Isakson: No extension of home credit after it expires in June 2010

ATLANTA – U.S. Sen. Johnny Isakson said Monday there won’t be another extension of his homebuyer tax credit after it expires in June.

In an interview with the Associated Press, Isakson said a second extension “isn’t going to happen.” The Georgia Republican and former real estate agent said the extension signed into law in November by President Barack Obama “will not work at its fullest unless it has a termination date.”

The U.S. Senate voted earlier this month to extend an $8,000 tax credit for first-time homebuyers which had been set to expire. Isakson was the architect of that tax break. The new plan was expanded to include a $6,500 credit for existing homeowners who buy a new home after living in their current residence for at least five years. The credit will be available through June 2010 as long as the buyer has signed a binding contract by the April 30, 2010.

Isakson said making existing homebuyers eligible for the tax credit will provide a needed boost to the housing market.

“I have said from the beginning, unless you move it across the market you’re never going to catch the ‘move up’, where the most home equity is,” he said.

Isakson said existing homeowners persuaded to enter the housing market will help move homes that have been languishing with “for sale” signs on their front lawns. Once those homes move, the construction industry will perk up, he said.

There have been signs the tax credit is working. The National Association of REALTORS® reported that home sales surged for the second month in a row in October, climbing to the highest level in 2 1/2 years. Home sales nationwide are up almost 36 percent from January, although they are still 16 percent below the peak in autumn 2005.

by Anita C. Young, Milicki & Associates

Milicki & Associates Inc. 110 Evans Mill Dr. Suite 103, Dallas, GA 30157

www.milicki.com

Tax Credit Extended and Expanded

As of – Thursday, November 5th – that bill has passed and will be sent to President Obama for his signature

Upon Passing the extension of the HomeBuyers Tax Credit there will be several changes to assist homebuyers. It is no longer limited to First-time buyers bu has been extended to others also looking to purchase a home.

Let's summarize the changes quickly:

Once President Obama, has signs the bill, the expiration date for the credit will move to April 30, 2010.

First-time buyers who have not had interest in a principle residence for three years are still eligible, and the maximum amount remains the same – $8,000 for married couples, $4,000 for those filing separately.

Current homeowners, who have consecutively maintained the home they want to sell as their primary residence for five of the last eight years, are also eligible. However, the maximum amount for those homeowners is lower: $6,500 for married couples and $3,200 for those filing separately.

The tax credit may not used to purchase a home for more than $800,000. All buyers who want to get the credit must include documentation of the purchase on their tax returns. (Usually a copy of the HUD statement given at closing will suffice)


Milicki & Associates, Inc.
110 Evans Mill Dr Suite 103
Dallas, GA 30157
770-874-2022
866-966-3022
information@milicki.com
www.Milicki.com

Senate Votes On Home Tax Credit

Senate Committee Says YES
House & Senate Vote Next!


BREAKING NEWS: Senate Plans to Extend and Expand Tax Credit
The Senate has reached a compromise on extending and expanding the $8,000 tax credit for 1st time home buyers, a boost for the housing industry and a great opportunity for both buyers & sellers!

While its final passage remains uncertain, the agreement would extend the existing credit for 1st time home buyers, worth up to $8,000, plus offer a new credit of up to $6,500 for some existing homeowners. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House.

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real estate market a bigger boost while preventing real estate investors from benefitting. While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor.

This Is Great News For Buyers and Sellers!
There are incredible properties available for buyers at prices that may not be seen again in our lifetimes. This means that more buyers will be in the market and that increases the odds for sellers. Insiders do not expect these incentives to be renewed again so buyers must take action now to get pending contracts before April 30th 2010.

Stay tuned for additional details as the legislative process continues. Please contact your elected officials and encourage them to "vote yes" to pass this important legislation!

The Window Of Opportunity Is Officially Open - Don't Miss It!
Please Contact Us To Get Started Today!

Milicki & Associates, Inc.
www.Milicki.com
information@milicki.com
770-874-2022
110 Evans Mill Dr. Suite 103
Dallas GA, 30157

First-Time Homebuyer Credit Provides Tax Benefits to 1.4 Million Families to Date

The IRS has released IR-2009-083 reporting that approximately 1.4 million taxpayers have filed (or amended) there 2008 income tax returns claiming the $8000 first-time homebuyer tax credit. The IRS release of informaiton also reminds taxpayers of the importance of getting your home purchase closed before the December expiration of the tax credit. The IRS has publicized a YouTube video it has prepared to help taxpayers understand the basics of the tax credit.

The National Associations of Realtors (NAR) continues to put forth it full effords to extend the credit into 2010. Read the IRS Press Release.

Anita C. Young
Milicki & Associates, Inc.
110 Evans Mill Dr.
Suite 103
Dallas, GA 30157
770-874-2022
866-966-3022 toll free
information@milicki.com
http://www.milicki.com

Helping Home Buyers afford a New Home

The $790 billion American Recovery and Reinvestment Act signed into law by President Barack Obama in February gives first-time home buyers an exciting incentive to enter the housing market-an $8,000 tax credit. Under the new provisions, there is no repayment requirement as long as the buyer remains in the home for three (3) years. For many 2009 purchasers, the new guidelines will mean more money in your pockets come tax time.

Pay particular attention to the timeline: All purchases must take place between Jan. 1, 2009 and Dec. 1, 2009.

Additional Programs available to homebuyers

Depending on where you live many counties have additional incentives - Cobb County has the ‘Cobb County Neighborhood Stabilization Program (NSP)’ program. This is a down payment assistance program that can give you, the buyer, up to $20,000 to assist in buying a home. And you do not have to pay it back, if you complete the guidelines set fort in the program.

Eligibility Requirements

Neighborhood Stabilization Program will help workforce individuals and families realize the dream of home ownership. Buyers may receive contributions for down payment assistance, closing costs, a deferred second mortgage, as well as education on homeownership. In order to be eligible, the buyers must:

1. Be a U.S. citizen, qualified alien or a non-immigrant.
Family Size Maximum Income

1 $59,800
2 $ 68,350
3 $ 76,900
4 $ 85,450

2. Be able to qualify for a mortgage.

3. Attend an 8-hour HUD class.

4. Home must be your primary residence.

5. Meet income qualifications. See chart.

As I mentioned, there are other programs available in counties throughout Georgia. Fulton County, Paulding County, DeKalb County, Etc. In fact, if you have questions about such programs, please contact our office e-mail at information@milicki.com or call 770*874*2022, and we will be happy to assist you in getting the information you need.

We will continue to inform you of other programs that can assist you in getting the best possible deal on real estate. Check our blog regularly!!!

Anita C. Young,
Milicki & Associates
anitayoung@milicki.com
www.Milicki.com

Tax Credit Can Be Used for Down Payment

"Tax Credit Can Be Used for Down Payment"

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment. Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

"We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan says. He says FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. "I do think we have some early signs that the market overall is stabilizing," Donovan says. "Since January, we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."

Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely."We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy," said NAR President Charles McMillan. "We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond."

Source: NAR

For more information, you can contact us at www.milicki.com or 770-874-2022.