Paula Clark

Bergen County NJ Home Buyer Benefits Improve For Veterans

11-14-08

Bergen County NJ Home Buyer Benefits Improve For Veterans

Bergen County NJ Veterans now have expanded homeownership opportunities, thanks to the Veterans' Benefits Improvement Act of 2008.

Three provisions in the legislation are critical to help Huntsville veterans during the current housing turmoil. The law will make it easier for veterans who have fallen victim to risky subprime loans to refinance their loans into a safer, more affordable loans backed by the U.S Department of Veterans Affairs. The legislation also extends the VA loan limit increases through 2011, which will help veterans living in high-cost areas.

In addition, the VA can now offer adjustable-rate mortgages to veterans. That would make Bergen County NJ home ownership more attainable for military families and personnel who often have to move more frequently than their civilian counterparts.

If you are a Veteran thinking about buying a Bergen County NJ home, please get in touch and we can give you some information on how you can take advantage of the great home purchase opportunities that exist right now.

Learn more about Bergen County home ownership by visiting PaulaClarkRealtor.com.

Does Buying A Bergen County NJ Home Make Sense In Today's Market

11-11-08

Does Buying A Bergen County NJ Home Make Sense In Today's Market

The housing market has never been better for many potential Bergen County NJ home buyers. In fact, more often than not, it is less expensive to own your own home rather than rent.

The National Low Income Housing Coalition reports that in 57 out of the 100 most populated metro areas, renting a three-bedroom home is more expensive than monthly costs on a six percent mortgage for a typical low-priced house in the same area.

With all the news these days concerning the economic crunch and these tumultuous economic times, you might think I'm crazy saying it is a good time to buy a Bergen County NJ home. Of course, buyers with strong credit are best positioned to take advantage of today's opportunities. A high credit score will yield a lower interest rate and increase the likelihood that a loan application will be approved.

For example, a buyer with a 6 percent mortgage will pay a third less per month than a buyer who has a loan at 8 percent. This difference can be hundreds of dollars per month.

FHA loans, VA loans and government backed first-time buyer loans are all available to qualified buyers. With the current low interest rates and affordable housing prices, it is a great time to buy your Bergen County NJ home.

It is also a time to keep in mind that buying a home is a long term investment...and an investment you and your family can enjoy for many years!

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Bergen County NJ Real Estate: New Jersey Real Estate Podcast

10-28-08

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The New Jersey Real Estate Podcast

October 2008:

bergen county nj real estate podcast This month's edition covers Bergen County NJ real estate market activity and then we will talk about how with every change, there are hidden opportunities for both buyers and sellers.

Features special guest Terri Murphy of US Learning.

Program length: approximately 7 1/2 minutes

Learn how you can take advantage of the great home purchase opportunities that exist right now by visiting PaulaClarkRealtor.com or giving us a call, 201-930-3070.

Search all Bergen County NJ real estate and homes for sale.

Bergen County NJ First Time Home Buyer Tax Credit

10-27-08

MoneyMattersNJ.com has an excellent explanation of the tax credit for Bergen County NJ first time home buyers provided for in the recently enacted Housing and Economic Recovery Act of 2008. Here's what they have to say:

Must Be Repaid Over 15 Years

Available for a limited time only, the credit:

Applies to home purchases after April 8, 2008, and before July 1, 2009.

Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.

Is fully refundable, meaning that the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.
However, the credit operates much like an interest-free loan, because it must be repaid over a 15-year period. So, for example, an eligible taxpayer who buys a home today and properly claims the maximum available credit of $7,500 on his or her 2008 federal income tax return must begin repaying the credit by including one-fifteenth of this amount, or $500, as an additional tax on his or her 2010 return.

Eligible taxpayers will claim the credit on new IRS Form 5405. This form, along with further instructions on claiming the first-time homebuyer credit, will be included in 2008 tax forms and instructions and be available later this year on IRS.gov, the IRS Web site.

If you bought a home recently, or are considering buying one, the following questions and answers may help you determine whether you qualify for the credit.

Which home purchases qualify for the first-time homebuyer credit?
Only the purchase of a main home located in the United States qualifies and only for a limited time. Vacation homes and rental property are not eligible. You must buy the home after April 8, 2008, and before July 1, 2009. For a home that you construct, the purchase date is the first date you occupy the home.

Taxpayers who owned a main home at any time during the three years prior to the date of purchase are not eligible for the credit. This means that first-time homebuyers and those who have not owned a home in the three years prior to a purchase can qualify for the credit.

If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 (or amended 2008 return) or 2009 return.

How much is the credit?
The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 for either a single taxpayer or a married couple filing jointly. The limit is $3,750 for a married person filing a separate return. In most cases, the full credit will be available for homes costing $75,000 or more. Whatever the size of the credit a taxpayer receives, the credit must be repaid over a 15-year period.

Are there income limits?
Yes. The credit is reduced or eliminated for higher-income taxpayers.

The credit is phased out based on your modified adjusted gross income (MAGI). MAGI is your adjusted gross income plus various amounts excluded from income-for example, certain foreign income. For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000.

This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.

Who cannot take the credit?
If any of the following describe you, you cannot take the credit, even if you buy a main home:
Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.

You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

You stop using your home as your main home.

You sell your home before the end of the year.

You are a nonresident alien.

You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year.

Your home financing comes from tax-exempt mortgage revenue bonds.

You owned another main home at any time during the three years prior to the date of purchase. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another main home at any time from July 2, 2005, through July 1, 2008.
How and when is the credit repaid?
The first-time homebuyer credit is similar to a 15-year interest-free loan. Normally, it is repaid in 15 equal annual installments beginning with the second tax year after the year the credit is claimed. The repayment amount is included as an additional tax on the taxpayer's income tax return for that year. For example, if you properly claim a $7,500 first-time homebuyer credit on your 2008 return, you will begin paying it back on your 2010 tax return. Normally, $500 will be due each year from 2010 to 2024.

You may need to adjust your withholding or make quarterly estimated tax payments to ensure you are not under-withheld.

However, some exceptions apply to the repayment rule. They include:
If you die, any remaining annual installments are not due. If you filed a joint return and then you die, your surviving spouse would be required to repay his or her half of the remaining repayment amount.

If you stop using the home as your main home, all remaining annual installments become due on the return for the year that happens. This includes situations where the main home becomes a vacation home or is converted to business or rental property. There are special rules for involuntary conversions. Taxpayers are urged to consult a professional to determine the tax consequences of an involuntary conversion.

If you sell your home, all remaining annual installments become due on the return for the year of sale. The repayment is limited to the amount of gain on the sale, if the home is sold to an unrelated taxpayer. If there is no gain or if there is a loss on the sale, the remaining annual installments may be reduced or even eliminated. Taxpayers are urged to consult a professional to determine the tax consequences of a sale.

If you transfer your home to your spouse, or, as part of a divorce settlement, to your former spouse, that person is responsible for making all subsequent installment payments.

To learn more about Bergen County NJ first time home buyer tax credit, visit PaulaClarkRealtor.com or give us a call, 201-930-3070.