MORTGAGE INFORMATION
As for loan programs, we still have fantastic rates for conventional and FHA loans. As of today, conventional 30 yr fixed loans are at 4.5% and FHA is at 4.625%. FHA requires a minimum down payment of 3.5% and conventional loans of 10% down.
For consumers that have little or no down payment, a Nevada Housing Loan may be their best option. This loan is an FHA 30 yr first loan at 6.65% and a conventional 20 yr loan in second place @ 8.5%. Buyers use the second loan for the down payment on the first loan and closing costs, with a maximum amount of 10,000 to be utilized. Buyers have to be first time homeowners, or not have owned a house in the last three years.
Buyers that are looking out in rural areas of Reno can obtain a USDA loan. This loan is a 30 yr fixed conventional loan up to 102% financing of the purchase price and has no PMI ( Private Mortgage Insurance), with rates being very attractive ( approx. 4.75%).
-Commited to your success, not just my own
Kevin Anderson
Mortgage Loan Officer
Bank Of America Home Loans
695 Sierra Rose Dr.-Reno,NV 89511
Office 775-770-2810
Cell 775-560-5252
Fax 775-827-2568
kevin.d.anderson@bankofamerica.com
First-time homebuyer? Take advantage of this tax benefit
Under two recent pieces of federal legislation, a first-time homebuyer may be able to take advantage of a tax benefit when purchasing a home.
Note that a "first time home buyer" includes those who have not owned a home in the three years prior to a current purchase, but may have owned a home prior to those three years.
For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. But there are two different types of credits: one for those who purchased a home between April 9, 2008, and Dec. 31, 2008, who may be eligible for a federal tax credit of up to $7,500, and another for first-time buyers who purchase a home between Jan. 1, 2009, and before Dec. 1, 2009, who may be eligible for a federal tax credit of up to $8,000.
In either case, the credit is equal to 10 percent of the purchase price of a principal residence, up to $7,500 or $8,000.
There are, however, differing effects to the two credits. Unlike other types of tax credits, the first-time homebuyer credit for 2008 must be repaid over 15 years. Furthermore, it will need to be repaid in full if the taxpayer sells the house within the 16-year repayment period.
Some have described the credit as an "interest-free loan" because of this repayment requirement.
In contrast, the 2009 tax credit does not have to be repaid, but home buyers must use the residence as a principal residence for at least three years, or face recapture of the tax credit amount.
The credit is phased out, or reduced, for individuals with modified adjusted gross income between $75,000 and $95,000. For married couples filing a joint return, the phase out range is $150,000 to $170,000.
The tax credit amount is reduced to zero for taxpayers with adjusted gross income of more than $95,000 (single) or $170,000 (married), and is reduced proportionally for taxpayers with adjusted gross income between these amounts.
To determine modified adjusted gross income, it is necessary to add certain sums, such as foreign income, foreign-housing deductions, student-loan deductions, IRA contribution deductions and deductions for higher-education costs.
Interestingly, the credit is fully refundable, meaning taxpayers will be able to obtain an additional federal tax refund of up to $7,500 or $8,000, even if they have no other tax liabilities or if the credit is more than the tax that they owe. Typically this involves the government sending the taxpayer a check for a portion, or even all, of the amount of the refundable tax credit.
For a home that a taxpayer builds, the purchase date is the first date of occupancy of the home. For a pre-existing home, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
A primary residence is a residence in which an individual lives most of the time and can be a house, condominium, or even mobile home. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000-$500,000 capital gain tax exclusion for principal residences.
People who purchased a home between April 9, 2008, and Dec. 31, 2008, (the $7,500 credit) should claim the credit on their 2008 tax returns, and may need to amend the return if one has already been filed. The credit must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.
People who purchased a home between Jan. 1, 2009, and before Dec. 1, 2009, (the $8,000 credit), can claim the credit on their 2008 or 2009 tax returns (if the 2008 return is already filed, the taxpayer will need to amend that return to treat the purchase as occurring on Dec. 31, 2008).
Taxpayers using the 2009 credit do not have to repay it provided the home remains their main residence for 36 months after the purchase date.
Given the complexities with the differing credits, and the fact that an amended tax return may need to be filed, readers are urged to consult with their financial, tax and legal professionals to assist in claiming the refund.
