Tag Archives: new homes in raleigh

Details on First Time Home Buyers Tax Credit and New Stimulus Plan

It truly is a great time to be a first time home buyer as the combination of tax credits, low interest rates and great pricing makes this truly the time to buy your first home.  Here is some information to help you better understand the first time home buyers tax credit and details of the new stimulus package that was passed last week.  If you are a first time home buyer then let me know how I can help you take advantage of this great buying opportunity.

Tax Credit for Home Buyers

  • First-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
  • The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Tax Credit Versus Tax Deduction

  • It’s important to remember that the $8,000 tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a home buyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing.
  • Better still, the tax credit is refundable, which means the home buyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!

Phaseout Examples

  • According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

To break down what this phaseout means to home buyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:

  • Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

  • Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
  • Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.

Homes that Qualify

  • The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify.

Higher Loan Amounts

  • More good news – there is an extension on the additional tier of conforming loan amounts which had been first established in 2008.  This tier of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750.  These loans will again be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard “jumbo” loan rates.

Additional Housing-Related Provisions

  • Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
  • Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing

  • This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance

  • This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

Thanks to Beth Prochaska of Alera Financial for passing thisinformation along!

Walking With You Every Step Of The Way!

Jenn Nowalk – Raleigh Realtor/Broker

Hot Off The Press – My First Quarter Newsletter!

I am excited to announce that my first quarter newsletter is hot off the press and in the mail!  The goal of the newsletter is to offer my clients, family and friends a fun and informative way to stay up to date on subjects like the local real estate market, home decorating trends, home buying and selling tips, crafting ideas, local news and events, as well as my quarterly trivia question where one lucky winner each quarter will win a prize for providing the correct answer.  This quarter’s winner will receive a pizza dinner for the entire family!

If you are not currently receiving my newsletter but would like to then email me your contact information and I will be sure to add you to my mailing list.

I hope you enjoy my newsletter as much as I enjoy putting it together each quarter!

Walking With You Every Step Of The Way!

Jenn Nowalk – Raleigh Realtor/Broker

Contact me to sign up for my quarterly newsletter!

Contact me to sign up for my quarterly newsletter!

It is the most wonderful time of the year!

This truly is the most wonderful time of the year – I love Christmas and New Years as it reminds me of the best part of the holidays – family!  Okay so some of you may say “Family – come hang with my family and see if you say that?”  Okay well family dynamics are always interesting but I am sure you appreciate your family as well this time of year.

I like to use this time of year to reflect on the wonderful things we have in our lives – with friends and family being at the top of the list!  Whether you have a big family or small family, are starting your own family with kids (like my husband and I) or seeing your kids now all grown up, family is for me what makes the holidays special.

Families truly do make a house a home and a home is the foundation of every family!  At home is where most of the memories and traditions surrounding the holidays take place.  I think it is this reason why I love working in real estate and working with families to find that perfect home.  Everytime I show a home I try to envision where the Christmas tree will go and how the exterior will look decorated with lights.  And when selling a home I realize that a family is not getting ready to just sell a house but close a chapter on many years of holiday memories and traditions.

So with that in mind I wish everyone a happy and healthy holiday season.  Treasure the time you have with families and friends and the home that those many great memories and traditons will take place in!

Happy Holidays!

Jenn Nowalk – Your Raleigh Realtor

Even LOWer Mortgage Rates Coming Soon?

Now truly is a great time to buy a house but that time may get even better in the near future.  There is talk of the federal government helping the challenged housing market by introducing a fixed 4.5% interest rate. Now that is an interest rate and program that would get a lot of buyers off the sidelines and fast!

Here is one small excerpt from an article about the proposed plan –  “Under one proposal, Treasury would seek to lower the rate on a 30-year mortgage to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac, Scott Talbott, chief lobbyist at the Financial Services Roundtable, said Wednesday.”

This could be the major boost that the housing market needs to lower inventory and get the housing market back to being the needed strong foundation of the economy.  To read the full article on the proposal plan please click here.  If you have any further questions or need information please feel free to contact me as I am here to help with all your real estate needs!

Jenn Nowalk – Raleigh Realtor/Broker

Welcome to my LiveinRaleigh.com Blog

Welcome to my LiveinRaleigh.com blog as I hope you will find this blog helpful, informative and fun!  My name is Jenn Nowalk and I am a realtor/broker serving Raleigh and the surrounding Triangle area.  Raleigh and the Research Triangle Park is a great place to live and work as there is a good reason why this area wins many awards year after year for being one of the best places to live, work and play!  My goal with this blog is to give you better insight on the Triangle area, the real estate market, featured neighborhoods, home tips, crafting projects, partners to work with, fun things to do, places to see, restaurants to hit, getaways to visit,  as well as offer some background on me, my experience and services.  

Although the national real estate market is in a challenging time, these times present great buying opportunities.  Just yesterday there was an article – view article here – that named Raleigh as one of the best places in America that will weather this economic downturn!  

Thanks for visiting my blog as I look forward to being your trusted Raleigh and the Surrounding Triangle real estate resource now and in the future.  Please feel free to contact me with any questions, needs, comments or blog ideas!

Cheers – 

Jenn Nowalk – Raleigh Realtor/Broker