You are currently browsing the monthly archive for March 2009.
Before I begin, let me say Happy Saint Patrick’s Day to all the beautiful Irish out there and to all the Irish by default (everyone is Irish today). Now, back to the meat of the matter. Stimulating the economy and the housing market are hot topics in today’s economic world. I thought I would share a few things that may help to stimulate the Southern Maryland real estate market.
Tax Credit – First-time Buyers:
* The tax credit is for first-time home buyers only! If you have not owned a home within the last 3 years, you qualify as a first-time home buyer.
* The tax credit may only be applied to homes that will be your principal residence.
* The tax credit does NOT have to be repaid. The tax credit of 2008, however, must be repaid.
* The tax credit is not $8,000 but is equal to 10% of the home’s purchase price with a maximum of $8,000.
* The tax credit applies only to homes purchased on or after January 1, 2009. Escrow must close no later than November 30, 2009.
* The tax credit income limits: married couples income limit is $150,000 and single taxpayers income limit is $75,000.
* The tax credit has an income limit phase out: for those who exceed the income limit, there is a smaller tax credit. The tax credit is dependent on the adjusted income. Please consult with a tax professional to see if you would qualify.
* The tax credit will be applied to your 2009 taxes. Sometimes, the tax credit can be applied to your 2008 taxes. Consult with a tax professional as to how the tax credit will best benefit you.
* The tax credit is refundable. If the taxes you owe are less than the tax credit, the difference will come to you in the form of a tax refund.
Tax Credit – Homeowners
* Tax credit applies to homeowners making energy efficient improvements to their principal residence.
* Tax credit limit is 30% of the cost of the improvement(s) up to $1,500. $4,500 in improvements equals a $1,500 tax credit.
* Tax credit applies to energy improvements, such as insulation, water heaters, doors, windows, heating and air systems.
Reverse Home Mortgage Loan Limits
* Loan limits for FHA-insured reverse mortgage loans was increased to $625,000.
* Senior citizens can buy a new home (with equity) with a reverse mortgage loan without having to sell their current home.
Conforming Loan Limits Restored
* The maximum loan limit for high cost areas has been restored to $729,750.
Homeowners Refinance Program – Not Behind In Payments
* Homeowners who have less than 20% equity may refinance their loan.
* Homeowners may refinance up to 105% of their home’s current value.
* Refinanced loans will be refinanced at the prevailing interest rate and terms at the time of the loan. Currently, loans are hovering near 5%.
* Refinance options include a 15- or 30-year fixed rate option.
* Refinance loans are intended to lower your payment with a lower interest rate; it will not lower your principal balance or waive any debt.
Homeowners Refinance Program – Behind In Payments
* Only applies to the homeowner’s principal residence.
* Multi-family units may qualify if one of the units is owner-occupied. Please consult with your tax adviser.
* Applies only to first mortgages.
* If a property has a second mortgage, the homeowner can still qualify but cannot refinance the second loan under the refinance program.
* Loans must be backed by Fannie Mae or Freddie Mac.
* Loans may not exceed current loan limits.
* Principal loan balance may be lowered with approval by the lender.
* Homeowners may earn a tax credit. The homeowner must stay in the home for five years. The maximum tax credit is $5,000.
The information above is a short summary of the various programs and is intended to be straight forward. However, there may be other qualifying factors.
Bonnie Augostino, Southern Maryland Realtor
Charles County residents will need to exercise a little caution before hanging up the phone. The Charles County Sheriff’s Office is conducting a campain to make residents aware of their new notification procedures. The Charles County Sheriff’s Office has recently announced that Charles County residents will receive automated phone calls to inform residents regarding local emergencies or crime alerts. The automated system has already notified residents about a water main break in December and Waldorf residents were alerted about residential burglaries taking place in their area.
Charles County has recently upgraded their automated phone system. The new system will save money in the form of man hours. Previously, notifications were conducted door-to-door. With the new system, more citizens can be contacted within a short space of time. Currently, the Sheriff’s Office has over 80,000 phone numbers in its database. The automated system allows up to 24 citizens to be notified at one time.
The automated system features a computerize map which allows law enforcement to draw geographical area maps according to the current situation. Residents within that geographical map would then be notified. Automated phone calls can be annoying, I know. But, don’t hang up until you are sure it is not the Charles County Sheriff’s Office contacting you with important information in your neighborhood.
