home buyers tax credit
The IRS has issued guidance that spells out the revised income limits for homebuyers claiming credits: Your modified adjusted gross income must be $125,000 or less if you are single, $225,000 or less if you are married filing jointly. Above these limits the allowable credit amount begins to phase does in increments, and is eliminated completely once incomes hit $145,000 for singles and $245,000 for married joint filers.
There are pitfalls as well: An advisory posted by the IRS earlier in the month spelled out situations where recipients of tax credits may have to repay them to the government. read more…
FHA home loans
FHA home loans
The new FHA policy changes are as follows:
1) Borrowers with less than 580 credit scores will be required to put 10% down instead of 3.5%.
2) Upfront mortgage insurance, MI, will increase to 2.25% from 1.75%.
3) The maximum seller contribution is now 3% rather than 6%.
4) Lenders will now be graded and performance reported. Lenders found violating FHA rules will no longer be allowed to make FHA loans.
To understand the reasons behind these changes, I would suggest one read my 9-20-09 post “FHA Home Loans in Worst Shape in 75 Year History” or my 12-16-08 post “FHA Home Loans – The Next Bailout?“
San Diego California real estate lawyers
San Diego California home sales
The Consumer Confidence Index rose in January to 55.9 (1985=100) compared with 53.6 in December, the Conference Board reported . The Present Situation Index increased to 25 in January from 20.2 in December, and the Expectations Index increased to 76.5 from 75.9 last month, according to the report.
“Consumer Confidence rose for the third consecutive month, primarily the result of an improvement in present-day conditions,” said Lynn Franco, director of The Conference Board Consumer Research Center. “Consumers’ short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months. Regarding their financial situation, while consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists.”
Consumers’ assessment of current conditions was more positive in January than in December, with those claiming business conditions are “bad” increasing to 46.1 percent in January from 45.7 percent in December, while those claiming conditions are “good” increased to 9 percent in January compared with 7.5 percent in December. Consumers’ appraisal of the job market improved moderately, and their short-term outlook was mixed, according to the report.
Del Cerro home for sale
brokerforyou.com Bob Schwartz
The Federal Reserve announced it will maintain its target for the federal funds rate in the 0 percent to 0.25 percent range, and expects economic conditions to warrant exceptionally low levels of the federal funds rate for an extended period of time. “Information … suggests that economic activity continues to strengthen and that deterioration in the labor market is abating,” the Fed said in a prepared statement. read more…
San Diego foreclosures
Although default notices dropped to their lowest level in more than a year in December, MDA DataQuick reported yesterday, the number of foreclosures rocketed up for December, up 41.9 percent from November and up 20.9 percent from a year earlier.
DataQuick president John Walsh said.“Clearly, many lenders and (loan) servicers have concluded that the traditional foreclosure process isn’t necessarily the best way to process market distress.”
San Diego housing market
I can give about 10 good reasons on why buying San Diego this year may not be the optimum time:
1- Interest rates will eventually rise
2- Massive foreclosures flooding the market over the next 24 months
3- Federal stimulus is ending (though it could be extended)
4- Unemployment at 10% (In reality this is most likely closer to 17%) and rising
5- Pay cuts to those who are working
6- Next to impossible to get a loan without 20% down – who has that kind of cash laying around these days
read more…
