HR3221: Housing Rescue Bill
Just in from Floyd at BWA Mortgage: "I wanted to share with you this week just a little more about HR3221 (the 700 page congressional law we have been discussing the last few weeks). I wanted to focus on how the Tax Credit portion of the law will work. My standard caveat to check with a tax professional (please don’t take my word as fact) before proceeding applies.
Fact #1: Only First Time Home buyers qualify. To be a First Time Home Buyer, you cannot have owned a home in the last three years.
Fact #2: The credit is for a maximum of $7500 for a married couple. The amount of the credit is 10% of the purchase price, again maxed out at $7500. This is an Income Tax Credit, not a down-payment assistance program, so you will have to wait to file your return to get your refund on this one.
Fact #3: The full credit only applies to single borrowers with an income of $75,000 or less and married couples with joint incomes of $150,000 or less. With higher incomes the credit phases out quickly.
Fact #4: The tax credit will have to be re-paid over the next 15 years (in other words you have to pay the government back 6.66% of the credit each year when you file your taxes) so it works like an interest free, 15-year loan. Now you can avoid paying the loan back under certain limited circumstances (for example if you die)."
Categories: All about Money, Homeowner's Benefits and Woes
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10/5/2008 9:21 AM
Los Angeles Real Estate Blog wrote:
There is more to the Housing Assistance Tax Act than you might be aware of. In addition to the tax credit to first time buyers, changes were made to the last “two out of five year rule”. • Tax credit of up to $7,500 for first-time homebuyers, to be repaid over 15 years. • Additional property tax deduction for those that don't itemize. • Prorated capital gains exclusion for real estate for periods of non-primary use. When homeowners sell their primary residence, they can exclude up to $500,000 in capital gains from income tax. ... -
10/6/2008 7:38 AM
Los Angeles Real Estate Blog wrote:
There is more to the Housing Assistance Tax Act than you might be aware of. In addition to the tax credit for first time buyers, changes were made to the “two out of five year rule”. • Tax credit of up to $7,500 for first-time homebuyers, to be repaid over 15 years. • Additional property tax deduction for those that don't itemize. • Prorated capital gains exclusion for real estate for periods of non-primary use. When homeowners sell their primary residence, they can exclude up to $500,000 in capital gains from income tax. The ... -
10/6/2008 7:40 AM
Los Angeles Real Estate Blog wrote:
There is more to the Housing Assistance Tax Act than you might be aware of. In addition to the tax credit for first time buyers, changes were made to the “two out of five year rule”. • Tax credit of up to $7,500 for first-time homebuyers, to be repaid over 15 years. • Additional property tax deduction for those that don't itemize. • Prorated capital gains exclusion for real estate for periods of non-primary use. When homeowners sell their primary residence, they can exclude up to $500,000 in capital gains from income tax. The ... -
10/6/2008 7:41 AM
Los Angeles Real Estate Blog wrote:
There is more to the Housing Assistance Tax Act than you might be aware of. In addition to the tax credit for first time buyers, changes were made to the “two out of five year rule”. • Tax credit of up to $7,500 for first-time homebuyers, to be repaid over 15 years. • Additional property tax deduction for those that don't itemize. • Prorated capital gains exclusion for real estate for periods of non-primary use. When homeowners sell their primary residence, they can exclude up to $500,000 in capital gains from income tax. The ...
DO NOT LOSE YOUR HOME, Fight Back!!!
Go over your loan documents for any violations of the FNMA
FannieMae) guidelines, which is not only the vast majority of all
mortgages, but is also used as an industry standard. Any
violations (FRAUD), means the lender must buy back the loan.
The biggest investment most Americans will make is now the
target of one of the country's largest financial scams and labeled:
"The Perfect Crime."
When fully exposed, this will make Enron look like a parking
ticket.
Do note lose your home. Do not walk away. Do not refinance to
get out of a loan you could not afford to begin with.
IMPORTANT TIP: One of the most effective tools to cut
through the toxic mortgage maze is a mortgage audit or forensic
loan document review that can help discover legal violations on
your loan, which will help you negotiate your mortgage before
you are late.
Your only hope is to fight back.
http://www.youtube.com/watch?v=kswEb-iVsms
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