Monthly Archives: November 2008

Housing & Recovery Act: Tax Credit For First-Time Homebuyers

First time homebuyers purchasing a new or pre-existing home may be eligible for a tax credit up to $7,500* for a married couple filing jointly or a single individual, or $3,750* for a married couple filing separately.

To Qualify:

  1. Loan must close on or after April 9,2008 and before July 1, 2009
  2. Property type must be a single family detached home, townhouse or condominium
  3. Income for borrowers must not exceed $75,000 for single tax payers and $150,000 for married couples
  4. Property must be a primary residence
  5. Borrower(s) must not have owned a home during the past 3 years

*amount of the credit will be recaptured over 15 years unless the property ceases to be the homebuyers principal residence, or the property is disposed of at which time repayment of the total credit must be made.

Common Questions & Answers

Q: Who is eligible to claim $7,500 tax credit?
A: First time homebuyers purchasing new or pre existing homes. Must be used as primary residence.

Q: Can the tax credit be claimed if the home is purchased under a mortgage revenue bond (MRB) program?
A: No. The tax credit cannot be combined with the MRB program.

Q: Are there income limits to determine who is eligible to take the tax credit?
A: Yes. Homebuyers who file their taxes as single or head-of-household taxpayers can claim the credit if their modified adjusted gross income (MAGI) is less than $75,000. For married taxpayers filing a joint tax return, the MAGI limit is $150,000. The limit is based on the buyer’s modified adjusted gross income for the year that the house is purchased, except for certain purchases in 2009.

Q: Does the credit amount differ?
A: Yes. The credit is in general equal to $7,500 for a qualified home purchase by a married couple filing jointly or a single homebuyer. A homebuyer who is married but filing separately qualifies for a $3,750 credit. The credit amount is also prorated based on income.

Q: Does the credit have to be paid back to the government? If so, what are the payback provisions?
A: Yes, the tax credit must be repaid. Homebuyers will be required to repay the credit to the government, without interest: over 15 years, when they sell the house if there is sufficient capital gain from the sale, or when they cease to use the house as their primary residence.

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Filed under Maryland Real Estate News, Mortgage News

Loan Limits Set to Adjust – ACT NOW!

The best time to purchase your new home is before the end of 2008 while the temporarily increased loan limits are still in effect. What does this mean to you? A lower interest rate! Conforming loans commonly have rates as much as 1.25 percentage points lower than jumbo loans – and that adds up to big savings!

Start the search for your new home now!

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Thank You

The eagerly anticipated Real Estate Top 200 rankings were announced November 7, 2008 at the National Association of REALTORS®’ Annual Convention in Orlando, FL.

The Creig Northrop Team of Long & Foster Real Estate, Inc took home top honors ranking # 2 in Sales Volume by a Team, as well as # 3 in Transaction Sides by a Team in The Wall Street Journal, REAL Trends and Lore Magazine’s 3rd Annual Top 200 Real Estate Professionals.

The Northrop Team won special recognition for being the only team to achieve #2 in the nation for 3 consecutive years and also #3 in total settled transactions in the nation AND for consistent “PUSH-EVERENCE” in any market. The Team was also honored as the only Team to garner two “Encore” awards for both transactions and volume. WES FOSTER Founder, Chairman and CEO of the Long & Foster Companies, was in attendance to give a heartwarming congratulatory speech about the Team.

PUSH-everence is like perseverance, only infused with more positive energy. Recently, I had been hearing all this “perseverance, perseverance, perseverance.” I didn’t like the word. It didn’t do anything for me. I needed a word to indicate what I was looking to do next, and that was “push-everance.” Push through it.

My team and I would like to take this opportunity to thank all of our Clients who have assisted us in reaching these exemplary goals! We could not have had such a successful year without your support. As always, our mission is to provide all of our clientele with extraordinary customer service.

For a link to the full article published by LORE magazine, please logon to www.northropteam.com/lore

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Filed under Northrop Team News