Jennifur Newell

$8,000 Tax Credit(money in your pocket) for Buying a Home this year!!

Brent & Jennifur Newell — Sat, 25 Apr 2009 15:48:00 GMT

I get many questions on this subject and this site explains almost everything that you need to know...but of course everyone has a different scenario, so please check with your accountant as well...

The link is http://www.irs.gov/newsroom/article/0,,id=206291,00.html

First-Time Homebuyer Credit Questions and Answers: Basic Information

Q. What is the credit?

A. The first-time homebuyer credit is a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008. For homes purchased in 2008, the credit operates like an interest-free loan because it must be repaid over a 15-year period.

The credit was expanded in 2009 for homes purchased in 2009, increasing the amount of the credit and eliminating the requirement to repay the credit, unless the home ceases to be your principal residence within the 36-month period beginning on the purchase date.

Q. How much is the credit?

A. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 ($8,000 if you purchased your home in 2009) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $75,000 or more.

Q. Which home purchases qualify for the first-time homebuyer credit?

A. Any home purchased as the taxpayer’s principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before December 1, 2009, to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home.

Taxpayers (including spouse, if married) who owned a principal residence at any time during the three years prior to the date of purchase are not eligible for the credit. This means that you can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 or 2009 income tax return.

Q. Can I apply for the credit if I bought a vacation home or rental property?

A. No. Vacation homes and rental property do not qualify for this credit.

Q. Who is considered to be a first-time homebuyer?

A. Taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase.

Q. When do I have to buy a new home to get the credit?

A. The home must be purchased after April 8, 2008, and before December 1, 2009, in order to obtain the credit. For a home you construct, the purchase date is considered to be the date you first occupy the home.

Q: How do I apply for the credit?

A: The credit is claimed on new IRS Form 5405 and filed with your 2008 or 2009 federal income tax return.

Q. Are there income limits?

A. Yes. The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income (MAGI). For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.

Q. I purchased a home that qualifies for the first-time homebuyer credit. I will be renting two of the bedrooms and reporting the rental income on Schedule E. Will I still qualify for the credit if I use the home as my principal residence?

A: Yes, if you meet all first-time homebuyer eligibility requirements. See Form 5405, First-Time Homebuyer Credit, for more details.

Q: If two unmarried people buy a house together, how do they determine how much each may take of the credit?

A: IRS Notice 2009-12 provides guidance for allocating the first-time homebuyer credit between taxpayers who are not married.

Q. I am a single co-owner of a home. How do I get this credit?

A. Depending on the year of purchase, you will claim the credit on either your 2008 or 2009 federal income tax return.

Q. I don’t owe taxes and/or my income is exempt from tax and I do not have a filing requirement. Do I qualify for the credit?

A. The credit is fully refundable and, if you qualify as a first-time homebuyer, having tax-exempt income will not preclude eligibility. Although there are maximum income limits for qualifying first-time homebuyers, there are no minimum income criteria. Thus, someone with no taxable income who qualifies as a first-time homebuyer may file for the sole purpose of claiming the credit for a refund.

Q. Does the first-time homebuyer credit apply to homes located in the U.S. Territories?

A. No.

Q. Would I be considered a first time homebuyer if I owned a principle residence outside of the United States within the previous three years?

A. Yes. A taxpayer who owned a principal residence outside of the United States within the last three years is not disqualified from taking the credit for a purchase within the United States.

Q. If qualified, are homebuyers required to claim the first-time homebuyer credit?

A. No.

Q. Who cannot take the credit?

A. If any of the following describe you, you cannot take the credit, even if you buy a new home:

Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.
You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Related Items:

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2008
First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009 Scenarios
First-Time Homebuyer Credit: Scenarios
First-Time Homebuyer Credit

Exciting News!! Loan Modification and Principle Reduction Success Stories!!

Brent & Jennifur Newell — Fri, 07 Nov 2008 20:52:00 GMT

Well, I've actually started seeing some movement from the banks in working with their clients to give them better payments and even reducing principles. I even have a great example, that just happens to be my own personal situation:

Like many homeowners my value in my home has dropped substancially in the past few years and it didn't help that we purchased our home in 2006, at the peak of the market. We purchased our home for over $500,000 and today, it's only worth about $300,000....Ughhh So I decided to see if I could get my current mortgage holder to try to work with me..... At first they agreed to do a loan modification, the reduced my interest rate down to 1% for 2 years, which brought our payment down from $3300 to $2,000, after the two years my interest rate would be 5% locked for a 40 year period, but my payment would still be about $2400, which is still way better than $3,300. Though I was greatful for this, it pained me to think how much value our home had dropped.... I decided to get a hold of my bank again and write a letter of how I would love to stay in my home and if we could meet in the middle somewhere, basically I said if they could bring my principle down to $380,000 which is more than market value on my home, that I would not give them anymore grief. The first response I got was, "I really don't see this happening, but I will submit it and we'll see. Honestly we've never done a principle reduction for anyone..." So, needless to say I thought that would be the end of it, but guess what!! After a couple of days I received a call from the underwriter who had done my loan modification, which believe it or not was just a great understanding guy.... He said, "You will never believe this, but the bank has accepted your offer and is going to reduce your principle balance." Needless to say, I was extactic!!!!! So, the moral of the story, keep trying until you get an answer or at least something that can help you....

Honestly, I know that I was lucky, but if we all work together and share our stories, we can learn and help eachother, so if you have a story, please let us know.... Even if it's not a good one, please feel free to share...

I've been doing a few loan modifications for friends, family, and some clients... Though I am busy with buyers and sellers, please feel free to contact me as I may be able to help you as well.... It depends on the bank and your exact situation, it doesn't always work but it's worth a shot.

Today's Real Estate Market

Brent & Jennifur Newell — Sun, 12 Oct 2008 03:52:00 GMT

I get many questions about what is going on in our market and where our market is headed. I thought I would try to answer a few of the most common questions asked. Keep in mind that not everyone's scenario is the same and certain conditions may apply, but these are the general answers. You are more than welcome to contact me with more in depth information.

1. What is a short-sale?

A short-sale is when a seller of a home asks the bank/mortgage holder to take less for the home than what is owned on a home. Basically the seller is unable to sell the home for what is owed on the home due to a hardship, loss of income, or other non-controlling circumstances. Banks won't normally just agree to take a home at a loss without proper due-diligence of the home owner, this includes having the home on the market for usually at least 3 months before asking for a short-sale. There is several items the bank will need from the seller in order to get the process started; proof of marketing the home on the mls(usually a realtor listing agreement will suffice), a hardship letter, proof of current financial status, last 2 months bank statements, and last two paystubs. Most banks take 30-90 days to ok a short-sale after recieving an offer on the property. So, unfortunatley this can take quite a bit of time, but if an agreement can be made between the bank/seller and the new buyers, this can be a great way for sellers to escape the foreclosure process. The banks may issue a 1099 showing that they took a loss and that the seller will need to account for the loss as income earned. This is a grey area and it's best if you speak with your accountant, as I've spoken to several accountants who have said that a seller may not have to count the 1099 as income.

2. How can I buy foreclosed properties?

Many homes taken back by banks are immediately put back on the market, as the banks prefer to not have to keep and maintain the homes. Many foreclosed homes may need TLC, so it's best to inspect the home as the banks will not make any repairs and will only sell the homes as-is. You are more than welcome to search for homes on my website www.jennifurshomes.com

3. Is it safe to buy in today's market?

It's important to look at your own financial needs in the present and future. Many buyers tend to try to buy more house and therefore more of a payment than what is reasonable for their certain economic position. It's best to have a home that will let you live your life and not be stressed about were your next mortgage payment will come from. You will find that many lenders are becoming very strict, requiring money down, good credit scores, and proof of income. I believe that the buyers that are buying homes now are the ones that are fully quallified, thus our market is starting to build strength again. Honestly, interest rates are still good, home prices are low, have they reached the bottom... Only time will tell. There's so many good deals that honestly as long as you plan on living in the home for a few years, I really don't think you will have any issues, as trends show that what goes down will eventually go back up, it will just take a few more years.

Rent/Lease Reduced on 17519 W Columbine in Mountainside

Brent & Jennifur Newell — Sat, 11 Oct 2008 04:13:00 GMT

Mountainside, Surprise - Announcing a rent/lease reduction on 17519 W Columbine, a 1,840 sq. ft., 2 bath, 3 bdrm single story. Now $950 USD Monthly - Short Term Rental.

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Price Reduced on 20806 W Prospector Way in Verrado

Brent & Jennifur Newell — Tue, 30 Sep 2008 01:08:00 GMT

Verrado, Buckeye - Announcing a price reduction on 20806 W Prospector Way, a 3,100 sq. ft., 3 bath, 4 bdrm single story. Now MLS® $289,000 - 3100 SF Luxury Home!!.

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Price Reduced on 22230 W Solano in Sundance

Brent & Jennifur Newell — Sat, 27 Sep 2008 19:34:00 GMT

Sundance, Buckeye - Announcing a price reduction on 22230 W Solano, a 2,400 sq. ft., 3 bath, 4 bdrm single story. Now MLS® $189,000 - Move In Ready!!.

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Single Story For Sale in Russell Ranch

Brent & Jennifur Newell — Wed, 24 Sep 2008 04:03:00 GMT

4 Bed 4.5 Bath Custom Single Story!!

• 4,627 sq. ft., 5 bath, 4 bdrm single story - $489,000 - 4600 SF!! WOW!!

Russell Ranch, Litchfield Park - THIS A GREAT HOME IN A GATED COMMUNITY WITH TRAVERTINE TILE THRU-OUT, GRANITE COUNTERTOPS WITH CHERRY CABINETS, GAS STOVE. THIS PROPERTY IS PRICED TO SELL!!

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Price Reduced on CItrus and Camelback in Russell Ranch

Brent & Jennifur Newell — Wed, 24 Sep 2008 04:03:00 GMT

Russell Ranch, Litchfield Park - Announcing a price reduction on CItrus and Camelback, a 4,627 sq. ft., 5 bath, 4 bdrm single story. Now $489,000 - 4600 SF!! WOW!!.

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Single Story For Sale in Coldwater Springs

Brent & Jennifur Newell — Thu, 03 Jan 2008 03:40:48 GMT

• single story -

Coldwater Springs, Avondale - This like new 1700 sf 3 bed plus a den home is available for purchase or as a lease to purchase. Home includes corian counters, hardwood in kitchen/dining room, gas range, kitchen island, upgraded cabinets, black upgraded appliances included, upgraded carpet/padding, bay window in master, blinds, low-e windows, fully landscaped front and back yard. Located in a golf course community and within walking distance to the K-8 school.

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14365 W Shaw Butte Dr in Copper Canyon Ranch is Sold!

Brent & Jennifur Newell — Wed, 02 Jan 2008 06:00:00 GMT

Copper Canyon Ranch, Surprise - The 1 1/2 story at 14365 W Shaw Butte Dr has been sold.

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2 Story For Sale in Canyon Trails

Brent & Jennifur Newell — Wed, 02 Jan 2008 06:00:00 GMT

2700 Loaded 4 bed 3 car w/Pool!!!

• 2,700 sq. ft., 3 bath, 4 bdrm 2 story - $275,000 - Brand New!!

Canyon Trails, Goodyear - Just Came back from sold and will not last long!! THIS HOME HAS A LEVEL 5 CHERRY CABINET UPGRADE. GRANITE WITH A 4' BACKSPLASH IN KITCHEN. 18' TILE THROUGHOUT THE FIRST FLOOR. IRON STAIR RAILING. ENERGY STAR PACKAGE. REVERSE OSMOSIS SYSTEM, SOFT WATER SYSTEM, SPEAKER AND THEATER PREWIRES. TWO-TONE INTERIOR PAINT AND A PARK VIEW OUT THE BACKYARD. This brand new home is a steal with $30,000 in upgrades included!! Stainless steel upgraded appliances, front end loading w/d, soft water system, iron railing, upgraded slate colored tile in kitchen/dining/laundry/entry/family room/baths, upgraded lighting, granite kitchen counters and island, cherry spice cabinets, surround sound, full covered patio, view fencing, extra large lot, rv gate, 4 bed, 3 car garage with garage opener/service door, tons of energy efficient features, 2 year warranty, and more!!

**If you have any other real estate needs - please contact me and I can help you find your perfect home for nothing out of your pocket!! That's right, free buyers representation and exclusive leads to the best deals in the west valley. I hear about the best deals and have them sold before they even reach the MLS or general public. You can count on me to help you find your dream home at dream prices!!

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2 Story For Sale in Canyon Trails

Brent & Jennifur Newell — Wed, 02 Jan 2008 06:00:00 GMT

5 Bed-Guest Casita-Pool!!

• 3,800 sq. ft., 4 bath, 5 bdrm 2 story - $319,000 - Brand New-2 Year Warranty

Canyon Trails, Goodyear - THIS BRAND NEW HOME HAS A GUEST CASITA ILO 3RD CAR GARAGE*OVERSIZED HOMESITE*VIEW FENCING BACKING TO A GREENBELT*FULL LENGTH COVERED PATIO*STAINLESS STEEL APPLIANCES*2'WOOD BLINDS*16X16 CERAMIC TILE*42' TAHOE CHERRY SPICE ARCHED CABINETS*ALLSPICE QUARTZ GRANITE COUNTERS*UPGRADED LIGHTING PACKAGE*2 YEAR WARRANT*EXTENDED PATIO*LARGE LOT*RV GATE* THE LIST GOES ON AND ON!!. THIS IS HOME IS AN INCREDIBLE VALUE AND READY TO GO.THIS IS GORGEOUS MASTER PLANNED COMMUNITY OFFERING 8 PARKS, RAMADAS, COMMUNITY POOL, FITNESS ROOM, SOCCER FIELD, BASEBALL FIELD, SAND VOLLEYBALL COURTS, LIGHTED PATHWAYS THROUGHOUT THE COMMUNITY AND A PLANNED K-8 ELEMENTARY SCHOOL**

**If you have any other real estate needs - please contact me and I can help you find your perfect home for nothing out of your pocket!! That's right, free buyers representation and exclusive leads to the best deals in the west valley. I hear about the best deals and have them sold before they even reach the MLS or general public. You can count on me to help you find your dream home at dream prices!!

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2 Story For Rent/Lease in Sierra Montana

Brent & Jennifur Newell — Mon, 13 Aug 2007 06:00:00 GMT

Purchase or Lease to Purchase!!!

• 2,000 sq. ft., 3 bath, 4 bdrm 2 story - $1,295 USD Monthly - Brand New!!

Sierra Montana, Surprise

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