Tax Credit To Expire Soon: Another Reason To Act Now

The present tax credit for move-up and first time buyers also expires this spring. Sales contracts must be signed by April 30. With low rates and lower home prices, this is the time to act. Even the Federal Reserve Board has stated that rates are likely to rise this spring as they begin to unwind their support of the mortgage markets. The following information on the tax credit was posted on the National Association of Home Builders Website.

FHA Announces Major Tightening of Loan Programs Coming Soon Act Now To Beat The Deadline!

Just a few weeks ago, the Federal Housing Administration announced that major changes to its loan programs are on their way. The FHA is very popular right now with close to one-half of Americans using this government program to finance the purchase of homes. These changes will make it harder for the average American to purchase going forward. Here is a summary of the changes:

• The cost of FHA mortgage insurance is going up significantly. The first increase will be for the "up-front" premium and this will be implemented with applications taken after April 5, 2010;
• Those with lower credit scores will be required to put 10% of the sales price down. Presently the requirement is for only a 3.5% down payment and the lower down payment requirement will continue for those with good credit histories. This requirement is to be implemented in early summer.
• Also to be implemented early summer, sellers will be restricted in the amount of closing costs they can pay. Typically FHA has been one of the most liberal programs in this regard as buyers could decrease the cash required through seller closing-cost assistance. Soon sellers will be able to offer assistance up to 3% of the purchase price, instead of the present 6%.

While we understand that the economy is causing many of these changes and they are important to make sure this important program remains sound, we also are concerned that everyone who wants to purchase can do so with as little barriers as possible. This means that if you are interested in purchasing a home, now is the time to act so that you can do so under the present guidelines.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

For more detailed information on the move-up buyer tax credit: http://www.federalhousingtaxcredit.com/faq2.php

$8,000 First-time Home Buyer Tax Credit at a Glance

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

For more detailed information on the first-time homebuyer tax credit:http://www.federalhousingtaxcredit.com/faq1.php

Nominate San Carlos!

Nominate San Carlos to be one of the pilot sites for Google's experimental fiber network. Watch the You Tube video describing the project and then fill out the Nominate Your City form at https://www.google.com/appserve/fiberrfi/public/options and https://www.google.com/appserve/fiberrfi/user/edit_section?section_code=1&application_key=aghmaWJlcnJmaXITCxILQXBwbGljYXRpb24YvfocDA

Info on San Carlos Elementary Schools

I attended a meeting today for the San Carlos Elementary School District and wanted to share some interesting information.

First of all - 6 of the 7 San Carlos schools are Charter schools. This allows them some flexibility in their curriculum and in hiring.

Although homes are in specific school zones, residents are not guaranteed their areas school. There is actually a lottery with preference to the area that you are in. The district is only required to place a student in a school in the district. Siblings attending a specific school are also given preference.

All 7 of San Carlos schools rank in the top 5% statewide.

There are myths that some schools in San Carlos rank higher than others. Actually, the ranking and scores for each are surprisingly close. The good news is they are all great and will continue to keep our home prices solid.