In April, Governor Schwarzenegger signed AB 183, providing $200 million for home buyer tax credits. The bill allocates $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. C.A.R. supported this important legislation since its inception.
The tax credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010.
It looks as though this will be the last tax credit for home buyers for a while. This is a new beginning. Real estate is healthier and stronger than it was in 2008 and it is time for it to stand on its own. This is the time to build the home you love in a neighborhood you want. Dont wait!
Wednesday, June 2, 2010
Thursday, November 19, 2009
Tax Credits for most buyers until April 30, 2010
$8,000 First-time Home Buyer Tax Credit at a Glance
· The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
· The tax credit does not have to be repaid.
· The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.tax c
· The tax credit applies only to homes priced at $800,000 or less.
· The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
· For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
· For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance
· To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
· The tax credit does not have to be repaid.
· The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
· The tax credit applies only to homes priced at $800,000 or less.
· The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
· Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Sunday, May 17, 2009
Big Improvement to First-Time Buyer Tax Credit
Use your FIRST TIME HOMEBUYER CREDIT as DOWNPAYMENT!
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment. Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit.
The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C.. He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Other Solutions for Today's Market during his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. “I do think we have some early signs that the market overall is stabilizing,” Donovan says. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
Source: NAR
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment. Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit.
The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C.. He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Other Solutions for Today's Market during his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. “I do think we have some early signs that the market overall is stabilizing,” Donovan says. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
Source: NAR
Wednesday, April 1, 2009
Rates continue to drop...
The 30 year fixed rate mortgage is the lowest it has been since Freddie Mac started the Primary Mortgage market survey in 1971.
This is an amazing opportunity to purchase a home with incredible rates for unbelievable monthly payments.
The drop in rates has boosted home sales around the nation and specifically in Bakersfield. The number of current listings declined throughout March while the median sold price started to increase.
This is a great sign for the housing market! If you are on the fence about when is the right time to buy... IT IS NOW.
Check out our website for available homes or come in today to discuss building!
www.johnbalfanzhomes.com
Saturday, March 7, 2009
In Memory of Jeff Johns...
Jeffrey Lamel Johns
1981 - 2009
Jeff Johns, beloved son, grandson, brother, uncle, cousin, nephew and friend unexpectedly slipped quietly into heaven in the early morning hours on Sunday, March 1, 2009. Jeff was a first cousin to John and Greg Balfanz as well as our preferred lender through Countrywide Home Mortgage. Jeff died in the trauma center at Kern Medical Center from injuries suffered in a tragic accident a few hours earlier. He was surrounded by family and friends who had come to say their final goodbyes to a vibrant young man who was deeply loved and whom will be forever in our thoughts and prayers. Jeff was born in Bakersfield, on July 29, 1981 to parents Lori and Tom Johns. He attended Norris Elementary and Middle School and graduated from Garces Memorial High School in 1999. A gifted athlete, he played both baseball and football. He followed in the footsteps of his big brother, Drew, playing quarterback and earned MVP honors. He briefly attended college but after a year, he returned to his home in Bakersfield. Jeff entered the real estate appraisal business where he was mentored by his father Tom. He subsequently entered the mortgage business and became a successful loan officer for Countrywide Mortgage. His entrepreneur skills became evident at a young age. He had recently embarked on a project of rehabbing distressed homes in partnership with his Dad. Jeff was a real "life of the party." His outgoing, fun-loving personality drew others to him and once inside his circle, he made sure to keep you there. In his spare time he played golf, went snowboarding, loved hanging out with Kelly and friends and was an avid pro and college football fan. His favorite teams were the teams that covered; except for the Bengal's, his true favorite, which he never bet on. Jeff is survived by his mother and stepfather, Lori and Bob Malkin, father and stepmother, Tom and Christie Johns, grandparents Lamel and Boots Johns, brother and sister-in-law, Drew and Jenny Johns his precious nieces Kate and Abby, stepbrother Brian Malkin, stepsisters Brittany and Brooke Malkin, and numerous aunts, uncles, cousins, friends and the love of his life, Kelly Sorrow. As an organ donor his sparkling brown eyes will see sunrises and sunsets. His young and strong heart will continue to beat in the chest of a fortunate person whose life hopefully will be extended for many years. Forever his boyish and infectious smile will be a cherished memory.
Jeff will be missed by everyone at John Balfanz Homes.
Sunday, March 1, 2009
California wants you to buy a NEW home today!
After a long and grueling process to pass a budget, our state legislators have included a lucrative tax credit available only for buyers of brand new homes.
Here is what is available to YOU:
A $10,000 State Tax Credit
The state tax credit is for $10,000 or 5 percent of the purchase price of a newly built home, whichever is less. The home must be the principal residence of the buyer, and the sale must close between March 1, 2009 and March 1, 2010.
How does it work?
The credit will be provided in equal amounts (up to $3,333) per year, over three successive tax years, beginning with the year the purchase is made.
Will I receive the credit if I buy an existing home?
The credit is only for the purchase of a newly built home that has never been occupied. That is because building a new home generates more tax revenues than the credit will cost the state.
Are there any other restrictions?
The taxpayer must live in the home as their principal residence for at least two years. If he/she does not, he/she will have to repay the credit.
How much money is available under the program?
The law limits the total amount of credits that can be claimed to $100 million. Credit reservations will be allowed on a first-come, first-served basis. It is likely that the full amount will be exhausted this year, so prospective buyers should move quickly.
Can the credit be used in conjunction with the recently enacted federal tax credit?
Yes. If you buy a new home between March 1 and Dec. 31 and are a first-time home buyer, you can take advantage of both the $10,000 state credit and the $8,000 federal tax credit.
Here is what is available to YOU:
A $10,000 State Tax Credit
The state tax credit is for $10,000 or 5 percent of the purchase price of a newly built home, whichever is less. The home must be the principal residence of the buyer, and the sale must close between March 1, 2009 and March 1, 2010.
How does it work?
The credit will be provided in equal amounts (up to $3,333) per year, over three successive tax years, beginning with the year the purchase is made.
Will I receive the credit if I buy an existing home?
The credit is only for the purchase of a newly built home that has never been occupied. That is because building a new home generates more tax revenues than the credit will cost the state.
Are there any other restrictions?
The taxpayer must live in the home as their principal residence for at least two years. If he/she does not, he/she will have to repay the credit.
How much money is available under the program?
The law limits the total amount of credits that can be claimed to $100 million. Credit reservations will be allowed on a first-come, first-served basis. It is likely that the full amount will be exhausted this year, so prospective buyers should move quickly.
Can the credit be used in conjunction with the recently enacted federal tax credit?
Yes. If you buy a new home between March 1 and Dec. 31 and are a first-time home buyer, you can take advantage of both the $10,000 state credit and the $8,000 federal tax credit.
Saturday, February 28, 2009
Welcome to our Blog!
Hello! We are so excited to be joining the blogging world. We were talking this last week about how rapidly the Bakersfield Real estate market is changing and just felt that we needed more than a website. Between interest rates, FHA limits, available inventory and everything else we knew we needed a forum to dialogue. Please check back often, we are committed to sharing everything we know about this changing market. We will have personal updates from John as well as lender updates and some personal homeowner stories. This is going to be a great place to check up on what we have available and how our Bakersfield market is changing. Check back often, you won't want to miss a post!
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