Watch This Short Video: Tip of the Week and there is a great tax tip below.
A Tip About the $8,000 Tax Credit.
This bit of advise comes from Vivian Lampard who is a tax preparer with H&R Block. Vivian tells me that the IRS has bounced back returns which request the first time homebuyer's tax credit.
The reason is, that the IRS is trying to reduce fraud. So they are asking for additional proof in the form of a utility bill with the buyer's name on it at the new property address. Also, a copy of the buyer's drivers license with the new property address on it as well.
The returns with FTHB tax credit cannot be e-filed so be proactive and send the proof the first time. It may save you waiting an extra three months for your tax refund.
If you need someone to help you prepare your tax return give Vivian a call at H&R Block. Call: 904-794-1040 and tell Vivian that David sent you over.
The reason is, that the IRS is trying to reduce fraud. So they are asking for additional proof in the form of a utility bill with the buyer's name on it at the new property address. Also, a copy of the buyer's drivers license with the new property address on it as well.
The returns with FTHB tax credit cannot be e-filed so be proactive and send the proof the first time. It may save you waiting an extra three months for your tax refund.
If you need someone to help you prepare your tax return give Vivian a call at H&R Block. Call: 904-794-1040 and tell Vivian that David sent you over.
Another Reason for Buyers to Act Now! FHA is Increasing Premiums and Reducing Seller Concessions
By David Ruocco
It is official; FHA is making changes to insure their long term survival and increasing the reserve fund. Buying a home will become more costly. The biggest change is an increase in the up-front mortgage insurance premium FHA charges on every loan. FHA doesn’t lend money; they act as a guarantor insuring lenders against loan losses through the mortgage insurance charged on each loan. FHA handles this in two ways, a small (compared to conventional mortgages) monthly charge, and a larger up front premium, which is allowed to be financed into the loan. The up-front MIP (mortgage insurance premium) is currently 1.75%, but with this announcement it will increase to 2.25%.
If a buyer purchases a home at say $100,000 with 3.5% down, they are going to have a mortgage of $96,500 plus the new UFMIP (2.25%) of $2,171, so the actual mortgage will be based on the adjusted price of $98,671. The change will take place on April 5, 2010.
The other big change is a reduction in the FHA allowed seller concession from 6% of the purchase price to 3%. This brings FHA in-line with conventional guidelines. The seller concession is used to cover much of the buyer’s closing costs, and allows buyers to buy a home with out having a lot of extra costs beyond the minimum down payment. This will greatly affect buyers of lower priced homes where cash to close is at a premium. If a first time home buyer is buying a $250,000 single family residence with a 3% seller concession this is $7,500. If they are buying a $100,000 home it is only $3,000, which when you figure in bank costs, title charges, attorneys fees transfer tax and the like, this won’t be enough to cover the costs. Buyers of lower priced units will need to save more before they can buy. This change is not likely to happen until summer 2010.
FHA finances 96.5% plus UFMIP and their terms are still more attractive for first time home buyers than conventional financing.
Questions About a Refinance or a Purchase?
I'm here to help. "Even if we are not currently working on a mortgage together I want to help you. There is no question too small. Call me today."
Complimentary Personalized Counseling - "My goal is to get you ready and able to close on a loan, no matter if you are local to Saint Augustine or thoughout the State of Florida, Massachusetts or Connecticut. Whatever it takes I will guide you through the tall grass and point you in the right direction."
Unsure of Your Options? - "Let's chat for a few minutes, once I know where you stand and were you want to get to, I can help you and map out a course of action."
Qualify for the tax credit - "The tax credits have been extended through April 30, 2010. First time homebuyers can qualify for up to $8,000 if they have not owned a home in the past three years. Current homeowners maybe be able to qualify for a $6500 tax credit if they have lived in their home for 5 out of the last 8 years*"
Complimentary Personalized Counseling - "My goal is to get you ready and able to close on a loan, no matter if you are local to Saint Augustine or thoughout the State of Florida, Massachusetts or Connecticut. Whatever it takes I will guide you through the tall grass and point you in the right direction."
Unsure of Your Options? - "Let's chat for a few minutes, once I know where you stand and were you want to get to, I can help you and map out a course of action."
Qualify for the tax credit - "The tax credits have been extended through April 30, 2010. First time homebuyers can qualify for up to $8,000 if they have not owned a home in the past three years. Current homeowners maybe be able to qualify for a $6500 tax credit if they have lived in their home for 5 out of the last 8 years*"
Instructions to obtain a free credit report
I strongly urge you to order your own credit report – TODAY! It is FREE, yes that’s right, FREE. The federal government passed a law which requires that the credit bureaus provide you with a copy of your credit report, free of charge, once a year. I suggest that you order the report today, right now, so that you can review it together to see if there are any items that are erroneous or not yours. I recommend that you pull the report each and every year on this anniversary. Make it part of your financial health routine. Just like brushing your teeth every day, in today’s world you must be in control of what your credit report says about you. You must endeavor to keep your FICO scores high so you are in control of what rate and what programs are available to you.
There is an official website that is set up by the three main credit bureaus for the express purpose of providing this annual free credit report. The address is http://www.annualcreditreport.com/. If you do not have a computer or computer access you can go to a public library or internet cafe.
Or To Request your Credit Report by Phone: Call 1-877-322-8228
You will go through a simple verification process over the phone.
Your reports will be mailed to you within 15 days. Please, allow 2-3 weeks for delivery.
To Request your Credit Report by Mail: Download the request form (You need an Adobe viewer to view the requested form. Download the free Adobe viewer)
Print and complete the form. Mail the completed form to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Your reports will be mailed to you within 15 days. Please, allow 2-3 weeks for delivery.
An important comment about FICO scores – FICO scores are credit scoring models that are developed and maintained by a company called Fair Isaacs. They provide the program to all three credit bureaus which calculates the scores based on a proprietary set of algorithms. There are even different scoring models used within the same credit bureau. When you get your free credit report you will be asked if you would like to purchase your credit score at the same time. I suggest that you DO NOT purchase the credit score. The credit score that you can purchase does not use the same model as the one used when a lender or bank pulls your score for a mortgage review. So the score will be useless for this purpose – save your money. Use the free credit report to review the contents only.
There is an official website that is set up by the three main credit bureaus for the express purpose of providing this annual free credit report. The address is http://www.annualcreditreport.com/. If you do not have a computer or computer access you can go to a public library or internet cafe.
Or To Request your Credit Report by Phone: Call 1-877-322-8228
You will go through a simple verification process over the phone.
Your reports will be mailed to you within 15 days. Please, allow 2-3 weeks for delivery.
To Request your Credit Report by Mail: Download the request form (You need an Adobe viewer to view the requested form. Download the free Adobe viewer)
Print and complete the form. Mail the completed form to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Your reports will be mailed to you within 15 days. Please, allow 2-3 weeks for delivery.
An important comment about FICO scores – FICO scores are credit scoring models that are developed and maintained by a company called Fair Isaacs. They provide the program to all three credit bureaus which calculates the scores based on a proprietary set of algorithms. There are even different scoring models used within the same credit bureau. When you get your free credit report you will be asked if you would like to purchase your credit score at the same time. I suggest that you DO NOT purchase the credit score. The credit score that you can purchase does not use the same model as the one used when a lender or bank pulls your score for a mortgage review. So the score will be useless for this purpose – save your money. Use the free credit report to review the contents only.
How to reduce the number of credit offers you receive
There are many websites that offer free credit reports, and yes you can get your credit report from these websites for free, but there is a catch. The catch is that these websites are in the business of obtaining your Name, Address, Phone Number, Email Address and Social Security Number. They in-turn sell this information to whomever wishes to buy it. That means more junk mail and phone solicitations for everything under the sun. So if you wish to avoid more of this then use the official website.
Ah, but there is a double catch. The official website is run by the three credit bureaus; Experian, Trans Union and Equifax. These guys sell your information too – in a big way to anyone who wishes to buy it. Not only that, there is something called a “Trigger” Lead. Let’s say an auto dealership pulls your credit when you go car shopping, the instant that request comes in, there are dozens if not more companies that are instantly notified that you are interested in buying a car and you will be instantly marketed to by all of these companies by mail and by phone. The same thing happens in the mortgage industry. Even though I could do the same thing, I do not and find the practice a kind of harassment.
The good news is that by law you can ask the three credit bureaus to not sell your personal information to anyone. Yes, it is that simple. You make your request, it takes about 6 days to process and then no one will solicit you based on your credit bureau information. Here is how you opt out. I suggest you do it today. How can I exclude my name from nationwide consumer credit reporting company lists for unsolicited credit and insurance offers? You may request that consumer credit reporting companies exclude your name from lists for pre-approved, unsolicited credit and insurance offers. To find out more, please call 1–888–5OPTOUT (1–888–567–8688).
Ah, but there is a double catch. The official website is run by the three credit bureaus; Experian, Trans Union and Equifax. These guys sell your information too – in a big way to anyone who wishes to buy it. Not only that, there is something called a “Trigger” Lead. Let’s say an auto dealership pulls your credit when you go car shopping, the instant that request comes in, there are dozens if not more companies that are instantly notified that you are interested in buying a car and you will be instantly marketed to by all of these companies by mail and by phone. The same thing happens in the mortgage industry. Even though I could do the same thing, I do not and find the practice a kind of harassment.
The good news is that by law you can ask the three credit bureaus to not sell your personal information to anyone. Yes, it is that simple. You make your request, it takes about 6 days to process and then no one will solicit you based on your credit bureau information. Here is how you opt out. I suggest you do it today. How can I exclude my name from nationwide consumer credit reporting company lists for unsolicited credit and insurance offers? You may request that consumer credit reporting companies exclude your name from lists for pre-approved, unsolicited credit and insurance offers. To find out more, please call 1–888–5OPTOUT (1–888–567–8688).
David Ruocco and RMG Mortgage is centrally located in Saint Augustine, Florida. From Jacksonville south to Daytona Beach and east to Gainesville. We are licensed to serve you no matter where you live in Florida, Connecticut and Massachusetts.
We can help you with your mortgage loans just as well no matter where you live. However, if you live within driving distance of our office here in Saint Augustine we urge you to come on by, so we can meet us and we can get to know each other.
We can help you with your mortgage loans just as well no matter where you live. However, if you live within driving distance of our office here in Saint Augustine we urge you to come on by, so we can meet us and we can get to know each other.
MA Broker Lic # MB 4902, CT Broker Lic # 20269, CT Broker Lic # 20271, FL Broker Lic # MBB 0707319, FL FHA Lic # 29929-0000-2, MA and CT FHA Lic # 29929-0001-9
* Please consult your CPA.
