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First Time Home Buyer Tax Credit Special Rules For Active Duty Military

John Thomas March 25, 2010

Special Rules for Members of the Military, the Foreign Service
and the Intelligence Community

Congress has acknowledged the unique circumstances affecting members of the military, the foreign service and the intelligence community by making the following exceptions that apply to both the $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers.

Exemption From Tax Credit Recapture Rules

Typically, homes that are sold or that cease to be used as a principal residence within three years of the initial purchase are subject to recapture of the tax credit.
However, qualified service members who sell or move from a tax credit home within three years of the initial purchase due to official extended duty are exempt from the recapture rule.

Extension of Tax Credit Deadlines

The home buyer tax credit is available for qualified purchases with a binding sales contract in place on or before April 30, 2010, and closed by June 30, 2010.
However, for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011, and closed by June 30, 2011.
A person who is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may qualify for the one-year extension.

Definitions

Qualified service member means a member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community.
â€œOfficial extended duty means any period of extended duty outside of the United States for at least 90 days during the period beginning after December 31, 2008, and ending before May 1, 2010.

If you would like to apply for a mortgage loan to purchase a home or refinance a home please feel free to call me at 302-703-0727 or you can APPLY ONLINE NOW. Keep Reading...

Delaware First Time Home Buyer Seminar – April 24, 2010

John Thomas March 22, 2010

There will be a Free Delaware First Time Home Buyer Seminar on Saturday, April 24, 2010, at 10:00 AM and again at 1:00 PM. The seminar will last about 2 hours and each participant will be able to receive a free copy of their tri-merge credit report. The seminar will cover all of the basics of buying a new home in Delaware. The seminar will cover Delaware FHA loans, Delaware VA loans, Delaware USDA Rural Housing Loans, First Time Home Buyer Loan Programs, and the Delaware FHA 203k Rehab loans. Learn how to get $8,000 First Time Homebuyer tax credit or the $6,500 move up buyer tax credit for buying a home by June 30, 2010. That is a check for $8,000 or $6,500 from the IRS to you at tax time just for buying a home! The best thing is you don’t have to ever pay the money back!! But better hurry because you must have a sales contract by April 30, 2010!

Each participant will receive a Free Audio CD on Homebuying 101, Credit Scoring Handbook, Homebuying Handbook, and an opportunity to meet with a mortgage planner to be pre-approved to buy a home at the seminar. You will also learn the importance of credit in buying a home and learn valuable tips on how to improve your credit score. Learn what programs are available to help with down payment and closing costs. The new loan limits for conventional and FHA will be covered as well as changes to borrowing 100% financing. Keep Reading...

Delaware State Bond Loan for March 2010

John Thomas March 17, 2010

The Delaware State Bond Loan is supposed to help first time home buyers by providing them with a lower interest rate than the current market rate. Problem is right now the current FHA rate is below the bond rate so you are better off getting an FHA loan without going thru the bond program. Until rates go back up, you will actually be paying more for the Delaware State Bond Loan then for a regular FHA loan.

The New Castle County Down payment assistance program is a better bet than the Delaware State Bond program right now. If you need more information or would like to apply for one of these loans, you can APPLY ONLINE HERE, or call 302-703-0727 and ask for John Thomas. Keep Reading...

Delaware FHA 203k Loans – Can you still use Down Payment Assistance?

Delaware FHA 203k Rehab Loans are used to repair or renovate properties all in one loan when you purchase a property. A typical question for a first time home buyer is if you can use one of the down payment assistance programs with an FHA 203k loan such as the Delaware State Bond Program. The answer is “no” because the bond loan is originated by a bank and then bought by the Bond program investor.

The 203k Loan can’t be bought right away because a repair escrow is set up for the repairs to be done and the distribution of those funds must be managed by the lender which the bond investor is not going to do. Most down payment assistance programs also require that the property meet occupancy requirements. Keep Reading...

John Thomas on Comcast Channel 28 – The Congo Hour – March 14, 2010 at 8 PM

John Thomas March 14, 2010 Tags: mortgage loans, The Congo Hour

I will be a featured guest tonight on Comcast Channel 28 on the Congo Hour TV Show at 8:00 PM on March 14, 2010. I will be discussing my new book Your Guide to Buying Your First Home in Delaware Book and discussing our next Free Delaware First Time Home Buyer Seminar this coming Saturday, March 20, 2010, at the Christiana Hilton Hotel in Newark, Delaware. There will be two sessions to choose from to attend. The first Session is from 10 AM till Noon and the second session is from 1:00 PM till 3:00 PM. Call John Thomas at 302-703-0727 to register or send an e-mail to DelawareMortgages@yahoo.com Keep Reading...

Daylight Savings Reminder – Set Your Clocks Ahead

John Thomas March 14, 2010

It’s that time of the year again: Daylight Saving Time (DST). Time to set your clocks ahead and spring forward one hour. DST officially begins this Sunday, March 14, at 2 a.m. and will last until the first Sunday in November.

And while it might take us a couple of weeks to adjust our internal clocks, DST provides extra hours of sunlight in the long run that we could all utilize this spring to keep our households running smoothly. With this in mind, here are a few items to think about as we make the transition into spring:

Replace your furnace filter

Clean the kitchen exhaust hood and air filter

Check your electrical system

Check or replace your multi-purpose fire extinguishers

Check the light bulbs in all your fixtures

Review your emergency escape plan with your family

Have a professional air conditioning contractor inspect and maintain your system

Check for roof damage

Repair all cracked, broken or uneven driveways and walkways

Protect your home from sewer or drain back-up losses

Check your water heater

Check the shutoff valve at each plumbing fixture

Inspect and clean dust from the covers of your smoke and carbon monoxide alarms, and replace batteries

DST is also a great time to review your long-term mortgage strategy. Take advantage of that extra sunlight. If you have questions about your mortgage, the Home Buyer’s Tax Credit which is about to expire, or someone you know is in need of home financing, please don’t hesitate to give me a call at 302-703-0727 or send an e-mail to DelawareMortgages@yahoo.com.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713

Delaware USDA Rural Housing Funds to Run out in April 2010

John Thomas March 13, 2010 Tags: Delaware USDA Rural Housing Loan

The funds available to guarantee Delaware USDA Rural Housing Loans will run out by the end of April 2010. Every year USDA will run out of money before the end of its fiscal year in September. This does not normally affect borrowers because the lenders will lend on a conditional commitment from USDA to guarantee the loans once the funds have been appropriated later in the year or beginning of next year.

The problem now is there are a project 150 million shortfalls after the money runs out in end of April, so the government will not be able to cover it so is going to cut off approvals after the money runs out. The program ran out of money last year early as well but got money from the Stimulus package so the program was still available the rest of the year. There is no stimulus money available this year. Keep Reading...