Time is Running Out for First-Time Homebuyer Tax Credit!

If you’ve been considering a home purchase, and you’re a first-time homebuyer, you need to be out there now.  The tax credit expires November 30th.  If your home does not close on or before that date, sorry, it’s too late.  If you’re thinking, “It’s the first of October, I’ve got plenty of time.”  No, you don’t. 

I have a new contract for some first-time homebuyers.  It’s September 30th, and we’re looking to close November 6th.  Things take longer to close now than they used to.  I saw another story/post that said if you don’t have your home contracted by October 21st, don’t bother, it won’t make it. 

The inventory in most places is good.  New home builders all over the Dallas-Fort Worth Metroplex have homes that will be finished and ready to close in mid-November.  The builders have planned for last-minute shoppers.  Take advantage of it, good deals are there for the taking.  There are great resales available all over as well.  One thing you do not have time to consider is a short sale.  There is nothing short about a short sale.  They absolutely will not close in time for the credit.

The two-minute warning just ended – we need to work quickly to score before time runs out.  (It’s football season, I couldn’t resist).  Don’t delay, it may be now or never.

Article by Chad Underwood, Owner/Broker, www.NorthTexasHomeFinders.com, Chad@NorthTexasHomeFinders.com

DR Horton Opens New Model in Providence

Come see the new model at Providence.  DR Horton recently purchased 60 new lots, some located in Denton ISD, and some located in Aubrey ISD.  They have updated many designs, and also brought in new plans.

New Standard Features include the following:

• Rounded Corners
• Upgraded Lighting
• Cast-Stone Fireplaces
• Ceramic Tile in all Wet Areas
• 8″ Deep Stainless Steel Sinks
• Upgraded Countertops
• New Cabinet Packages
• New Raised Panel Door Styles

These homes can all have added 2″ blinds, refrigerator, washer, and dryer, making them truly move-in ready.

DR Horton currently has 8 inventory homes that will be ready in October, and more to follow in November – just in time to still get the first-time homebuyer tax credit (must close by November 30th).  Home prices start in the $130’s, plans range in size from 1200 sq. ft. to 2700 sq. ft.

To negotiate the best deal on a new home in Providence, contact us at chad@northtexashomefinders.com, or visit us at www.NorthTexasHomeFinders.com.

Article by Chad Underwood, Owner/Broker (Lic. #0550393)

North Texas Area Home Sales 2nd Quarter 2009

Compared to much of the nation, north texas real estate remains in good shape.  Homes are selling.  If you’ve been waiting to put your home on the market, time is wasting.  Many folks are trying to get into their new place before school begins.  There are only a few weeks left.

Check out this link, courtesy of the Dallas Morning News.  It’s an interactive map giving the percentage changes in several key categories, % sales, median home price, days on market, etc.

http://www.dallasnews.com/sharedcontent/dws/graphics/homesales/092q.html

 Chad Underwood, Owner/Broker, www.NorthTexasHomeFinders.com, Chad@NorthTexasHomeFinders.com

Lewisville Lake Toll Bridge to Open August 1st

Lewisville Lake Corridor Project

The long awaited Lewisville Lake Corridor Project is finally scheduled to open to traffice on August 1st.  The new toll road will connect Interstate Highway 35E at Swisher Road to the Dallas North Tollway at Eldorado Parkway.  It is approximately 13.8 miles long and is divided into eight sections (click on the link above to see a PDF).  The main focus of the new road is the toll bridge that  features a lighted, tied arch spanning 360 feet near the center of the 1.7-mile bridge.  Approaches and thresholds of the bridge are also flanked by pairs of lighted columns.

The bridge will help motorists from the Frisco, Little Elm, and Aubrey areas commute to downtown dallas; and it should help ease some of the traffic congestion experienced during rush hour times as well. 

The bridge is scheduled to open to traffic on schedule on Saturday afternoon following the community-led “Run the Lewisville Lake Toll Bridge” 5K run and family fun walk scheduled to begin at 8 and 10 a.m., respectively.

Blog by Chad Underwood, Owner/Broker, Chad@NorthTexasHomeFinders.com, www.NorthTexasHomeFinders.com.

Texans – You Can Now Use Your First-Time Homebuyer Tax Credit for DPA

The Texas Department of Housing and Community Affairs announced new down payment assistance programs for first time homebuyers. These programs will help fulfill the down payment need for many first-time Texas homebuyers.

Below are some bullet points:

• Borrowers must have a 620 or higher FICO score
• TDHCA has three different programs to use: 90-Day DPA Program (FHA Only), Mortgage Advantage MCC, Mortgage Advantage Bond
• Borrowers can receive up to $7k from the 90-day program and up to $6k with the others
• Borrowers must be first-time homebuyers (or not owned a home in the last three years) – TDHCA will verify this with previous 3 years’ tax returns
• Borrowers must qualify with the payment in their ratios – $323/mo with the 90-day program and $120/mo with the others
• Income limits do apply – $75,000 single buyer, $150,000 married buyers
• Borrowers must occupy the property for 3 years or the IRS will recapture the assistance in the tax year the property is sold
• $250 cashiers check from borrowers to TDHCA is required
• TDHCA is telling us to expect 20 business days from submission to closing…..This is important. DO NOT expect a 2 week closing. I would advise at least 45 days to be safe.
• Funds are first come first serve and rather limited

 

Again, this will be a great program which will help many Texans buy homes.

 

For more complete details, call Chad Underwood at (972) 672-1744.  Chad@NorthTexasHomeFinders.com, www.NorthTexasHomeFinders.com

Correction to My Last Post – “There is still Time to Get the $8,000 Tax Credit This Year!”

I surely do apologize folks, but I made an error on my blog post last week.  My information source was from a local Builder’s Salesperson.  When I was asked my source, I went to find the Salesperson’s source for the claim.  He had heard it somewhere.  That’s how it goes.

Google was next.  I’ve searched high and low, but I could not find a deadline for amending 2008 returns to gain the credit.

Finally,  I checked with my CPA.  According to her, there is no specific deadline for amending your 2008 taxes to claim the tax credit.  Tax returns can be amended for up to 3 years.

That’s good news for all you first-time homebuyers out there.  If you close in August, you can still get your tax credit now.  However, my CPA always recommends you look closely at your expected income for 2010.  If your income has the possibility of dropping off, it might make more sense to wait to get the $8,000 tax credit next year to supplement your income.

Another error that has been reported our there is a deadline of June 30th to file the amended return.  That date is getting confused with the deadline that was imposed last year, for the $7,500 tax credit. It does not apply in this case.

The one current deadline to remember is November 30th of this year.  You must close on your home prior to that date.  If you close on December 1st, you will not receive the tax credit as the current law is written.

Article by Chad Underwood, Owner/Broker, chad@northtexashomefinders.com, www.NorthTexasHomeFinders.com

There is still Time to Get the $8,000 Tax Credit This Year!

That’s right, it’s not too late for first-time homebuyers to get their $8,000 tax credit.  If you close on a home by July 31st, you can file an amendment to your 2008 taxes to obtain the tax credit now.

The same rules apply, first-time homebuyers and those who have not owned a home in the last three years qualify.  The credit is 10% of the home value or $8,000 whichever is less.  The credit begins to phase out at a modified adjusted gross income of more than $75,000, or $150,000 for joint filers.

Do you need to close before July 31st to get the credit?  No.  Eligible buyers can still get the tax credit for purchases made prior to December 1st.  However, buyers who purchase after July 31st will file for the credit on their 2009 tax return.

Article by Chad Underwood, Owner/Broker, Chad@NorthTexasHomeFinders.com, www.NorthTexasHomeFinders.com.

Dallas-Fort Worth Ranked 3rd Best Housing Market

The Dallas-Fort Worth area is one of the top three housing markets in the country, according to a just-released economic report from the Brookings Institution.  Brookings researchers make these claims based on the Federal Housing Finance Agency’s quarterly House Price Index, which tracks values of homes mortgaged by Fannie Mae and Freddie Mac.

The housing report was part of a comprehensive nationwide study on the economic health of metropolitan areas nationwide.  Brookings found that 38 of the top 100 metro areas avoided home price declines over the last year, even as prices nationwide dipped 6 percent. Most of these metro areas also had below-average employment declines and are in less-affected parts of the Manufacturing Belt (Pennsylvania and upstate New York) and the Sun Belt (Texas, Oklahoma, Arkansas and Louisiana).

Best U.S. Housing Markets:

1. Houston

2. Buffalo

3. Dallas-Fort Worth

4. Wichita

5. Greenville, S.C.

 Worst U.S. Housing Markets:

1. Stockton, Calif.

2. Las Vegas

3. Modesto, Calif.

4. Riverside, Calif.

5. Cape Coral, Fla.

 Source: Brookings Institution

Chad Underwood, Owner/Broker, Chad@NorthTexasHomeFinders.com, www.NorthTexasHomeFinders.com.

Brand New Home, Frisco ISD for $179,990!

 

1781 sf, 3 BR, 2 BA, 2-car garage

Charming 3 bedroom home is both beautiful and energy efficient! This beautiful home features stainles steel appliances, granite countertops, undermount sink, kitchen island, designer tile selections, covered back patio and a remarkable stone and brick exterior. This “Green” built home also inlcudes features such as radiant barrier in the attic, vinyl windows, allergy reducing filters and so much more.

This home has been reduced to $179,990.

Contact Chad Underwood at Chad@NorthTexasHomeFinders.com for more information.

  Chad Underwood, Owner/Broker, www.NorthTexasHomeFinders.com

Should I Buy A Distressed Property?

Confused? Learn what’s what, and what to expect.

Many people think buying a home in “distress” means they’ll get a great value. This is not always the case – distressed properties often have challenges not typically found with a traditional real estate transaction.

 Things to be aware of:

• Lenders are overwhelmed in this market, so expect the process of buying a short sale or an REO to take several months (after you make an offer).
• Multiple offers are often made on one property. Even if your offer is competitive, if lender receives what they perceive to be a “better” offer, you could be out of the running all together.
• Always remember: until your offer is accepted by the lender, there is no contract. That means even if your short sale offer has been “accepted” by the seller, there is still no contract until the lender has given its approval. Similarly, if you are making an offer on an REO property, there is no contract until the lender accepts.

 So, if you’re the kind of buyer who…

• Is not in a hurry to purchase your next home.
• Is comfortable with some uncertainty about that purchase.
• Is willing to search through dozens of listings in hopes of finding a good deal…

…then include searches of foreclosed or short sale properties in your next

online search!

When a homeowner is behind on his or her mortgage, or already in default, the mortgage holder (aka lender) has many options, including allowing the home to be sold for an amount less than what the home owner currently owes(also called a short sale), and foreclosure.  Buying a short sale or REO property is a complex process. The overview below is intended to give you an idea of what you may face if you decide to pursue a purchase of a distressed property. You should always discuss the process in detail with your REALTOR® before making an offer. Here is an overview of the most common distressed situations and how you can work through them:

 Short Sale Properties

 A short sale usually occurs when the homeowner either knows they can no longer afford the home and is facing a default on the mortgage, or has already defaulted and is facing a foreclosure. A short sale will happen when a property is sold for an amount that is less than, or “short” of, the current pay-off amount of the mortgage.

 Before making an offer on a “short sale,” please keep the following in mind:

• Any offer must be approved by seller’s lender.
• Because of the required approval process by the lender, closings on a short sale are often delayed by several weeks, if not months.
• A lender may not agree to, and thus change, the terms of the agreement made between the seller and the buyer.

Foreclosure Properties (i.e., REO, HUD, Fannie Mae)

What is a Foreclosure/REO?

 If a homeowner has defaulted on the mortgage, the lender has the option of initiating a foreclosure against the property. If the homeowner is unable to pay the past-due payments or sell the home as a traditional sale where the mortgage is paid-off in full, or as a short sale, the foreclosure of home will be complete and the property will be put up for sale at an auction. In the event that there are no bidders at the auction, the lender will end up as the new “owner” of the home. Lender owned properties in this situation are known as REO (Real Estate Owned) properties.

 Lenders take the homes “as-is,” meaning that REO properties will often need to be repaired. But the benefit of purchasing an REO property is that you may find some good deals!

 Issues to watch out for:

• The lender most likely will not agree to make any repairs to the home.
• The lender may require you to financing with them.
• While most REO properties are already vacant, there is a possibility the lender is still in the process of having the former owners evicted. This could result in a delay in closing, and may also increase the price.

Chad Underwood, Owner/Broker, Chad@NorthTexasHomeFinders.com, www.NorthTexasHomeFinders.com.