Tax credit extended!

Lehigh Valley Association of REALTORS
Homebuyer Tax Credit Information

SUMMARY:

On votes of 98- 0 and 403 - 12, the Senate and House have respectively passed legislation that includes an extension and expansion of the homebuyer tax credit. President Obama signed the legislation on Friday, November 6. Many parts of it take effect immediately. As of the signing of the legislation, the income limits increase to $125,000 adjusted gross income on a single return and $225,000 on a joint return. In addition, the so-called "move-up" credit is also in effect as of November 6. Thus, individuals who have used a home as a principal residence for 5 consecutive years of the past 8 years will be eligible for a $6500 refundable tax credit for purchases completed between November 6, 2009 and April 30, 2010.

FREQUENTLY ASKED QUESTIONS:
Who Qualifies for the Extended Credit?1. First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010. 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. 2. Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. Please note that it is not a "Seller Credit." Sellers do not simply get the credit if they sell their home during this time period. They must purchase a home within the time period to receive the credit. Which Properties Are Eligible?The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops. How Much Is Available?The maximum allowable credit for first-time home buyers is $8,000.The maximum allowable credit for current homeowners is $6,500. How is a Buyer's Credit Amount Determined?Each home buyer's tax credit is determined by two additional factors:1. The price of the home. Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less. 2. The buyer's income. Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000-may receive the maximum tax credit. If the Buyer(s)' Income Exceeds These Limits, Can He/She Still Get a Credit?Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $145,000 for singles and over $245,000 for couples are not eligible for the credit. Can a Buyer Still Qualify If He/She Closes After April 30, 2010?Yes. Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close. Will the Tax Credit Need to Be Repaid?No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale. For more info contact me at: findit@LehighValleyRealty.com

State Foreclosure Stats

1. 1. California - 10,424 units

2. Florida - 4,286 units

1. 3. Michigan - 2,984 units
2. 4. Arizona - 2,310 units
3. 5. Illinois - 1,959 units
5. for more info contact me at: findit@LehighValleyrealty.com
   

Stimulating Home Sales

NAR estimates that the federal government's economic stimulus plan, along with lower interest rates and other mortgage relief measures, could help trigger 900,000 additional home sales in 2009, compared with conditions in the absence of the stimulus package. The association also expects home inventory to fall below an 8- month supply by the end of the year. For more info contact me at: findit@LehighValleyRealty.com

Pool Tips

An important part of day to day swimming pool maintenance is running the filtration system, and testing and adjusting pool chemical levels. These two simple steps, along with a dose of pool shock once a week, will ensure a clean and clear swimming pool all summer. A swimming pool owner is typically also a busy homeowner, with several other projects around the house to worry about in addition to the pool. It is important to develop a simple weekly pool maintenance routine, and stick to it. If a simple schedule is followed, maintaining the pool should only take up 1-2 hours of your time (or less), only two days a week. Pick two times during the week that are a few days apart, when you know you will have 1-2 hours to dedicate to the swimming pool. For instance, choose Sunday afternoon and Wednesday evening for your weekly pool maintenance. Follow this link to purchase pool maintenance chemicals from our preferred online pool supply retailer.The pool filter system needs to be run at least 8 hours every day, or as long as it will take your particular pool filter system to turn over the entire volume of water in the pool. This should not involve any attention from the pool owner. Inground swimming pool pumps are typically installed with a timer built into the electrical system, and timers rated for outdoor use are widely available at any hardware store or home improvement center to use with an above ground pool pump. Check the maximum capacity of the outdoor rated timer, if purchased separately, to make sure your pool pump does not overload it.Twice a week the pool chemical levels should be checked and adjusted as needed. This generally consists of testing the pool pH, pool Alkalinity and Chlorine level. The pH should be maintained at 7.2?7.6, and the Alkalinity should be maintained at 80-120 ppm (Parts Per Million). If these chemical levels are not in range, they are easily adjusted with pool pH Increaser or pH Reducer and Alkalinity Increaser, widely available from any pool supply company. The pool chlorine level should be maintained at 1-3 ppm at all times, using chlorine tablets in an automatic chemical feeder or a floating chlorine dispenser. Under normal conditions the pressure gauge of the pool filter should be checked twice a week, and any cleaning or maintenance performed following the pool filter manufacturer?s instructions. The pump basket and skimmer basket(s) should also be checked and cleaned of any debris. If a large amount of debris falls into the pool (such as leaves in the Fall) the filter pressure and pump/skimmer baskets must be checked more frequently. Once each week the pool should be ?shocked?. This is a quick and easy process that consists of dissolving a highly concentrated form of granular chlorine (called pool shock) in a large bucket of water. The bucket is slowly poured into the swimming pool, directly in front of a return line fitting with the pool filter system running. Under normal conditions the easy weekly maintenance routine described above will keep your swimming pool clean and safe. You should always be on the look out for problem situations that are out of your control. Heavy rains, extended periods of hot sunny weather or large amounts of debris in the pool will require that you break from your easy weekly routine and spend some additional time maintaining the swimming pool. For more info contact me at: findit@LehighValleyRealty.com

Tax Credit Loan!

First-Time Homebuyer Tax Credit Loan Programs
The American Recovery and Reinvestment Act of 2009 provided a federal income tax credit for first-time homebuyers of ten percent of the sales price, up to a maximum of $8,000, for the purchase of a new or existing home. The tax credit is available to qualified homebuyers who purchase a home before December 1, 2009.
To help buyers that need down payment and closing cost assistance when purchasing a home with the tax credit, a number of HFAs are offering special short-term second loans to qualified buyers. These loans are available for little or no interest and may be repaid with the homebuyer tax credit refund.
Linked below are descriptions of HFA first-time homebuyer tax credit loan programs. http://www.ncsha.org/section.cfm/3/34/2920 for more info contact me at findit@LehighValleyRealty.com

Don't Participate In This Recesssion

It is all a state of mind. In my 26 years as a Realtor in the Lehigh Valley area, I have seen many up, down & sideways markets. In the end the affordability index for real estate is at an all time high. You have to live somewhere, and with the abundant supply of housing choices & fixed rate mortgages at an all time low around 4.75 % for 30 years. It is very hard to pass up. You are also positioned to gain equity in this market. Remember real estate is going to bounce back. If you are concerned on losing your job, you can lose your job in any market and it still affects you when you are also renting! If you are waiting on the sidelines, do not wait to long, the buyer activity is picking up. Do not forget if you are a 1st. time home buyer, you can qualify up to an $8,000.00 rebate from Uncle Sam. This goes away if you do not purchase by December 2009. For more info contact me at: findit@LehighValleyRealty.com

Making Home Affordable Program

On March 19, 2009, the Obama Administration unveiled its new website on its Making Home Affordable Program. The program has two main components: (1) refinancing of Fannie Mae and Freddie Mac loans for borrowers who are current and have loan-to-value ratios of 80% to 105%, and (2) loan modification for borrowers in default or at imminent risk of default who have high debt-to-income ratios and mortgages with balances up to $729,750. The new website is designed to make information about eligibility, free counselors, and other program details readily available. It also includes links that let borrowers learn whether they have a Fannie Mae or Freddie Mac loan. These programs are key elements in the effort to turn around the housing market by preventing foreclosures and avoiding unnecessary increases in the inventory of unsold homes. Visit http://takeaction.realtoractioncenter.com/ct/IpS8IO91jEph/. For more info contact me at: findit@LehighValleyRealty.com

Realtor Win

On Wednesday, President Barack Obama signed H.R. 1105, the Omnibus Appropriations Bill, into law. In doing so, he ended our nearly eight-year battle to preserve the separation between banking and commerce. Specifically, this new law permanently bans large national banking conglomerates from entering the real estate business by preventing the Treasury and Federal Reserve, by rule, order, or any other way, from opening the door to such activities. For more info contact me at: findit@LehighValleyRealty.com

FHA Update for Lehigh County

FHA LOAN LIMIT IN LEHIGH VALLEY NOW $402,500 EFFECTIVE IMMEDIATELY
As a result of the passage of the American Recovery and Reinvestment Act of 2009, on February 25 HUD published changes to FHA's single family loan limits. In the Lehigh Valley, limits will revert to the higher 2008 mortgage limit of $402,500 immediately. The new loan limits, which are effective for any loan closed in calendar year 2009, are in effect through December 31, 2009. For more info contact me at findit@LehighValleyRealty.com

Fund Raiser for Upper Macungie Twp. Station #56

Bus trip to New York to benefit UMT Station #56 on Saturday May 16th. 2009. Leaving Upper Macungie @ 8:00AM and arriving home around 7:00PM. The cost is $40.00 per person. "You are on your own for the day." For more info contact Rosie Burnatowski @ 610-390-7855 or email: nurse97@ptd.net

Tax credit for 1st. time home buyer's

Tax Credit for Homebuyers First-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Tax Credit Versus Tax Deduction
It’s important to remember that the $8,000 tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a home buyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing. Better still, the tax credit is refundable, which means the home buyer can receive a check for the credit if he or she has little income tax liability. For example, if a home buyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!
Phaseout Examples
According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.To break down what this phaseout means to home buyers who are over those amounts, the National Association of Home builders (NAHB) offers the following examples:Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Example 2: Assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
For those tracking the math in the examples above, you may be wondering where the “$20,000” came from—that is, why you divide “$10,000 by $20,000” in the first example and “$13,000 by $20,000” in the second example. Here’s where the $20,000 comes into play:
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
In other words:
• $170,000 – $150,000 = the $20,000 in the first example• $95,000 – $75,000 = the $20,000 in the second example
Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.
http://www.irs.gov/pub/irs-pdf/f5405.pdf

ECONOMIC STIMULUS PLAN - UPDATE AS OF TUESDAY, 2/17
H.R. 1, the "American Recovery and Reinvestment Act of 2009," passed the House on February 13, 2009, by a vote of 246 - 184. The Senate also passed the bill later that day. The President is expected to sign the bill soon. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending
intended to occur in 2009 and 2010.
The mix of provisions of interest to REALTORS(r) changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote. In the end, the major elements of NAR's housing agenda were included. Congress and the President have announced that a finance and housing package (including tax provisions) will be the next "big" initiative, so Congress has by no means finished its work as it affects the housing industry and REALTORS(r). Here is a summary of key housing provisions adopted on Friday:
**Homebuyer Tax Credit - The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability.
If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser. for more info contact me at : findit@LehighValleyRealty.com

Upper Macungie Twp.

Upper Macungie requires sewer inspectionUpper Macungie Township recently enacted an Ordinance that requires a seller to obtain a sewer later inspection prior to transfer of their property. The purpose is to ensure the sewer line is not connected to their sump pump or otherwise damaged causing the inflow of stormwater or other discharge into the sewer lines. The Ordinance contains loosely written language indicated that either the buyer or the seller can make the repairs through negotiations, and that this Ordinance is not intended to prevent the sale or transfer of property. For more info contact me at: findit@LehighValleyRealty.com

FOR IMMEDIATE PRESS RELEASE- January 12, 2009

BLRPD Traffic Unit Back in Action Again

Starting today, Upper Macungie is a safer place to drive. For those who choose to break the law by speeding and driving aggressively, however, Upper Macungie will be the last place they want to be.

Today marks the day that the Berks-Lehigh Regional Police Department’s Traffic Enforcement Unit becomes fully staffed once again. The original four-man unit, which was highly successful due to its aggressive enforcement and traffic accident investigation skills, was reduced to one officer in 2007 due to staffing level concerns in the patrol division. However, Upper Macungie Township Supervisors Edward Earley, Kathy Rader and Samir Ashmar, along with Chief Michael Weiser, agreed that the traffic unit was an extremely vital part of the police department, and therefore agreed to hire three additional officers to bring the unit back to full force. The new unit consists of Officers Cory Reader and Adam Woodruff, who were both members of the original unit. In addition, Officers Dathan Schlegel and Stephen Marshall have been added. Together, these four officers issued over 1600 citations in 2008, as well as completed hundreds of minor and major accident investigations.

“The most exciting part of this new unit is the ability of the traffic division to spread out into Upper Macungie’s residential districts,” stated Chief of Police Michael Weiser. “In addition to strengthening our patrols of our major state routes, including the 222/100 bypass, Tilghman Street, and Rt. 100, we will be able to gradually increase our presence into the neighborhoods where high speeds continue to be a major concern.” Chief Weiser, whose recently announced the department’s 2009 motto of “Community First,” emphasized that the safety of Upper Macungie’s neighborhoods are one of his top priorities, and according to Weiser, “that starts with highly visible patrols and aggressive enforcement of traffic laws, especially speeding.”

On the first day of the BLRPD Traffic Unit being back to full force, one unlucky Allentown resident was the first to discover that the unit means business. After a seven mile chase that included several high speed trips through a residential crime watch zone, the suspended driver was eventually surrounded by numerous patrol vehicles and taken into custody.






Officer Peter V. Nickischer
Public Information Officer
Berks-Lehigh Regional Police
610-683-8740 ext. 225

For more info contact me at: findit@LehighValleyRealty.com

Lehigh Valley Tour

for more info contact me at: findit@LehighValleyRealty.com

Save On Your Utilities

Lower thermostats to 65-68 degrees during the day and 60 degrees at night.
Have your furnace serviced once a year.
Consider the advantages of a clock thermostat which will automatically turn the heat down at a regular hour before you retire and turn it up just before you awake.
Dust and vacuum radiators & ducts frequently.
Keep drapes and shades open in sunny windows; close at night.
For comfort in cooler indoor temperatures, use best insulation of all - warm clothing.
Caulk and weatherstrip doors & windows.
Install storm windows & doors.
Insulate attic & walls.
Use bath and kitchen ventilating fans only as needed.
Be sure the fireplace damper is closed except when in use.
Repair all leaky hot water faucets as quickly as possible.
Insulate hot water pipes.
Use less hot water reduce temperature to 120 degrees.
Close doors and registers of rooms which are seldom used.
If you are going away for a weekend trip, lower the thermostat to 55 degrees.
Turn off electric lights and other appliances when not in use.
Check out this link: http://www.youtube.com/watch?v=hT5HZnQV2dQ&feature=channel_page
If you need additional info contact me at: findit@LehighValleyRealty.com