Home Buyer Credit Extended and Expanded

I'm sure that many of you have heard that both the house and the senate have passed the Unemployment Extention Bill which includes an extention and upgrade to the First Time Home Buyer Tax Credit. Well, today president Obama signed it.

Here is an article from the Associated Press.

Here is a comparison of the previous tax credit & the new tax credit.

Below are some Frequently Asked Questions that Ada County Association of Realtors has answered:

November 5, 2009

By a vote of 403-12 the House just passed the Unemployment Extension Bill which contains the Home Buyer Tax Credit.

President Obama will get it...and sign it...tomorrow.

Here's NAR's latest FAQ on the extended and expanded tax Credit.

Question: Existing homeowner credit: Must the new house cost more than the old house?

Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a firsttime homebuyer but was not within the prior income limits at the time I
entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement,
you should be eligible for the credit (or a portion of the credit if you're within the phaseout
range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I
have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.

Question: I am an eligible first time home buyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date ffect me?

Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

Information courtesy of Ada County Association of Realtors & National Assocation of Realtors

Title One: News You Can Use - 6/9 & 6/16/2009

June 16, 2009



June 9, 2009

Recomended Local Businesses 6/10/09

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Foreclosure Numbers for the Treasure Valley 6/9/09

This was last months headline news on Foreclosures:

Treasure Valley foreclosures drop in April
POSTED: 14:16 MDT Thursday, May 7, 2009
by IBR Staff idahobusiness.net

And this was this month's. I can't say I'm not surprised:

Treasure Valley foreclosures jump again
POSTED: 10:26 MDT Tuesday, June 9, 2009
by IBR Staff idahobusiness.net

First Time Home Buyer Credit - Update

Information Courtesy of Ada County Association of Realtors

FAQ's about First Time Home Buyer Tax Credit:

Is the program available to all first-time homebuyers? Yes - the program is available now until December 1, 2009 for qualifying first-time homebuyers. For more information on the tax credit and qualifications click here . The National Association of REALTORS® is actively working to extend the credit through 2010 and permit all purchasers to utilize it.

Does Idaho have a way for a homebuyer to access the funds for a down payment? Yes - With ACARs encouragement, The Idaho Housing and Finance Association implemented the Tax Credit Advance Loan to access funds at the time of closing. Idaho is one of 10 states offering the advance.

In Idaho will the REALTOR® Associations pay off interest on the tax credit advance loan? Yes - To help encourage home ownership, REALTORS® Associations in Idaho created the Welcome Home Idaho program. REALTORS® in Idaho have offered to pay off the interest on the tax credit loans to individuals who pay off the loan by the due date of July 1st 2009. The availability of the payoff is on a first come first served basis until the contributed funds are gone.

Can lenders is Idaho access the tax credit advance loan? Yes - According to IHFA, "any lender making that statement they will not utilize the credit is doing so based on an internal company policy. There is no reason that every approved IHFA lender cannot offer the Tax Credit Advance right now. In fact nearly 800 Idahoans have applied for it since it was introduced in March." For a list of IHFA approved lenders go to www.ihfa.org

Local and National News & Info: 6/8/2009

Mortgage industry cleans house: Group leaders say financial turmoil chased out the unscrupulous — Focus POSTED: Monday, June 8, 2009 by Gaye Bunderson, idahobusines.net

TitleOne adds share in tough market — Focus POSTED: Monday, June 8, 2009 by Brad Carlson, idahobusiness.net

Spotlight on NAR Code of Ethics: Part 3

Standards of Practice, Arcticle 1, as you can read below, discusses our relationship to our clients. As a client of a Realtor your agent is responsible to "protect and promote the interests of their clients." We are also required to "treat all parties honestly." This is important, and in my opinion is just good business and moral practice anyway.

Duties to Clients and Customers
Article 1
When representing a buyer, seller, landlord, tenant, or other client as an agent, Realtors® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve Realtors® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, Realtors® remain obligated to treat all parties honestly. (Amended 1/01)


• Standard of Practice 1-9
The obligation of REALTORS® to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law. REALTORS® shall not knowingly, during or following the termination of professional relationships with their clients:
1) reveal confidential information of clients; or
2) use confidential information of clients to the disadvantage of clients; or
3) use confidential information of clients for the Realtor®’s advantage or the advantage of third parties unless:
a) clients consent after full disclosure; or
b) Realtors® are required by court order; or
c) it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or
d) it is necessary to defend a Realtor® or the Realtor®’s employees or associates against an accusation of wrongful conduct.

Information concerning latent material defects is not considered confidential information under this Code of Ethics. (Adopted 1/93, Amended 1/01)

• Standard of Practice 1-10
Realtors® shall, consistent with the terms and conditions of their real estate licensure and their property management agreement, competently manage the property of clients with due regard for the rights, safety and health of tenants and others lawfully on the premises. (Adopted 1/95, Amended 1/00)

• Standard of Practice 1-11
Realtors® who are employed to maintain or manage a client’s property shall exercise due diligence and make reasonable efforts to protect it against reasonably foreseeable contingencies and losses. (Adopted 1/95)

• Standard of Practice 1-12
When entering into listing contracts, Realtors® must advise sellers/ landlords of:
1) the Realtor®’s company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities;
2) the fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may represent the interests of buyers/tenants; and
3) any potential for listing brokers to act as disclosed dual agents, e.g., buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03)

• Standard of Practice 1-13
When entering into buyer/tenant agreements, Realtors® must advise potential clients of:
1) the Realtor®’s company policies regarding cooperation;
2) the amount of compensation to be paid by the client;
3) the potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties;
4) any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g., listing broker, subagent, landlord’s agent, etc., and
5) the possibility that sellers or sellers’ representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between the parties. (Adopted 1/93, Renumbered 1/98, Amended 1/06)

Local and National News & Info: 6/3/2009

Anyone have opinions about these article?

Idaho touted to make quick recovery in 09
POSTED: 11:41 MDT Wednesday, June 3, 2009
by IBR Staff

Which States Will Be Early Risers? msnbc.com / The Elkhart Project

Recommended Local Businesses 6/3/09

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Title One: News You Can Use - 6/2/2009