Tagged: first time home buyers

Senate Considering Housing Credit Extension

This week Senate leaders have been more open about the talks of extending the housing credit that is available to first time homebuyers.  While Senators have yet to come to a decision as to what type of extension will be put in place they are highly considering some type of extension.

Senator Majority Leader Harry Reid and Senate Finance Committee Chairman Max Baucus are proposing that the housing tax credit be extended throughout 2010 but decrease in amount quarterly.  The credit would continue at $8,000 until the end of the first quarter and if successful would continue into the second quarter but will only be for a tax credit of $6,000 and so on and so forth until the end of 2010 at which time the last quarter would consist of a $2,000 tax credit for first time homebuyers and then would end at the end of 2010.

Another idea that is being proposed by Senator Banking Committee Chairman Christopher Dodd and Senator Johnny Isakson which is that the first time home buyer tax credit should be extended until June of 2010 but will be able to used by all first time home buyer couples who make less than $300,000 a year.

While the Senate has not decided on the exact terms of the extension yet House Speaker Nancy Pelosi said “generally we do support it” when asked about the tax credit extension but she also said that it is still too premature to determine if and under what conditions the first time homebuyers tax credit will be extended until the Senate reviews the situation and comes up with a proposal.

The consideration to extend the housing tax credit comes after mortgage brokers, real estate agents and home builders have been putting pressure on lawmakers to extend the first time homebuyer tax credit which they believe will cause the housing market to slump if taken away prematurely.

Homebuyer Tax Credit May Be Extended and Also May Include More Than Just First Time Homeowners | First-time Homeowner Purchasing a home in Staten Island or Brooklyn New York

In the past few months there has been a growing concern among realtors, banks, brokers and real estate lawyers that the economy may suffer a large downslope if the $8,000 tax credit that is currently available to first time home buyers ends on November 30.   This is the exact reason that many real estate professionals have joined in a campaign in an effort to get Congress’ attention on this very important subject.  The slogan of the campaing is “Don’t Let America’s Real Estate Recovery Expire”.

Many expert real estate professionals understand and know that the first time home buyer tax credit is something that can be used to continue to revive the economy.  While this is not the only thing that needs to be done to improve the economy from its current state, it is a very large part of it.

The homebuyers tax credit was started in February of this year and is set to expire November 30, 2009.  In July is when most home buyers started looking to take advantage of the $8,000 tax credit so that they could close on the house by November 30 of this year.  Sales in July reflect the benefits of having the $8,000 first time homebuyer tax credit in place.  The sales on existing homes rose 7.2% and sales on new construction homes rose 9.6%, according to the Realtor and Commerce Department.  That was the first time in over two years that home sales increased by such a large percentage.

A lot of banks are afraid that those interested in becoming first time homebuyers will begin to back off from the idea of purchasing a home within the next month or so becuase the process to obtain a mortgage takes about 60 days and they would need to close on or before November 30, 2009 to be able to take advantage of the tax credit.  This reason has caused many real estate professionals to push Congress harder for an extention on the tax credit.  Also, the idea has been presented to Congress to not only extend the tax credit but also allow it to include individuals who already own homes, couples who make $75,000 to $150,000 annually and would increase the tax credit from $8,000 to $15,000.

The bill to extend the homebuyer tax credit and to change its provisions to include a larger range of people is currently gaining support with the Senate becuase of bill sponsor, John Isakson.  When asked about the bill he is sponsoring to extend the tax credit he said that he just wants to continue a program to help boost homes sales by more than 1 million in just the last year.

White House spokesman Robert Gibbs tolds reporters that President Barack Obama’s team is currently looking at the bill for the new tax credit and “evaluating the impact” it will have on new home sales.

If you are a first time home buyer interested in purchasing a home in Staten Island, Brooklyn, Bronx, Queens, Manhattan or New Jersey contact an experienced real estate lawyer.  Decker, Decker, Dito & Internicola, LLP, a Staten Island law firm, has over 35 years experience in real estate law.  To have us help you throughout the process of purchasing a home and for us to represent you at the closing of the title on future house contact us at 718.979.4300.

Mortgage Credit for First-Time Home Buyers Purchasing a Home in New York

New York state is offering a tax credit to first time home buyers who are purchasing a home in New York (including New York City – Staten Island, Brooklyn, Manhattan, Queens and the Bronx) in addition to the $8,000 tax credit for first time home buyers.

The additional credit will be given to first time home buyers buying a home in New York and obtaining a new fixed rate mortgage – including Fannie Mae, Freddie Mac, other conventional loans, VA loans and FHA insured loans and will offer a tax credit of up to 20% of the mortgage tax credit for the life of your loan.

The credit is called New York State Mortgage Credit Certificate and you apply for it at the same time you apply for your mortgage and upon approval you can claim the tax credit on your federal taxes along with IRS form 8396 (mortgage interest credit form).

There are restrictions on who can apply for the loan, some of the qualifications are listed below:

The borrower must…

    • Be a first time home buyer as defined by SONYMA;
    • Meet SONYMA’s Household Income Limit requirements (click here to see Household Income Limits for your area);
    • Occupy the home as their permanent residence;
    • Not have used more than 15% of their current residence (or a prior residence) for a business or commercial use in the past year.
      • The property must…
    • Be located in New York State;
    • Have a sales price that does not exceed SONYMA’s Purchase Price limits;
    • Not have been used for any business or commercial purpose;
    • Be one of the following property types:
      • Existing or newly constructed one family home (includes condominiums and cooperatives);
      • Existing two, three, and four family home that is at least five years old as of the SONYMA loan application date and has been used only as a residence during the past five years;
      • Two family home located in a Target Area that is newly constructed or was constructed within the five years prior to the SONYMA loan application date; and
    • Have a maximum of five (5) acres.
      If you are a first time home buyer that is considering purchasing a home in New York the Mortgage Credit Certificate (MCC) may be something that you are eligible for.  In order to find out how much of a tax credit you will receive if you apply for this program NY Homes has created a calculator.
       to help you determine how much of a credit you will receive.
      Unlike the federal home buyers tax credit of $8,000 the New York Mortgage Credit Certificate does not have an expiration date on it as of yet.  The Mortgage Credit Certificate can be used with the federal first time home buyers credit of $8,000 if the closing occurs on or before November 31, 2009.

if you are purchasing a home in New York you will need a New York real estate attorney with experience to represent you in your real estate transaction

      .  You will want to make sure you find the right New York real estate lawyer because this will be the person guiding you throughout the process of your purchase, explaining the contract to you, making sure you get what you want out of your purchase, working with the bank to help you get approved for your mortgage and representing you at closing.  If you would like more

information about finding the right New York real estate attorney

         contact our law firm which has over 35 years of real estate experience.  You can contact our Staten Island real estate law firm office at 718.979.4300.  We are located at 1610 Richmond Road, Staten Island, New York 10304.