$8000 Tax Credit Extended for Members of Uniformed Services

Many of you have heard that the federal $8,000 first-time homebuyer tax credit and the $6,500 move-up tax credit expired as of June 30, 2010. While this is true for most, the U.S. government has extended the homebuyer tax credit for members of the uniformed services, members of the Foreign Service and employees of the intelligence community.

The tax credit extension is available for those who serve or have a spouse in the Military Reserve, National Guard and Air National Guard. The serviceman or woman must be on official extended duty service outside of the United States for at least 90 days during the period after Dec. 31, 2008, and before May 1, 2010. To take advantage of the credit, the eligible taxpayer must buy, or sign a contract to buy, a principal residence on or before April 30, 2011. If a contract is entered into by that date, you have until June 30, 2011, to close on the purchase.

For more detailed information and necessary tax forms, go to www.irs.gov or contact your tax professional. Although I am always here to answer your questions, I strongly encourage you to seek qualified and legal tax counsel. Contact me today to discuss your loan options to get you into your dream home, before the tax credit expires for good!

John Easterbrook
(916) 224-7653
john.easterbrook@spmc.com
Licensed – NMLS # 226555

New Program Reduces Federal Income Tax a Homebuyer Pays!

New money is now available for the SHRA MCC program. This program blows away the $8,000 First-time Homebuyer Tax Credit, if the borrower keeps the loan in place for more than five years as an owner occupant.

The Sacramento Mortgage Credit Certificate (MCC) Program is designed to provide homeownership assistance on home purchases within the cities of Sacramento, Elk Grove, Folsom, Isleton, Galt, Citrus Heights, Rancho Cordova and the County of Sacramento. The MCC reduces the amount of Federal income tax a homebuyer pays, thus giving more available income to qualify for a mortgage loan and to make monthly mortgage payments. This new allocation won’t last very long, so take advantage of it while you can. Below are a few keep points on the MCC loan program.

Program Features:

• 20% Mortgage Credit Certificate – a tax credit of 20% of the annual mortgage interest paid (amount of the credit cannot be more than the annual federal income tax liability after all other credits and deductions have been taken into account)

• MCC will be in effect for the life of the original mortgage loan provided property remains owner occupied

• MCC may be reissued one time, upon the first refinance of the original mortgage loan

• MCCs may be used with conventional loans, fixed-rate or adjustable loans, FHA and VA loans (MCCs are not available with bond-backed loans such as CHFA or Cal-Vet)

• 40 percent of an MCC allocation is reserved for households whose income does not exceed 80 percent of the area median adjusted for family size

Eligible Applicants Include Homebuyers:

• Who are first-time homebuyers (have not owned and occupied a home as a principal residence within the preceding three years) (in federally designated target areas, you do not have to be a first-time homebuyer)

• Able to qualify for a loan to purchase the home

• Who will live in the home being purchased

Who do not exceed the following income limitation:

• 1 or 2 person household $73,100 (non-target areas) $87,720 (target areas)

• 3 or more person household $84,065 (non-target areas) $102,340 (target areas)

Eligible Properties Include:

• Single family homes that are located within the cities of Sacramento, Elk Grove, Folsom, Isleton, Galt, Citrus Heights, Rancho Cordova and the unincorporated areas of the County of Sacramento.

Maximum purchase price limits:

• New and Existing Homes $506,795 (non-target areas) $619,417 (target areas)

John Easterbrook (916) 224-7653 john.easterbrook@spmc.com Licensed – NMLS # 226555

Government Homebuyer Stimulus

More Generous than Last Year’s $8000 First-time Homebuyer Tax Credit!

The Sacramento Housing and Redevelopment Agency has allocated new funds for the Mortgage Credit Certificate (MCC) program. What does that mean for first-time homebuyers? Well, if you purchase a $225,000 home and plan to live in the home for at least the next three years, with the tax credit savings you receive from the MCC, you will have gotten more than $8000 in stimulus money!

Here is an overview of the program and how it works:

·         Provides a 20% tax credit on the interest of your mortgage (this is in addition to the other tax benefits you receive when you purchase a home)

·         You must be a first-time homebuyer

·         You must live in the home (you can only receive the tax benefits as long as you live in the home, but can receive the tax benefits for the life of the loan as long as you still live there)

·         Reserved for areas around Sacramento (contact me for a full list of eligible areas)

·         There is a $250 application fee to take advantage of the program

·         To take advantage of the MCC program, your household income must fall below these limits:

o    1 to 2 Person Household – $75,100

o    3 or more Person Household – $86,365

Contact me today, to learn more about the MCC program and the benefits for you, and to determine your eligible.

John Easterbrook
(916) 224-7653
john.easterbrook@spmc.com
Licensed – NMLS # 226555