The federal guidelines that outline 10 things that appraisers must do or provide for all FHA appraisals done after April 1, 2009 are as follows:
1. The Market Conditions Addendum (Fannie Form 1004MC/Freddie Form 71).
2. At least 2 comparable sales within 90 days of appraisal date.
3. A minimum of 2 active listings or pending sales in addition to the 3 closed comparables.
4. Bracketed listings using both dwelling size and sales price when possible.
5. Adjust active listings to reflect the List To Sales Price Ratio.
6. Adjust pending sales to reflect contract sales price when possible.
7. Include original list price and any revised list prices.
8. Reconciliation of adjusted values of active or pending sales with adjusted values of closed comparable sales.
9. Absorption Rate Analysis.
10. Known or reported sales concessions on active and pending sales.
Don't feel bad if you do not understand the above criteria. Your lender and your Realtor should if they know what they are doing, and can help explain it...
FHA is becoming more strict on the actual value of the home that one may buy and fund through them. In today's market, FHA loans are competitive to conventional loans and do not require the minimum of 10% that a conventional loan requires.
Thursday, March 26, 2009
Wednesday, March 25, 2009
Bryce Canyon - Winter Beauty
Took a couple days off and headed down to Bryce Canyon, just my wife and I. It is the first time we have witnessed the winter beauty of Bryce. Hope you like the pictures. Just one of the beauties of nature found in Utah!
Utah Home Run Housing Grant of $6,000!
If you have been waiting to buy a brand new home, wait no more! Utah has a grant program available for any qualified buyer interested in purchasing a newly constructed home.Basics of the Program:
$6000 Grant – No Repayment Required! Use towards down payment, closing costs or rate buy-down
New Construction Only – Newly Built, Never-Occupied Properties
Owner-Occupied Properties – For primary residences only
Any Qualified Buyer – This program applies to all qualified buyers - Not just first time buyers
First Come, First Served – State Fund limited to approximately 1600 total grants
Loan Approval Required – To request the grant, loan must be fully approved by the underwriter. Axiom can streamline this approval process with our in-house banking team.
Income Limits – Limits for this program are defined to mean $75,000 for a single person or $150,000 for a married couple
Property Location – All Counties in State of Utah are Eligible
$8,000 First Time Homebuyer Credit – May Be Used in Conjunction with this Program (a Total Benefit of $14,000!)
This is a unique opportunity for buyers to get into a brand new home – but don’t wait. The funding is limited and available on a first come, first served basis. For more information on this exciting Utah grant program, contact Kraig or a qualified loan officer.
Monday, March 2, 2009
$8,000 First-time Home Buyer Tax Credit
The American Recovery and Reinvestment Act of 2008 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence or after January 1, 2009 and before December 1, 2009.
The following questions and answers provide basic information about the tax credit. If you have more specific questions, consult a qualified tax advisor or legal professional.
1. WHO IS ELIGIBLE TO CLAIM THE TAX CREDIT?
First-time home buyers purchasing any type of home – new or resale – are eligible for the tax credit. The purchase must be between January 1, 2009 and before December 1, 2009. The purchase date is considered the date when closing occurs and property title transfers.
2. WHAT IS THE DEFINITION OF A FIRST-TIME HOME BUYER?
A buyer who has not owned a principal residence during the 3 year period prior to purchase. With married couples, both party’s history is considered. For example, if you have not owned a home in the past 3 years, but your spouse has owned a principal residence, neither you nor your spouse qualifies for the tax credit. A parent may jointly purchase a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
3. HOW IS THE AMOUNT TAX CREDIT DETERMINED?
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
4. ARE THERE ANY INCOME LIMITS FOR CLAIMING THE TAX CREDIT?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married), and is reduced proportionally for taxpayers with MAGIs between these amounts.
5. WHAT IS “MODIFIED ADJUSTED GROSS INCOME”?
The MAGI is defined by the IRS. First, determine your “adjusted gross income”, then add to the AGI certain amounts such as foreign income, foreign housing deductions, student loan deductions, IRA contributions and higher education cost deductions.
6. WHAT TYPE OF HOME QUALIFIES?
Single-family detached homes, townhomes, condos, manufactured homes, and houseboats. A contractor built home also qualifies.
7. WHAT DOES IT MEAN WHEN THEY SAY THAT THE TAX CREDIT IS “REFUNDABLE”?
The home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. For example, if a home buyer expected a federal income tax liability of $5,000 and had tax withholdings throughout the year of $4,000, then without the tax credit, the buyer would owe an additional $1,000 come tax time. If the buyer qualified for the $8,000 tax credit he would receive a check for $7,000 when filing.
8. I BOUGHT IN 2008. DO I QUALIFY FOR THIS CREDIT?
No. But you may qualify for the $7,500 2008 credit.
9. DO I HAVE TO WAIT FOR MY 2009 TAX RETURN?
Not necessarily. If you qualify, you may increase your tax withholding (W4) in order to increase your take-home pay. This money can then be applied to the down payment.
10. IF QUALIFIED FOR CREDIT, CAN I BUY IN 2009 AND APPLY THE TAX CREDIT TO MY 2008 RETURN?
Yes. If you have already submitted your tax return, you may file an amended 2008 return claiming the tax credit. Consult your tax professional…
info provided by NAHB (National Association of Home Builders)
The following questions and answers provide basic information about the tax credit. If you have more specific questions, consult a qualified tax advisor or legal professional.
1. WHO IS ELIGIBLE TO CLAIM THE TAX CREDIT?
First-time home buyers purchasing any type of home – new or resale – are eligible for the tax credit. The purchase must be between January 1, 2009 and before December 1, 2009. The purchase date is considered the date when closing occurs and property title transfers.
2. WHAT IS THE DEFINITION OF A FIRST-TIME HOME BUYER?
A buyer who has not owned a principal residence during the 3 year period prior to purchase. With married couples, both party’s history is considered. For example, if you have not owned a home in the past 3 years, but your spouse has owned a principal residence, neither you nor your spouse qualifies for the tax credit. A parent may jointly purchase a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
3. HOW IS THE AMOUNT TAX CREDIT DETERMINED?
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
4. ARE THERE ANY INCOME LIMITS FOR CLAIMING THE TAX CREDIT?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married), and is reduced proportionally for taxpayers with MAGIs between these amounts.
5. WHAT IS “MODIFIED ADJUSTED GROSS INCOME”?
The MAGI is defined by the IRS. First, determine your “adjusted gross income”, then add to the AGI certain amounts such as foreign income, foreign housing deductions, student loan deductions, IRA contributions and higher education cost deductions.
6. WHAT TYPE OF HOME QUALIFIES?
Single-family detached homes, townhomes, condos, manufactured homes, and houseboats. A contractor built home also qualifies.
7. WHAT DOES IT MEAN WHEN THEY SAY THAT THE TAX CREDIT IS “REFUNDABLE”?
The home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. For example, if a home buyer expected a federal income tax liability of $5,000 and had tax withholdings throughout the year of $4,000, then without the tax credit, the buyer would owe an additional $1,000 come tax time. If the buyer qualified for the $8,000 tax credit he would receive a check for $7,000 when filing.
8. I BOUGHT IN 2008. DO I QUALIFY FOR THIS CREDIT?
No. But you may qualify for the $7,500 2008 credit.
9. DO I HAVE TO WAIT FOR MY 2009 TAX RETURN?
Not necessarily. If you qualify, you may increase your tax withholding (W4) in order to increase your take-home pay. This money can then be applied to the down payment.
10. IF QUALIFIED FOR CREDIT, CAN I BUY IN 2009 AND APPLY THE TAX CREDIT TO MY 2008 RETURN?
Yes. If you have already submitted your tax return, you may file an amended 2008 return claiming the tax credit. Consult your tax professional…
info provided by NAHB (National Association of Home Builders)
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