Tax Credit has Been Extended

Congress passed a bipartisan measure extending the $8,000 home buyer tax credit to April 30, 2010. The extension is estimated to contribute approximately $22 billion to the economy.

The legislation, which is part of a larger bill that also extends unemployment benefits.

The law also includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years.

Income limits for eligible home buyers were also expanded to $125,000 for single buyers and $225,000 for couples, up from $75,000 for individuals and $150,000 for couples. Qualifying home prices are capped at $800,000.

For more valuable information please go to Making Homes Affordable.

Since there is more time to utilize the $8,000 tax credit, make this your opportunity to find the ultimate Hoboken home. Contact Eddie Perez at (201) 344-2886 or go to Hoboken Condo Expert.

$8000 Tax Credit May Be Extended And Rise

One of the most popular topics with new home buyers is the new $8000 tax credit for new home buyers. There is no doubt that for first time home buyers, this tax credit has been a strong incentive to purchase a home – and the entry level home market has seen improvement as a result.

Now there is talk about extending the tax credit until 2010 and raising it to $15,000 as well.

Current Proposals:

• A Senate bill to expand the tax credit to $15,000 for any home buyer regardless of income was introduced by Sen. Johnny Isakson, R-Ga. It is co-sponsored by Senate Banking Committee Chairman Chris Dodd, D-Conn.

• A House bill to keep the $8,000 credit in place until June 2010 and expand it to all home buyers by Rep. Kenny Marchant, R-Texas. It also would provide a $3,000 credit to homeowners who refinance.

• Another bill in the House, introduced by Rep. Eddie Bernice Johnson, D-Texas, would extend the credit to all home buyers through 2010.

For more valuable information please go to I Want to Buy my Home at the Bottom.

If you are looking for assistance in finding the perfect home in Hoboken, contact Eddie Perez at (201) 344-2886 or go to Hoboken Condo Expert.

FHA First Time Buyer Program

There is the FHA First Time Home Buyer Program which helps first timebuyers who might not be ideal candidate for traditional mortgages. FHA program has the following benefits for first time home buyers.

Credit Score Requirement –The FHA underwriter will evaluate the entire credit profile to determine the borrower’s likelihood of repayment. Currenty,  several lenders are requiring 620 credit scores.

Bankruptcy okay – Chapter 7 bankruptcies are allowed if discharged over 2 years ago (or 1 year with extenuating circumstances). Chapter 13 bankruptcies are allowed with a minimum of 1 year of on time plan repayment and trustee approval.

Less Money Needed – FHA loans allow the seller to pay up to 6% of the sales price toward the closing costs and only require a 3.5% down payment.

Housing History– FHA does not require a rental or other housing history if it is not available.

Non-occupying co-borrower allowed – FHA allows a non-occupying relative to co-sign the mortgage. The non-occupant’s income and assets can be used for qualification purposes. This is generally used for parents to help their children buy a home.

Property types – 1-4 unit, condos, town homes, modular homes, and manufactured home

No cash reserves required – Unlike most conventional loans, FHA does not require you to have cash reserves
on 1-2 unit properties. However, having reserves can help strengthen the overall credit profile.

Housing prices might still be declining but if you plan to stay in your home for a long time you’ll will come out a head in the long run. If you think about a home as a home and not as an investment you will have an easier time taking the plunge into home ownership. If you can afford your dream home now go for it.  Remember, you can’t really time a market bottom.

For more valuable information please go to I Want to Buy my Home at the Bottom.

If you are looking for assistance in finding the perfect home in Hoboken, contact Eddie Perez at (201) 344-2886 or go to Hoboken Condo Expert.

How an FHA Mortgage Loan Could Help a First Time Buyer

When it comes to low down payments, the FHA loan program rises above its competitors. Unfortunately, there are not many low down payment programs available. But, thanks to FHA who has come to the rescue of American homeowners, low down payment options are still available.

For many years, in spite of benefits to FHA low down payment loans, many homeowners could not participate because of FHA restrictions to the size of mortgage loans. Rising home values across the nation made FHA mortgage loans obsolete.

The good news is FHA loan limits increase from time to time, keeping low down payment programs available to thousands of homeowners. Currently, there are limits of up to 729,750 in high cost areas, less elsewhere.

Following are some of the things that an FHA loan has to help a first time buyer: 

·   Competitive FHA mortgage rates

·   Small down payments around 3%

·   Home buying or refinancing okay

·   Friendly qualifying criteria

·   Less closing costs

·   No income restrictions

·   Generous FHA loan limits

·   Stable 30 year fixed rate mortgage

For more great information regarding mortgage rates, go to Is it Time to Buy?

If you want to search the Hoboken and Jersey City MLS, log on www.GreatHomesHoboken.com  For assistance in finding the perfect home in Hoboken, contact Eddie Perez at (201) 344-2886 or go to Hoboken Condo Expert. 

 

THE BEST FURNITURE PICKS FOR THE FIRST TIME HOME BUYER

Are you setting up your first home? If you don’t know what you’ll really need, read through the following list for some helpful tips.

A Bed to Last a Lifetime

You’ll spend about 1/3 of every day in bed, so you should one that’s comfortable and well constructed. Choose the best quality one you can afford. After all, you’ll probably have it for 10 years or more. And keep in mind that the most expensive bed might not be the best bed. If you can’t invest in a great bed right away, buy an air bed for a short time. It will go into your guest room later. When you’re shopping for a bed, think about the proper size, firmness, and surface.

A Table to Eat On

Most dining tables are round or rectangular, but you might start out with a square or round that extends to seat more. With leaves installed, your table might stretch through a doorway. Before you invest in a table, you might get a plywood tabletop on top of a sturdy base and cover it with a decorative floor-length tablecloth.

Chairs for Dining

Choose your dining chairs to add beauty and color to your dining area. They should be comfortable enough so that you can sit for a long dinner and visit with friends. Wooden chairs are inexpensive, but upholstered chairs would be more comfortable. You can always put a slipcover over an upholstered chair to change the look for seasonal touches. Arm chairs are luxurious and can be moved into the living area when you need extra seating.

A Comfortable Sofa

Sofas come in many shapes, styles, fabrics, and costs. Select the best one you can afford. Next to a bed, it will be your most important upholstered piece. Don’t settle for anything less than a solid hardwood frame and 8-way hand-tied springs and attractive, durable fabric. Loose-backed cushions look casual while tight-backed sofas require less maintenance. You won’t have to keep adjusting and straightening the pillows. You’ll have to select length, arm shape, skirt or no skirt, how many cushions, plain or patterned fabric, down or synthetic cushions.

A Chest of Drawers

A chest of drawers is useful in a bathroom for supplies and linens, a bedroom for clothes, a living room for games, CDs, books, or office supplies, or in a hallway or entry for scarves, gloves, and hats. Select a piece that’s both classic and versatile.

A Versatile Armoire

There’s no piece of furniture like an armoire when you need to organize clothes, linens, store things, or hide a television. It’s one of the most versatile pieces of furniture than you can buy and it can add beauty and provide storage in almost any room of the house.

Side Tables and Nesting Tables

You can often collect interesting side tables at estate sales. Or you can invest in new pieces. They can be moved around the room for glasses and eating or for magazines and books. A set of small tables can serve as a coffee table. A small table is useful next to a bed. Nesting tables can be collected to save space and spread out when needed. Choose wood, metal, or glass-topped tables for interest.

An Ottoman or Foot Stool

An ottoman is an upholstered stool, either small or large. They serve as a wonderful footrest but can also be used as a coffee table. Buy a pair and use them together or apart or buy one and place a large tray on top. Since you’ll be putting your feet on an ottoman, choose a sturdy fabric or leather for the cover.

Lighting and Lamps

Small older homes often have harsh overhead lighting. Install dimmers on all the wall switches. Place floor lamps or table lamps near seating. Pairs of lamps are nice for pairs of tables. Wall-mounted lamps are great beside beds. Choose lamp shade of sheer fabric for more light or of metal to focus the light up or down. Overhead track lighting and can lights might require professional installation. Be sure you buy a supply of the bulbs you’ll need.

For more great decorating ideas go to « TRENDS IN PAINT COLOR

HOW TO MAKE A SMALL ROOM IN YOUR CONDO LOOK LARGER

 

FIRST TIME BUYERS NEED TO CONSIDER ALL EXPENSES BEFORE BUYING A HOME

Always keep in mind if you buy too much house you will be drained financially. Be honest with yourself about what you spend and what you can afford for a home. Simply take a look at the number of home foreclosures nationwide this week to give you the incentive to find your comfort zone of monthly repayment.

Before you decide how much you can afford in monthly mortgage payments, calculate your expenses. The following itemized list could help organize your thoughts. Sometimes you don’t realize how many financial obligations you have until you see them on paper.

·       Loans – car, student, etc.

·       Insurance – home, car, life, etc.

·       Credit Cards

·       Utilities

·       Property Taxes (based on cost of the home you are interested in, or your own home — for questions, call your local tax collector since rates vary)

·       Food and Entertainment

·       Kids’ School

·       Retirement Accounts

·       Car Payment

·       Gifts

·       Doctors

·       Vacations

·       Charitable Contributions

Consider preparing a similar monthly expenses checklist along with all associated paperwork to get pre-approved for a mortgage amount. It will also help to keep you in line if you fall in love with a home priced too far out of your pre-approved range. If you have any questions about buying your first home contact Eddie Perez at (201) 344-2886.

MORTGAGE INFORMATION FOR FIRST TIME BUYERS

Before you take the big step of buying your first home, consider the following.

The first rule about applying for a mortgage is simple: the bigger your down payment is, the lower your monthly payments will be, and the less interest you will pay during the life of your mortgage. Also, if you make a down payment of 20 percent or more, you’ll avoid paying private mortgage insurance (PMI), a premium added to protect the lender in the case of mortgages that are considered higher risk.

Your mortgage is likely to be your single biggest expense. Some say you shouldn’t spend more than two-and-a-half times your yearly income. Others will say that no more than 35 percent of your monthly income should go to living expenses, including your mortgage and utilities. Just make sure you create a budget that will enable you to meet all of your financial responsibilities.

Before you go house hunting, have a lender pre-approve you for a mortgage. The lender will ask you questions about your income and expenses and help you determine a borrowing level that is comfortable for you. This will enable you to save time by only looking at homes within your price range. You will also be in a position to make an offer on a home that won’t have to be conditional upon obtaining financing.