Real Estate Information Archive

Blog

Displaying blog entries 1-2 of 2

First time home buyer tax credit

by Doug & Gwen Campbell at Sun Bay Associates

Just in case you didn't see our newsletter, this is being posted to bring you up to date.  It is really important.

Home buyers can claim a special tax credit worth up to $8,000. The American Recovery and Reinvestment Act offers qualifying home buyers a tax credit equal to 10 percent of a home's purchase price, up to a maximum of $8,000. The tax credit is offered to first time buyers, and those who have not owned a principle residence in the past three years. To be eligible for the tax credit, buyers must meet general income requirements and close on their purchase before December 1, 2009.

Under new rules introduced recently by the Department of Housing and Urban Development, qualifying buyers can apply the $8,000 tax credit toward the purchase of a home. To facilitate the process, the Federal Housing Administration is permitting its lenders to extend short term bridge loans, which will enable qualifying buyers to apply their tax credit toward closing costs, buying down their interest rate, or increasing their down payment above the FHA required 3.5 percent.

Please contact us today for more details on this once-in-a-lifetime program.

Foreclosures-Record New Highs

by Doug & Gwen Campbell at Sun Bay Associates

Recently, RealtyTrac, the leading online marketplace for foreclosure properties, in its April U.S. Foreclosure Market Report, said that foreclosure filings were at 342,038 properties in the US during the month of April.  One in every 374 U.S. housing units received a foreclosure filing in April, the highest monthly foreclosure rate posted since RealtyTrac began issuing it report in January 2005.

James Saccacio, CEO of RealtyTrac, said this April was slightly above the previous month, setting another record high.  Much of this activity is in the early stages of foreclosure, while bank repossessions, or REOs, were down to the lowest level since March 2008.  Mr. Saccacio suggested that this means the banks are beginning to initiate foreclosure on loans that had been delayed by legislative and industry moratoria.  It also means that later this year we can expect to see a spike in REOs as loans move through the foreclosure process in the next few months.

Unfortunately, Florida had a 37 percent month over month increase in foreclosure activity and this boosted the Florida foreclosure rate to the second highest among the states in April. One in every 135 Florida housing units received a foreclosure filing in April.  This is more than 2.7 times the national average.  The total Florida foreclosure activity is up 75 percent from April 2008.

Despite all the doom and gloom, this is definitely a buyer's market in Florida.  Mortgage rates are at record lows, for at least a generation, of as low as 4.75%.  There is the first time homebuyer tax credit of up to $8,000.  And there is a lot of housing available at very low prices.  The banks are lending to qualified buyers.  For first time homebuyers, there may never be a better time to buy the home that just two years ago seemed totally out of reach.

Displaying blog entries 1-2 of 2

Syndication

Categories

Archives

Contact Information

Photo of Gwen and  Doug Campbell - Sun Bay Realty Group Real Estate
Gwen and Doug Campbell - Sun Bay Realty Group
at Keller Williams Realty
30522 US Hwy 19N, Suite 107 S
Palm Harbor FL 34684
Doug's Cell 727-741-4189
Gwen's Cell 727-741-7260
Fax: 888-447-7908