I’ve been hearing the buzz for sometime that we are going to lose our Star Rebate Program. Now I’m now able to do my part to help prevent it.

The following statement was taken from Senator Nozzolio web site:

The new State Budget, put together behind closed doors, took away your STAR property tax rebate checks. The loss of these checks will cost individual homeowners throughout our state hundreds of dollars.

 Senator Nozzolio voted against the budget because it took away your rebate checks and raised taxes by an average of $2,400.00 for you and other families.

Please fight to restore the Star Rebates by signing the petition on his web site at:

http://www.nysenate.gov/press-release/join-fight-restore-star-rebates

I wanted to alert you all to the fact that HUD is proposing some changes to the FHA program. These changes are not a “done deal” at this point.

One of the changes that I wanted to point out is in regards to seller concessions. HUD is proposing that FHA seller concessions will be reduced from the current maximum of 6% to 3%. This change could have an impact on many first time buyers as they often struggle to come up with the required cash to close.

On April 5 2010, HUD will be increasing the cost of the upfront Mortgage Insurance premium that is financed into all FHA loans. The current premium of 1.75% will be increasing to 2.25%. The premium will still be allowed to be financed into a buyers mortgage.

Therefore, I think it is important that we underscore to potential buyers that now is the time to act. Interest rates remain at historic lows, and the homebuyer tax credits are set to expire as of April 30 (with a June 30 closing).

Any buyer that is waiting to purchase a home may be subjected to a higher cash requirement, higher mortgage payment due to the increased cost of the mortgage insurance and that’s before we talk about the risk of interest rates rising.

Any questions please feel free to call

Sam Geraci
716-633-2700 ext 3123

………………………………………………………………….

1765 Como Park Blvd.
Depew, NY 14043

SONYMA is back in the game.  They have been out of the market for some time due to their inability to obtain secondary funding due to the recent credit crunch.  Looks like they are now over that hurdle and offering rates on a 30-year mortgage as low as .

Here is a breakdown on the program:

Buyers could not have owned a home in the last 3 years

Low down payment of 3% (1% would have to come from the buyer, the other 2% can be a gift from family)

Total household income for the Low Interest Program:

          1-2 people cannot exceed  $67,900

          3+ people cannot exceed  $78,085

Total household income for the Achieve the Dream Program:

           1+ people cannot exceed  $44,450

Buyers can also choose to obtain a $3000 Closing Cost Grant to help with costs

Low Interest Program:    5.125% with the grant 

                                          4.625% without the grant

Achieve the Dream Program:   4.625% with the grant

                                                   4.125% with the grant

In addition to the benefits of this program, the buyer would also be eligible to receive the Federal $8000 tax credit.  This tax credit expires with contracts written after 4/30/10.  So now is the time to buy.  Waiting till after spring can cost a good deal of money.

 For further information, please contact:

Being in Real Estate I hear quite often about the Home Buyer Credit tax program, but all the talk is usually about buying a home and not much is said about selling your home, or timing the market.  If you’re thinking about selling your home in the near future, here are a few facts to consider:

1) Currently the home buyer credit allows up to $8000 credit for the 1st time home buyer. Their are many buyers who would otherwise wait, or were on the fence and now deciding to take the plunge, and all of them are trying to beat the April deadline.

2) Interest Rates are still at a very low point, about 5.25% as of this writing. This also brings many more buyers to the table who would not be qualified at higher rates.

3) The Fed will stop buying Treasury Bonds sometime in April which will cause interest rates to climb to what some predict up to 7%

This all points to a drastic drop on a seller’s opportunity to capitalize on higher sales prices.

Now lets take a look at the other benifits for the seller.

1) A seller buying their next home is allowed up to $6500 tax credit.

2) Again if you finance any part of you new mortgage, rates are about 5.25%

So suppose  you’re selling your home today for $100,000. Chances are you will have more showings, a faster sale, better qualified buyers and greater chance of multiple offers, which all adds up to more money in your pocket. Now suppose you were buying your next home for  $150,000 and financing $100,000. 1. You will also receive up to a $6500 tax credit. 2. The interest on a $100,000 Mortgage at 5.25% = $698.04 per month for a grand total including principle and intrest of $251,293.33

The same seller a year from today may find themselves in completely different scenario. It may look something like this: Listing your home for $100,000. 1. Their will likely be far fewer qualified buyers due to much higher mortgage rates and lower offers. 2. All tax credits will be gone. 3. The likelihood of multiple offers will be dramatically reduced. 4. Less buyers means longer listings and/or lows prices. 4. And agein if your getting a mortgage for your next home the same $100,000 Mortgage at a 7% rate = $811.14 per month with a total P & I of $292,008.90. This all equals less value for your dollar.

In a nutshell, its not only a great time to buy, but if your selling with plans to buy as well this is a golden opportunity and may be the best time to sell for some time.

Hope this blog was a help.

The last year and a half or so due to record low interest rates across the nation, The State of New York Mortgage Agency has priced themselves out of the mortgage industry. The good news…SUNYMA is Back in Business with rates  as low as 4.625% (as of the date of this writing, Dec. 14, 2009).

What is a SONYMA Mortgage?

The State of New York Mortgage Agency (SONYMA) products are for First-Time Homebuyers and offer five mortgage programs featuring competitive interest rates, low down payment requirements, flexible underwriting guidelines, no prepayment penalties and closing cost assistance while mortgage credit certificates feature a Federal income tax credit.  Each of these features are designed to make your home purchase more affordable. All SONYMA loans are financed through the sale of tax exempt bonds.

President Obama Signs Extended Home Buyer Tax Credit
Friday November 6, 2009
President Obama signed today the Extended Home Buyer Tax Credit legislation approved yesterday by Congress.

The key provisions are:
•The $8,000 home buyer tax credit is extended to April 30th, 2010, with another 60-day extension for those home buyers who have entered into a purchase contract by April 30th, providing it closes by June 30, 2010.

•Buyers who are not first-time home buyers can apply to receive a tax credit of $6,500, providing these buyers have owned and occupied a principal residence for 5 out of the last 8 years.

•Income levels for those who buy a home on or after November 6, 2009 is raised to $125,000 for a single person and $225,000 for a couple, with phase-outs above those levels.

Frequently Asked Questions on the Homebuyer Tax Credit Changes

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phase-out range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as he lived in that house for 5 years straight what he did since 3 years doesn’t impact eligibility.

Question: I am an eligible first time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?

Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

New York’s REALTORS applaud members of the NY House delegation for their leadership on homebuyer tax credit extension

On behalf of the 56,000 members of the New York State Association of REALTORS, today I express our sincere gratitude to the 28 US House of Representatives members from New York for their vision and leadership in addressing the continued recovery of our housing industry and, ultimately, our economy.

Yesterday, New York’s 28 representatives voted to approve the extension and expansion of the homebuyer tax credit that was included in a wide-ranging piece of House legislation that extended unemployment benefits. Our Congressional Delegation has a long-history of supporting REALTOR issues, and none in recent history has been more important than this tax credit.  REALTORS know that the tax credit is working to revitalize the housing market and position it to once again lead our economic recovery.

The legislation extends the availability of the tax credit to purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction. The credit will remain $8,000 for first-time buyers, while repeat buyers who purchase between December 1, 2009 and May 1, 2010 will be eligible for a credit of $6,500. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years. Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.

We are hopeful that President Obama will sign it into law in the coming days.

Dear Home Buyer!

I am VERY excited to report that Congress has answered our call to extend and expand the homebuyer tax credit!                          

Both the House and the Senate have passed an unemployment insurance bill, which includes an amendment that expands and extends the tax credit.  That bill will be sent to President Obama for his signature in the next day or so.