First-Time Home Buyer

Your Second Chance to Score a First Time Buyer Tax Credit

Al Doyle — Fri, 06 Nov 2009 00:43:28 +0000

Hot off the presses: the Senate offered final approval last night, the House of Representatives chimed in this afternoon. Legislation passed containing an extension and expansion of the homebuyer tax credit. President Obama should sign by tomorrow (November 6).

If you have any interest in the new home market, helping people and the economy recover, or just plan have a pulse when it comes to real estate…help get the word out. Details will be sparse for a day or two, but here are some early highlights:

The legislation takes effect December 1 and is not retroactive.
Only for primary residences, no second homes or investments.
$8,000 homebuyer tax credit for first-time buyers will be extended through April 30, 2010.
Buyers get an additional two months, until the end of June, to close.
First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.
The income limit for couples is now up to $225,000, nearly a $55,000 increase above the level in existing law.
A $6,500 maximum credit is available to existing homeowners who have lived in their current home for five of the prior eight years.
Tax credits good for the existing homeowner are on homes worth $800,000 or less.

Most report that the National Association of Home Builders was a big help. For up-to-date reports, visit: firstnewhome.com or thenwhomecouncil.com

You Snooze, You Lose Your Change at $8,000 Stimulus Cash

Al Doyle — Mon, 28 Sep 2009 18:55:23 +0000

FIRST CAR: THERE'S A FIRST TIME FOR EVERYTHING. IS IT TIME FOR YOUR FIRST NEW HOME?

By The New Home Council

“There’s no time like the present”, “time’s a wastin’”, what are you waiting for?”, “time is of the essence”. There are a lot of ways to say hurry up and do something, and the message from the new home industry is loud and clear. If someone wants in on $8,000 stimulus cash in the form of a First Time Buyer tax credit, now is the time to act. The official deadline to close a sale on a new home and qualify for an $8,000 stimulus bonus is November 30, 2009. As of now there is no reason to believe this offer will be extended by the goverment. While the end of November may see like a long way off, the real deadline to act is now. The reality is that it takes a minimum of four to six weeks to close a sale on a new home. This time is needed for the buyer to receive approval and verification from a lender, for the home to be appraised, which is taking much longer than usual because appraisers are being more careful. The lender and title company have to do title research and make sure all the paper work is in order. Dialed-in, this is about fast as the process can go.

Working backward, the deadline for finding a new home, and having a Purchase and Sale Agreement accepted by the seller is between today and the end of October at the latest. Here’s some advice on how to make this happen. Start or ramp-up a search today. This allows from two to three weeks to find a home that fits, and from four to six weeks to get the paperwork through the system. A good place to start a search is www.firstnewhome.net. The New Home Council, a local association of new home marketing professionals, has assembled a large collection of new homes, condominiums and townhomes suited to the first time homebuyer. On the web site is information on pricing, special offers, locations, availability and financing. Links point to information on the $8,000 stimulus and tips for how to go about choosing a first new home.

A good way to narrow down a search is to give some thought to the neighborhoods that have the most appeal, then spend time visiting the models in person and getting to know the specialists who are on site to help explain the stimulus program and who can assist in meeting the deadline for obtaining the $8,000 in government stimulus money.

Currently there are dozens of homes priced from $150,000 to the mid- $300,000 that fit the budgets of most first time buyers shown at www.firstnewhome.net.

So, why wait? Today’s the perfect day to buy a new home and grad up to an $8,000 stimulus tax credit.

www.firstnewhome.net

For First Time Buyers, Timing is Everything

Al Doyle — Wed, 23 Sep 2009 18:59:38 +0000

In comedy, music and rocket launches, timing is everything. The same can be said for the first time home buyer, particularly with deadlines for the $8,000 first time buyer tax credit looming. The New Home Council is currently emphasizing the importance of the first time new home buyer to the recovery of the new home industry and the economy as a whole. Our advice for anyone sitting on the fence, is now is the time to jump off that perch and enter the market for a new home. Mainline news has been sending messages of gloom and doom for many months now, but the truth of the matter is that in the Puget Sound region first time homebuyers account for as much as 40% of the area’s home sales.

Who is this elusive first time home buyer? It might be you, it might be your neighbor, it might be your son or daughter. With record low interest rates, and many programs offering low down payments, getting into that new home may be a lot easier than you think. Do you have a good job? Are you paying rent for a home or apartment? Do you have some savings or a generous relative? Have you established credit? These are all factors that point to the possibility of you owning your first new home.

If you visit www.firstnewhome.net you will find a selection of new homes and condominiums that start from as low as $150,000. Many are offered in the $200,000s and low- to mid-$300,000s. The key to getting into a new home is a simple as getting started.

Now, a word about timing. “Start your search this weekend,” is the advice from Mark Winningham, TeamBuilder JLS, and member of the New Home Council. “The next couple of weeks are critical in terms of meeting the deadlines for the $8,000 Federal tax credit. You should have a home selected before the end of October.” Winningham explains, “In order to meet the deadline for the tax credit the sale should be complete and into closing on or before the November 1^st. This allows 30 days or more for the transaction to work its way through the process of appraisals, loan documentation and other steps necessary to hit the deadline and score your $8,000 tax credit.”

If you start this weekend, it should be easy. You’ll find a wide selection of new homes and condominiums in all parts of the region and any good new home site agent and member of the New Home Council will be able to walk a buyer through the entire process.

So what are you waiting for. Your first new home is waiting for you. Start your search at www.firstnewhome.net.

First Time Home Buyers are Heros the Real Estate Market

Al Doyle — Wed, 16 Sep 2009 19:00:31 +0000

FIRST BIKE: THERE'S A FIRST TIME FOR EVERYTHING. IS NOW THE TIME FOR YOUR FIRST NEW HOME?

Louis Howard, long time Seattle area expert in marketing opened a meeting of the New Home Council last week with the revelation that “40% of current homes purchased locally are by first time buyers.” This is a very encouraging statistic, as for many years the first time new home buyer seemed be largely ignored by the home building industry seeking the move-up and luxury segments. Now the first time buyer is the hero. Each “first home” sold helps the entire industry by bringing new customers into the market.

Currently The New Home Council has gathered several condominium developers and new home builders into a coalition to point the way for the first time new home buyer. Through their website, www.firstnewhome.net, buyers can learn about the availability of homes, financing offers, tips on how to capitalize on the Federal $8,000 tax credit and other incentives that make this Fall the right time to buy.

One important tip for anyone considering their first new home, is to act now. The inventory of homes priced for the first time buyer is being rapidly reduced by the fast pace of current sales. Current several condominium communities have excellent choices for first time buyers all around the Puget Sound region. For buyers interested in single family homes, the urgency is even more acute, as much of the entry prices homes have already been taken. A second factor for acting now is that the Federal $8,000 tax credit expired November 30, 2009. The reality is that in order to receive this credit, a homebuyer should have their home sale completed sometime between October 15 and 30 to allow time for the loan to be approved, the appraisal made and other paper work needed to close the sale. This $8,000 tax credit is available to any first time homebuyer meeting certain income qualifications. With that said, it seems like this weekend would be a very good time to do some home hunting. A good place to start would be www.firstnewhome.net.

There’s a First Time for Everything

Al Doyle — Sat, 12 Sep 2009 19:05:59 +0000

FIRST KISS: THERE'S A FIRST TIME FOR EVERYTHING. IS NOW THE TIME FOR YOUR FIRST NEW HOME?

Remember your first bike? You first car? Your first date? Your first kiss? There are a number of magic moments in life that symbolize transitions from one state of life to another. Moments that leave you changed forever. Moments that shape the directions of ones life.

One of the most important of these moments is the purchase of a first new home. It’s a time when you move from renter, to homeowner, temporary to permanent. Homeownership is symbolic of the American way of life and it very much at the root of the nation’s social structure.

Over the past decade in the Puget Sound region the purchase of that first new home has often been delay. Home and land prices were increasing faster than personal incomes for many people, particularly those in the market for their first home. The New Home Council, an independent team of industry professionals is pleased to report that now, in the Puget Sound market area, the first time homebuyer segment is the strongest segment of the industry. We are entering a time when more and more of our neighbors can afford a new home. This is being made possible by a number of positive factors. First of all, home and land prices have adjusted themselves over a period from 2007 through late 2008. Second, interest rates for have remained at historic lows, and loans with lower down payments, such as FHA loans and other, are regaining popularity. Third the developers and homebuilders have been very busy creating exciting new product for the first time buyer of new homes and condominiums. There are more choices of home styles, communities and buildings that are attracting a lot of activity in every part of our region. The last motivator, albeit a temporary one is the Federal government’s $8,000 tax credit for first time buyers which expires at the end of November.

Over the next three weeks The New Home Council will share tips, techniques and strategies to make buying your first new home as easy and fun as that first kiss.

In the meantime, the New Home Saturday section today is loaded with information and choices to get you started on your search. In the meantime here some of our favorite on-line sources for first time buyers of new homes.

www.bankrate.com/brm/news/real-estate/BuyerGuide2004/fthb-tips.asp