Summary of the First-Time Homebuyer Credit

2008: First-time home buyers would receive a tax credit of up to $7,500.  The credit would be PAID BACK to the government every year at tax time for 15 years (i.e you would pay back $500 per year). 

January thru November 2009: First time home buyers receive a tax credit of up to $8,000.  The credit DOES NOT need to be paid back.  Qualifying buyers must not make more than $75,000 per year ($150,000 for a married couple).  Buyers must PURCHASE their property by November 30, 2009.

December, 2009 thru April, 2010: First-time home buyers receive a up to $8,000 for first-time buyers, the credit DOES NOT have to be paid back.  Qualifying buyers can make up to $125,000 per year ($250,000 for a married couple).  Buyers must be UNDER CONTRACT on their home by April 30, 2010 and CLOSE (i.e. purchase) home by June 30, 2010.

A NEW INCENTIVE FOR CURRENT HOMEOWNERS (i.e. REPEAT HOME BUYERS)

Nov 7, 2009 – April 2010:  Home buyers who have lived in their home for 5 of the past 8 years can get up to $6,500 if they purchase a new home.  As above, the home buyer does NOT need to pay back the credit!  The new Federal tax credit is also known as the “Repeat Buyer” or “Move up Buyer” Tax Credit.  >>> GET MORE INFORMATION ABOUT THIS TAX CREDIT

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  Thank you for visiting our Atlanta Georgia Real Estate Blog!

Posted by:  Kerry Lucasse – Atlanta GA Real Estate Agent – Atlanta Home Search Team
The ATL Home Search Team is part of Keller Williams Realty,
specializing in Intown Atlanta Real Estate, Foreclosures and Bungalows & Historic Homes

CALL US ANYTIME AT 404.432.1844

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CONGRATS to first-time home buyers Ben & Laura!  They just purchased a bungalow in East Lake (near the popular Oakhurst Village). 

Their 1920s brick bungalow has gorgeous hardwoods, an open floor plan and a fully renovated kitchen.  It would have sold for at least $35,000 more just a few years ago, but Ben & Laura were very savvy “first timers” and immediately knew it was the perfect home for them.  

Not only do they have a gorgeous new home at an exceptional price, Laura & Ben have a low interest rate on their mortgage AND they qualify for the $8,000 first-time home buyer tax credit.  

If you are thinking of buying your first home, the clock is ticking!  Please don’t miss out on this once-in-a-lifetime opportunity.  To qualify for the tax credit, you need to purchase your home by November 30, 2009.

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POSTED BY:  Kerry Lucasse  - Keller Williams Realty – 404.432.1844

Intown Atlanta Neighborhoods – East Lake Atlanta Homes - Oakhurst Decatur Homes

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This charming Candler Park / Lake Claire home was the perfect candidate for an Atlanta  first time home buyer… and because it was priced correctly and the home was in one of the most popular neighborhoods in Atlanta, there were multiple offers on the home in the FIRST WEEK!

If you are thinking of selling your Atlanta or Decatur home and it is priced under $350,000, this August and September will be a fantastic time to put it on the market, as the first time home buyers are trying to find that perfect home before the November 30th deadline for the $8000 tax credit. For information on my home marketing strategy, please don’t hesitate to call me at 404.432.1844.

If you have been looking for a home in Atlanta’s Little Five Points neighborhood, don’t worry, I’m sure your dream home is just around the corner!  Click on the links below to search by Intown Atlanta neighborhoods…

>>  Find ALL the homes for sale in CANDLER PARK Atlanta

>>  Find ALL the homes for sale in LAKE CLAIRE

>>  Search for homes by Intown Atlanta NEIGHBORHOOD

More and more people are deciding to take the leap and purchase their first home this year, thanks to the $8000 first-time home buyer tax credit, the historically low interest rates and the lower home values.  If you are thinking of buying your first home, please email me at KerryLucasse@yahoo.com and I would be happy to send you a copy of the First-time Home Buyer’s Handbook.

KERRY LUCASSE ::  Keller Williams Realty Atlanta ::  404.432.1844

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Everything you need to know about the 2008 and 2009 First Time Home Buyer Tax Credits 

For many potential first time home buyers, the 2008 and 2009 “First-time Homebuyer Tax Credit” has been a bit of a mystery. 

I’ve had many questions such as — When do you get your tax credit?  Do you have to pay it back?  What if you sell your house within 2 or 3 years?  What if I’m a first time home buyer but my husband isn’t? 

REALTOR.org created a “Cheat Sheet” that covers EVERYTHING and should answer 99% of your questions about the 2008 and 2009 First time home buyer tax credit.

>>> VIEW THE “CHEAT SHEET” 

FREQUENTLY ASKED QUESTIONS:

What is the difference between the 2008 tax credit and the 2009 tax credit (other than the amount)?

The primary difference is that the $7500 tax credit of 2008 needs to be paid back over the next 15 years (at $500 per year).  The new 2009 tax credit does not need to be paid back, as long as you stay in your home for at least three years.

When would I receive the $8,000?

There are several variables.  Assuming that you qualify for the full $8000 tax credit, you will need to file your 2009 income taxes in early 2010 and if you don’t owe any additional income tax, you should receive your check for $8,000 from the federal government within 1 to 6 weeks (it just depends on when you file and how your tax preparer submits your information.

A few other possible scenarios:

• If you owe $2,000 on your tax return, you will receive a refund of $6,000  ($8000 – $2000 = $6000)
• If you are entitled to a refund on your income taxes (let’s say $1,500), then you would receive an refund of $9,500 ($1500 + $8000 = $9500)

When is the last day I can buy a home and still get the $8,000 Tax Credit?

You must purchase BEFORE December 1, 2009.  That means that you should make an offer on a home in mid-October, as it usually takes 30 to 45 days to close on a home or condo.

I owned a home a few years ago — can I still qualify for the First-time Homebuyer Tax Credit?

Yes, if you have NOT owned a principal residence in the three (3) years prior to purchasing your new home.

My husband is not a first-time home buyer, but I am — can we still qualify for the tax credit?

You would only qualify if your husband (or spouse) has NOT owned a principal residence in the three (3) years prior to purchasing the new home.

Are there any income limitations?

Yes.  The full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). If you are an individual who makes $85,000 (for example), you will still qualify, just not for the full amount.  The tax credit phases out to those who make more than $95,000 (individuals) and $170,000 (on a joint return).

How long do I have to live in my home or condo?

If you sell your home before the 3-year limit, you will be required to pay back the $8000.

What if I want to buy a $30,000 foreclosure home?

The amount of the tax credit is the lesser of 10 percent of cost of home or $8,000.  So if you purchased a $30,000 home, you would get a $3,000 tax credit.  In order to get the full $8,000 you would need to purchase a home that is at least $80,000.

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I hope this information was helpful to you!  If you have any questions about the tax credit or need assistance with the purchase of your first home, please call anytime at (404) 432.1844.  I truly enjoy working with first-time home buyers and would be honored to help.

KERRY LUCASSE  ::   ATLANTA & DECATUR REAL ESTATE CONSULTANT  ::   KELLER WILLIAMS REALTY

Before you make an offer on a home, make sure you get pre-qualified and find a loan that fits your needs with these comprehensive questions.

1. What are the most popular mortgage loans you make? Why?

2. Which type of mortgage plan do you think would best for us? Why?

3. Are your rates, terms, fees, and closing costs negotiable?

4. Will I have to buy private mortgage insurance? If so how much will it cost and how long will it be required? NOTE: Private mortgage insurance is usually required if you make less than a 20-percent downpayment, but most lenders will let you discontinue the policy when you’ve acquired a certain amount of equity by paying down the loan.

5. Who will service the loan? Your bank or another company?

6. What escrow requirements do you have?

7. How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during this period?

8. How long will the loan approval process take?

9. How long will it take to close the loan?

10. Are there any charges or penalties for prepaying the loan?

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for:

• Downpayment.
• Loan origination fees.
• Points, or loan discount fees you pay to receive a lower interest rate.
• Appraisal fee.
• Credit report.
• Private mortgage insurance premium.
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage.
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording fees.
• Title insurance policy premiums.
• Survey.
• Inspection fees-building inspection, termites, etc.
• Notary fees.
• Prorations for your share of costs such as utility bills and property taxes.

A Note About Prorations. Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first 5 days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

What to Keep From Your Closing

• The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You’ll need for income tax purposes and when you sell the home.
• The Truth in Lending Statement summarizes the terms of your mortgage loan.
• The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
• The deed transfers ownership of the property to you.
• Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.
• Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association’s rules and restrictions.
• Insurance policies provide a record and proof of your coverage.

If you are looking for a knowledgeable — and very honest — Atlanta real estate agent, please don’t hestitate to call me at 404.432.1844. 

All the best,

Kerry Lucsse

Intown Atlanta Real Estate Consultant

Keller Williams Peachtree Road

(404) 432 1844

** Metro Atlanta real estate agent, specializing in the Atlanta Intown neighborhoods, including Grant Park, Virginia Highlands, Kirkwood, East Atlanta and Druid Hills.

The most important question for a new home buyer is usually “How much will this cost?”

 This may vary from state-to-state, but here is the breakdown for Georgia home buyers:

1)  Earnest Money………….Typically 1% of the purchase price

     ** Due when you submit your offer on a home

2)  HOME INSPECTION……………………………..$375 – $500

3)  HOME APPRAISAL………………………………….$300 – $375

4) LOAN APPLICATION FEE / CREDIT CHECK………………… Varies by Lender

5) TERMITE INSPECTION (optional, but recommended)……. $45 – $75

6) LOW-FLOW PLUMBING CERTIFICATE (Dekalb County)…. $75

***  TOTAL (ESTIMATED) COST FOR A $300,000 HOME –>  $3,800 ***

Once the home has been inspected, appraised and approved by the lender, there are costs AT CLOSING. 

CLOSING COSTS are really in two fee categories — Closing Costs and Prepaid Items

1) CLOSING COSTS include the loan origination fee (usually1% of the purchase price), title examination, title insurance, courier fees, transfer tax, intangibles tax and other miscellaneous fees. 

2) PREPAID FEES include costs to set up your escrow account with the lender and include homeowners insurance, property taxes, and homeowners association dues (if any).  Usually your new lender will want 2 – 6 months of reserves in the escrow account, just in case you do not pay your mortgage, they will still be able to insure the home and pay the property taxes.

Typically, the closing costs and prepaid items add up to 2 – 4% of the purchase price.  Using my $300,000 example above, the closing costs would be $6,000 to $12,000.  It just depends on how much you are financing, if you pay for discount points (to decrease your interest rate), etc.  For an accurate breakdown of your closing costs, ask your loan officer or mortgage broker for a “Good Faith Estimate.”

THE GOOD NEWS — When you negotiate your offer on the home, you can also ask that the seller pay a portion of the closing costs and pre-paid items.

If you have any questions about the home-buying process, please don’t hestitate to call me at 404.432.1844 or visit my website at http://www.ATLhomesearch.com

All the best,

Kerry Lucasse

Real Estate Consultant, Keller Williams Realty

KerryLucasse@KW.com

404.432.1844

It is a fantastic time to buy a home or condo in Atlanta — interest rates are low, prices are low and there is a fair amount of inventory on the market.  The question is… are you prepared to make that next step? 

To follow are 10 sure-fire ways to help you buy your first home:

1. Decide what you can afford. Generally, you can afford a home equal in value to between 2 – 3X your gross income.
 
2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, proximity to your work, and of course, safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 5 to 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 5 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments
 
6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process
 

FOR MORE INFORMATION ABOUT THE HOME BUYING PROCESS, CLICK HERE

If you have any questions about the Atlanta real estate market or need help determining what you can comfortably afford, please don’t hesitate to call me at 404.432.1844.  I truly enjoy working with first-time home buyers and it would be a pleasure to help you find your new Atlanta home!

Kerry Lucasse
REALTOR, Keller Williams Realty
404.432.1844
KerryLucasse@KW.com

Kirkwood Home for Sale – $237,900

As an Intown Atlanta Realtor, I see more than 25 homes each week and this Kirkwood Craftsman one REALLY stands out from the crowd!  With 3 bedrooms, 2 full bathrooms and a stunning open floor plan, you will be impressed the moment you walk in the home.  Gleaming hardwoods, master suite with well appointed master bathroom, a G-O-R-G-E-O-U-S gourmet kitchen with upscale cabinetry, granite, stainless, and a breakfast bar.  According to the MLS listing, ALL of the systems have been updated — from the electrical to HVAC to the plumbing.

Located just a few blocks from the new Kirkwood village and less than a mile to the Edgewood Retail District.  Based on the location, the expert craftsmanship, and the PRICE ($237,900), I would consider this to be one of the best values in Kirkwood.

If you are not already working with a Kirkwood Realtor and would like to schedule an appointment to view this home, please call Kerry Lucasse, Keller Williams, at 404.432.1844.

>>> View this home online at …  KIrkwood Bungalow of the Week

>>>View all the homes for sale in KIRKWOOD at:  http://www.inKIRKWOOD.com

>>>View all the homes for sale in OAKHUSRT at::  http://www.inOAKHURSTga.com

>>>Search for homes by Intown Atlanta Neighbhorhood at:  http://www.ATLhomesearch.com/neighborhoods

 If you have any quetsions about the Kirkwood neighborhood, please email  or call 404.432.1844.  I live and work in this fantastic Intown Atlanta neighborhood and know that it is an excellent real estate investment.

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Decatur GA Townhomes – North Village

If you are a first-time home buyer trying to find a beautiful new home under $185,000, you have come to the right place! 

The new Decatur towhomes at North Village feature all the Craftsman bungalow details and are nestled in a small community of 60 town homes.  The homes have 3 bedrooms and 2.5 bathrooms and prices start at $159,900 up to $183,900.

The homes are beautifully constructed with master suites, 2-stories, spacious kitchens and a 1-car garage.

The North Village townhomes are centrally located, just off of Memorial Drive, near the new Super Wal-mart that just went in at the old Avondale Mall location.  You are also very close to Downtown Decatur, Oakhurst Village, MARTA, Avondale Estates and 1-285. 

>>> VIEW ALL AVAILBLE TOWN HOMES FOR SALE IN NORTH VILLAGE

If you have questions or would like to schedule an appointment to view the North Village townhouses — or any other nearby townhouses — please call Kerry Lucasse at 404.432.1844.

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As an Intown Realtor, I see more than a dozen homes each week and this Oakhurst Craftsman Bungalow really stands out from the crowd!  With 2 bedrooms, 2 full bathrooms and an open floor plan, you will be impressed the moment you walk in the home.  Gleaming hardwoods, vaulted ceilings, updated kitchen and a great back deck, this home is move-in ready!   

Located just a few blocks from the popular Oakhurst village and less than a mile to the Edgewood Retail District, I would consider this to be one of the best values in the neighborhood.      

If you are not already working with a Realtor and would like to schedule an appointment to view this home, please call Kerry Lucasse, Keller Williams, at 404.432.1844.    

>>> VIEW ALL AVAILABLE HOMES IN OAKHURST

QUESTIONS?  Call the Oakhurst Real Estate Experts at 404.432.1844.

>>> VIEW “JUST LISTED” HOMES in OAKHURST

>>> VIEW HOMES FOR SALE in KIRKWOOD

>>> VIEW HOMES FOR SALE in EAST LAKE

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