Delinquent Mortgages Reach Record Levels
Almost 10 percent of all mortgages on one- to four-unit properties are in some stage of foreclosure, up from 2.65 percent a year ago on a seasonally adjusted basis, according to the Mortgage Bankers Association’s National Delinquency Survey released Thursday.The combined percentage of loans in foreclosure or at least one payment past due was 14.41 percent on a non-seasonally adjusted basis, the highest ever recorded in an MBA delinquency survey.The bankers blamed the high foreclosure levels on unemployment. “Over the last year, we have seen the ranks of the unemployed increase by about 5.5 million people, increasing the number of seriously delinquent loans by almost 2 million loans and increasing the rate of new foreclosures from 1.07 percent to 1.42 percent,” says Jay Brinkmann, MBA’s chief economist.Brinkmann points out that prime fixed-rate loans represent the largest share of foreclosures and are the biggest driver of the increase in foreclosures.Home builders and housing analysts mostly shrugged at the high foreclosure-rate information.“My prediction is we’ll probably recover on a seasonal basis,” Robert Toll, chairman and CEO of Toll Brothers, the largest builder of luxury houses, said yesterday at a conference in New York sponsored by Citigroup Inc. “It’s generally accepted that the homebuilding industry is off the mat and on the road to recovery.”Josh Levin, a housing analyst at Citigroup Global Markets Inc. in New York, said he expects sales to continue to be slow until January or early February, followed by a surge as buyers try to beat the April 30 expiration of the tax credit.“The bouncing along the bottom is distorted by government policies,” he said in an interview with Bloomberg News yesterday.Source: Mortgage Bankers Association (11/19/2009) and Bloomberg, Kathleen M. Howley and John Gittelsohn (11/20/2009)
Friday, November 20, 2009
Thursday, November 12, 2009
$8000 Tax Credit Extended
The Tax CredGets an Extension and an Expansion!
Existing Homeowners: Now’s Your Chance!
I am extremely pleased to share with you an exciting new tax credit, designed for first time home buyers and existing homeowners.
The new bill calls for an incentive for existing homeowners who have owned their current homes at least five years, making them eligible for tax credits of up to $6,500 when they purchase a new home. First time homebuyers – or anyone who hasn’t owned a home in the last three years – would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010 and close by June 30.
The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
As an industry, we are certainly pleased about this new tax credit. The key to returning stability to the economy lies within the housing market, and this is a meaningful credit that will create a strong foundation for future growth and make a measurable difference over the next seven months in our economy.
Furthermore, tax credits like this only work by creating the sense of urgency to take advantage of them. This is said to be the last extension of the home buyer tax credit and I urge people – whether you’re a first time home buyer who has always dreamed of having a home of your own or someone who has been gridlocked in the challenges of our move-up market to take advantage of this opportunity.
Now is the time! If you’d like to learn more, please contact me today.
New Homes Colorado Springs Team @ Coldwell BankerColdwell Banker Colorado Springs2075 Research Parkway Ste BColorado Springs, CO 80920
info@newhomescoloradosprings.com
www.newhomescoloradosprings.com
719.593.1518
©2009 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Residential Brokerage Office Is Owned And Operated by NRT LLC. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully.
Wednesday, November 4, 2009
6 signs your home will increase in value
1. The unemployment rate It's quite simple: Without a job, you can't buy a home.
And as the unemployment rate rises, fewer individuals are capable of purchasing a home. That decreases the demand for homes, which drives prices down. (Currently, to get approved for a mortgage, you'll need to show proof of income, says DeVol.)
Video: Has housing hit a bottom?
To find a city's unemployment rate, and see whether it's rising or falling, visit the Bureau of Labor Statistics' Web site. The most recent report, from Oct. 28, breaks down the unemployment rates in each state's major metropolitan areas and compares those numbers to the previous year's.
Also, see if local businesses are hiring and if large corporations are moving into the area. More jobs leads to more employees buying homes in the area.
2. Rising incomes House hunters who want to dig a little deeper can look at the average or median change in income among households in a neighborhood.
At a minimum, confirm that incomes are being adjusted for inflation (or, ideally, rising.) Homeowners who have stagnant or declining salaries may not have much cash left over after they pay their mortgage; as a result, they might not maintain their homes or stay on top of repairs, which could lower a home's value and even the value of neighboring homes, says Zandi.
The Bureau of Economic Analysis (BEA) offers some insight on personal income. Click here and choose tabs labeled "per capita personal income" and "all metropolitan areas" to see how an area's personal income compares to others and to previous years.
A big drawback is that the data released this year ends with 2007 figures. (The BEA will release 2008 data in April 2010.)
3. Fewer foreclosure filings and sales On average, foreclosed houses sell for 30% less than similar homes in the same area, although the figure varies by market, says Rick Sharga, a senior vice president at RealtyTrac.com, which tracks foreclosures. In areas hit hardest, especially cities in Sunbelt states, foreclosed homes often sell at half the price.
4. Inventories are declining In most areas where "for sale" signs are common, home prices are far from recovery.
In general, when more than 2% of homes in a neighborhood are selling at the same time, inventory is high, says Dean Baker, a co-director at the Center for Economic Policy and Research. As the number of homes for sale decrease, sellers have more leverage and a better shot at getting an offer close to their asking price.
Look at the month's supply of inventory, or how many months it will take at the current sales pace for inventory to be depleted. Five to six months is the normal range, but the current average is just under 10 months.
5. The list-to-sales price ratio is shrinking On a national level, homes are selling at around 5% to 10% below their asking price, says Baker.
Look at list-to-sales price ratios, which is the difference between the listing price of a home and the price at which it sold. If the price difference is shrinking for an area that suggests the real estate market is improving, says Michael Evans, the president of the American Society of Appraisers and owner of Evans Appraisal Service, which appraises residential properties.
Appraisers also can provide average list-to-sales price ratios and historical comparisons.
6. Home prices are falling On the other hand, decreasing sales prices could mean that the housing market has hit its bottom, says Baker. They also guarantee that the buyer is getting into a market at a fraction of the price that buyers paid during the bubble.
And as the unemployment rate rises, fewer individuals are capable of purchasing a home. That decreases the demand for homes, which drives prices down. (Currently, to get approved for a mortgage, you'll need to show proof of income, says DeVol.)
Video: Has housing hit a bottom?
To find a city's unemployment rate, and see whether it's rising or falling, visit the Bureau of Labor Statistics' Web site. The most recent report, from Oct. 28, breaks down the unemployment rates in each state's major metropolitan areas and compares those numbers to the previous year's.
Also, see if local businesses are hiring and if large corporations are moving into the area. More jobs leads to more employees buying homes in the area.
2. Rising incomes House hunters who want to dig a little deeper can look at the average or median change in income among households in a neighborhood.
At a minimum, confirm that incomes are being adjusted for inflation (or, ideally, rising.) Homeowners who have stagnant or declining salaries may not have much cash left over after they pay their mortgage; as a result, they might not maintain their homes or stay on top of repairs, which could lower a home's value and even the value of neighboring homes, says Zandi.
The Bureau of Economic Analysis (BEA) offers some insight on personal income. Click here and choose tabs labeled "per capita personal income" and "all metropolitan areas" to see how an area's personal income compares to others and to previous years.
A big drawback is that the data released this year ends with 2007 figures. (The BEA will release 2008 data in April 2010.)
3. Fewer foreclosure filings and sales On average, foreclosed houses sell for 30% less than similar homes in the same area, although the figure varies by market, says Rick Sharga, a senior vice president at RealtyTrac.com, which tracks foreclosures. In areas hit hardest, especially cities in Sunbelt states, foreclosed homes often sell at half the price.
4. Inventories are declining In most areas where "for sale" signs are common, home prices are far from recovery.
In general, when more than 2% of homes in a neighborhood are selling at the same time, inventory is high, says Dean Baker, a co-director at the Center for Economic Policy and Research. As the number of homes for sale decrease, sellers have more leverage and a better shot at getting an offer close to their asking price.
Look at the month's supply of inventory, or how many months it will take at the current sales pace for inventory to be depleted. Five to six months is the normal range, but the current average is just under 10 months.
5. The list-to-sales price ratio is shrinking On a national level, homes are selling at around 5% to 10% below their asking price, says Baker.
Look at list-to-sales price ratios, which is the difference between the listing price of a home and the price at which it sold. If the price difference is shrinking for an area that suggests the real estate market is improving, says Michael Evans, the president of the American Society of Appraisers and owner of Evans Appraisal Service, which appraises residential properties.
Appraisers also can provide average list-to-sales price ratios and historical comparisons.
6. Home prices are falling On the other hand, decreasing sales prices could mean that the housing market has hit its bottom, says Baker. They also guarantee that the buyer is getting into a market at a fraction of the price that buyers paid during the bubble.
Tuesday, September 8, 2009
Local Housing Market Shows Signs of Improvement
September 04, 2009 11:31 AM
WAYNE HEILMAN
THE GAZETTE
The Colorado Springs area housing market moved closer to a turnaround in August as sales rose the fastest in nearly four years and prices fell by the smallest amount in more than a year, the Pikes Peak Association of Realtors reported Thursday.
Sales last month jumped 14.5 percent from a year ago to 891 houses, the third consecutive monthly increase and the biggest monthly gain since October 2005. Through the first two-thirds of the year, sales are off 3.9 percent from a year ago to 5,732. The number of homes on the market in August was down 20.3 percent from a year earlier to 5,040, the fourth consecutive monthly decline of more than 20 percent and the 16th consecutive month that the supply has dropped.
Homes stayed on the market in August an average of 80 days, about the same as the previous month but 10 days less than what the average was during the first half of the year. The median price of homes sold in August fell just 2.2 percent from a year ago to $199,550, the smallest monthly decline since July 2008. Prices have declined from a year ago every month for more than two years. The median prices is the midpoint of all sales prices.
“We are seeing the makings of a turnaround,” said Jay Gupta, partner and managing broker at Prudential Rocky Mountain Realtors and past president of the Realtor association. “Mortgage rates below 5 percent and first-time home buyers getting an $8,000 federal income tax credit are both very good signs for the market. The housing market is improving and hopefully it will continue getting better and bring us to a good market coming into next spring.”
Sales figures include transactions handled by association members, but not homes sold by owners. Most of the sales took place in El Paso and Teller counties. Most of the homes sold through association members are resales. The market for new homes also is improving — new single-family home construction last month jumped 42.3 percent from a year earlier to 111, the third consecutive monthly gain after 3½ years of monthly declines.
One other real estate market indicator isn’t showing signs of improvement — mortgage foreclosures last month were up 75.5 percent from a year ago in the biggest monthly increase in nearly two years. Foreclosure filings so far this year, 3,653, already exceed every other year but last year.
September 04, 2009 11:31 AM
WAYNE HEILMAN
THE GAZETTE
The Colorado Springs area housing market moved closer to a turnaround in August as sales rose the fastest in nearly four years and prices fell by the smallest amount in more than a year, the Pikes Peak Association of Realtors reported Thursday.
Sales last month jumped 14.5 percent from a year ago to 891 houses, the third consecutive monthly increase and the biggest monthly gain since October 2005. Through the first two-thirds of the year, sales are off 3.9 percent from a year ago to 5,732. The number of homes on the market in August was down 20.3 percent from a year earlier to 5,040, the fourth consecutive monthly decline of more than 20 percent and the 16th consecutive month that the supply has dropped.
Homes stayed on the market in August an average of 80 days, about the same as the previous month but 10 days less than what the average was during the first half of the year. The median price of homes sold in August fell just 2.2 percent from a year ago to $199,550, the smallest monthly decline since July 2008. Prices have declined from a year ago every month for more than two years. The median prices is the midpoint of all sales prices.
“We are seeing the makings of a turnaround,” said Jay Gupta, partner and managing broker at Prudential Rocky Mountain Realtors and past president of the Realtor association. “Mortgage rates below 5 percent and first-time home buyers getting an $8,000 federal income tax credit are both very good signs for the market. The housing market is improving and hopefully it will continue getting better and bring us to a good market coming into next spring.”
Sales figures include transactions handled by association members, but not homes sold by owners. Most of the sales took place in El Paso and Teller counties. Most of the homes sold through association members are resales. The market for new homes also is improving — new single-family home construction last month jumped 42.3 percent from a year earlier to 111, the third consecutive monthly gain after 3½ years of monthly declines.
One other real estate market indicator isn’t showing signs of improvement — mortgage foreclosures last month were up 75.5 percent from a year ago in the biggest monthly increase in nearly two years. Foreclosure filings so far this year, 3,653, already exceed every other year but last year.
Friday, August 21, 2009
Market Insights: 8-21-2009
By Larry Baer:
The National Association of Realtors reported this morning that sales of previously owned homes jumped 7.2% higher in July – posting its best performance since August 2007. July’s percentage increase was the largest monthly gain since the data series started in 1999. The July existing home sales data marked the fourth consecutive monthly improvement in this measure of activity in the housing sector.
There is a notable “fly-in-the-ointment” in this data set -- much of the recent sales gain in existing home sales has been a function of falling prices created by foreclosure sales and other distress motivated transactions. The median existing-home price has fallen by 15.1% on year-over-year basis. The share of homes sold as foreclosures or otherwise distressed properties held at 31% in July.
The massive government borrowing spree continues unabated – with Uncle Sam in the credit markets on Tuesday looking to borrow $42 billion in the form of 2-year notes, followed by Wednesday’s demand for $39 billion in the form of 5-year notes and wrapping up with Thursday’s request for $28 billion in 7-year notes. Be aware that last time around the demand for the 2- and 5-year notes was downright awful – which provided mortgage investors with all the justification they needed to push mortgage interest rates higher.
Keep your fingers crossed that the “safe-haven” appeal of government debt obligations and mortgage-backed securities continues to shine bright as the investment community debates the sustainability of the stock market rally. If, as I expect, those that argue stock values cannot be sustained at current levels without a solid increase in consumer spending ultimately win the debate – the rotation of capital out of riskier assets like stocks into safer investments like bonds and mortgage-backed securities should limit the upward trajectory of mortgage interest rates over the course of the next couple of weeks.
PROGRAM- Purchase
30 DAY
RATE DISCOUNT
CONFORMING 30 YEAR FIXED
80% LTV and >275,000 <= 417,000
5.125
0
CONFORMING 15 YEAR FIXED
80% LTV and >275,000 <= 417,000
4.50
0
CONFORMING 3-1 ARM
80% LTV and >275,000 <=417,000
4.125
0
CONFORMING 5-1 ARM
80% LTV and >275,000 <=417,000
4.125
0
CONFORMING 7-1 ARM
80% LTV and >275,000 <=417,000
4.625
0
VA/FHA 30 YEAR > $200,000
5.00
0
CONV. JUMBO 30 YEAR FIXED
75% LTV and > 417,000
6.45
0
CONV. JUMBO 5/1 ARM
75% LTV
4.50
0
120,150,180,270,360 day extended locks available
RATES AND POINTS ARE SUBJECT TO CHANGE WITHOUT NOTICE
EARL GRANT 719-260-2231
By Larry Baer:
The National Association of Realtors reported this morning that sales of previously owned homes jumped 7.2% higher in July – posting its best performance since August 2007. July’s percentage increase was the largest monthly gain since the data series started in 1999. The July existing home sales data marked the fourth consecutive monthly improvement in this measure of activity in the housing sector.
There is a notable “fly-in-the-ointment” in this data set -- much of the recent sales gain in existing home sales has been a function of falling prices created by foreclosure sales and other distress motivated transactions. The median existing-home price has fallen by 15.1% on year-over-year basis. The share of homes sold as foreclosures or otherwise distressed properties held at 31% in July.
The massive government borrowing spree continues unabated – with Uncle Sam in the credit markets on Tuesday looking to borrow $42 billion in the form of 2-year notes, followed by Wednesday’s demand for $39 billion in the form of 5-year notes and wrapping up with Thursday’s request for $28 billion in 7-year notes. Be aware that last time around the demand for the 2- and 5-year notes was downright awful – which provided mortgage investors with all the justification they needed to push mortgage interest rates higher.
Keep your fingers crossed that the “safe-haven” appeal of government debt obligations and mortgage-backed securities continues to shine bright as the investment community debates the sustainability of the stock market rally. If, as I expect, those that argue stock values cannot be sustained at current levels without a solid increase in consumer spending ultimately win the debate – the rotation of capital out of riskier assets like stocks into safer investments like bonds and mortgage-backed securities should limit the upward trajectory of mortgage interest rates over the course of the next couple of weeks.
PROGRAM- Purchase
30 DAY
RATE DISCOUNT
CONFORMING 30 YEAR FIXED
80% LTV and >275,000 <= 417,000
5.125
0
CONFORMING 15 YEAR FIXED
80% LTV and >275,000 <= 417,000
4.50
0
CONFORMING 3-1 ARM
80% LTV and >275,000 <=417,000
4.125
0
CONFORMING 5-1 ARM
80% LTV and >275,000 <=417,000
4.125
0
CONFORMING 7-1 ARM
80% LTV and >275,000 <=417,000
4.625
0
VA/FHA 30 YEAR > $200,000
5.00
0
CONV. JUMBO 30 YEAR FIXED
75% LTV and > 417,000
6.45
0
CONV. JUMBO 5/1 ARM
75% LTV
4.50
0
120,150,180,270,360 day extended locks available
RATES AND POINTS ARE SUBJECT TO CHANGE WITHOUT NOTICE
EARL GRANT 719-260-2231
Thursday, August 20, 2009
Colorado Springs #3 for Housing Recovery
Best Cities For A Housing Recovery
Increased transactions and relatively low foreclosure resales spell good news for these markets.
In Depth: Best Cities For A Housing Recovery
The stock market is up 50% from its lows in March, and consumer spending increased in May, June and July. But when will housing turn around?
Even the wisest can't answer that, and experts caution against putting too much hope in rising home prices given the country's unemployment situation and high rate of mortgage defaults. But key measures indicate that some metros are more on their way to recovery than others.
Take Miami. Sales are up 27% over last year and only 3.5% of those are the result of foreclosure resales. In Lincoln, Neb., where sales are 15% higher this year than last, only 3.6% of them involved bank-owned properties Both top our list of markets on their way to health.
In Depth: Best Cities For A Housing Recovery
Behind The NumbersIn compiling our list, Forbes looked at 161 of the country's largest metropolitan statistical areas (or metros)--geographic entities defined by the U.S. Office of Management and Budget (OMB) for use by federal agencies in collecting, tabulating and publishing federal statistics--where sales activity had picked up over the last year, but where foreclosure sales, as a percentage of overall sales were the lowest. Our data came from Zillow.com, an online housing data firm based in Seattle, Wash. Our list doesn't profess to call the turnaround, but rather point out which cities are in the lead on the road to recovery.
To be sure, the national real estate picture remains grim. In Las Vegas and Madera, Calif., for example, respective sales are up 40% and 64% from a year ago. But 67% and 71% of those respective sales are from foreclosure resales.
The Rankings
10. San Jose, Calif.
9. Santa Barbara, Calif.
8. Redding, Calif.
7. Denver, Colo.
6. Bremerton, Wash.
5. San Luis Obispo, Calif.
4. Salem, Ore.
3. Colorado Springs, Colo.
2. Lincoln, Neb.
1. Miami-Ft. Lauderdale, Fla.
Other areas, however, are showing a spark at the very least and signs of bottoming at the very best.
Miami and Lincoln were followed by Colorado Springs, Colo., Salem, Ore. and San Luis Obispo, Calif. Here, sales have returned, but foreclosures are a relatively small percentage. In Colorado Springs, sales activity is up 14%, while transactions involving bank-owned properties made up one-fifth of them. While 20% is still a sizable chunk, it's relatively sound compared with areas like Bakersfield and Vallejo, Calif., and Phoenix, where over 50% of sales made up of foreclosures.
Because housing, like any asset, depends on supply and demand, the sales rate is an incredibly useful statistic in judging a recovery. However, an increased number of sales does not necessarily mean an imminent recovery.
"A bottom in sales volume is not the same thing as a bottom in home values," says Stan Humphries, chief economist at Zillow.com. "The former is a necessary precondition for the latter, but most economists expect prices to keep falling nationally through at least the early part of next year."
Increased transactions and relatively low foreclosure resales spell good news for these markets.
In Depth: Best Cities For A Housing Recovery
The stock market is up 50% from its lows in March, and consumer spending increased in May, June and July. But when will housing turn around?
Even the wisest can't answer that, and experts caution against putting too much hope in rising home prices given the country's unemployment situation and high rate of mortgage defaults. But key measures indicate that some metros are more on their way to recovery than others.
Take Miami. Sales are up 27% over last year and only 3.5% of those are the result of foreclosure resales. In Lincoln, Neb., where sales are 15% higher this year than last, only 3.6% of them involved bank-owned properties Both top our list of markets on their way to health.
In Depth: Best Cities For A Housing Recovery
Behind The NumbersIn compiling our list, Forbes looked at 161 of the country's largest metropolitan statistical areas (or metros)--geographic entities defined by the U.S. Office of Management and Budget (OMB) for use by federal agencies in collecting, tabulating and publishing federal statistics--where sales activity had picked up over the last year, but where foreclosure sales, as a percentage of overall sales were the lowest. Our data came from Zillow.com, an online housing data firm based in Seattle, Wash. Our list doesn't profess to call the turnaround, but rather point out which cities are in the lead on the road to recovery.
To be sure, the national real estate picture remains grim. In Las Vegas and Madera, Calif., for example, respective sales are up 40% and 64% from a year ago. But 67% and 71% of those respective sales are from foreclosure resales.
The Rankings
10. San Jose, Calif.
9. Santa Barbara, Calif.
8. Redding, Calif.
7. Denver, Colo.
6. Bremerton, Wash.
5. San Luis Obispo, Calif.
4. Salem, Ore.
3. Colorado Springs, Colo.
2. Lincoln, Neb.
1. Miami-Ft. Lauderdale, Fla.
Other areas, however, are showing a spark at the very least and signs of bottoming at the very best.
Miami and Lincoln were followed by Colorado Springs, Colo., Salem, Ore. and San Luis Obispo, Calif. Here, sales have returned, but foreclosures are a relatively small percentage. In Colorado Springs, sales activity is up 14%, while transactions involving bank-owned properties made up one-fifth of them. While 20% is still a sizable chunk, it's relatively sound compared with areas like Bakersfield and Vallejo, Calif., and Phoenix, where over 50% of sales made up of foreclosures.
Because housing, like any asset, depends on supply and demand, the sales rate is an incredibly useful statistic in judging a recovery. However, an increased number of sales does not necessarily mean an imminent recovery.
"A bottom in sales volume is not the same thing as a bottom in home values," says Stan Humphries, chief economist at Zillow.com. "The former is a necessary precondition for the latter, but most economists expect prices to keep falling nationally through at least the early part of next year."
Tuesday, August 18, 2009
Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Latest news: NAR Research First-Time Home Buyer Tax Credit Webinar: September 3, 2009
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Latest news: NAR Research First-Time Home Buyer Tax Credit Webinar: September 3, 2009
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
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.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—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 $75,000 and $95,000 for single buyers and between $150,000 and $170,000 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 $95,000 for singles and over $170,000 for couples are not eligible for the credit.
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 the three-year period, the credit will be recouped on the sale.
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