Cynthia's Chat

938 miles from Edmond takes you to Casper, Wyoming, to the grandchildren and new granddog, SAVO, a 90 pound pup (Rhodesian Ridgeback).  Savo can run long distances and protect Paul from mountain lions.  He will grow to 140 pounds - a monster! 

Bill and I attended the children's school

and my daughter's water aerobics class Fun!  

We left after school Friday, to drive to Yellowstone, about 4 hours away. 

We stayed just outside the park in an area where Buffalo Bill Cody built a lodge before the park opened. 

We stayed warm at breakfast by the giant fire. 

Yellowstone, established in 1872, is the world's first national park.  The park contains more than 2 million acres of steaming geysers, crystalline lakes,thundering waterfalls and panoramic vistas.

We enjoyed as much as humanly possible in the next 2 days.  We were chased by a buffalo and saw evidence of bears (claw marks on trees). We also saw elk and other wildlife, and Old Faithful (of course).

As we drove, hiked and played, I just kept saying, "Wow! This is beautiful!"

If you have never been there - GO! By the way, if you are 62 or older, you can get a lifetime pass to all of the national parks!  A benefit for those of us who have earned a bonus. 

- right now!

There may never be a better time to buy a home!

Plenty of homes are available at affordable prices.

Interest rates remain historically low.

And to sweeten the pot, there is a tax credit - up to $8000 for qualified first time buyers whose income is within IRS-established limits and up to $6500 for some existing homeowners.  This is money that never has to be repaid, provided you live in the home for three years.

Tax Credit Basics

• You are considered a first-time buyer if neither you nor your spouse has owned a principal residence in the U.S. within the last three years
• You must sign a purchase contract no later than April 30, 2010 and close by July 1, 2010.
• Exiting homeowners are eligible for up to $6,500 if they have lived in their residence for five of the last eight years.
• There is no minimum income for claiming the credit.  If you don't owe any taxes, you can receive it in cash.
• You can claim the credit when you file your 2009 or 2010 tax return - or, if you'd rather not wait, file an amended 2008 or 2009 return and receive the  money upon purchasing your home. 
• If you co-sign a mortgage to help your non-dependent child buy his or her first home, your eligibility does not affect your child's ability to qualify for the credit.

I can't provide every detail of the program here - and I'm not qualified to give tax advice - but I can help you make sense of the regulations.  Here is a helpful FAQ about the tax credit from the National Association of Realtors:

Q: Existing homeowner credit: Must the new house cost more than the old house? 

A: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Q: I am a first time homebuyer, but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009.  I will be covered, however, by the new income limits.  When I go to settlement, will I be eligible for the credit?

A: Yes. The new income limitations go into effect as soon as the President signed the bill.  The income limit and other eligibility rules will look to your status as of the date o purchase, which is the settlement date.  So you should be eligible for the credit (or a portion of the credit if you're within the phaseout range)

Q: I am an eligible existing homeowner.  I have a fair amount of equity in my home.  I have found a home with a nonnegotiable price of $825,000.  Will I be able to use any of the $6500 tax credit?

A. No The $800,000 cap on the cost of the purchased home is firm at $800,000.  Any amount above $800,000 makes the home ineligible fr any portion of the credit.  The $8000,00 is an absolute ceiling.

Q: I owned my home for 10 years, but sold it two years ago and have been renting since.  If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

A: Yes.  Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit.  For example, say John and his wife bought a home in 2000 and lived there until 2008 when they were divorced.  Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years the keyword here is "consecutive."  As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact his eligibility.

Q: I am an eligible first-time homebuyer.  I entered into a contract to purchase on November 1, 2009.  Do I have to go to closing  before December 1?  How does the extension date affect me?

A: You do not have to lose before December 1.  Once the legislation was signed, it was as if the November 30 date had never existed.  Therefore, s long as the binding contract is in place before April 30 and closes by July 1, the purchaser will be eligible for the credit.

Don't wait.  Give me a call and I can help you decide whether now is the time for you to buy.  And if the time is right, I'd be honored to represent you as you seek out your dream home.