Gift of money for home buyers

Canton and Plymouth, Michigan home buyers recently learned the $7,500 tax credit can now be a tax free gift and is extended to other buyers as well as first timers.

Originally the bill was passed last summer, as a part of the Housing Recovery Act, to encourage first-time home buyers to purchase homes within a certain amount of time, hoping to boost the housing market. That legislation required that the $7,500  tax credit be repaid over 15 years, making it more of a no-interest loan. The stimulus bill now under consideration would make that tax credit a true credit that doesn’t need to be repaid at all! Additionally the rules for  who qualifies have been greatly relaxed.

The news is spreading fast among the Canton, MI home buying community. The combination of this money incentive and great house values from short sale houses is prompting people to spring into action!

To be eligible, buyers cannot have owned a home for the past three years, and the new home has to be used as a primary residence. The credit slowly phases out if income rises above $75,000 for singles and $150,000 for couples. It disappears entirely at $95,000 for singles and $170,000 for couples. To apply for this credit, you must claim in on your 2009 tax return. It is that easy! As long as buyers do not sell for at least 36 months, they keep the $7,500. The credit is also refundable, meaning if your total tax bill came to $4,000 you can still qualify for a full $7,500 refund!

Timing is also critical. The current proposed bill requires that you must have purchased the home between April 9, 2008 and July 21, 2009. Newer proposals have that date stretch out to August 2009. The point is take advantage of this gift before you forget about it and it disappears!

The Bittinger Team is optimistic that the Stimulus

 Bill and other financial incentives are creating

the best home buying opportunities in months.

The Bittinger Team

When Trust and Experience Matter!

(734)-459-2600

Bittinger Team - Short Sale Experts

Canton and Plymouth home sellers and buyers are finding that it is much harder to obtain a mortgage today than it was just last year or even just last summer.

These days having the owner of the property hold a second or even finance the whole sale on a Land Contract is becoming as popular as it was years ago.

The obvious benefit to the home buyer is the fact they can finance the house without the usual hoops to jump through. Additionally it is often much easier to deal with an owner than a bank and the cost to finance is much lower.

So what are the benefits to the homeowner?

First and foremost you get the house sold!

Other benefits to consider with Owner Financing is the steady income you will receive from the mortgage payments. Right now with all of the market volatility that we are experiencing, this could be your one steady interest earner – in some cases up to 7% or more! This is a guaranteed return as long as the buyer continues to make their payments.

If you don’t need the proceeds from the sale of your home immediately, seller financing can be a great investment.  You might also consider partial seller financing. Most buyers will have a cap on their loan allowance, and as the seller you can consider financing the rest at a higher interest rate than normal. Keep in mind that as the seller you would not have to hold on to this mortgage forever, as it can be sold on a secondary market.

Although the benefits to both sides are many the pitfalls can also be numerous. The Bittinger Team has the experience necessary to guide you through this lucrative way of selling your home. Call us today for answers!

The Bittinger Team: When Trust and Experience Matter

Office: 734-459-2600

Great News! Fixed-rate mortgages are currently at a ten year low! Call us today and find out just how this can benefit you today!

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