Real Estate Information Archive

The IRS has clarified what documentation is needed to claim your first time buyers and move-up buyers tax credit.

You are still required to fill out a 5405 form but is NOT requiring all buyers and sellers to sign the HUD-1 settlement statement. If you live in an area where it isn't common for the all parties to sign the HUD-1 its OK.

The IRS says: " in areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return."

So if you live in Southern California where it’s uncommon for buyers and sellers to sign the HUD-1 make sure you the buyer(s) sign your HUD-1 statement before mailing it in with your tax return.

If you are a move up buyer or repeat buyer, the IRS is requiring documentation that proves you lived in your last home 5 of the last 8 years. Items the IRS will consider as proof are: tax records, mortgage interest statements, and home owner’s insurance records.

Median prices in So Cal are on the rise compared to a year ago January 2009. The Orange County and Los Angeles home sales markets improved significantly while Riverside, San Bernardino, and Ventura took a hit again.  Orange County was up by 3.4% in sales over January of last year for a total of 1,867 home sales. The Big new is prices rose 15.4% over January 2009 in Orange County. San Bernardino County is the only one where prices in homes dropped another 7.4% while prices remained the same in Riverside County with no gain over last year.  Over all the six counties home prices rose 8.6% over January of last year.

Now if you have been sitting on the fence to take advantage of the bottom of the market you better find a home NOW! With all the counties experiencing increases in home values except in San Bernardino County waiting for the right moment is over.

The $8,000.00 tax credit runs out the end of April 2010.

In our current economic time we are all trying to stretch our dollars. It has been a couple of tough years for most people with job layoffs, companies closing, or having your hours cut back.

My wife for years has saved money by cutting coupons out of the newspaper, PennySaver,  grocery coupon mailers, and magazines to name a few. It’s a game to her and I used to think it was a waste of time, until I realized just how much money she was saving us each month. Coupons are now avaliable on the internet and here is a list of her favorite sites for printable coupons.

Retail Me Not, My Coupons, Hey Its Free, Promotional Codes, Coupon Barn, Slick Deals, Coupons. Just in January 2010 my wife saved $321.45.

Just found another great coupon site CouponChef.com

If you know any woman currently undergoing Chemo, please pass the word to her that there is a cleaning service that provides FREE housecleaning - 1 time per month for 4 months while she is in treatment.  

All she has to do is sign up and have her doctor fax a note confirming the treatment. Cleaning for a Reason will have a participating maid service in her zip code area arrange for the service.   http://www.cleaningforareason.org/

Please pass this information on to bless a woman going through Breast Cancer treatment. This organization serves the entire USA and currently has 547 partners to help these women. It’s our job to pass the word and let them know that there are people out there that care. Be a blessing to someone and pass this information along.

The federal tax credit for home buyers was signed into law by President Obama Friday, Nov. 6.  The tax credit, which was set to expire Nov. 30, has been extended through April 30, 2010 with a 60-day extension if a binding contract is in place prior to deadline.  It also was expanded to include existing homeowners who have lived in their primary residences for five consecutive years out of the last eight years.

First-time home buyers still may be eligible for a tax credit of up to $8,000, while existing homeowners may receive a credit of up to $6,500.  The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

The federal tax credit for home buyers was signed into law by President Obama Friday, Nov. 6.  The tax credit, which was set to expire Nov. 30, has been extended through April 30, 2010 with a 60-day extension if a binding contract is in place prior to deadline.  It also was expanded to include existing homeowners who have lived in their primary residences for five consecutive years out of the last eight years.

First-time home buyers still may be eligible for a tax credit of up to $8,000, while existing homeowners may receive a credit of up to $6,500.  The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

If you know any woman currently undergoing Chemo, please pass the word to her that there is a cleaning service that provides FREE housecleaning - 1 time per month for 4 months while she is in treatment.  

All she has to do is sign up and have her doctor fax a note confirming the treatment. Cleaning for a Reason will have a participating maid service in her zip code area arrange for the service.   http://www.cleaningforareason.org/

Please pass this information on to bless a woman going through Breast Cancer treatment. This organization serves the entire USA and currently has 547 partners to help these women. It’s our job to pass the word and let them know that there are people out there that care. Be a blessing to someone and pass this information along.

Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to latest survey. The Pending Home Sales Index rose 6.4 percent to 103.8 from a reading of 97.6 in July, and is 12.4 percent above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5. Lawrence Yun, NAR chief economist, said not all contracts are turning into closed sales within an expected time frame. The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” he said. “No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month.

Over the years Carol and I have enjoyed fine wines and have spent time in the Napa Valley and surrounding areas along with Paso Robles tasting wine.  In recent years we have started spending time at the Temecula Valley wineries.  It’s a short drive from Orange County and great for a day trip or weekend getaway.  We have put together a list of the wineries, restaurants at wineries, lodging and resorts, and informational websites to make easier to plan your trip. Temecula Valley Wineries to get the information or if you prefer enter the complete U.R.L .  below.  

http://www.northorangecountyrealestatesales.com/Buyer-Resources/Buyer-Suggested-Reading/Temecula-Valley-Wineries

Qualifying for a jumbo loan—those with loan amounts higher than the conventional conforming loan limit of $729,750 in high-cost areas—is more difficult than it was a few years ago.

While rates on jumbo mortgage historically have been higher than rates on conforming loans, jumbo loans still are available, but often come with stringent underwriting requirements. Prior to the credit freeze, borrowers of jumbo mortgages could qualify for loans with a 5 percent down payment, credit scores of 620and enough money in the bank to cover two months of payments. Now, borrowers typically must have six months’ reserves, a 700 credit score, and a down payment of at least 20 percent.