Effective Dates: January 1, 2009 - December 31, 2009
Amount of credit: Lesser of 10% of purchase price or $8,000.
NEW - Repayment: NO repayment for purchases between 1/1/09 - 12/31/09 (2008's credit had to be paid back over 15 years)
Eligible: First-time home buyers (haven't owned in 3+ years) whose gross income is less than $75,000 ($150,000 joint), purchasing a single family residence. Those with higher incomes may be eligible for partial credit.
Recapture: If the home is sold within 3 years of purchase, entire amount of credit is recaptured on sale.
Monday, February 23, 2009
Thursday, October 30, 2008
Buyers Buyers Buyers!
Right now is a great time to buy, especially if you're a first-time buyer. Here's why:
· $7,500 tax credit offered to first-time home buyers who close before 7/1/09
· 1st time buyer financing programs
· Low interest rates
· Large inventory of homes to choose from
· Motivated sellers = Better deals for you!
Contact me if you have any questions or would like to know more about any of the programs I mentioned. Email Kerry
· $7,500 tax credit offered to first-time home buyers who close before 7/1/09
· 1st time buyer financing programs
· Low interest rates
· Large inventory of homes to choose from
· Motivated sellers = Better deals for you!
Contact me if you have any questions or would like to know more about any of the programs I mentioned. Email Kerry
Wednesday, August 6, 2008
Housing Stimulus Bill- 2008 DETAILS
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
-Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
First-time homebuyer tax credit chart
-GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
-FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
-FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
-Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
-Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
First-time homebuyer tax credit chart
-GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
-FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
-FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
-Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
Thursday, June 5, 2008
Where McCain, Obama Stand on Housing (REALTORS Association)
As the race for the presidency shapes up as a contest between Sen. John McCain, the presumptive Republican nominee, and Sen. Barack Obama, who claims the Democratic nomination, here are their initial positions on housing and related economic issues.
McCain:
1. Proposes to spend up to $10 billion to allow some homeowners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Believes government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.
Obama:
1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help homeowners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.
McCain:
1. Proposes to spend up to $10 billion to allow some homeowners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Believes government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.
Obama:
1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help homeowners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.
Tuesday, May 13, 2008
WI REALTORS® Association 1st Quarter Press Release
Wisconsin Home Prices Fall Modestly as Sales Decline
Madison - Declining home sales nationwide and bad weather here in Wisconsin combined to drive state home sales down in the first quarter of 2008 compared to that same quarter in 2007, yet home prices fell only slightly, according to figures recently released by the Wisconsin REALTORS® Association (WRA).
Wisconsin home sales dropped 24.1 percent in the first quarter, which was somewhat higher than the rest of the Midwest region, which was down 18.3 percent. “It’s important to remember that bad weather always dampens home sales, and given the record snowfall this winter, we were expecting weak numbers for the first quarter,” said WRA Chairman Michael Spranger. “People don’t like to look at houses when the weather is bad, and the weather was definitely bad in January and February this year,” he pointed out.
Spranger noted that Wisconsin’s housing market started to improve in March, which means it’s likely that much of the spring sales activity has gotten pushed into the second quarter. “The good news is that market fundamentals remain solid, with 30-year fixed rate mortgages still around 6 percent, and statewide unemployment under 5 percent in the first quarter,” Spranger said.
Wisconsin’s median home prices fell by a modest margin (-3.8 percent to $154,000) in the first quarter of 2008 as compared to the first quarter of 2007. “We need to be careful interpreting changes in the median price given the rather sizeable change in sales volume, since it’s very likely that the mix of homes changed from year to year,” said Bill Malkasian, WRA President. “But it is healthy to see some price moderation.” Malkasian added, “The price change indicates that housing is becoming more affordable, while not significantly diminishing the asset value of homes. This remains an excellent time for first-time home buyers to get into the housing market given the low mortgage rates and the healthy inventories statewide.”
Looking ahead, the WRA released results from an online survey of top real estate offices from around the state, which showed broker optimism about the market for the balance of 2008. Fifty-two percent of survey respondents said they expected sales in the second quarter of 2008 to be at or above last year, and almost 73 percent said sales in the third quarter would be the same or better than last year. Sixty-eight percent of brokers in the survey also predicted buyer interest would be the same or higher than last year in the second quarter, while 88 percent of survey respondents said that sellers would be more motivated in the second quarter of this year than they were in the second quarter of 2007.
“Overall, it’s not surprising that it takes some time for buyers and sellers to get on the same page when market conditions change,” said Malkasian, noting that REALTORS® continue to work hard to bring the two sides together. “These survey findings do suggest that with highly motivated sellers, there are now some excellent opportunities for buyers,” he indicated.
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 17,000 real estate brokers, sales people and affiliates statewide. Sales estimates for the state are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county figures on sales volume and median prices are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted. Median prices are only computed if the county recorded at least 10 home sales in the quarter.
Monday, April 28, 2008
Wisconsin Home Prices Stable Compared to Nation
Wisconsin Home Sales Dip in 2007 But Prices Stable
State's housing news much better than nation
02/08 REALTORS® Association Press Release
Madison - Wisconsin housing sales decreased but prices increased in 2007, leaving Wisconsin’s real estate market in much better shape than many parts of the Midwest and the nation, according to the year-end analysis of existing home sales conducted by the Wisconsin REALTORS® Association (WRA).
Wisconsin home sales declined in 2007 by 10.8 percent relative to 2006, but median prices actually rose 0.2 percent over the period to $164,000, according to the REALTORS®’ report. Sales in the Midwest were also down by a similar margin, falling 10.5 percent over last year, but sales nationally were down nearly 13 percent.
“It’s a mistake to look at Wisconsin’s housing market through the lens of national indicators,” said WRA President William Malkasian. “Housing in our state and throughout much of the Midwest is much less volatile than many markets in other parts of the country, especially the Western United States,” said Malkasian. “While 2007 was a rough year for housing sales compared to our recent boom years, Wisconsin’s housing future looks like it will be brighter, faster.”
Malkasian pointed to recent action by the Federal Reserve to substantially cut short term interest rates as another positive sign for the housing market. “Thirty-year fixed mortgage rates averaged 6.3 percent for 2007, but fell to 5.8 percent in January, and this was before the Fed’s latest interest rate cuts,” said Malkasian. “These steps by the Fed will help to keep housing affordable for credit worthy buyers, and offer excellent buying opportunities in this market,” he said.
While sales fell in 2007, median prices in the state actually rose slightly, showing the underlying strength of Wisconsin’s housing market, according to the WRA report. “The stability of prices in this soft market is a good sign for buyers,” said WRA Chairman Michael Spranger. “The fact that we are not seeing the significant changes in the median prices that have been recorded in other parts of the country is an indication that housing remains a good way to accumulate and maintain household wealth for Wisconsin residents,” said Spranger.
According to Spranger, recent REALTOR® polling supports his optimism for Wisconsin’s housing market in 2008. “Wisconsin citizens love their homes, their neighborhoods and their state,” said Spranger, “and we asked their opinions in the middle of January!” According to the REALTORS®’ January survey, 83 percent of Wisconsin citizens ranked their quality of life as good, 80 percent gave their neighborhoods the same ranking and 74 percent said the same about their homes.
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 18,000 real estate brokers, sales people and affiliates statewide. Sales estimates for the states, broad national regions, and the U.S. are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county and regional sales figures and median prices within Wisconsin are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted.
State's housing news much better than nation
02/08 REALTORS® Association Press Release
Madison - Wisconsin housing sales decreased but prices increased in 2007, leaving Wisconsin’s real estate market in much better shape than many parts of the Midwest and the nation, according to the year-end analysis of existing home sales conducted by the Wisconsin REALTORS® Association (WRA).
Wisconsin home sales declined in 2007 by 10.8 percent relative to 2006, but median prices actually rose 0.2 percent over the period to $164,000, according to the REALTORS®’ report. Sales in the Midwest were also down by a similar margin, falling 10.5 percent over last year, but sales nationally were down nearly 13 percent.
“It’s a mistake to look at Wisconsin’s housing market through the lens of national indicators,” said WRA President William Malkasian. “Housing in our state and throughout much of the Midwest is much less volatile than many markets in other parts of the country, especially the Western United States,” said Malkasian. “While 2007 was a rough year for housing sales compared to our recent boom years, Wisconsin’s housing future looks like it will be brighter, faster.”
Malkasian pointed to recent action by the Federal Reserve to substantially cut short term interest rates as another positive sign for the housing market. “Thirty-year fixed mortgage rates averaged 6.3 percent for 2007, but fell to 5.8 percent in January, and this was before the Fed’s latest interest rate cuts,” said Malkasian. “These steps by the Fed will help to keep housing affordable for credit worthy buyers, and offer excellent buying opportunities in this market,” he said.
While sales fell in 2007, median prices in the state actually rose slightly, showing the underlying strength of Wisconsin’s housing market, according to the WRA report. “The stability of prices in this soft market is a good sign for buyers,” said WRA Chairman Michael Spranger. “The fact that we are not seeing the significant changes in the median prices that have been recorded in other parts of the country is an indication that housing remains a good way to accumulate and maintain household wealth for Wisconsin residents,” said Spranger.
According to Spranger, recent REALTOR® polling supports his optimism for Wisconsin’s housing market in 2008. “Wisconsin citizens love their homes, their neighborhoods and their state,” said Spranger, “and we asked their opinions in the middle of January!” According to the REALTORS®’ January survey, 83 percent of Wisconsin citizens ranked their quality of life as good, 80 percent gave their neighborhoods the same ranking and 74 percent said the same about their homes.
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 18,000 real estate brokers, sales people and affiliates statewide. Sales estimates for the states, broad national regions, and the U.S. are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county and regional sales figures and median prices within Wisconsin are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted.
Current Mortgage Rates
The following are current 30-year fixed mortgage rates at a few area banks.
Associated Bank: 6.055%
M & I Bank: 6.156%
Northshore Bank: 6.274%
Associated Bank: 6.055%
M & I Bank: 6.156%
Northshore Bank: 6.274%
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