There are new benefits for members of the military and certain other federal employees:
Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
Recent FHA Change
Financed Mortgage Insurance Premium has increased.
As of April 5 the new financed MI is 2.25%.
Still Available
2010 MCC – Mortgage Credit Certificate Program
This Program is for First Time Home Buyers
*Income restrictions
*Benefit year after year after year
MCC is a federal income tax credit (dollar for dollar savings) versus a standard IRS deduction for mortgage interest expense
Properties can be located ANYWHERE in Texas
1. Maximum tax credit per year is $2000. Calculated by multiplying the total loan amount X interest rate X 30% over 12 months
2. Conventional loans allow MCC to be added as additional income in qualifying. FHA loans allow the PITI payment to be reduced by the amount of the tax credit. Veterans receive the federal income tax benefit but no qualifying benefit.
3. Owner occupied only – Non Occupying Co Applicants not allowed.
4. First come first serve reservations – Applicants will sign all loan disclosures and MCC disclosures once contract is received. We will submit the executed affidavit of applicant including worksheets; 3 years SIGNED tax returns; current paycheck stub(s); and $75 MCC commitment fee (cashiers check or money order from Applicant) payable to TDHCA for reservation/approval
5. Maximum sales price per chart by county
6. First time homebuyers – cannot have owned a home in the last 3 years – must provide 2006, 2007 and 2008 signed tax returns or signed IRS transcripts. 2009 tax returns are required after April 15th.
7. All persons living in the house and signing the deed are counted in the family income limits (includes Non Purchasing Spouse) ALL income is counted in family income and annualized over 12 months – overtime, bonus, social security, child support, unemployment compensation, rental, seasonal or part time, self employment, dividends, interest and lotto winnings
8. FEES: 1% MCC participation fee ; $75 MCC document handling fee – all APR fees – Must show in Box 3 of 2010 GFE
9. All loans are subject to income tax recapture provisions
10. Income restrictions based on location of property
11. Austin-Round Rock, MSA (Bastrop, Caldwell, Hays, Travis & Williamson)
100% AMFI 1 – 2 Persons $73,300
115% AMFI 3 or more Persons $84,295
12. PRE PURCHASE COUNSELING IS REQUIRED – online is acceptable -We will email the
online course to the applicant. Counseling Certificate must be submitted with the file.
13. Can be combined with $8000 IRS first time homebuyer credit
14. Non Purchasing spouse must sign affidavits
15. Allow 10 days for TDCHA to issue MCC commitment and 48 hours to process package.
Call me today to put this and other programs to work for you!
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