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Little Known Program Gives Homebuyers up to 7.5K

Jul 6th, 2011
by David J. Cohen.
142 comments
5394616925 6f5dd9b5e2 m Little Known Program Gives Homebuyers up to 7.5K

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Even though the government’s homebuyer tax credits may have disappeared last year, first-time buyers still can qualify for a little-known program that will give them up to $7,500 in down payments and closing costs.

The program targets low-income buyers. To qualify, a two-person household can’t make more than $47,000. A four-person family can’t earn more than $58,700. Borrowers don’t have to pay back the money if they stay in the home for at least five years.

Beth Brandt, a vice president of Boynton Beach-based Mackinac Savings Bank states that many buyers don’t know about the program through an Atlanta banking cooperative because only a select number of banks are approved to offer it.

She says: “We’re not making a lot of money on these loans, but it’s very gratifying to help people get into their first home.”

Think you qualify? Click here for more details.

Little Known Program Gives Homebuyers up to 7.5K

Palm Beach County $4,000 Homebuyer’s Tax Credit

May 3rd, 2011
by David J. Cohen.
1 comment
300px Palm Beach County Seal Palm Beach County $4,000 Homebuyers Tax Credit

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Palm Beach County Homebuyer’s can receive a tax credit of up to $4,000 per year for every year of their mortgage. That means a tax credit of up to $120,000 over 30 years.

What is a Mortgage Credit Certificate?

A Mortgage Credit Certificate (MCC) allows the homebuyer to claim a tax credit for some portion of the mortgage interest paid per year. It is a dollar for dollar reduction against their federal tax liability.

Who Can Get The Credit?

Any first time homebuyer, as defined by the Internal Revenue Code, whose income generally does not exceed 115% of the area median income is eligible for the MCC program if the property is in a designated county. Palm Beach is one of those areas. These requirements do not apply if the homebuyer is buying in a federally designated target area.

The maximum allowable income to qualify in Palm Beach County is $90,450 for a household of 1 of 2 residents and $105,560 for larger households. The maximum purchase price is $381,375 and higher for multiple units with the maximum amount of $896,390.

How much is the credit issued under the MCC program?

An MCC may be issued to the homebuyers at tax credit rates varying from 10 percent to 50 percent based on the mortgage interest paid per year capped at $4,000 annually. The Housing Finance Authority of Palm Beach County determines the tax credit rate. This credit is received for every year of the mortgage for a total of up to $120,000 over the life of the loan.

The credit is non-refundable but may be carried forward for a period of up to three (3) years.

What is the program criteria?

All mortgage types are eligible for the program but must be underwritten according to FHA, VA, RD, or conventional loan criteria.

New and existing single family homes, duplexes, townhomes, condominiums and manufactured homes (with certain restrictions) are eligible properties.

Purchase price and income limits, adjusted by household size apply. The homebuyer must also occupy the property as their principal residence (as mentioned above).

How does the homebuyer benefit frm a MCC?

The homeowner may deduct their credit from their annual taxes or may adjust their W-4 deductions to gain additional monthly income (which will often assist in qualifying for a mortgage). We suggest that you discuss this matter with your tax professional or loan originator. Utilizing this program you may reduce your actual interest rate as well.


Palm Beach County $4,000 Homebuyers Tax Credit

Average Rate on 30-Year Fixed Mortgage Increases to 4.74%

Jan 21st, 2011
by admin.
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300px Freddie Mac.svg Average Rate on 30 Year Fixed Mortgage Increases to 4.74%
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Following increases in Treasury yields, the average rate on a 30-year fixed mortgage rose slightly this week.

Yesterday, Freddie Mac announced that the average rate rose to 4.74% this week from 4.71& the previous week. The average rate on the 15-year loan, a popular refinance option, slipped to 4.05% from 4.08%.

Mortgage rates have changed little in the new year after spiking more than half a percentage point in the last two months. Investors sold off Treasurys bonds during that stretch, driving yields lower. Mortgage rates tend to track the yield on the 10-year Treasury note.

The 30-year loan rate reached a 40-year low of 4.17% in November, and the 15-year mortgage rate fell to 3.57%, the lowest level on records dating back to 1991.

Yesterday, the National Association of Realtors said the historically low rates have done little to boost the struggling housing market. Fewer people bought previously owned homes last year than in any year since 1997. The group said sales fell 4.8% last year to 4.91 million units. That was a few thousand homes lower than sales levels in 2008, making it the worst level in 13 years.

Record high foreclosures, a weak job market and expectations that prices will fall further have convinced potential buyers to hold off on purchasing homes.

In order to calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage slipped to 3.69% from 3.72%. The five-year hit 3.25% last month, the lowest rate on records dating back to January 2005.

The average rate on one-year adjustable-rate home loans rose to 3.25% from 3.23%.

The rates do not include add-on fees, known as points. One point is equal to 1% of the total loan amount. The average fee for the 30-year and 15-year loan in Freddie Mac’s survey was 0.8 point. The average fee for the five-year ARM was 0.7 point, and the fee for the 1-year ARM was 0.6 point.

Average Rate on 30 Year Fixed Mortgage Increases to 4.74%

Home Sales Decline in Palm Beach & Broward

Sep 23rd, 2010
by admin.
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2539334956 87cef7e457 m Home Sales Decline in Palm Beach & Broward

Sign Of The Times - Foreclosure

As predicted, South Florida home sales continue to slide following the expiration of the federal home buyer tax credits this past summer.

Today, according to Florida Realtors, Broward County posted 683 sales of existing homes in August, down 5% from July and 16% from a year ago. Palm Beach County had 793 homes trade hands last month, down slightly from July but up 5% from August 2009.

Nationally, existing home sales rose 7.6% in August to a seasonally adjusted annual rate of 4.13 million units from 3.84 million in July. Still, sales remain 19% below a year ago.

Lawrence Yun, chief economist for the National Association of Realtors, stated: “The housing market is trying to recover on its own power without the home buyer tax credit . Despite very attractive affordability conditions, a housing market recovery will likely be slow and gradual because of lingering economic uncertainty.”

According to leading analysts,  the tax incentives gone combined with the reeling job market has many potential home buyers hesitant to commit. Demand probably won’t improve for the rest of the year.

Slower sales likely will hurt prices. South Florida median prices are down compared with a year ago.

Broward’s median in August was $206,700, off 5% from August 2009. Palm Beach County’s median was $227,800, a 7% decline from a year ago.

Home Sales Decline in Palm Beach & Broward

Index Shows Flat Prices in South Florida

May 26th, 2010
by admin.
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According to a national report released Tuesday.South Florida home prices were flat in March over February.

The showing in Palm Beach, Broward and Miami-Dade counties mirrored Standard and Poor’s / Case-Shiller home price index of 20 U.S. cities. Eight cities posted gains, while 10 had declines. Tampa, like South Florida, had no change. The numbers are seasonally adjusted.

Don’t get too excited about the monthly numbers, though. South Florida prices fell 1.7% in the first quarter compared to a year ago, according to the index.

The index is considered a strong measure of home prices because it examines price changes of the same property over time, instead of calculating a median price of homes sold during the month, as the Florida Realtors trade group does.

On Monday, the Florida Realtors said home sales and prices increased in Broward and Palm Beach counties in April compared to a year ago. Of course, much of the demand was fueled by the April 30 expiration of two federal tax credits. Still, some analysts say demand is here to stay because affordability has returned to the market.

David M. Blitzer, chairman of the Index Committee at Standard and Poor’s, said in a statement that the nation’s housing market is in better shape than this time last year. But the end of the tax credits doesn’t bode well for the months ahead.

“We don’t expect to see a boost in relative demand,” he said.

Have We Reached the Bottom? New Home Sales Rebound in March!

Apr 26th, 2010
by admin.
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Talk about a turnaround. Following an all-time low in February, national new home sales shot up 27% in March, the biggest increase in any month since 1963. Sales in the South jumped 44%

South Florida sales of existing homes and condominiums were especially robust last month.
Much of the activity here and across the country can be attributed to buyers taking advantage of $8,000 and $6,500 tax credits that expire April 30. Sales likely will drop off after that.

But with continued low interest rates and cheap home prices, momentum is building for a housing bottom this year.

Increase of Federal Tax Credits for housing? – The Business Roundtable submits their recommendations.

Jun 16th, 2009
by admin.
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http://www.g-sig.com/

On April 1st, 2009 the Business Roundtable Housing Working Group was formed. It is comprised of CEO’s of top companies such as Whirlpool, Honeywell and Owens Corning. Its main objective is to make recommendations to Congress and the current Administration, on how to stabilize markets – In particular the housing and financial markets. One June 11th, 2009 The Housing Working Group made a series of recommendations that will be outlined in this blog that they recommend that would stabilize these two deteriorating markets.

Tax Credits – The Business Roundtable’s primary recommendation is to increase the Federal tax credit that home buyers are eligible for. Currently, only “first time” home buyers are eligible for the $8,000.00 Federal tax credit. This recommendation calls for the tax credit to be increased to $15,000.00, not only will it be increased, but it will also reach out to all home buyers regardless of their status as long as it is for a purchase of their primary residence, regardless of their income.

Interest Rates – In addition to a higher Federal tax credit, The Housing Working Group also calls for the Federal Reserve to keep mortgage interest rates below 5% as much as possible for the next 1 year. The theory behind this is that manipulating the interest rate and keeping them low will spawn more spending in the housing markets as well as for lending institutions to be able to lend money at a relatively low interest rate.

Default Foreclosure Rates – Due to the increasing number of borrowers falling into foreclosure the Business Roundtable has also made a suggestion to Congress to “conduct a thorough review of current foreclosure mitigation and loan modification programs”. Congress has laid out a new mathematical formula for lenders to use to determine whether or not a borrower can qualify for a loan re-modification program. Currently, a borrower who may qualify for this program has already vacated their house leaving no other option for foreclosure due to the back-log of foreclosures needed to be processed.

Other recommendations fall in line with what many other activists and congressional members have been pushing for, such as reformed lending practices that provide transparency and accountability throughout.

For more information about the Business Roundtable Housing Working Group please visit their website at: www.businessroundtable.org

Check back with us next week for another blog installment about South Florida foreclosures as well as local and national real estate news.

Has The Housing Crisis Reached Rock Bottom? – New Signs Of Hope Arise.

Jun 12th, 2009
by admin.
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http://www.g-sig.com/

Florida still ranks #3 in the country with the 3rd most foreclosed state. Broward County finishes 1st in the tri-county area with the most amount of foreclosures followed by Miami-Dade & Palm Beach Countries rounding out 2nd and 3rd.

The good news here is mixed with the bad. Even though foreclosures still remain high, the amount of properties that have foreclosure judgments are declining. This does not necessarily mean that we have leveled out, but signs show the end is near.

Nationally speaking prices of homes have declined with the top 15 cities in the U.S. noticing a 15% decline in prices. This is great news for you potential buyers in the market. The resulting price decline shows that slowly prices are leveling out, which means that valuations for properties will for the first time be as close to real value as they have been in the past.

The government is urging people to spend, to buy and to refinance to help our weakened banking and financial systems. First time home buyers are now able to purchase homes easier than ever before. With lowered interest rates and federal tax credits, owning a home is now becoming a possible reality.

Home sales have fell 3% it may seem like a lot, but compared to previous months reports its lower than the past. This may mean that home prices are finally leveling out. It’s important to note that this does not mean the foreclosure process is over. Banks have been backlogged due to the ever increasing amount of past due mortgages and loss of job and incomes. Experts predict that the current crisis will finally meet its end come 2010 – in most likely the 3rd quarter of that year, according to RealyTrac.

Foreclosure properties have flooded the market and for many buyers this is great news. In some cases banks are cutting sales prices by 4% to attract more buyers to purchase. Good credit ratings as well as a good realtor will help you find these homes. The “great” deals are still out there especially in Boca, Broward and Miami – Dade. It takes a little time; a lot of patience and a knowledgeable realtor to make that dream of owning a house come true.

Want more information on the current South Florida foreclosure/ real estate market and opinions? Visit our website at http://www.g-sig.com/ and check back with us every Friday for a new blog about the latest trends and advice.

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