Trumbull Area Real Estate

First Time Homebuyer $8000 Tax Credit

Kathleen Packer — Thu, 12 Mar 2009 10:20:00 GMT

Thanks to raveis.com for providing the answers to some frequently asked questions regarding the new first time homebuyer tax credit...

FIRST-TIME HOMEBUYER TAX CREDIT FAQ’s

Frequently Asked Questions

In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over-supply of homes for sale.

For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.

Tax Credits — The Basics

1. What’s this new homebuyer tax incentive for 2009?

The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

2. Who is eligible?

Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3. How does a tax credit work?

Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)

4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?

This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between $8000 credit amount and the amount of tax liability. ($8000 - $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.

5. How does withholding affect my tax credit and my refund?

A few examples are provided at the end of this document. There are several steps in this calculation, but most income tax software programs are equipped to make that determination.

6. Is there an income restriction?

Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.

7. How is my “income” determined?

For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.

8. What if I worked abroad for part of the year?

Some individuals have earned income and/or receive housing allowances while working outside the US. Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI). Their eligibility for the credit will be based on their MAGI.

9. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?

Not always. The credit phases-out between $75,000 - $95,000 for singles and $150,000 - $170,000 for married filing joint. The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).

For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:

Couple’s income $165,000

Income limit 150,000

Excess income $15,000

The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute).

In this example, the disallowed portion of the credit is 75% of $8000, or $6000

($15,000/$20,000 = 75% x $8000 = $6000)

Stated another way, only 25% of the credit amount would be allowed.

In this example, the allowable credit would be $2000 (25% x $8000 = $2000)

10. What’s the definition of “principal residence?”

Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner-occupied” housing. The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.

11. Are there restrictions on the location of the property?

Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit.

12. Are there restrictions related to the financing for the mortgage on the property?

In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit. Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were ineligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.) Now, mortgage-revenue bond financing will not disqualify an otherwise-eligible purchaser. (Mortgage revenue bonds are tax-exempt bonds issued by a state housing agency. Proceeds from the bonds must be used for below market loans to qualified buyers.)

13. Do I have to repay the 2009 tax credit?

NO. There is no repayment for 2009 tax credits.

14. Do 2008 purchasers still have to repay their tax credit?

YES. The $7500 credit in 2008 was more like an interest-free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.

Some Practical Questions

15. How do I apply for the credit?

There is no pre-purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.

16. So I can’t use the credit amount as part of my downpayment?

No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.

17. So there’s no way to get any cash flow benefits before I file my tax return?

Yes, there is. Any first-time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W-4 from their employer, follow the instructions on the schedules provided and give the completed Form W-4 back to the employer. In many cases their withholding would decrease and their take-home pay would increase. Those who make estimated tax payments would make similar adjustments.

Some “Real World” Examples

18. What if I purchase later this year but can’t get to settlement before December 1?

The credit is available for purchases before December 1, 2009. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.

19. I haven’t even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?

You’ll have a helpful choice that might speed up the process. Eligible homebuyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.

· If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.

· They can extend their 2008 income-tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for instructions on how to obtain an extension.)

· If they have filed their 2008 return before they purchase the home, they may file an amended 2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)

Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.

20. I purchased my home in early 2009 before the stimulus bill was enacted. I claimed a $7500 tax credit on my 2008 return as prior law had permitted. Am I restricted to just a $7500 credit?

No, you would qualify for the $8000 credit. Eligible purchasers who have already claimed the $7500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year. This amended return will enable them to obtain the additional $500 credit amount.

21. If I claim my 2009 $8000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?

No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.

22. I made an eligible purchase of a principal residence in May 2008 and claimed the $7500 credit on my 2008 tax return. My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in. Will he qualify for the $8000 credit, as well?

No. Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first-time homebuyer.

23. I live in the District of Columbia. If I qualify as a first-time homebuyer, can I use both the $5000 DC credit and the $8000 credit?

No; double dipping is not allowed. You would be eligible for only the $8000 credit. This will be an advantage because of the higher credit amount, plus the eligibility requirements for the $8000 credit are somewhat more easily satisfied than the DC credit.

24. I know there is no repayment requirement for the $8000 credit. Will I ever have to repay any of the credit back to the government?

One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. (See below, #24). Note that this same 3-year recapture rule applies, as well, to the $7500 credit available for 2008. This provision is designed as an anti-flipping rule.

25. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?

The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.

26. I have a home under construction. Am I eligible for the credit?

Yes, so long as you actually occupy the home before December 1, 2009.

WITHHOLDING EXAMPLES:

Note: The impact of estimated tax payments would be the same.

Situation 1: Sally plans her withholding so that her withholding is as close as possible to what she anticipates as her income tax liability for the year. When she fills out her 1040, her liability is $6000. She has had $6000 withheld from her paycheck. She also qualifies for the $8000 homebuyer credit.

Result: Sally’s withholding satisfies her tax liability and reduces it to zero. She will receive a refund of the full $8000.

Situation 2: Nick and Nora file a joint return. Nick is self-employed and makes estimated payments; Nora has taxes withheld from her salary. When they compute their taxes, their combined withholding and estimated tax payments are $11,000. Their income tax liability is $9800. They also qualified as first-time homebuyers and are eligible for the $8000 refundable tax credit.

Result: Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 - $9800 = $1200). Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit = $9200)

Situation 3: Cesar and LuzMaria both have income taxes withheld from their salaries and file a joint return. When they file their income tax return, their combined withholding is $5000. However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 - $5000). They also qualify for the $8000 first-time homebuyer tax credit.

Result: Cesar and LuzMaria have been under-withheld by $2200. Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties). Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability. In addition, they will receive an income tax refund of $5800 ($8000 - $2200 = $5800). If they owed penalties and/or interest, that amount would reduce the refund.

Mill Rate Update

Kathleen Packer — Sun, 31 Aug 2008 12:22:00 GMT

What is a mill rate?

The mill rate is the amount of tax paid per dollar of the assessed property value. The rate is expressed in mills; one mill is one tenth of a cent.

How are property taxes determined?

The total assessed value of your home is multiplied by the mill rate. The assessed value is 70% of the value that is determined on the year of revaluation.

What are the mill rates in Trumbull and surrounding towns?

Effective 7/1/08, here are the mill rates for Trumbull and surrounding towns:

Town                Mill Rate
Trumbull             23.86
Bridgeport          44.58
Easton               21.6
Fairfield              18.58
Milford                28.23
Monroe               28.68
Newtown             23.2
Shelton              18.61
Stratford             30.51
Westport            14.7

$7500 Tax Credit for First Time Homebuyers: FAQ

Kathleen Packer — Sat, 02 Aug 2008 19:08:00 GMT

Thanks to William Raveis Mortgage for providing the following information regarding the new tax credit for first-time homebuyers:

FIRST-TIME HOMEBUYER TAX CREDIT

Frequently Asked Questions

As part of its major housing legislation (H.R. 3221), Congress has created a tax credit to provide an incentive for first-time homebuyers. The $7500 credit will be available for the purchase of a principal residence on or after April 9, 2008 and before July 1, 2009.

The Basics

Who qualifies for the new tax credit?

Only first-time homebuyers are eligible for the credit. A first-time homebuyer is defined as an individual who has not had an ownership interest in a principal residence in the previous three years. The 3-year period is measured as of the date of the purchase of the eligible principal residence.

Is there an income restriction?

Yes. The income restriction is based on the tax filing status of the tax return the purchaser files. Individuals whose Form 1040 filing status is Single are eligible for the credit if their adjusted gross income is no more than $75,000. Individuals who file a Joint return may have income of no more than $150,000.

Do individuals with incomes greater than the $75,000 or $150,000 limits lose all the benefit of the credit?

No. The credit has a phase-out. A formula is provided so that the credit is gradually reduced as an individual’s income reaches $95,000 (single return) or $170,000 (joint return). Individuals with adjusted gross income above $95,000 ($170,000 joint) will receive no tax credit.

Is the amount of the credit tied to the price of the home?

Yes. The credit is for 10 percent of the cost of the home, up to a limit of $7500.

What’s the definition of “principal residence?”

Generally, a principal residence is the home where an individual spends most of his/her time. The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of dwelling.

Are there restrictions on the location of the property?

Yes. Eligible property must be located in the United States. Property outside the US is not eligible for the credit.

Are there restrictions related to the financing for the mortgage on the property?

Yes. If the financing is obtained by means of mortgage revenue bonds (i.e., through a tax-exempt bond-related financing program offered by a state housing agency), then the purchaser is not eligible for the tax credit.

What if the purchaser is eligible for a $7500 credit but owes only $6000 of income tax?

The tax credit is a so-called “refundable” credit. Thus, in this example, the purchaser would receive an income tax refund of $1500. The refundable amount is the difference between $7500 and the amount of tax owed.

Why is the credit sometimes referred to as an interest-free loan?

Unlike most other tax credits, this tax incentive must be paid back. All eligible purchasers who claim the credit will be required to repay it over 15 years. The statute specifies that the repayment amount will be 6.67% of the credit amount each year. Thus, a buyer who qualifies for the full $7500 credit will repay $502.50 each year. There will be no interest charge on outstanding balances.

Some Practical Questions

How do I apply for the credit?

There is no application or approval process. Eligible purchasers will claim the credit on the appropriate IRS Form 1040 tax return and/or on any special forms the IRS might devise.

So I can’t use the credit amount as part of my downpayment?

Presently, there is no mechanism available for claiming the credit any earlier than the 2008 tax return that will be filed in 2009. Congress tried to devise a mechanism that would allow pre-funding of the credit, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.

So there’s no way to get any cash flow benefits before I file my 2008 tax return?

Any first-time homebuyers who believe they would be eligible for all or part of the credit would be allowed to make adjustments to their income tax withholding (through their employers) or to their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W-4 from their employer, follow the instructions on the schedules provided and give the completed Form W-4 back to the employer. In many cases their withholding would decrease and their take-home pay would increase.

I made an offer on a home that was accepted before April 9, 2008, but I didn’t go to closing until after April 9. Am I eligible for the credit?

Yes. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. If a property goes to settlement on or after April 9, 2008, then an otherwise qualified buyer would be eligible for the credit. Similarly, closings must occur before July 1, 2009 for purchases to be eligible for the credit.

If I don’t make an eligible purchase until 2009, do I claim the credit when I file my 2009 tax return in 2010?

Qualified first-time homebuyers who make their purchase between January 1, 2009 and July 1, 2009 are permitted to make an election to treat the purchase as if it had occurred on December 31, 2008. This election allows them (depending on the timing of the sale) to claim the credit on their 2008 tax return that is due on April 15, 2009. They may also elect to file their 2008 tax return after April 15 by filing for an automatic extension. If they file their 2008 return before they have purchased the home, they may utilize this election and file an amended 2008 tax return.

My sister and I are both single and want to purchase a home together. Will we each receive a $7500 credit?

No. The purchase of a residence will generate a tax credit amount that will total up to $7500, no matter how many unmarried purchasers are buying the house.

My sister and I wish to purchase a home together. She previously owned a principal residence but sold it 2 years ago. I’ve never owned a residence. Can I qualify for a partial credit?

Possibly. The statute is somewhat ambiguous. It specifically provides that for a married couple to be eligible for the credit, both must be first-time homebuyers. Similarly, the statute provides that if a married couple files their tax return as Married Filing Separate, then the credit is limited to $3750 each. By contrast, the statute directs the IRS to determine how the credit can be shared when two or more unrelated individuals purchase a home. In that case, the statute does not specify whether all the unrelated purchasers must be first-time homebuyers. Treasury will no doubt provide guidance to clarify this ambiguity.

I made an eligible purchase of a principal residence in May 2008. If my brother, also a first-time homebuyer, wishes to move in with me and purchase a partial interest in the home in May 2009, will he qualify for the credit, as well?

I’m working outside the US for part of 2008, so part of my income will be excluded from tax. I’m single and want to buy a home when I come back. Can I disregard my non-taxable overseas income when figuring whether I am eligible for the credit?

No. To determine whether you are eligible for the tax credit, you are required to combine your non-taxable overseas income with any US income you earn in 2008. Thus, if you are single and had $45,000 of non-taxable overseas income and $55,000 of US income, you would be ineligible for the tax credit because your 2008 income ($100,000) exceeded even the $95,000 phase-out amount. If you had $45,000 of non-taxable overseas income and $40,000 US income, you would qualify for a partial credit because your total income would be $80,000 and thus within the phase-out amount. If you had $45,000 non-taxable overseas income and $20,000 US income, you would qualify for the full credit (assuming you met all of the other requirements). Similar rules would apply if you had non-taxable overseas income in 2009 and wished to purchase then.

I live in the District of Columbia and am eligible for the DC Homebuyer Tax Credit. Can I use both credits?

No. You must choose one or the other. Note that the $5000 DC credit has no repayment feature, while the new $7500 credit must be repaid as an interest-free loan.

Repaying the Credit

What is the repayment feature of the credit?

The repayment feature of the credit is similar to a recapture provision: the tax system takes back all or part of a tax benefit. In this case, there is no precedent for repayment of an individual tax credit, so not much is known about how the repayment will occur, how it will be reflected at settlement or on the sales forms or how the IRS will collect and enforce the payments. The repayment is the equivalent of converting the tax credit into an interest-free loan.

What are the terms for repayment?

The credit amount is repaid in increments of 6.67% of the credit amount over 15 years. For individuals who take the full $7500 credit, the repayment will be $502.50 a year. Individuals who claim a credit of less than $7500 will also have a 15-year repayment period and will pay 6.67% of their credit each year. For example, an individual who claims a credit of $6000 will repay $400.20 a year ($6000 x .0667). There is no interest charge applied to outstanding balances.

When do I make the payment?

The mechanics are not specified. Repayments for credits claimed on 2008 tax returns will go into effect for the 2010 tax year. Repayments for credits claimed on 2009 returns will go into effect for the 2011 tax year.

Will the IRS put a lien on my property for the amount of the credit repayment?

The statute does not grant the IRS that authority. The rules for tax liens are quite specific. It is not yet known how the IRS will identify and stake its claim to the repayment.

What if I sell my house before the 15-year repayment period is complete?

When the person who utilized the credit sells the home, any amount of tax credit that has not been repaid will be due in the year of sale. For example, if an individual still “owed” $4000 in repayments and realized $25,000 of proceeds from the sale, the $25,000 of seller proceeds would be reduced to $21,000 and $4000 will be remitted to the IRS. Again, the mechanics are unknown.

What if there’s very little (or no) gain on the sale and the proceeds won’t cover the repayment amount?

If the proceeds of the sale don’t cover the amount that must be repaid, part of the liability is forgiven. For example, if the individual still “owed” $4000 but the gain on the sale was only $3500, then the seller would not be required to repay the IRS the $500 shortfall.

Are there any other exceptions to the repayment rules?

Yes. If the person who utilized the credit dies before the full credit amount has been repaid, then any balance that remains unpaid is disregarded. Special rules make adjustments for people who sell homes as part of a divorce before the credit has been fully repaid. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency).

If I received a refund of a portion of the tax credit because my total tax liability was less than the amount of my tax credit, do I have to repay the amount of the refund?

Yes. You would have received the maximum economic benefit of the any credit amount when you reduced your tax to zero and also received a refund of the balance. Thus, you would repay the full amount of the credit for which you were eligible. Again, there are no details that specify the mechanics for tracking those amounts.

Mortgage Rate Update

Kathleen Packer — Sat, 02 Aug 2008 18:59:00 GMT

Here are the latest mortgage rates from Jack Greer of William Raveis Mortgage:

Mortgage Rates for CT
Product	Interest Rates	Annual Percentage Rate
15 YR Fixed Conforming	5.875%	6.165%
15 YR Fixed Jumbo	6.250%	6.471%
30 YR Fixed Conforming	6.375%	6.554%
30 YR Fixed Jumbo	6.625%	6.762%
30 YR Fixed Super Jumbo	6.750%	6.889%
5/1 YR ARM Conforming	5.625%	5.624%
5/1 YR ARM Jumbo	5.625%	5.624%
5/1 YR Portfolio Arm	5.625%	5.624%

Last Updated On: Thursday, July 31, 2008

The rates and APR above are based upon the following assumptions: a 20% down payment, $1,500 in finance charges, and 30 days prepaid interest, 1 point, and a 60 day rate lock. The rates and APR will vary depending upon the actual down payment percentages, points and fees for your transaction. Rates are subject to change without prior notice and may vary with your unique credit history, and terms of your loan. Property taxes and homeowners insurance are estimates and subject to change.
CT Licensed 1st & 2nd Mortgage Lender/Broker 15524, 15525 - MA Licensed Mortgage Lender/Broker MC3299, MC3326 -
Licensed by the NH Banking Dept Mortgage Banker/Broker 11083MB - RI Licensed Lender/Loan Broker 20051918LL, 20051919LB - NY Licensed Mortgage Banker-NYS Banking Department LMBC 106535

All information provided is deemed reliable but is not guaranteed and should be independently verified.

Connecticut Mortgage Rate Update

Kathleen Packer — Sun, 27 Jul 2008 11:52:00 GMT

Here are the latest mortgage rates (updated July 25, 2008) from Jack Greer at William Raveis Mortgage: Mortgage Rates for CT
Product	Interest Rates	Annual Percentage Rate
15 YR Fixed Conforming	5.875%	6.165%
15 YR Fixed Jumbo	6.250%	6.471%
30 YR Fixed Conforming	6.375%	6.554%
30 YR Fixed Jumbo	6.625%	6.762%
30 YR Fixed Super Jumbo	6.750%	6.889%
5/1 YR ARM Conforming	5.625%	5.624%
5/1 YR ARM Jumbo	5.625%	5.624%
5/1 YR Portfolio Arm	5.625%	5.624%

The rates and APR above are based upon the following assumptions: a 20% down payment, $1,500 in finance charges, and 30 days prepaid interest, 1 point, and a 60 day rate lock. The rates and APR will vary depending upon the actual down payment percentages, points and fees for your transaction. Rates are subject to change without prior notice and may vary with your unique credit history, and terms of your loan. Property taxes and homeowners insurance are estimates and subject to change.
CT Licensed 1st & 2nd Mortgage Lender/Broker 15524, 15525 - MA Licensed Mortgage Lender/Broker MC3299, MC3326 -
Licensed by the NH Banking Dept Mortgage Banker/Broker 11083MB - RI Licensed Lender/Loan Broker 20051918LL, 20051919LB - NY Licensed Mortgage Banker-NYS Banking Department LMBC 106535

All information provided is deemed reliable but is not guaranteed and should be independently verified.

Help for Homeowners

Kathleen Packer — Sun, 27 Jul 2008 10:58:00 GMT

The Senate passed The Housing and Economic Recovery Act yesterday. Details of how this will impact homeowners were found on Senator Chrisopher Dodd's website: http://dodd.senate.gov, which I have attached below:

Major Legislation to Strengthen Economy and Help Homeowners Nationwide Passes Senate 72-13

Bipartisan bill will help struggling homeowners, communities, housing markets

July 26, 2008

Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Committee on Banking, Housing and Urban Affairs, today announced that the Senate passed the Housing and Economic Recovery Act by a vote of 72-13. This legislation is expected to help hundreds of thousands of Americans who are struggling to keep their homes, as well as countless homeowners and communities who are already experiencing the devastating effects of foreclosure. The legislation also contains comprehensive reforms to our nation’s housing sector, including the creation of a strong, new regulator for the government-sponsored enterprises. In response to recent turmoil in our financial markets, the bill also includes provisions requested by the Treasury Department to restore confidence in Fannie Mae and Freddie Mac.

The Housing and Economic Recovery Act – the most comprehensive housing legislation in over a generation – is the product of months of bipartisan, bicameral collaboration. The bill will now be sent to the President, who has said he will sign it.

In addition, Chairman Dodd announced today that he will convene a meeting this week with the Board of HOPE for Homeowners, an initiative created by the legislation to prevent foreclosures, to ensure that the program is implemented expeditiously. The Board includes the heads of the Treasury Department, Federal Reserve Board, FDIC and HUD.

“With one of every eight homes projected to enter foreclosure over the next five years, and the economy shedding jobs as the costs of energy, health care and food skyrocket, the American dream has become a nightmare for countless families across the country,” said Dodd. “Today, Congress did more than send a bill to the President – we sent a message to American families that help is on the way. In addition to providing urgently-needed relief to homeowners on the brink of losing their homes, this legislation will address our broader economic problems by helping to reform our housing sector and provide reassurances to our financial markets. I am proud to have partnered with Senator Shelby on this effort – the strong, bipartisan bill we produced is proof that partisan gridlock is not a foregone conclusion when we work together in good faith and in common cause to solve our nation’s most pressing problems. I look forward to the President signing this bill into law as soon as possible.”

“Today’s overwhelming vote underscores the merit of this legislation,” said Shelby. “We have created a strong GSE regulator, as well as the conditions necessary for a recovery in housing markets. We must now pursue vigorous oversight of the implementation and effectiveness of our efforts. Now that the debate is over on reform of the GSEs and the permanent systemic risks they pose, I look forward to a robust discussion as to where the responsibility to monitor that risk should reside once the Fed’s temporary authority expires.”

The legislation contains a number of provisions that will help homeowners and communities. The legislation also includes several tax measures authored by Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Chuck Grassley (R-IA). Key provisions include:

The HOPE for Homeowners Act: Creates an initiative within the Federal Housing Administration (FHA) to prevent foreclosures for hundreds of thousands of families at no estimated cost to American taxpayers.

Assistance for Communities Devastated by Foreclosures: To ensure that communities can mitigate the harmful effects of foreclosures, $3.92 billion in supplemental Community Development Block Grant Funds will be provided to communities hardest hit by foreclosures and delinquencies

Foreclosure Counseling for Families in Need: To help families avoid foreclosure, the bill provides $180 million in additional funding for housing counseling and legal services for distressed borrowers.

GSE Reform: Creates a world class regulator for the government-sponsored enterprises (GSEs) so that these vital institutions can safely and soundly carry out their important mission of providing our nation’s families with affordable housing.

Treasury Emergency Authority: To shore up confidence of the financial markets in Fannie Mae, Freddie Mac and the Federal Home Loan Banks, the legislation contains several temporary provisions requested by the Treasury Secretary including authority for Treasury to purchase common stock and debt securities issued by the GSEs.

Preserving the American Dream for Our Nation’s Veterans: This bill contains several provisions to help returning soldiers avoid foreclosure, including lengthening the time a lender must wait before starting foreclosure from three months to nine months after a soldier returns from service.

FHA Modernization: Reforms to modernize, streamline and expand the reach of the FHA, allowing families in all areas of the country to access secure and affordable mortgages through FHA.

Affordable Housing Fund: A new, permanent fund that will help create more affordable housing for Americans in communities across the country.

Enhancing Mortgage Disclosure: To ensure that consumers know the exact amounts of their mortgage payments, including the maximum possible payment under the terms of the loan and changes in payments associated with adjustable rate mortgages, lenders will be required to provide borrowers with more timely and meaningful mortgage disclosures on all home purchase loans, loans that refinance a home, and loans that provide a home equity line of credit.

Standard Property Tax Deduction: To make tax relief available to all American homeowners, the bill will provide a standard deduction – $500 for single filers and $1,000 for joint filers – for the 28.3 million non-itemizers who pay property taxes. Present law allows only those who itemize deductions on their federal tax returns to deduct state and local property taxes from their income.

Mortgage Revenue Bonds: To provide for refinancing of subprime loans, mortgages for first-time homebuyers and multifamily rental housing, $11 billion of Federal tax-exempt private activity bond authority is included in this bill.

Credit for First-Time Homebuyers: The bill includes a refundable tax credit that is equivalent to an interest-free loan equal to 10 percent of the purchase of the home (up to $8,000) by first-time homebuyers to help reduce the existing stock of unoccupied housing.

Increase in low-income housing tax credit: The Low-Income Housing Tax Credit program helps finance the development of rental housing for low-income families. Under current law, there is a state-by-state limit on the annual amount of federal low-income housing tax credits that may be allocated by each state. The bill would increase these limits.

For a summary of the legislation, click here.

Condominium Market Update

Kathleen Packer — Sat, 19 Jul 2008 11:56:00 GMT

As of June, condo sales in Fairfield County are down 33% from last year. The median sale price is 3% less. Here are the individual statistics for Trumbull area towns:

Trumbull:

YTD, there have been 14 condos sold, up 40% from last year
The median sales price for Trumbull condos is $360,000, down 10%
The average market time is 128 days, a 31% increase in number of days on market

Bridgeport:

YTD, there have been 181 condos sold, down 33% from last year
The median sales price for Bridgeport condos is $140,000, down 3%
The average market time is 101 days, a 12% increase in number of days on market

Fairfield:

YTD, there have been 39 condos sold, down 39% from last year
The median sales price for Fairfield condos is $350,000, down 18%
The average market time is 109 days, a 15% increase in number of days on market

Monroe:

YTD, there have been 30 condos sold, up 36% from last year
The median sales price for Monroe condos is $267,000, down 5%
The average market time is 84 days, a 7% decrease in the number of days on market

Shelton:

YTD, there have been 70 condos sold, down 38% from last year
The median sales price for Shelton condos is $267,000, down 16%
The average market time is 99 days, a 3% decrease in the number of days on market

Stratford:

YTD, there have been 82 condos sold, down 27%
The median sales price for Stratford condos is $214,000, down 5%
The average market time is 124 days, a 48% increase in number of days on market

Trumbull Area Real Estate Market Update

Kathleen Packer — Sat, 12 Jul 2008 12:39:00 GMT

Single family home sales in Fairfield County (through May, 2008) are down 30%. Some towns, however, are faring better than others. Here is the real estate market update through May, 2008 for Trumbull and surrounding towns:

Trumbull:

There have been 123 homes sold in Trumbull, down 12%
The median sales price for homes in Trumbull is $401,000, down 16%
The average market time is 88 days, a 13% decrease in number of days on market

Bridgeport:

There have been 189 homes sold in Bridgeport, down 16%
The median sales price for homes in Bridgeport is $205,000, down 18%
The average market time is 81 days, a 1% decrease in number of days on market

Easton:

There have been 23 homes sold in Easton, down 34%
The median sales price for homes in Easton is $905,000, up 12%
The average market time is 135 days, a 33% increase in number of days on market

Fairfield:

There have been 190 homes sold in Fairfield, down 39%
The median sales price for homes in Fairfield is $570,000, down 5%
The average market time is 98 days, a 2% increase in number of days on market

Monroe:

There have been 64 homes sold in Monroe, down 25%
The median sales price for homes in Monroe is $450,000, down 2%
The average market time is 106 days, a 1% decrease in number of days on market

Stratford:

There have been 229 homes sold in Stratford, down 13%
The median sales price for homes in Stratford is $272,000, down 9%
The average market time is 98 days, a 6% increase in the number of days on market

Beautiful Bridgeport Home For Sale $239,850

Kathleen Packer — Sat, 05 Jul 2008 14:49:00 GMT

Kathleen Packer | William Raveis Real Estate | 203-638-0354

90 Butler Avenue, Bridgeport, CT

Better than new!

3BR/2.5BA Single Family House

offered at $239,850

Year Built	2004
Sq Footage	1,584
Bedrooms	3
Bathrooms	2 full, 1 partial
Floors	2
Parking	Unspecified
Lot Size	.07 acres
HOA/Maint	$0 per month

DESCRIPTION

Absolutely beautiful 3 bedroom, 2.5 bath colonial in pristine, move-in condition. This sun-filled home features an eat-in kitchen, and finished lower level with built-in bar and full bath. The fenced-in yard features lovely "english gardens." Don't miss it!

see additional photos below

ADDITIONAL PHOTOS

Seller contact info:

Kathleen Packer

William Raveis Real Estate

203-638-0354

For sale by agent/broker

Equal Opportunity Housing

Posted: Jul 5, 2008, 3:46am PDT