The Internal Revenue Service (IRS) has finally announced two important clarifications regarding the documentation required for taxpayers seeking to claim the first-time and move-up homebuyer tax credits. Local guidelines, especially for closing statements have caused a lot of confusion for both claimants and their tax preparers.

The IRS announcement said that while they still are requiring the filing of Form 5405, they are no longer demanding that all parties’ signatures be on the HUD-1 settlement statement in areas where the buyer and the seller signatures are not common practice. However, they are encouraging all buyers to sign the settlement statement prior to attaching it to the tax return.

Continue Reading Two Important IRS Clarifications for Claiming the Tax Credit

Tags: buyers, IRS, taxes

After months of wrangling by Congress and the White House, the $8,000.00 First-Time Home Buyer Tax Credit has finally been given the go ahead for extention. And just to make things interesting, our esteemed leaders in Washington added a twist; all homebuyers who have been in their homes for at least five years can now also get a $6,500.00 when they sell their homes too.

Under this extension, the program will have some new guidelines also. Here is a synopsis of the new changes and requirements.

First Time Home Buyer Tax Credit

• The maximum tax credit remains $8,000 ($4,000 for married individuals filing separately), and anyone who has not owned a home within three years is considered a “First Time Home Buyer.”

Continue Reading Another Go For The First Time Home Buyer Tax Credit

Tags: legislature, mortgages, new laws, real estate

Both the Senate and House voted yesterday to extend the current higher loan limits for Fannie Mae, Freddie Mac and FHA loans through December, 2010. The resolution was attached to a continuing resolution that passed late in the day and prevented the higher limits from expiring at the end of the year.

Lawmakers had temporarily raised the loan limits back in 2008 as part of the Housing and Economic Act of 2008 and then again in 2009 through both a HUD mandated guideline and the Economic Stimulus Act up to a maximum of $729,750 for high-cost areas.

To find your individual counties higher loan limits, you can read our blog post at 2009 FHA and Conforming Loan Limit Changes.

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Metro Mortgage Company is a federally regulated Mortgage Banker specializing in residential Florida mortgages including Conventional, Jumbo and FHA/VA loans. Visit our home loan approval process page for more information or call us today at 888-617-3674.

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Continue Reading Congress Extends Higher Loan Limits Through 2010

Tags: FHA, HUD, legislature, mortgages

The Consumer Product Safety Commission (CPSC) launched a new website this week dealing with imported Chinese drywall. The Environmental Protection Agency has determined that Chinese drywall may be a potential hazard. Approximately 36,000 homes in Florida and many others states including Alabama, California, Mississippi, Virginia and Louisiana have been affected by the imported drywall.

Consumers with homes known to contain the defective wallboard complain of foul odors, metal corrosion and health problems from occupying their properties. The CPSC website will provide details of the ongoing investigations into the problem including air sample reports, import tracking and analysis of the health effects of the use of Chinese drywall in homes.

The CPSC drywall website can be found by visiting www.cpsc.gov/info/drywall

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Gulf Coast Associates, Realtors specializes in upscale Florida real estate in and around Ft. Myers and Naples. Our sister firm, Metro Mortgage Company, specializes in originating Florida home loans including Conventional, Jumbo and FHA/VA mortgages. Contact us today at 888-617-3674.

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Continue Reading Consumer Product Safety Commission Launches Chinese Drywall Information Website

Tags: Florida, living, Technology

The Federal Emergency Management Agency (FEMA) is using advancements in digital mapping technology to redefine the country’s flood zones. As a result, many homeowners are being required to buy flood insurance for the first time, while others who have had coverage for years are being cleared to drop their flood policies altogether.

The changes are occurring as part of a multiyear plan by FEMA to digitize its Flood Insurance Rate Maps to make them more accurate. The process began in 2003 and FEMA is projecting that 65% of the land in the country (92% of the population) will be covered by the new high-tech maps by 2010. According to FEMA officials, the accuracy of the new mapping technology has vastly improved and allows for more precise information to be used in determining special flood-hazard areas.

Continue Reading FEMA Redefining Flood Hazard Zones

Tags: FEMA, homeowner insurance, mortgages, real estate