Congress has acknowledged the unique circumstances affecting members of the military, the foreign service and the intelligence community by making the following exceptions that apply to both the $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers.  Qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.

Men & women who serve our country deserve more than our thanks; they deserve our support!

Have questions - please give me a call - 469.951.9588

Apr-10 Quick Facts:

Specific Sales & Housing Stats with City breakdowns available here:

www.DFWHomeTrends.com

By Kim Nguyen, knguyen@acnpapers.com

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between the date the bill is signed by President Obama and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. 

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between the date the bill is signed by President Obama and April 30, 2010.
• Current home owners purchasing a home between the date the bill is signed by President Obama and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Ellgibile?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum credit allowed for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:

1. The price of the home.
2. The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit which is effective on the date the bill is signed by President Obama single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits.

If the Buyer(s)' Income Exceeds These Limits, can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

How has the new Stimulus bill affected the tax credits for energy efficient home improvements?

On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:

• The tax credits that were previously effective for 2009, have been extended to 2010 as well.
• The tax credit has been raised from 10% to 30%.
• The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
• The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
• The $200 cap on windows has been removed

Additional Information & Specifcs can be found here.

Detailed information from Realtor.com

Addtional Information from the National Association of Home Builders

The latest home price risk forecast shows that Dallas-Fort Worth is overall the safest place in the country for stable home values.

The latest report by mortgage insurance company PMI Group ranked the D-FW area dead last among the 50 cities it rates for possible declines in home prices.

That means PMI is betting there is less than a 1 percent chance that average home prices here will be lower two years from now.

PMI's summer 2008 risk ranking for D-FW is similar to the insurance company's previous studies.

As in other PMI reports, the U.S. cities with the biggest run-up in home prices in recent years are at the greatest risk for losses.

During the last year, some markets have seen a significant increase in the number of existing single-family homes for sale, PMI chief economist David Berson said in the report.

"Given the magnitude of the inventory overhang, we expect national home price declines to continue into at least 2009," Mr. Berson said.

In North Texas, however, the number of pre-owned homes listed for sale has declined during the last year.

Although PMI Group's report about D-FW home prices should be encouraging, Mr. Berson said that doesn't mean there won't be short-term declines in values.

"It is also an average for a metropolitan area, so individual neighborhoods and houses could behave differently," he said, perhaps considerably so.

Likelihood of lower home prices in each market in two years.
GREATEST RISK
Riverside-San Bernardino-Ontario, Calif.	95.5%
Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla.	92.2%
West Palm Beach-Boca Raton-Boynton Beach, Fla.	91.9%
Orlando-Kissimmee, Fla.	91.1%
Las Vegas-Paradise, Nev.	88.1%
LOWEST RISK
Fort Worth	<1%
Dallas	<1%
Pittsburgh	<1%
Houston	<1%
San Antonio	<1%
SOURCE: PMI Group.

This website offers all available luxury homes in Prosper, Texas that are priced over $500,000 and built after 2000. 

Please enjoy.

As always, feel free to call the Christie Cannon Team with all your real estate questions!

- Christie - 469.951.9588

Potential Dallas-Fort Worth homebuyers who are nervous about whether it's a good time to purchase a house might find some comfort in a new report.

But analysts caution not to get carried away with the data.

The study by the Center for Economic and Policy Research and National Low Income Housing Coalition projects that DFW homebuyers could see one of the best increases in equity in the country during the next few years. 

The comprehensive report looked at home ownership and rental costs and the prospects for building home equity in 100 metropolitan areas.

In terms of building equity, the D-FW area is among the top five markets expected to do well between now and 2012. A homeowner who buys a house priced at 75 percent of the median for the area could gain more than $80,000 in equity four years from now, the study finds.

"I wouldn't want people to run out and make investment decisions based on this," Dean Baker, one of the authors of the report, said Thursday.

But he said the Texas market is probably in the best shape in the country.

"The fact that Texas didn't take part in the housing bubble is good news," he said. "You are not going to feel the pain other cities are."

Indeed, while home equity is likely to grow during the next few years in Texas cities, homeowners could lose equity in their houses in about a third of the cities in the report.

The biggest declines are forecast in markets that have seen big price increases in recent years, including many California cities.

"People in Texas have benefited from not having that temporary run-up in prices," Mr. Baker said. "That wasn't healthy, and now people are really getting hurt [there]."

Median home sales prices in North Texas have dropped only slightly during recent months, while residential values in many coastal cities have decreased dramatically and are still falling.

Mark Dotzour, chief economist with Texas A&M University's Real Estate Center, said the study's findings confirm the relative strength of the state's housing market.

"There is a lot less downside risk to buying a home in any of these Texas cities and a lot more upside potential," he said.

- For the full article click here -

AS REQUESTED,

HERE IT IS....ALL OF THE FORECLOSURES CURRENTLY LISTED IN THE CITY OF PLANO, TEXAS - FOR FREE.  JUST CLICK ON THE LINK BELOW TO VIEW.  ALL LISTINGS ARE UPDATED DAILY.

PLANO FORECLOSURES

DON'T FORGET TO SEE THE FRISCO, TEXAS - FORECLOSURE LIST AS WELL.

FRISCO FORECLOSURES

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HERE IT IS....ALL OF THE FORECLOSURES CURRENTLY LISTED IN THE CITY OF PROSPER, TEXAS - FOR FREE.  JUST CLICK ON THE LINK BELOW TO VIEW.  ALL LISTINGS ARE UPDATED DAILY.

PROSPER FORECLOSURES

DON'T FORGET TO SEE THE FRISCO, TEXAS - FORECLOSURE LIST AS WELL.

FRISCO FORECLOSURES

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PLEASE FEEL FREE TO GIVE ME A CALL ANYTIME AND I WOULD BE DELIGHTED TO ASSIST YOU WITH ANY QUESTIONS OR CONCERNS.

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Housing: Best Time to Buy in Four Years

by Les Christie

Tuesday, March 4, 2008 provided by CNN-Money

 

It may be the best time to buy a house in more than four years.

 

Home prices have dropped so quickly and so far that valuations - the difference between what a home should cost and its actual price - are the lowest they've been since 2004, according to a report.

 

The Cleveland-based bank National City Corp., together with financial analysis firm Global Insight, revealed Tuesday that more than 88% of the 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007.

 

"Housing valuations are almost back to long-term norms," said National City's chief economist, Richard DeKaser. He called current affordability "the best in the past four years."

 

But DeKaser cautioned that home prices could fall even further.

 

"This isn't to say home price declines are over," he said. "We could move below historic norms. By the end of 2008, housing markets could be broadly under valued."

 

Prices still improving

 

There are still 21 housing markets, or 6% of those surveyed, that are severely over valued, including Atlantic City and Madera, Calif. That's down from 56 overvalued markets at the peak of the housing bubble in 2006.

 

The report compares actual median home prices with what the authors determine are proper home values based on population density, relative income levels and interest rates, as well as historically observed market premiums or discounts, to determine whether markets are over or under valued.

 

The report also factors in market intangibles that make some areas more desirable places to live, and more expensive. 

 

"Declines are no longer confined to once-frothy markets," said DeKaser.

 

The survey covered home valuations during the last three months of 2007, but DeKaser pointed out there's reason to believe that valuations are even more favorable for buyers today.

 

Price declines have continued into 2008 and interest rates, although they have inched up lately, have been steady or lower compared to late last year. There have even been wage gains; personal income rose 0.5% in December. Soaring foreclosure rates have added inventory to many housing markets, depressing home prices further.

 

The biggest gains in affordability occurred in California, Michigan and Florida, which are areas that have also been some of the hardest hit by foreclosures. Those states registered 43 of the 50 biggest price declines.

 

Bend, Ore. currently tops the overvaluation list. Home prices there were judged to be about 59% higher than their fair-market value. Miami, despite a median home price decline of 5.7% last year, is the most overvalued big city, by 44%. 

All the best bargains were found in Louisiana and Texas. Houses in Houma, La. were under valued by 31.2%, according to the report. Dallas was the most undervalued big city, by 30%.

We have seen a whirlwind of legislative activity these past few weeks! There is much confusion surrounding the recently passed Economic Stimulus Package and higher loan limits. Unfortunately, the new law can be confusing to decipher, and not everyone will benefit. For this reason, we have provided an outline below that clarifies what this new law means for you and how you can benefit from the higher loan limits.

Description and Overview:

An economic stimulus package just passed Congress on February 7, 2008 and was signed into law by the President on February 13, 2008. This new law is effective immediately and includes a temporary increase in both the FHA and conforming loan limits to as high as $729,750 in high cost areas. This means that the interest rates on many mortgages will go down because these loans are now eligible to be purchased by Fannie Mae and Freddie Mac or insured by the Federal Housing Administration (FHA). Previously, the FHA was only allowed to insure loans with balances lower than $200,160 - $362,790, depending on the county where the property was located. Also, Fannie Mae and Freddie Mac were only allowed to purchase loans with balances at or below $417,000. This resulted in limited options and higher financing costs for those with loan balances above these limits. The new law substantially increases these limits in high cost areas and opens up new options and lower financing costs for many people.

How to Determine "High Cost" Areas

There are two things you must know in order to determine if you are in a high cost area:

1.    Understanding the Formula

If 125% of the local area median home price exceeds $417,000, the temporary loan limit would be that 125% of the median home price with a cap of $729,750. Here are three examples to illustrate this concept:

If the median home price in your area is $225,000, 125% of that number is $281,250. This is below the current $41 7k conforming loan limit. Therefore, the conforming loan limit in your area will not change. However, if $281,250 is greater than the FHA limit in your county, your FHA limit will go up to $281,250.

If the median home price in your area is $375,000, 125% of that number is$468,750. This is above the current $41 7k conforming loan limit. Therefore, the conforming loan limit in your area WILL change and go up to $468,750. This number is also higher than the highest FHA loan limits, so therefore your FHA loan limit will also go up to $468,750.

If the median home price in your area is $650,000, 125% of that number is $812,500. This number is greater than the maximum cap of $729,250. Therefore, the conforming loan limit in your area will  increase to highest allowable amount under this new law which is $729,250.

2.    Determining the Median Home Price in Your Area

The Secretary of Housing and Urban Development (HUD) will publish the median house prices within 30 days of the bill going into effect (30 days from February 13, 2008). HUD does not have any interim stats or information for us to use. However, the bill also states that HUD can use any commercially available data if they are unable to compile the information on their own within the 30 day timeframe. With that in mind, it is likely that HUD’s numbers will be relatively consistent with the data published by the National Association of Realtors (NAR), which already has a solid track record of tracking and publishing this information on a quarterly basis.

Therefore, until HUD actually publishes their version of the median home prices, the most accurate way to get this information today is to utilize the data that is published by NAR. Ironically, NAR just released their latest median home price update for the 4th quarter of 2007 on February 14, 2008! Contact me today and I’ll research your info and let you know exactly what the median home price is in your area and how you can benefit from this information.

What do all the dates mean?

There is some confusion because the bill has a provision that says the higher limits are only effective for loans originated between July 1, 2007 and December 31, 2008. In short, the reason it is effective beginning July 1, 2007, is because the credit crisis started to unfold in July and August of 2007. Mortgage market conditions rapidly deteriorated almost overnight. Many secondary market investors suddenly refused to purchase loans that couldn’t be sold to Fannie Mae and Freddie Mac. (For more info on how this process works, please see the article entitled Saga of the US Mortgage Industry.)

Unfortunately, many mortgage banks had already funded these loans in their own portfolio or through their warehouse lines of credit. Their intention was obviously to sell these loans on the secondary market after the loans were funded. However, the credit crisis prevented them from doing so, and they were stuck holding these loans in their portfolio. The July 1, 2007 date in the bill is designed to allow these lenders to unload these mortgages and sell them on the secondary market to Fannie Mae and Freddie Mac.

However, the July 1, 2007 date has no bearing whatsoever on new refinance transactions! In other words, it doesn’t matter when the loan you are refinancing was originated. The old loan could have been originated in 2005, 2006 or anytime before or after July 1, 2007 and it would have no effect whatsoever on your current purchase or refinance transaction. If you are refinancing a new loan today, whether it is a purchase or refinance transaction, that loan is subject to the new limits set forth in the bill.

The other date of December 31, 2008 means that the old limits will go back into effect after this year. In other words, now is the perfect time to buy a new home or refinance your mortgage because after this year, your costs will be higher and your options more limited again.

When does this all go into effect?

February 13, 2008 – immediately upon the President’s signature. Therefore, HUD is obligated to publish the median home prices within 30 days of that date. However, Fannie Mae, Freddie Mac, and various wholesale lenders may have different policies as to how these new loans are going to be priced and underwritten.

Feel free to call me, Christie Cannon, if you have questions regarding a specific area and I would be delighed to find out if it qualifies for a higher limit under the new guidelines.  My direct line is (469) 951-9588.  I can also get you in touch with a well qualified Mortgage Planning Specialist that can assist you with your specific questions regarding refinancing or obtaining a new home loan.

NEED ANOTHER CITY - JUST ASK ME AND I'LL POST IT FOR YOU FOR FREE ON MY WEBSITE!   

PLEASE FEEL FREE TO GIVE ME A CALL ANYTIME AND I WOULD BE DELIGHTED TO ASSIST YOU WITH ANY QUESTIONS OR CONCERNS.

BUYERS - REMEMBER, WHEN WORKING WITH ME, IT'S FREE!!

If acres of parks, hike and bike trails and a large lake do not offer enough natural surroundings for a development, then add a private butterfly garden!

In addition to the hike and bike trails and cultivated butterfly garden, Lakes of Prosper will also offer a large community pool, splash park and playground. An adjoining city park guarantees a peaceful setting where the city isn't breathing down on you. Highland Homes will feature a wide range of designs created exclusively for Lakes of Prosper and because of its affordable unit price range of the $190s to $310s, its perfect for all types of homebuyers - from families to empty nesters. Homes in the community range in size from 1,718 square feet to 3,600 square feet on oversized homesites.

Best of all, the community will enjoy direct access to the Dallas North Tollway extension, giving residents a fast commute to Dallas. Less time on the road means more time at home - at Lakes of Prosper!

If the slower pace of small town living, affordable quality homes, and incredible amenities, paired with an easy commute and convenient shopping is what you've been looking for, come visit Lakes of Prosper today.  Call Chrisitie Cannon today for your personal tour of this subdivision at (469) 951-9588.

The exchanger could receive the cash from the Qualified Intermediary as the result of the failure to identify replacement property within the 45-day identification period. The cash could also be received at the end of the 180-day exchange period because of the inability or failure to use all exchange funds to acquire replacement property.

The interaction of IRC sections 453 and 1031 provides this benefit to the exchanger. Section 453 concerns the tax treatment of installment sales. It provides that a seller receiving a note as part of the purchase price is not taxed upon the note when it is received. Rather, the seller owes tax as the principal payments are received. If, for example, the note is payable over three years, the taxpayer owes tax on one-third of the payments on the note at the end of each of the three years. This installment sale treatment is applicable to an exchanger who receives funds from a partial or failed exchange allowing deferral of tax for one year.

The installment sale treatment is available to the exchanger only if the exchanger "has a bona fide intent to enter into a deferred exchange at the beginning of the exchange period. A taxpayer will be treated as having a bona fide intent only if it is reasonable to believe, based on all the facts and circumstances as of the beginning of the exchange period that like-kind replacement property will be acquired before the end of the exchange period." Reg 1.1031(j) (2) (iv) IRS regulations provide the following example. In November, 2003, a corporation decides to expand by exchanging unsuitable property for property suitable for the expansion. On November 28, 2003 the unsuitable property is sold and the proceeds placed with a Qualified Intermediary. In early January 2004 the corporation's directors meet and decide that it is not feasible to proceed with the expansion due to a downturn in business reflected in the corporation's financial statements for the last quarter 2003.

The QI delivers the cash proceeds from the 2003 sale to the corporation on January 12, 2004 at the end of the identification period. All corporate actions are properly recorded in the minutes of the directors' meetings. The corporation had a bona fide intent to exchange and the gain on the property sold in 2003 may be recognized in 2004 [meaning tax on the gain is payable in 2005].

Another example from the IRS regulations involves an exchanger, who opens an exchange with $100,000 in September, 2003. On March 11, 2004 the exchanger acquires replacement property having a fair market value of $80,000. The $20,000 balance is released to the exchanger by the Qualified Intermediary at the same time. The exchanger may report the $20,000 gain in 2004 and pay the tax due in 2005. Again, the exchanger had a bona fide intent to complete the exchange. It is important to note that IRS regulations do not specifically address the issue of debt relief in this context. Debt relief is taxable boot.

Source: Property Line 1/9/07

There is the Heritage Ranch Golf Club, designed by Arthur Hills, which is an 18-hole championship golf course that offers a full-service golf shop, club rentals, locker rooms with showers, driving range and putting green. 

You will also find resturants, shopping and a 24,000 square foot Country Club with an outdoor swimming pool, indoor pool and heated spa, 4 tennis courts, restaurant and lounge, business center, library, billiards, fitness center, arts and crafts room, performing arts theater and banquet facilities.

The housing in Heritage Ranch consists of single family detached homes and duplexes.  Sizes range from 1,500 - 3,400 square feet and from $175,000 - $500,000+.

As a buyer, it does not cost you anything to be represented by a real estate agent, and it will be in your best interest to have someone looking out for you - EVEN IF YOU ARE BUYING NEW.  As a reader of my blog, feel free to ask me about my homebuyers rebate offer, and reduced fee if you plan to buy and sell through me!  For more information on this community or any other, please give me at call at 469-951-9588.