Long Beach Real Estate-Long Beach Condos

Long Beach First Time home buyers who don't already have a home under contract can breathe a sigh of relief.  A bill was passed today by the US House of Representatives (403-12 vote) which will extend and expand the Federal Tax Credit for First Time Home Buyers.  The US Senate passed the bill late yesterday.  This bill is subject to President Obama's signature, they say he is expected to sign this bill into law this week. 

This bill also includes extensions for unemployment benefits.  More details regarding the unemployment benefit extensions can be found in this article.

When this bill is signed into law it will extend the existing $8,000 first time home owners tax credit through April 30, 2010 for First Time Home buyers and will include a 60 day extension if a binding contract is already in place prior to the deadline.   The credit can be utilized for up to 10% of the home purchase price to a maximum of $8,000.  A first time home owner is defined as someone who has not owned a residence in the last 3 years. Homes purchased in 2010 may claim this tax credit on their 2009 tax returns.  More information on this bill can be found here.

Existing homeowners will now receive a tax credit of $6,500 if they have lived in their current homes for 5 years.  This tax credit is available for the purchase of 'principle residences' only, purchased for $800,000 or less.  Home owners will be able to utilize 10% of the purchase price up to a maximum of $6,500 .

This bill will increase the qualifying income limits for the tax credits as follows:

• Taxpayers filing as single:  Increased from $75,000 to $125,000
• Taxpayers filing jointly:  Increased from $150,000 to $225,000

If a home buyer utilizes this tax credit and does not reside in the home for a minimum of 36 months the tax credit must be repaid.  This means the home buyer must use this home as their principle residence for no less than 3 years to retain this tax credit. Active duty military personnel are exempt from this requirement under military order. These tax credits can not be claimed by anyone under 18 years of age.

This article should not be construed as tax advice, you should always consult with your tax advisor before making a purchase to decide on what course of action is best for you individually. 

In the last few months I have received many calls from first time home buyers interested in utilizing the $8,000 tax credit who were seeking advice. Many of these buyers were barely able to scrape together the 3 1/2% required for the down payment required to qualify for an FHA loan.  I asked these buyers how they will facilitate necessary and/or emergency repairs to the home once purchased.  There are many things to consider when you are purchasing your first home. One of the most overlooked details when purchasing a first home is after purchase expenses, which can be considerable. 

When you purchase your first home be aware of the age of the existing components of the home:

• Age and condition of roof
• Age and composition of plumbing
• Age of electrical components and existing upgrades
  
• Condition of foundation
• Age and condition of windows
• Age and condition of kitchen
• Age and condition of bathroom
• Age and condition of existing flooring
  

These items are all costly repairs and upgrades.  If you do not have the available cash to facilitate these repairs or upgrades how will you handle it when the need arises?  Buying a home is a large responsibility, first time buyers should educate themselves and think to the future before deciding to buy today.  An $8,000 credit today will not help you if you have to spend $40,000 to replace a roof 12 months later and the funds are not available. 

We have put together important information for first time Long Beach home buyers:

• Don't Make Any Major Purchases
• Things to Avoid Before Purchasing a Long Beach Home
• Changing Jobs Affects Your Ability to Purchase a Long Beach Home
• Long Beach Homes - Issues for 1st Time Buyers
• Long Beach home owners can deduct PMI
• Long Beach Condos - Buyer Tips for a Smart Purchase
  

This article addresses issues that many first time home buyers do not consider, that being the remaining life of the existing systems currently in the home and the cost of future replacement. 

• Buying Fixer Upper Homes in Long Beach

We don't just sell homes.  We educate our clients on a consultative basis.  When you are buying your first home your agent should be able to provide you with more than a list of available homes.  Choose your agent carefully, find somebody that you trust is working with your best interests in mind.   

Laurie Manny Professional Group

244 Redondo Avenue
Belmont Heights
Long Beach, California 90803

(562) 212-5420

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