Snatching the last chance at the Tax Credit

Tick, Tock, Tick, Tock... a few of you are still trying to get into contracts by April 30th to lock in that magic home buyers tax credit.... but are you finding it's hard?  I bet you are.  Many price ranges in the Northern Virginia area are really, really competitive.  So, what are you going to do?

Well, my experience is that few buyers put in 'back up' contracts on houses they like....I guess they don't like being second best.  Fair enough, I guess.  But, in this case, if you're trying to lock in that tax credit, you might want to re-consider.

If you're in a ratified contract (make sure you know exactly what this means) by April 30th, and proceed to settlement by June 30th, and you otherwise qualify, then you should be able to get your tax credit. 

I am recommending that my buyer clients consider taking second position in a back up contract (carefully worded) for a home they would like to buy, and then continuing to look for something that is more readily available.  If you find something else, great, you can withdraw that 'back up' contract.  But, If something on that primary contract falls apart (and they do fall apart more often than sellers or agents would like), you'll be assured the opportunity to buy that home you liked before it is marketed again to the open public. 

Plus, if you ratify a back up contract by April 30th, and then the 'primary contract' falls apart in May, and you buy that house and settle by June 30th... guess what?  It may be the 'trick' that puts an extra few thousand dollars in your pocket. 

It is much better than saying to that listing agent "call me if something falls apart"... if it falls apart in May, and you didn't have a ratified contract in APRIL, you may have just left money on the table.

Be strategic all about all aspects of your real estate transaction, and make sure you've hired a buyers agent who is advising you of strategies to save you every penny possible. 

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PLEASE NOTE: I am not a tax advisor, this is real estate advise and not tax advise.  Before relying on the information contained in this post, be sure to check with your professional tax advisor or CPA, or contact the IRS for confirmation.

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Need real estate assistance? I can help!

Vicky Chrisner

http://www.vickychrisner.com/

Ofc: 703-669-3142

On Facebook: Look for "The Real Estate Whisperer"

Special Home Purchase Program for Loudoun County Employees

Although it is not well publicized, there is a special program for Loudoun County employees (including LCPS employees) to assist them with purchasing a home. It is done in the form of a low interest, FORGIVABLE loan.  That's right, I said forgivable, meaning that you might not need to pay it back at all.

Highlights:

• Amounts of $5,000 to $25,000 are available (depending on the property purchased).
• Program is available to FULL OR PART TIME employees, so long as they are beyond their probationary period.
• Program applies to first time buyers, or those moving into the county are eligible.

Loan is forgivable at 20% per year, so long as the employee meets the following criteria:

• Remains employed by the county.
• Continues to occupy the property as a primary residence.

If the employee meets this criteria for 5 years, the loan is forgiven in full.  Otherwise, the loan is charged a 5%  interest rate, and is to be paid from the proceeds of the sale (if the property is sold) or as a normal mortgage payment amortized over 27 years, but with no payment due for the first 4 years.

If you qualify, and you're thinking of buying a home, this may be an amazing opportunity.  Adding this to the current tax credit (up to $8,000) and the incredibly low interest rates currently available (but not expected to stick around long - Click here to see article from the Wall Street Journal , you could really be missing the boat by not acting NOW.  

Want details and to find out if you qualify?  I am available anytime:

Vicky Chrisner * REALTOR

Keller Williams Realty * Leesburg, VA

Ofc: 703-669-3142

Email: VChrisner@KW.com

VHDA's Got Your Down Payment - The Time to Buy is Now

The Virginia Housing Development Authority has rolled out a new program allowing qualified buyers to use their expected tax credit (max of $8,000) toward the down payment or closing costs when they purchase a new home. The program is called VHDA FHA Tax Credit Plus. This potentially could mean no money down loan options for some.

Buyers must meet all requirements for the VHDA FHA loans, including the income and sales price limits imposed on all VHDA loans, which means a household of 3 can not have income that exceeds $100,000; and the sales price of the home can not exceed $408,000.

The buyers must also qualify for the First Time Home Buyer tax credit which will be in the amount of 10% of the purchase price up to a maximum of $8000. A reduced tax credit is available to buyers whose income exceeds $75,000 (single filers) or $150,000 (joint filers).

The use of the tax credit will actually be done as a 2nd trust. It will be payment, interest and penalty fee for the first 12 months. If not paid by that time, the trust will convert and be amortized over the remaining 29 years at the same interest rate as the primary trust; with no penalty. With this program, VHDA is actually making it optional to pay the second trust off or just starting making the 2nd mortgage payment.

Please note the tax credit expires November 3oth, if you are thinking of buying, now is the time!

For more information about how to take advantage of today's real estate market, please contact me.

Vicky Chrisner

Keller Williams

703-669-3142

vchrisner@kw.com

http://www.vickychrisner.com/

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Special note: This is different from earlier guidance received. For practioners, please note that the funds MAY be used toward the down payment (not just closing costs as previously thought). This is because VHDA is a qualified non-profit, and is therefore exempt from the mortgagee letter that required maintaining the minimum investment of 3.5% on all FHA loans.