Buy or rent? When renters should buy

Buy or rent? When renters should buy

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FOR RENT FULLY FURNISHED - MOVE IN TOMORROW

For Sale or Rent or even Lease with Option to Buy

STATED INCOME LOANS , RATES IN THE 6s and 7s

STATED INCOME LOANS , RATES IN THE 6s and 7s!!!!!

Non-Owner Occupied SFR 2-4 Units   Loan Amount $300,000 - $3,000,000 Maximum Loan Amount Purchase Rate / Term Cash-out $1.0 Million 55% 45% $1.5 Million 55% 45% $2.0 Million 50% 45% $2.5 Million 40% 40% $3.0 Million Call Call

Notes · Credit profile must be excellent,  Credit profiles less than excellent may be considered with  extenuating circumstances. · No Limit on number of Properties Financed. · Generally, a FICO of 680, but exceptions are considered. · Stated Income must be reasonable and consistent with the borrowers; profession, industry, or field of work. Liquid asset should be consistent with the income stated. · Subordinate financing may be considered on a case-by-case basis. · Exceptions made on case-by-case basis.

 

CAMILO MORENO

Mortgage Professional

Purchase Money Specialist

Great western Bancorp Inc.

6033 W. Century Blvd # 700

Los Angeles CA 90045

310 216 1700 ext 116

310 216 1750 Fax

www.gwbmortgage.com

 

 

 

 

 

First-Time Homebuyer Credit Continued, New Seller Credit Created

First-Time Homebuyer Credit Continued, New Seller Credit Created

 

 

President Obama has signed HR 3548, the Worker, Homeownership, and Business Assistance Act of 2009, legislation which should help FHA borrowers — but legislation which is likely to be re-done early next year.
When last we left off with the first-time homebuyer tax credit, first-time purchasers could get as much as $8,000 in yummy tax reductions if only they would please, please buy a home and buy one before December 1st. Most importantly, buyers in 15 states could — in some cases — actually borrow with an FHA mortgage and buy with nothing down.
With December 1st soon upon us, the government responded in two ways — it extended the deadline until April 30th AND it improved the benefit. What is did not do was increase the first-time write off to $15,000 from $8,000 as some in the real estate industry wanted.
Okay, so what’s really new here?
Current Buyers
The first-time homebuyer credit is no longer just for first-time homebuyers — think of the term “mission creep.” The program has been expanded to include many current homeowners as well.
The deal for current homeowners works this way: If you have owned a home for five consecutive years out of the last eight and purchase a new principal residence between November 7, 2009 and April 30, 2010, you can get a tax credit of up to $6,500
Income
One of the qualification factors under the 2009 credit was that you could not have an income of more than $75,000 if single or $150,000 if married. The new rule increases the income limits to $125,000 for singles and $225,000 for joint filers to get the full write-off. (You can get some credit — but not the entire credit — with an income of as much $145,000 if single and $245,000 for couples. Above that, nothing.)
In essence, what this does is to open the program to buyers who are looking for more expensive homes and will max out the tax credit. However, the value of the property cannot exceed $800,000.
When
To qualify for the new first-time credit you must purchase between November 7, 2009 and April 30, 2010. However, by “purchase” the government means having a signed contract in hand — you can actually close as late as July 1st, 2010. If you have any concerns regarding deadlines, check with your broker and the IRS.
Which Homes?
Basically the new credit applies to just about any prime residence — think of single-family homes, condos, townhouses, and co-ops. Be sure to first check with the IRS if you plan to claim something unusual as a first-time home — a boat, a trailer on wheels, etc.
How Long?
As before you have to keep the property for at least three years — otherwise you may have to give back the credit money to Uncle Sam.
A lot of people have looked at the first-time homebuyer credit program and discovered that they do not qualify — after buying a home! Be sure to get a copy of IRS Form 5405 and check out related information on the IRS site before considering the credit.
Because the legislation only extends the benefit until April 30th, look for another piece of legislation next year to extend the credit for additional time.

 

 

CAMILO MORENO

Mortgage Professional

Purchase Money Specialist

Great western Bancorp Inc.

6033 W. Century Blvd # 700

Los Angeles CA 90045

310 216 1700 ext 116

310 216 1750 Fax

www.gwbmortgage.com

 

 

 

 

 

 

 

 

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First Time Home buyer Tax Credit Extended Into 2010!

Plus...A New Tax Credit for Certain Existing Home Owners!
It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.
In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.
Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.
What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.
What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).
Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.
Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.
• You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
• You do not use the home as your principal residence.
• You sell your home before the end of the year.
• You are a nonresident alien.
• You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.
Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.
Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.
Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

If you have any questions that fall outside the situations here, give me a call and if you do not have an accountant to speak with, I can refer you to one.

Michelle Bennett
Loan Officer
Bank of America
(818) 380-5220 direct
(818) 565-9456 cell
(818) 380-5101 efax
MichelleBennett914@gmail.com
www.facebook.com/michellebennett

"To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.”

Homebuyer Tax Credit Gets Final Congressional Approval

Homebuyer Tax Credit Gets Final Congressional Approval

Published: Thursday, 5 Nov 2009 | 2:38 PM ET

Congress took further steps to right the staggering economy by expanding a popular tax credit for homebuyers and extending unemployment checks for the growing legions of people running out of benefits with few job prospects.

The House passed the bill on a 403-12 vote Thursday, a day after the Senate ended a month long stalemate with a 98-0 vote. With some 7,000 people exhausting unemployment benefits every day and the $8,000 tax credit for first-time homebuyers set to expire at the end of November, President Barack Obama is expected to quickly sign it into law.

The $24 billion package also contains tax credits aimed at struggling businesses.

The IRS says some 1.4 million people applied for the homebuyers credit through August, helping enliven the moribund housing market. The legislation would extend the program through June of next year, as long as the buyer signs a contract by the end of April. It also offers a $6,500 tax credit to those who have lived in their current residence at least five years.

The measure doubles the income ceiling for eligible individuals to $125,000. Homes must cost less than $800,000 to qualify.

The nearly 2 million who have exhausted their unemployment benefits or face termination of benefits, usually about $300 a week, before the end of the year would receive 14 weeks of additional benefits under the bill. The unemployed in those states where the jobless rate tops 8.5 percent would get six weeks on top of that.

House Majority Leader Steny Hoyer said the bill would also help the economy because the unemployed quickly spend their checks on living necessities. "We help people in very bad straits and we help our economy and help us all."

All but 12 Republicans voted for the bill, although several took the opportunity to swipe at the Obama administration's efforts to produce new jobs. "Make no mistake, the unemployment benefits are no substitute for a good job,"said Rep. Kevin Brady, R-Texas.

The extension would be the fourth since June of last year and the first since the $787 billion stimulus package was enacted last February. The unemployed in the hardest-hit states could, once the bill becomes law, receive a maximum of 99 weeks of benefits, well above the previous record of 65 weeks in the 1970s.

Lawmakers said aggressive measures are needed because the unemployment rate, now at 9.8 percent, is expected to hover around 10 percent into next year and more than one-third of the 15 million unemployed have been looking for work for at least six months, a record.

The nation has lost 8 million jobs since the "great recession" began at the end of 2007, said Rep. Jim McDermott, D-Wash., a chief sponsor of the legislation. Even with the recession winding down, "we know it will take considerable time to restore those lost jobs."

"A stunning 600,000 workers ran out of jobless benefits in the past two months alone, and thousands more are projected to by the end of the year," said Christine Owens, executive director of the National Employment Law Project. "Workers need this extension, the economy needs this extension."

The bill only applies to those running out of benefits before the end of the year, and McDermott reminded his colleagues that Congress may have to revisit the issue before it adjourns for the year.

The bill would also allow businesses that have incurred losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years.

The two tax credits, each costing more than $10 billion over 10 years, are paid for by delaying enactment of a law giving international companies more leeway in how they allocate interest expenses between U.S. and foreign sources in determining tax liabilities.

The $2.4 billion cost of extending unemployment benefits is offset by extending through June 2011 the federal unemployment tax that employers pay for each employee.

The three measures would add $43 billion to the 2010 deficit and then be repaid over time.

 

CAMILO MORENO

Mortgage Professional

Purchase Money Specialist

Great western Bancorp Inc.

6033 W. Century Blvd # 700

Los Angeles CA 90045

310 216 1700 ext 116

310 216 1750 Fax

www.gwbmortgage.com

 

 

 

 

 

Tip of the Day!!!

Hi,   This is a pretty simple Tip of the Day,  but you’d be surprised how many times I’m asked this question,   so  I thought I’d send it out as a Tip   :o)   

 

 Question :  Property has an illegal garage conversion,   therefore the file cannot go  Conventional Financing. 

             Do you have any other advise of what we would require prior to close ?  

 

 

Answer:  If the garage is converted without permits, we are generally ok so long as the appraiser

                                  comments that it was done in a workmanlike manner and there are no health or safety issues.  No value can be given to the unpermitted garage (so no adjustments on the comp grid ).

 

Hope you find this information helpful, call me with any questions.

 

CAMILO MORENO

Mortgage Professional

Purchase Money Specialist

Great western Bancorp Inc.

6033 W. Century Blvd # 700

Los Angeles CA 90045

310 216 1700 ext 116

310 216 1750 Fax

www.gwbmortgage.com

 

 

 

 

 

FHA Loan Limits to Remain Same Through 2010

FHA Loan Limits to Remain Same Through 2010   Current loan limits for FHA home loans have been extended through the end of 2010. This move is expected to help ailing US housing markets by extending the availability of FHA loans to homebuyers and homeowners in higher priced markets. FHA loan limits are based on 125 percent of local median home value, and vary by location. With the demise of sub prime lending, FHA plays a significant role in providing home loans for borrowers who cannot meet conventional mortgage lending requirements. Challenges can include: Moderate income: FHA allows higher housing expense to income (31 percent) and debt to income (43 percent) ratios than conventional mortgage lenders. Thee ratios, sometimes called front-end and back-end ratios, are determined by dividing borrowers’ estimated housing expenses by gross income, and dividing total installment debts by gross income. FHA also allows non-resident co-borrowers (such as parents) to sign as co-borrowers for primary borrowers needing income assistance. FHA guidelines are generally more lenient than conventional lending requirements. Non-traditional income: FHA can accommodate borrowers with cash based income and small business owners who deal mostly in cash. Income verification is required, but FHA provides more options for verifying income than conventional loan requirements allow. Bad credit: FHA guidelines allow borrowers to carry more debt than conventional lenders, and also qualify borrowers with bankruptcy filings a minimum of two years prior to applying for an FHA loan and foreclosure occurring a minimum of three years prior to applying. FHA does not require a minimum credit scores, but instead focuses on borrowers’ demonstrated ability to make mortgage payments. Low down payment: FHA loans require as little as 3.5 percent down for home purchases, and down payment funds can be provided by family members, employers and housing assistance programs. The source of down payment funds is subject to verification, but FHA loan requirements are “friendly” toward first time buyers and others with low cash reserves. FHA guidelines allow for closing costs and the up-front mortgage insurance premium to be added to the home loan amount; borrowers may also elect to pay higher mortgage rates and have their lenders pay closing costs. Rehab loans available: FHA can provide mortgage loans based on a home’s potential value after it has been refurbished; this provides up front funding for renovation expenses. Ask FHA lenders for details, or check out basic fha guidelines for this program. Hope you find this information helpful, please call me with any questions or any financing scenarios your clients may have,   Have a great week!!!

 

CAMILO MORENO

Mortgage Professional

Purchase Money Specialist

Great western Bancorp Inc.

6033 W. Century Blvd # 700

Los Angeles CA 90045

310 216 1700 ext 116

310 216 1750 Fax

www.gwbmortgage.com