Posts Tagged ‘first time home buyer tax credit’

Here is a great video explaining the expansion and extension of the current first time home buyer tax credit.

Give me a call if you need help!

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

robgrahamrealestate.com

206-321-6349

Popularity: 3% [?]

Here is a great video to explain the first time home buyer tax credit.

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Rob Graham, Home Buying Specialist

Windermere Real Estate

robgraham@windermere.com

206-321-6349

Popularity: 3% [?]

Hey kids.  Just a quick reminder.  The $8,000 first time home buyer tax credit is set to expire this November.  Keep in mind that it isn’t enough to have a home under contract by the end of November:

The home needs to have closed by November 30th.

If you have a contract on a home that is set to close in December, you will be out of luck.

Also keep in mind that for FHA financing, which is currently the most common loan type, closing is frequently taking longer then the traditional 30 days.  So considering it is now the second week of September, if you are hoping to take advantage of the first time home buyer tax credit, you should be aiming to be under contract on your first home in the next few weeks. 

Give me a call today if you want to get started on the process.

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Rob Graham, Home Buying Specialist

Windermere Real Estate

206-321-6349

Popularity: 26% [?]

With the $8,000 first time home buyer tax credit set to expire November 31st, and congress on recess,  I took it upon myself yesterday, to send an e-mail out to both of my senators, my representative and yes Barack Obama himself. 

Here is my e-mail.

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Dear xx,

My name is Rob Graham. I am a Realtor in Seattle WA. I wanted to take a moment to write you a note about the $8,000 First Time Home Buyer Tax Credit.

We all agree that our country’s current economic crisis was instigated and continues to be partially fueled by our housing crisis. I thought you might appreciate hearing directly from the horses mouth the dramatic impact the first time home buyer credit has had. Since the credit was announced, I have seen a great increase in first time home buyers. Many were waiting on the sidelines and the credit was the impetus they needed to feel confident jumping into the market. As a result, first time home buyers make up a significantly larger portion of housing buyers this year then they have traditionally.

With the tax credit set to expire November 31^st, I wanted to make a plea that it be extended and expanded. I know that when the credit was first discussed in both the house and senate, there was momentum to make it a $15,000 credit for all home buyers. In committee, it was reduced to a $8,000 first time home buyer credit. Imagine the impact the credit could have if it was available to all home buyers and not just first time home buyers who only make up 25-30% of the housing market.

I am also aware that there were several proposals being debated on the floor of both houses in recent months to either extend, or expand the tax credit. I was disappointed to see that with focus shifting to healthcare no such bill gained traction before the recess.

As we move into fall I can only strongly urge you to do all you can to expand and extend the tax credit. It is my fear that the small glimmers of hope we are seeing in the current market will only dwindle to stagnation in the months to come if we are unable to do so.

Thank you for you consideration,

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I have to say it feels really powerful to be able to reach out and send a message to the most powerful people in our state and country. 

I highly encourage you to do the same on any topic you feel strongly about. 

Here are the links for you:

President Obama:

http://www.whitehouse.gov/CONTACT/

Senator Cantwell:

http://cantwell.senate.gov/contact/index.cfm

Senator Murray:

http://murray.senate.gov/email/index.cfm

To write to your representative, go here:

https://writerep.house.gov/writerep/welcome.shtml

Seriously, so few people actually write to elected officials that you are much more powerful when you do.  Use the resource wisely, but by all means don’t sit on your hands.  You elected these people after all.  Let them know what you think.

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

robgraham@windermere.com

206-321-6349

Popularity: 5% [?]

I was hoping to hold of on writing about this until the details of how this is going to work are official, but I keep getting questions about it, so I thought I would let you know where things stand right now.

The $8,000 tax credit is designed to stimulate home buying for first time home buyers.  First time home buyers typically make up about a quarter to a third of home purchases and represent the segment of home buyers that typically have the least cash to put down on a home.  Because of this the tax credit was introduced to make first time home ownership more affordable for people. 

One of the things that stalled the housing market in recent years is the fact that zero down home loans went away.  Banks were no longer willing to take that risk when they started to see increases in default rates especially among those who used the more risky loan products. 

What Washington State along with many other states are recognizing, is that the more readily available that $8,000 is to first time home buyers, the more it is likely to get used.  Ways to access the credit already include waiting until next year and or having your withholding adjusted this year. 

Now the governor and state senate have agreed that making the tax credit available to help pay for your down payment, is a good idea.  It makes perfect sense.  FHA loans offer the lowest down payment option.  Still you are required to come up with 3.5% of the purchase price to qualify for an FHA loan.  Not many first time home owners can come up with that kind of money.  $8,000 would go a long way to easing that burden. 

As of right now we are not sure how the money will be made available.  The most talked about solution is that banks lending on the home will grant the borrower an additional loan and then  be reimbursed from the government.  The details are still vague, but one thing is clear.  All sides are working hard to make home loans more flexible and affordable for people.  In particular first time home buyers.

Stay tuned.  As the details of this program become clearer, I’ll keep you posed.

Let me know if you need help.  Summer is a great time for home buying.

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 7% [?]