint Stretch, a tax policy expert at Deloitte Tax.
A similar proposal that was ultimately dropped from the economic stimulus package enacted in February would have cost nearly $20 billion over 10 years. Lawmakers are working to reduce the price tag.
Because people are so strapped for cash, this is a good way to get refunds when businesses need them for operating expenses, said Rachelle Bernstein, vice president and tax counsel for the National Retail Federation.
As many of you know my youngest son plays the coolest game on earth. He plays for a local ice hockey organization called the Houston Wild. This team is made up of 10 year old kids from across the Houston metro area.
They mainly travel up to Dallas and take on very stiff competition as Dallas has about 5,000 kids age 8-18 playing hockey where as Houston has about 500 in the same age range. At the Dallas Labor Day Tournament this team came in 2nd out of 15 teams in there bracket and was just invited to a very prestigious tournament over Presidents Day, in Colorado Springs,Co. because of how they are doing. The tournament is invitation only and will have about 20 teams from across the United States in attendance.
Link to tournament: http://www.csaha.com/tournament/pday/pdthome.asp
The team had already scheduled a golf tournament for November 22, 2009 and several of you have responded with much help and we thank you.
We still have plenty of room for those who want to put together a team or maybe do some sort of sponsorship. With an invitation from a tournament of this magnitude fund-raising work becomes even more important.
for more information http://www.securemtgonline.com/GolfTournament
Not only are we doing a golf tournament but the parents also work at the Toyota Center to make a percentage of the profits to help with fund-raising. We have also started a turn in your electronics program, so if you have some unwanted electronics laying around go to: http://hockey_tech.gazelle.com
I mean, these numbers are tossed around like kids baseball or football.
So lets take a look at it and we will start with a $100 dollar bill. It's the largest U.S. denomination in general circulation.
Everyone has seen a $100 bill.
They're also guaranteed to make friends wherever you go!
A packet of one hundred $100 bills is less than 1/2" thick and contains $10,000.
It's fits in your pocket easily and is more than enough for week of shamefully fun.
Believe it or not, this next little pile is $1 million dollars (100 packets of $10,000).
You could stuff that into a grocery bag and walk around with it.
While a measly $1 million looked a little unimpressive, $100 million is a little more respectable.
It fits neatly on a standard pallet...
And $1 BILLION dollars... now we're getting somewhere...
Next we'll look at ONE TRILLION dollars.
This is where our national debt is right now.
What is a trillion dollars anyway?
Well, it's a million million. It's a thousand billion. It's a one followed by 12 zeros ($1,000,000,000,000)
You ready?
Wait till you see this!!!
Scroll down...I give you $1 trillion dollars...
Almost there...
(And notice those pallets are double stacked and the little man in the left hand corner.)
So the next time you hear someone toss around the phrase "trillion dollars"... that's what they're talking about.
Even though each home and home buyer is unique, the same mistakes are made over and over again when making a purchase. This special report will point out seven of the most common mistakes made during home buying and how to avoid them.
Buying a home is one of the most exciting events in a person’s life, whether it’s the first home or the fifth one; however, it can also be one of the most stressful. Purchasing a home should be regret-free and anxiety-free.
Learning to avoid these 7 most common mistakes when buying a home can help lower your stress and help you focus more easily on possibly the single largest purchase of your lifetime.
When you consider the scope of the purchase, it’s surprising how many people haven’t done sufficient research.
Research your buying power – It’s easy to get a cursory idea of what you can afford through some of the realtor websites. Many have calculators that allow you to input your salary and debts.
Better yet, sit down with a professional before you go house-hunting. You can find out exactly what you can afford in less than an hour with qualified mortgage consultant Christy Hempel.
When it comes to making an offer on a home, sellers are far more interested in offers that come from pre-qualified buyers. They know that the sale will in all likelihood go through and that there won’t be any unforeseen problems at the last minute. Secure Mortgage Company. offers clients a loan approval letter to present to sellers to verify their ability to close a loan.
How Much Can You Afford?
Answering these questions can help you find out how much house you can afford. Meeting with Christy you’ll also find out if you are eligible for any special mortgage packages or interest options.
Do you receive any yearly bonuses?
How much of your annual earnings is overtime?
How much is your annual salary?
What debts do you have outstanding?
Can you pay off any debts before buying a home?
How much do you spend?
What is your income tax bracket?
Do you have any expenses that will deplete your savings?
Do you have any “gift” money?
What’s your credit score?
Do you have cash for down-payment and closing costs?
There is danger in buying a home that’s not right for you because you are planning too far in advance.
Your life can change pretty dramatically in the space of a few short years. You may experience a change in health, family or financial status for example. While you can’t plan for everything, you do need to consider that you may have to sell the home unexpectedly in the not-so distant future, and the house must have some resale value.
It’s a big decision and only a foolish person would enter into it lightly. But it’s just as easy to let caution get the better of you. The real estate market isn’t fixed, it can change dramatically.
Some markets are very tight, with few homes available – a tight market probably won’t get better in the next year.
The National Association of Realtors estimates that the appreciation rate in most markets will be at least 4 to 6 percent.
Looking at everything before making a decision, it’s tempting to think that the grass is always greener somewhere else, but you may find that the first home is the best home for you.
If you wait, that home may not be available later. Don’t rush into a decision, but if a house feels right, contact a local realtor to help you make an appropriate offer.
If you develop microscopic vision when looking at a house, it’s possible to overlook far greater potential problems.
Interior Decorating - Don’t get caught up in decorating features. These are all easy features to change. However, the layout and floor plan of the home isn’t easy to change.
Exterior - It’s important to have a home with nice curb appeal, but again, you can change that later. It’s far easier to change landscaping than it is to rip out walls or add-on to a home to try and make it livable.
Price – Don’t focus completely on the price. Most buyers go out with an idea that they will only spend a fixed amount.
A budgeted amount is often the first criteria when it comes time to evaluating homes.
Many buyers focus on existing homes, and don’t consider newly constructed homes. It’s hard to see the final vision of a planned home community, especially when touring through a development that is merely empty lots and partially built homes.
However, these homes have great appreciation value, especially when you get in during the initial phases of the development, before the model homes have been built and the developer has invested a lot of money in marketing the community.
Many people start looking at homes by driving by a home for sale and getting the number off the sign, or visiting an open house.
While that’s a great way to get a feel for the market, it’s also easy to make a commitment to buying a home that doesn’t
necessarily reflect your best interests.
Working with a real estate agent can actually save you time and money.
Let’s say you found your dream home and put in an offer. What happens next?
If your sale follows most standard sales, the home is inspected and appraised; the information is shared with the buyer (via the agent) and the mortgage company. The mortgage company processes the loan agreement, the buyer and seller sign off and the home is yours!
However, in highly competitive markets, some buyers waive the home inspection so that the loan can go through more quickly.
So what’s the problem? If there are defects that the homebuyers discover later, they have no recourse – the house is theirs, warts and all.
In a nutshell, be patient. It’s at this stage, when people try to rush the process, that some of the biggest and most costly mistakes can take place.
Mortgage Consultant Contact | Home Page | Apply Now | Home Mortgage Calculators | Houston Real Estate Blog | Foreclosure Listings
Copyright © 2010 Secure Mortgage CompanyPortions Copyright © 2010 a la mode, inc.Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map
