Changing the 1st time Home Buyer Tax Credti

Legislation introduced in Congress Wednesday would expand the tax credit now limited to first-time homebuyers to any purchaser of a home and increase the maximum available to $15,000.

The tax credit passed earlier this year is limited to $8,000 and has income caps.

U.S. Sen. Johnny Isakson, a Georgia Republican, introduced the legislation, and Senate Banking Committee Chair Christopher Dodd, a Connecticut Democrat, quickly stepped up to co-sponsor.

The National Association of REALTORS® and the National Association of Home Builders have said they would like to see the tax credit improved.

Source: The Wall Street Journal, Jessica Holzer (06/10/2009)

NEW HOMEBUYER TAX CREDIT FAQ'S

FAQs: First Time Home Buyer's Tax Credit

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Now is the perfect time to buy a new home. If you are a first time home buyer, WAIT no longer. This may very well be the best time in history to take the plunge.

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Whats on your side Now...

*Affordability is better than ever*Plenty of Homes to chose*Sellers are more willing to bargin*Historically low interest rates*$8,000 first time homebuyers tax credit*


What is the Tax Credit?

It is a credit for up to 10% of the cost your new home or a maximum of $8,000. Any home purchasesd for $80,000 or more qualifies for the credit.


Who qualifies for the credit?

Only first time homebuyers. You're considered a first time homebuyer if you have not owned a home for 3 of the last five years.


Are there income restrictions?

Yes, individuals are eligible for the credit if their income is no more than $75,000. For married couples the limit is $150,000.


What if I make more?

You could still get a portion. Individuals who earn up to $95,000 and couple that earn up to $170,000 can still get a tax credit, based on a sliding scale.


Are there financing restrictions?

Most financing arrangements are acceptable.


Do I have to repay the credit?

No, unlike the 2008 credit, there is no repayment requirements.


How do I apply?

There is no pre-purchase authorization. You simply claim the credit on your 08 or 09 tax return, on the IRS form 5405. If you buy a home before April 15,2009, you claim the credit on your 2008 taxes. If you purchase after that, claim it on your 2009 return.


What is the deadline?

You must buy and close on your home before December 1, 2009 to be eligible.
Feel free to contact me for more details and explainations on how you should start your search for you new home today!

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My House Is Worth What? Appearances Scheduled

My House Is Worth What?

Wednesdays 10:30pm e/p

My House Is Worth What? gives you the lowdown on the high stakes of home ownership. Go behind closed doors each week as three homeowners in three different parts of the country strategize on maximizing their homes' value. After a professional assessment and evaluation from local market experts, they'll get the bottom line on how well their efforts will pay off, with big surprises often awaiting the homeowner in the final number.

Over the summer I had a chance to work with HGTV on the hit show "My House is Worth What?" I will be appearing as the local Real Estate expert assisting people in find out the true value of their renovations and helping to establish a general price range for listing. "My House is Worth What?" is the number 2 rated show on HGTV after only one year and reaches an audience over 1 million.

Ward/Davis Episode airs Dec. 12th @ 10P.M.
Wise/Davis Episode airs Dec. 26th @ 10P.M.
3rd Episode to be announced

Going Green Atlanta's Future w/ Street Cars

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Why you should Chose Re/Max

A Brief Respite! In the Mortgage industry

A Brief Respite!

As I come to you each week with an update about the machinations that have become the credit markets within our grand nation…..and around the world…..I sometimes can’t help but be somewhat dismayed. Last week the tension in the mortgage industry was palpable. On Friday of last week we reached a crescendo. Lenders, loan officers, processors and underwriters were forced to make decisions about loans that would have made no sense just 90 days ago. The pendulum had swung all the way to the other side of unreasonable.

However, on Monday things started to change. The Fed’s move to lower the Discount Window Rate, the rate which banks borrower from the government for up to 30 days, was lowered by .5%. While this move in and of itself was seen by many economists as a gesture to the credit markets, it was not seen as a complete solution. What the naysayer failed to recognize was that the Fed did something else. This time they allowed banks to collateralize the loans with Mortgage Backed Security Pools. Essentially the Fed said they were so confident in our banking system that they would buy the pools until banks could sell them on the open market for a fair price. At the writing of this email, Bank of America, Citi, JP Morgan and Wachovia have all visited the Window of the Fed and have borrowed as much as $2 billion. Whew! Let’s all breathe a sigh of relief.

The markets have regained some confidence and that should give us all a few moments to breath. Some reasonableness should begin to reenter the underwriting vernacular and hopefully we will see loan approvals that don’t ask our clients to provide details about the length, in centimeters, of the big toe on their right foot! LOL!

Even with news today that Accredited Home Mortgage will close, that Lehman Brothers has closed BNC (their subprime division) and that Delta Funding will layoff 20% of its workforce, I can’t help but be optimistic. During tough times my father used to use an analogy of pushing a boulder up a mountain. When you get close to the peak you begin to tire and going that few extra yards seems impossible. However, if you can get to the pinnacle and push the boulder over the top, then you’ve won. I truly feel we’ve reached the pinnacle and with one more push we’ll see the boulder begin to roll down the other side. It will be slow at first, but it will gather steam and beginning in 2008 we will all be back on track.

For now, let’s all take a breath…..a short break if you will. Then next week we can all stand in unison and make one more big push. As always, Dividend America will be here for you. We are closing loans and we have the wide variety of lending channels and resources to make the lending process successful for your clients. I hope you’ll give me a call if you have any questions, concerns or opportunities. I will continue to bring you these weekly updates until you all scream STOP! Until then, I hope that the information I try to boil down to layman’s terms is helpful to you and your clients. Thanks for reading and stay positive! J

Sincerely,
Michael D. Gross
President
Dividend America |Mortgage
770-350-7373
404-819-4511 (cell)
www.dividendamerica.com

New Film Out 8/24 A must see!

This new film is a must see in my book, if you are in any way concerned about our future. The film is a real life look in to what we need to do and react to change in the global climate issues.

Mortgage Market Update from Michael Gross

Countrywide’s Slide:

Countrywide’s stock is down by 21% since last Wednesday. The company reported “unprecedented disruptions” in the mortgage backed securities market “could have an adverse impact” on its earnings and financial condition. Merrill Lynch’s Kenneth Bruce wrote: “If enough financial pressure is placed on Countrywide or if the market loses confidence in its ability to function properly, then the model can break, leading to an effective insolvency. If liquidations occur in the capital markets, then it is possible for Countrywide to go bankrupt.”

First Magnus, Last Place?:
First Magnus announced today that it will no longer fund mortgage loans. Is this the last of the nations top 20 lenders to fold, or will there be more to come?

Thornburg’s Demise:
In a piece of positive news, Thornburg mortgage announced that the report of their demise was unfounded. They are solvent and continue to fund loans.

My Thoughts:
As we traverse the rocky roads of this current market downturn I can’t help but be encouraged. The mortgage industry is experiencing its equivalent of the (dot)Com implosion of the 90’s. By all economic indicators, the overall economy is strong. Nation wide home values have dropped less than 1.5% with starter homes taking the largest hit. The actual pool of sub-prime loans as compared to all mortgages is approximately 15% and only 10% of those loans are expected to go into foreclosure. That number reflects less than 2/10ths of 1% of GDP. In my opinion, the markets are simply correcting and the mortgage industry is being washed out of all the failed and flawed business models. When the dust settles, the companies that remain will be those that have profit driven business models that balance consumer needs with investor needs…..profit. The American economy will be stronger in the end and we will all be better off.

I am optimistic about our future and I fully expect the market to stabilize in the next 90-180 days. When it does you will find that some of the most aggressive lenders in our market are no longer around and many of the know-nothing loan officers who were left over from the fast money days of the refinance boom have been washed out of the industry. Realtors, Homebuyers and Real Estate Investors can breathe a sigh of relief because the real professionals will be left and it will be easy to spot those who know the business from those who don’t.

My team and I look forward to being here for you now and into the future to meet all of your lending needs. Thanks and we’ll see you soon! J

Sincerely
Mike, Candace & Jo
Michael D. Gross
President
Dividend America |Mortgage
770-350-7373
www.dividendamerica.com