Applicants hoping to tap lucrative tax credits for buying a home could get a closing extension to September 30 under a measure introduced in the Senate. Sen. Harry Reid, D-Nev., co-authored a proposal giving eligible homebuyers 90 extra days to reach the closing table. The way things stand now, homebuyers must close by June 30 but lenders say they are now swamped with applications and are having trouble getting appraisals done under rules promulgated by the Home Valuation Code of Conduct. The National Association of Realtors estimates that up to 180,000 borrowers who signed a contract by April 30 may not meet the June 30 closing deadline. Two different homebuyer tax credits are at stake: $8,000 for first time purchasers and $6,500 for certain “move up” buyers. Reid — whose state has been one of the hardest hit in terms of home price declines — hopes to attach the language to a bill that extends unemployment benefits.
Archive for the ‘Press Room’ Category
Proposal Would Extend Tax Credit Deadline to Sept. 30
June 15, 2010NJ State Senate Passes the Homebuyer Tax Credit Bill 38-0
June 15, 2010On Thursday, June 10th, by a vote of 38-0, the State Senate passed S692 (Sarlo/Van Drew/Oroho) which would establish a $100 million New Jersey Homebuyer Tax Credit Program. Having already passed the State Assembly, the bill will now be sent to Governor Christie for final action and hopeful enactment. As approved, the bill would allow qualified homebuyers to receive up to $15,000, or 5% of the home purchase price (whichever is less) in state income tax credits and/or rebates.
Of the $100 million in proposed new credits, $75 million is allocated toward the purchase of new homes, with the remainder ear-marked for resales. Unlike the Federal tax credits, the proposed state tax credit would have no income limits and not be limited to first-time homebuyers. However, as a condition to receive the credit, a buyer would be required to use the home as a primary residence for at least three consecutive years immediately following purchase. Credits would be available for a defined period of time, or until all monies were expended.
Additional information will be forthcoming as it comes available.
First-Time Home Buyer Tax Credit
September 4, 2008The $7,500 First-Time Home Buyer Tax Credit is available for homes purchased between April 9, 2008 
and July 1, 2009.
Here are few basic facts.
The credit is available only to first-time home buyers defined as buyers who have not owned a principal residence for three-years prior to the subject purchase. The ownership test applies to both partners in a marriage; i.e. if a husband has not owned a home in the past three years but the wife has, neither spouse qualifies for the first-time home buyer tax credit. (It appears that this would be the case even if the husband is purchasing the property only in his own name.) A buyer can still be eligible for the credit even if he owns a vacation home or rental property not used as a principal residence.
Single taxpayers with “modified adjusted gross income” up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Individuals and couples with incomes above the thresholds may still qualify for a lesser credit, however, taxpayers with adjusted gross income above $95,000/ $170,000 phase out of the program completely.
There is no need to fill out an application to qualify for the tax credit. First-time homebuyers merely claim the credit when filing the tax return for that year. No pre-approval is necessary, but if you are relying on this program to purchase a home you may want to check your eligibility. Your tax advisor may be able to help you with this.
The credit is available even to those with little or no federal income tax liability to offset. This usually means that the government will send a check for part or all of the credit. Otherwise the credit is used to offset any unpaid taxes or increase a refund.
The credit is available for homes purchased between April 9, 2008 and July 1, 2009 and applies to both new and existing homes whether attached or detached, condominiums, mobile homes, or houseboats. A homebuyer contracting for a custom built home can qualify for the credit as long as the home is first occupied between the April 2008/June 2009 dates. (For newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.)
The $7,500 credit represents 10 percent of the purchase price of a low cost home. Most who use the program will be able to claim this full amount, however, in the event a home is purchased for a lesser amount, the 10 percent cap will apply. That would mean that a $65,000 purchase would result in a $6,500 credit.
There are other refinements to the program. For example, if it is to his benefit, a taxpayer can apply for the credit in a different year than the home is purchased. There is also a possible forgiveness of debt for homeowners who sell the home before the loan is repaid and do not received sufficient gain from the sale to cover the loan balance. Information on these and other details of the program can be researched on a website maintained by the National Association of Homebuilders.
First-Time Home Buyer Resources
• First time home buyers checklist
• Home Purchase Loans Payment Calculator
• Current Fixed Mortgage Rates
Mortgage Rates Predictions July to Dec 2008
July 30, 2008
Are you a RISK when shopping for a Mortgage Loan?
July 17, 2008
Know the facts about your credit score when shopping for a new home loan, refinance loan or home equity loan.
Your credit score is a number, (usually between 300-850), used to rate how risky a borrower you are; the lower the score, the greater the risk you pose to creditors. Most mortgage and credit card lenders use credit scores when making lending decisions. A low credit score may result in a denial of credit and lenders will charge higher interest rates on loans to individuals with lower scores. This practice is known as risk-based pricing.
Individuals with high credit scores get superior interest rates to those with lower scores. And individuals with lower credit scores are often targeted with high risk-based loan programs and pay higher interest rates. For example, individuals with top credit scores might pay about 5.5 percent for a $250,000 mortgage with a monthly payment of $1,419. If extended credit at all, an individual with a credit score under 679 could pay over 15 to 30 percent for the same mortgage, carrying a monthly payment of over $1,630. Over the course of a 30-year term, that’s about $72,000 to $165,100 in extra interest!
Understanding your Credit Profile to Improve your Credit Scores.
Equifax™, Experian™, and Trans Union™ dominate the world of Credit Reporting Agencies. Each uses a different model for credit scoring. Credit scoring models are developed by analyzing statistics and picking out characteristics that are believed to relate to creditworthiness. Credit Reporting Agencies use different scoring models for different purposes. Generally, credit scores are calculated by analyzing a combination of factors including: payment history, outstanding debt, credit account history, recent inquiries, and types of credit.
The first step in managing your creditworthiness is to get a clear picture of your credit profile. Study the data from the top three credit bureaus to make sure all the information is accurate. In the event of discrepancies, send letters of dispute to the credit-reporting agency to have errors on your credit profile corrected. Also, don’t hesitate to consult your mortgage specialist who can provide guidance and if needed, refer you to credit repair specialist.
Fix and Maintain a Healthy Credit Profile
Identify problem areas on your credit profile and make a plan for improvement. For example, if you’ve had a hard time paying your bills on time, sign up for an automated payment service. If your debt levels are above 40% of your available limit, create a payment plan to reduce your balances. Set goals for improving your credit and reward yourself when you reach a milestone.
To keep your credit healthy, sign up for a Credit Monitoring service which will help you stay aware of any changes in your profile. If any disputed inaccuracies persist, contact the creditor and try to have the item eliminated from your credit profile. If you want to tell your side of the story, send a written request to the Credit Reporting Agency to have a consumer statement added to your credit file. Keep copies of your old credit profiles and letters of dispute in a safe place for future reference. Plan to evaluate your progress quarterly.
Each inquiry may reduce your credit score. However, multiple inquiries within a short amount of time, like when you are shopping for a mortgage, are grouped together to lessen the impact. The actual impact depends on the number of inquiries, time period and other factors on your credit profile.
Consolidate high interest credit card debts into one lower interest account. However, avoid combining debts onto a new credit account with a resulting balance above 40% of the available limit. Check your credit profile frequently while moving these debts to make sure that everything is being properly recorded.
Taking a proactive approach to the management of your credit profile can save you tens of thousands of dollars over the course of your lifetime. And it is never too late (or too early) to start!
Fed is Moving into Consumer Protection Role on Mortgages
July 14, 2008
Speaking at the Federal Reserve open meeting on mortgage rules, Federal Reserve Chairman Ben Bernanke said the new rules will be aimed at protecting consumers from deceptive practices.
Bernanke said that the new rules would apply to all mortgage lenders, as delinquencies and foreclosures continue to grow rapidly. Bernanke pointed to deceptive practices as the key reason for the inappropriately high cost of loans.
“It seems clear that unfair or deceptive acts and practices by lenders resulted in the extension of many loans, particularly high cost loans that were inappropriate for or misled borrowers,” Bernanke said.
The new rules ban prepayment penalties on mortgage loans whose payments can change during the first four years, and will instead be limited to the first two years.
Prepayment penalties are fees banks can charge borrowers who pay off loans earlier. This is usually done by borrowers who want to refinance a loan into one that charges less interest.
Federal Reserve Governor Randall Kroszner, in attendance at the meeting, said that the new rules alone would not be sufficient to end the crisis.
“These changes have made for better rules that will go far in protecting consumers from unfair practices and restoring confidence in our mortgage system,” said Kroszner.
By Steve Stecyk, edited by Cristina Markham
CEP Newswires – CEP News © 2008.
The Truth About Today’s Mortgage Loans
July 2, 2008Here are a few ways to position yourself for approval, and for the lowest fixed mortgage rate!
With prices declining and supply ballooning, now is a great time to buy a home. However, lenders are scrutinizing borrowers much more carefully these days, and even with good credit, gainful employment and cash in the bank for a down payment, applying for a mortgage is more challenging today than it was just a few months ago.
Get a Credit Makeover. Some sins, such as unpaid tax bills, late payments or “past dues” remain on your credit report for several years, even after you’ve paid them off. But by reducing credit card balances (to 40% or less of the available credit,) and paying off any overdue amounts, you can improve your score dramatically in a relatively short period of time. Major credit restoration may require the services of a credit repair specialist.
Put Up or Shut Up! The more money you put down, the better your chances of securing a loan and the better the mortgage rate you will be eligible for. These days if you don’t have at least 15 to 20% of the purchase price, you may not even qualify for a loan with many institutions.
Show me the money! In the not-so-distant past, most lenders didn’t require you to provide proof of income. Now, you must be prepared to show your W-2 forms and, if you’re self-employed, you will need to produce several years’ tax returns. Proof of business ownership and asset verification are also part of today’s standard operating procedures.
Keep it real! Make sure you have money left over Stay within your budget. Don’t even allow your real estate agent to show you properties that are outside of your range. When getting pre-approved for your home loan, look for a mortgage specialist that offers options based on how much home you can actually afford. Your downside risk increases proportionately with the amount you pay and conforming loans (loans under $417,000) are easier to sell and easier to approve. Be sure to keep money aside for other investments and emergencies.
Mortgage Rates Predictions: The Fed Decision on Interest Rates.
June 25, 2008
Following probably one of the most important Fed meetings this year, the Fed announced today that there is no change in the Fed Funds Rate. The Federal Open Market Committee decided to keep its target for the Fed Funds Rate at 2.00%.
Some analysts still think that interest rates will be increased in September of this year as the Fed stated “UPSIDE RISKS TO INFLATION AND INFLATION EXPECTATION HAVE INCREASED”
See also:
FOMC Statement
Fed signals aggressive rate cutting is done
What the Fed decision means for you
Leave your Comments!
1. What are your interest rates predictions for this year?
2. Do you think we are getting a rate hike by September of this year?
Help for Victims of Predatory Lending and Mortgage Fraud
June 9, 2008
During the past few years, many unsuspecting Americans were victimized by predatory lenders and fraudulent mortgage individuals and put into situations that have become unmanageable. Michael Calhoun of the Center for Responsible Lending says “Families all over the country continue to lose homes in record numbers, stripping families of their wealth and destroying entire neighborhoods”
Predatory lending and mortgage fraud typically affects senior citizens, lower income and challenged credit borrowers. It forces borrowers to pay exorbitant loan origination/settlement fees, sub-prime or higher interest rates, and in some cases, unreasonable service fees. In short, these practices often result with the borrower being placed into inappropriate loans which, all too often, lead to defaulting or worse still, foreclosure.
There were 1.7 million foreclosures in the US in the first eight months of 2007, and up to 2 million families are expected to lose their homes over the next two years, according to estimates by the Joint Economic Committee.
“All around the country, aid agencies report a tidal wave of foreclosure cases”, says Sarah Gerecke, director of New York City’s Neighborhood Housing Services. She now employs six people full-time to provide mortgage debt counseling, and could use another 12. Two years ago, she had one employee.
In our research for legal resources to help victims of mortgage fraud and predatory lending, we came across a comprehensive, well put together list of mortgage fraud resources by MortgageNewsDaily.com™ that provides information and direct links available nationwide as well as state-by-state.
Report Mortgage Fraud and Identity Theft (Powered by MortgageNewsDaily.com™)
Get the Security of a Fixed Rate Mortgage! (Powered by CommunityAcceptanceMortgage.com™)
Do you think you have been a victim? Tell us your story and help us fight mortgage fraud.
Current Mortgage Rates, Fixed Mortgage Rates
May 27, 2008
Today’s Mortgage Rates CALL or APPLY ONLINE
| Current Mortgage Rates Analysis ¹ | ||||
| Fixed Rate Term | Zero Points | ≤ 1 Point | ≤ 2 Points | |
| 10 Year Fixed | CALL | CALL | CALL | ► APPLY NOW! |
| 15 Year Fixed | CALL | CALL | CALL | ► APPLY NOW! |
| 20 Year Fixed | CALL | CALL | CALL | ► APPLY NOW! |
| 30 Year Fixed | CALL | CALL | CALL | ► APPLY NOW! |
( ¹ Current/Today’s Mortgage Rates Analysis. Due to market fluctuation, mortgage interest rates are updated daily and are subject to change at any time and without notice. Amber Sky Mortgage Solutions conducts an analysis of mortgage interest rates and points for the most popular 10, 15, 20 and 30 year fixed mortgage rates and other fixed rate mortgage products available at America’s top Wholesale Banks and Financial Institutions. All mortgage interest rates are also subject to credit, property and transaction characteristics approval. Amber Sky Mortgage Solutions & CommunityAcceptanceMortgage.com are not responsible for the accuracy of the interest rates and/or loan information. Due to various federal, state and local requirements, certain products may not be available in all areas. Other restrictions may apply. Current analysis of fixed mortgage rates shown, are for conforming, conventional loans only. Rates may differ for jumbo loans, FHA loans or VA loans.)
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