UPDATE II: Tax Credit Closing Deadline

The tax credit closing deadline was extended to September 30.  Extending the tax credit closing deadline will help provide additional stability to real estate markets across the nation.

The passage of H.R. 5623, the Homebuyer Assistance and Improvement Act, applies the homebuyer tax credit closing deadline extension only to homebuyers who have ratified contracts in place as of April 30, 2010, but could not close before June 30. The legislation is designed to create a seamless extension of the new closing deadline for eligible transactions to September 30. There will be no gap between June 30 and the date the president signs the bill into law.

UPDATE: Federal Homebuyer Tax Credit Contract Deadline

Over the past week, confusion has grown regarding the closing deadline for the federal homebuyer tax credit.  Various news organizations and blogs have reported on a 60-37 vote by the U.S. Senate to extend the deadline to close from June 30 to September 30 for those buyers who were under contract by April 30.  Some of these reports did not accurately convey what has happened.

Nothing in the law has changed yet; the closing deadline for the homebuyer tax credit remains June 30.

Home Buyer Tax Credit Extension Available for Some

As the existing home buyer tax credit winds down, many are wondering if there will be another extension.  The current tax credit applies to those buyers who are under contract by April 30th and close no later than June 30th.

As of now, the only extension has been granted to certain members of the military, the foreign service and the intelligence community.

For qualified service members who are ordered on a period of official extended duty, the tax credit dates are extended for one year. The purchase contract must be dated by April 30, 2011 and closed by June 30, 2011.

New FHA Loan Changes Scheduled

In an effort to help FHA better manage risk while maintaining support for the housing market, the FHA has announced some policy changes. 

The changes that effect buyers are as follows:

1.  Mortgage insurance premium (MIP) will be increased from 1.75% to 2.25% in an effort to build up capital reserves and bring back private lending

2.  Update the combination of FICO scores and down payments for new borrowers.   New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program.  New borrowers with less than a 580 FICO score will be required to put down a minimum of 10%.

Mortgage Rates Are Back Below 5%

Long-term mortgage rates are back below 5 percent, according to Freddie Mac’s weekly rate report.  The average rate on a 30-year fixed-rate mortgage fell to 4.97 percent in the week ending Feb. 11, down from 5.01 percent last week. A year ago, 30-year mortgages were averaging 5.16 percent, said Freddie Mac, which has a regional office in Atlanta.  It is the third week this year that long-term mortgage rates have dropped below 5 percent.  The lower interest rate calculates to thousands of dollars in interest savings over the term of your loan.

Roswell Construction Alert

Great news Roswell!  This coming Tuesday, January 19th, Roswell’s Department of Transportation will begin an improvement project at the intersection of Crabapple and Rucker Roads.  The improvements will include left turn lanes and sidewalks at all approaches, traffic signal upgrades and waterline and storm drain upgrades.

The even better news is that all the work will take place between 9 a.m. to 4 p.m. so as to avoid morning and evening rush hours.
  
Construction is expected to be complete this summer.  But until then, expect delays along this corridor while the intersection improvements are being made.

New Changes From HUD in 2010

The U.S. Department of Housing and Urban Development (HUD) has approved two new forms which will play a major role in real estate transactions.  Both the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement have changed dramatically.  These changes were years in the making and became effective as of January 1st, 2010.

Here is a short overview and how it effects you, the client:

Grimes Bridge Opening Ceremony is TODAY Roswell!

After many delays, the City of Roswell is finally going to have the grand opening and ribbon cutting ceremony for the Grimes Bridge Road bridge replacement project today at 1 p.m. Parking is available at the Roswell Adult Recreation Center located at 830 Grimes Bridge Road. The new sidewalk system will now connect Grimes Bridge Park and the Adult Recreation Center with the park along Big Creek and the Vickery Creek section of the Chattahoochee National Recreation Area.  All approaches to the bridge will be closed for two hours starting at noon.

In Case You Haven’t Heard…

Congress has passed new legislation that not only extends the first-time home buyer tax credit of up to $8,000, but also offers up to a $6,500 credit to buyers who already own homes.   
 
Who qualifies for the extended tax credit?  Both first-time homebuyers and current homeowners who are under contract between November 7, 2009 and April 30, 2010 and promptly close on the property by no later than June 30, 2010 are eligible.  Current homeowners who have lived in the home being sold or vacated, as a principal residence for five consecutive years within the last eight qualify.   To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.  
 
The amount of each home buyer’s tax credit is determined by two additional factors:
The price of the home and the buyer’s income.  Under the extended home buyer tax credit, credit is only awarded on homes purchased up to a sales price of  $800,000.  Single home buyer’s incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.  These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits.

And The Wait Continues Roswell..

For all you brave souls who sit (and sit) on Holcomb Bridge on your way to GA400 every weekday morning, I don’t have good news for you.  The construction on our beloved short-cut, otherwise known as Grimes Bridge Road, has been delayed once again.

The City of Roswell Department of Transportation has extended the completion date of the Grimes Bridge replacement to November 30th, siting weather delays.  They’re also planning a grand opening and ribbon cutting ceremony soon after the opening.

I’ll be there with bells on!

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