The official blog site for information about the Real Estate Market in South New Jersey and homes for sale.
Another humorous, but true, scenario.
Call us now and we can show you how we can get you into your own place in a very short time.
Terry Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
Off: 856-795-3111 x263
Cell: 609-417-1086
http://snjrealestate.ning.com
http://www.snewjerseyhomes.com
Connect on Facebook – http://profile.to/terryiwaniw
I just received a reminder from one of the many mortgage reps that I get updates from. The reminder was about a loan program that is often forgotten. I’m even guilty of forgetting about it even though I had written an article about it previously. This forgotten loan program is the USDA Rural Home Loan. The best part of this loan program is that the buyer does not need a downpayment. That’s right, $0 downpayment. However, the home that you are planning to buy must be located in one of the eligible areas of New Jersey. The loan limits that USDA operates under are the same ones that Fannie Mae, Freddie Mac, and other have established.
So, if you’re ready to purchase your new home, give me a call to discuss your real estate needs in greater detail and that way I can help you determine if a USDA Rural Home Loan is for you. You do not have to be employed or affiliated with the USDA or even a governement employee. This is a great way for first time home buyers, that may not have enough funds to put as a downpayment, or even the non-first time home buyer who needs to move into a bigger home but lacks sufficient funds for the 3.5% downpayment needed for an FHA loan. First time home buyers, this is great opprotunity to get into your own home AND qualify to receive your $8000 First Time Home Buyer Tax Credit.
Terry Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
Off: 856-795-3111 x263
Cell: 609-417-1086
http://snjrealestate.ning.com
http://www.snewjerseyhomes.com
Connect on Facebook – http://profile.to/terryiwaniw
This is a humorous video by NJAR (New Jersey Association of REALTORS) but there is a grain of truth.
Call me now and I will show you how I can help you solve this problem for you.
Terry Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
First Time Home Buyer Specialist
Investor Liaison
HUD Home Marketer
Seller & Buyer Community
Off: 856-795-3111 x263
Cell: 609-417-1086
Connect To Me On Facebook
In the last two days we have received numerous flyers in our e-mail from local mortgage representatives telling us that First Time Home Buyers can receive their $8,000 credit UP FRONT and use this money as a DOWN PAYMENT. This sounded too good to be true so we checked it out and we were right, this was too good to be true.
We personally phoned the IRS this morning, February 27, 2009 and spoke with an IRS expert on the First Time Home Buyers Credit. This is what we learned:
The 2009 tax credit is for $8,000 and for properties purchased in 2009 by first time home buyers and does not have to be paid back provided the buyer lives there for 3 years.
The buyer can apply for the 2009 tax credit on their 2008 income tax return if they have not filed yet. If the buyer has already filed their 2008 return and received their refund or paid their taxes, they can file an amended return and receive the $8,000 tax credit without having to wait to file the 2009 taxes. Of course, the buyer can wait and apply for the $8,000 tax credit when they file their 2009 income taxes next year.
This provision, while a little confusing, was designed to jump start housing market. However, under NO CIRCUMSTANCES can a buyer apply for this $8,000 credit BEFORE THEY CLOSE ON THE PROPERTY AND USE THIS MONEY FOR A DOWNPAYMENT. They are not a FIRST TIME HOME BUYER until they have (bought) closed on the house and have the keys in their hands.
If you think about this logically, you would realize that if in fact this was an $8,000 gift for a down payment, it would be all over the news. We wouldn’t need some mortgage representative to tell us about it. This very loose interpretation of the First Time Home Buyers credit is just another attempt to get around the rules.
We can think of some serious ramifications of applying for a tax credit you have yet to earn. We can sum it up in two words TAX FRAUD. We do not want any mortgage representative telling our buyers to commit fraud. We can imagine some nightmare scenarios that we do not wish to be involved, the least of which the buyer does not settle, for whatever reason and has applied for and received the $8,000 credit. The worst of this is that when the ‘buyer’ is audited the following year, for applying for a tax credit that they did not earn and they tells the auditor that their real estate agent told them to file for the money.
We suggest that anyone who is interested in finding out the FACTS regarding this $8,000 tax credit for first time home buyers, that they call the IRS directly at 1-800-829-1040 and ask to speak to an agent who is familiar with the FIRST TIME HOME BUYERS CREDIT and ask the direct question, “Can a first time home buyer apply for the $8,000 credit before they close on a property and use this money for a down payment?” The answer will be NO. But check it out for yourself. If you have a buyer who has been told this by a mortgage rep and does not believe you when you tell them they cannot apply for this credit before they close on the property, give them the IRS number. Keep in mind that you are calling the Federal Government and will be on hold for 15-20 minutes. But it is worth the wait to learn the facts. Use your speaker phone, the time will fly by.
If something sounds too good to be true, it is our responsibility to wade through the muck and verify, verify, verify. The last thing we need is another mortgage catastrophe a few years out
Linda Kerr Iwaniw & Terry Iwaniw
RESALES & INVESTMENT REALTY, LLC
Haddonfield, NJ.
Renters, have you any idea of how much money you are throwing away each year?
If you only knew how much money you will MAKE just by buying a home, you’d be foolish not to buy a home through us! Did you know that in addition to the tax deductions you receive as a home owner that you can get tax money BACK from the Federal Government.
Not only is interest that you pay on your mortgage loan tax-deductible, but the US government is providing a tax CREDIT (not simply a deduction) of up to $7500 for most first time homebuyers. In short, the US Government is bending over backwards to help people become homeowners at a time when there already are real estate bargains everywhere! For a limited time, qualified first-time homebuyers may receive a tax credit up to $7,500 as part of the Housing and Economic Recovery Act of 2008.
If you plan to live in the home as your primary residence and have not owned a home during the past three years, you may qualify for the tax credit. This tax credit must be repaid over a 15-year period. Take your first step by calling us for more information and recommend the best mortgage loan advisors on our team that work with first time home buyers. You may be able to buy your first home sooner than you thought possible.
Just how much money can you gain when you own your own home? As an example, the tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.
Assume
:
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______
$12,577 = Total deduction
Then, multiply your total deduction by your tax rate.
For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56
$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)
Plus $7,500.00 from the federal government
Equals $11,021.56 in a potential tax refund!
Linda & Terry Iwaniw
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REALTOR Associates
ReSales & Investment Realty, LLC
http://www.sjerseyhomes.com/
Cell: 609-417-1084
Office: 856-795-3111 x262
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The American dream can be yours and you CAN buy a home.
Owning your own home is more than just a matter of pride (but there is a lot of that), it’s also a great first step toward financial and personal security.
If you’ve never owned a home before (or if you haven’t owned one in three years), you can easily start the process of buying a home. There are many programs geared toward First Time Home Buyers.
We can help you with every step toward homeownership.
However, you might want to do some of your own research to begin the process.
1. Decide how much you can afford
The first step is to find out how much you can spend on a home. There are lots of calculators online that can help you. One great resource is ginniemae.gov. Here you can find calculators that will help you to decide whether you should buy or rent and, if you should buy, how much you can spend and how much you need to save.
For first time homeowners or people who have not owned a home in three years, there might be some public programs that will help you become of homeowner for the first time. Many states have home buying programs that help new homeowners with downpayments. We will help you determine if you qualify for a program.
2. Shop for a loan
Just as you shop for a bargain in a store, you should also shop for a good interest rate on a home loan.
Remember the higher your credit score, the lower your interest rate. Getting a high credit score is as simple as paying your bills on time, every time, for a number of months or years. You can see your credit report is once a year at annualcreditreport.com. You might have to pay extra to get your credit score, but the information can tell you a lot about what kind of home loan you qualify for. Scores of 700 or higher are considered the best.
You will have to have some sort of downpayment. The downpayment is usually 3 percent to 10 percent of the purchase price. But it is possible to make a deal without money down. We’ll discuss this with you.
3. Choose a real estate agent
We can help you find all the houses available in your price range and give you tips on how to buy and negotiate for a home. We’ll help you through all the paperwork and tell how to take each step in the process.
Remember YOU can buy a home and we can help you.
The $7,500 home ownership tax credit that the federal government created earlier this year as part of the Housing and Economic Recovery Act (H.R. 3221) is another tool at your disposal to encourage potential buyers to jump off the fence and get into the real estate market.
When you combine the tax credit with today’s low interest rates, wide selection of for-sale inventory, and affordable home prices, many of the pieces are in place for your customers to buy now. But tax credits can be confusing.
Here are 6 things you should know about the tax credit:
NAR Asking Congress to Expand Credit
As mentioned above, NAR has asked Congress to do away with the repayment provision of the first-time buyer tax credit and expand the credit to all home buyers, not just first-timers. The proposals were part of a four-point housing stimulus plan the association submitted in mid-October.
“Housing has always lifted the economy out of downturns, and it is imperative to get the housing market moving forward as quickly as possible,” said NAR President Richard F. Gaylord. “It is vital to the economy that Congress take specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans.
Essentially, nothing newsworthy is happening on the foreclosure front in the New Jersey Market. In the latest from the news media the headlines read Nation’s foreclosure plague widens. Well this can’t be good news for those of us in the real estate marketing business. this will bring out all of those buyers that think that the market in New Jersey is a prime market to get a home for almost nothing. That the home owners will be dropping to their knees in glee in being able to sell their home for almost nothing. To be happy that these buyers will be able to brag to their friends about the great deal they made.
Well, here’s a reality check. Not in New Jersey. If you read the whole article and not just the headline, you’ll soon learn that if you are looking for such leverage in the State of New Jersey that you’re living in the wrong state. New Jersey isn’t even in the Top 5 of states with high foreclosure rates. Sorry. Houses are still being sold by provide owners who are looking to sell their homes at the market rate. Their neighborhoods have NOT been devistated by a high number of homes having been foreclosed on and then being sold by banks and mortgage lenders at lower then prevelant market prices, thus causing a further decrease in home prices. More and more home owners are either withdrawing their homes form the market or allowing their home’s listing agreement to expire and not
relisting. They’d rather do this then sell their home for either less then what they owe on it or leave themselves no money for their next home purchase.
One of the key factors that many of the buyers seem to forget is that the home owners who are not financially distressed will need funds from the sale of their current home to purchase the next one. If they don’t get enough money for their next purchase, they won’t be selling their current home. In the vast majority of cases in New Jersey, that is the way it is…simple and straightforward.
So, what states are leading in foreclosures? Which are the Top 5 states? Where can you have a large amount of choices of foreclosure homes? Well, pack up you bags! You’re going to have to move to one of the following states -
Notice that New Jersey is not even listed? According to market research information from the NJ Association of Realtors, while other states have seen home prices plummet, homes in New Jersey have generally maintained their value. Specifically, as an example, Atlantic City, NJ homes sales prices were $264,600 in the first quarter of 2007 while they were $277,400 in the first quarter of 2008, this is a +4.8 increase from a year ago. According to the article from CNN, foreclosures drive prices down. Overall, the market areas where we conduct the majority of our business (Camden, Gloucester, and Salem Counties) is still strong, as shown on the chart below.
Click Image to Enlarge
If you’re a first time home buyer, work with us and we work to eliminate the possibility that you could end up in the same situation as the current home owners facing foreclosure. If you are a current home owner who is financially distressed and need help and advice with your home, call us…we’ve been where you are and have learned much through trial and error. We work so that YOU don’t make the same mistakes we did.
Terry Iwaniw
REALTOR Associate
RE/MAX Home Team
http://www.snewjerseyhomes.com/
http://www.i-teamhomes.com/
http://www.terryi.com/
609-417-1086
Speaking of Real EstateReSales & Investment Realty LLC, 15 Potter St Suite 7, Haddonfield, NJ 08033 - (856) 795-3111 x263
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