Santa Clara County 1st-Time Real Estate Buyer Program
Date: Sunday March 22, 2009Posted in: real estate, Santa Clara County, affordable housing, buying a home, first time buyer, tax credit
First-time buyers are being wooed from many different directions these days. As I discussed in a previous post, the IRS is offering a first-time buyer tax credit to real estate buyers who meet certain stipulations. In addition to this federal tax credit, Santa Clara County is offering a Mortgage Credit Certificate Program to first-time buyers. And, as I explain in the federal tax credit post, a first-time buyer is defined as real estate buyers who have not owned a principal residence during the past three years.
A few highlights of the Santa Clara County program:
- It is a dollar for dollar tax credit against the borrower’s federal income tax - currently 15% of the interest paid
- The remaining 85% remains as a standard tax deduction
- The home must be purchased in one of the participating cities in the county - all south county cities are participating
- The home purchased must be owner-occupied
- The buyer’s income cannot exceed $97,800 for 1-2 persons and $112,470 for 3 or more persons
- The MCC Program doesn’t allow co-signers
- Maximum purchase price is limited to $570,000 for resale homes and $630,000 for new construction
- There is a possible recapture tax if the property is sold within the next nine years after purchase
- The County maintains a public list of participating brokers and funding lenders
- Applications for MCC are processed on a first come, first serve basis and there is an application fee of $275
For those interested in taking advantage of the MCC Program, you will want to make sure you are working with a paricipating funding lender. For recommendations on lenders, call me at 408-892-9015 or email me at GMerrick(at)InteroRealEstate.com.
Not Owned Your Home for the Past 3 Years? You’re a 1st Time Buyer!
Date: Wednesday March 11, 2009Posted in: real estate, Santa Clara County, Home buying, first time buyer, tax credit
Most likely you’ve heard about the First-Time Buyer Credit offered through the 2009 Economic Stimulus Package passed by Congress. But what you may not realize is that even if you owned a home previously, if you haven’t owned your primary residence within the past three years, you are considered a first-time buyer and may apply for the tax credit of $8000.
This tax credit is for $8000 or 10% of the purchase price, which ever is smaller. In Santa Clara County, chances are that you are not purchasing a residence for less than $80,000 and so will receive the full $8000 credit on your taxes. The home must be purchased between January 1, 2009 and December 1, 2009, so time is of the essence. This credit is unlike the 2008 first-time buyer credit in that it does not have to be repaid to the IRS.
Single taxpayers with modified adjusted gross incomes (MAGI) up to $75,000 will receive the full credit. The credit is reduced proportionally with a MAGI up to $95,000. Any single taxpayer earning over that will not receive the credit. Married couples with MAGI up to $150,000 will receive the full credit. In this case the credit is reduced proportionally with a MAGI up to $170,000. Married couples earning over $170,000 will not receive the tax credit.
For more information, the National Association of Home Builders provides an informative site: http://www.federalhousingtaxcredit.com/2009/glance.php
Please consult your tax advisor for more information regarding the tax implications of buying real estate.
Morgan Hill Real Estate: SFR under $400,000
Date: Thursday January 29, 2009Posted in: REO, real estate, Morgan Hill, bank-owned, investment property, first time buyer
There are currently 19 active listings of single family residences (SFR) located in Morgan Hill, CA on the Multiple Listing Service priced $400,000 and under. These prices were unheard of in 2005 and 2006, and, while those higher prices are long gone now, they will be back. Smart buyers are taking this opportunity to purchase their first home or an investment home. Many of these investment homes are cash-flowing positively due to the low interest rates currently available to investors.
A home in a nice east-side Morgan Hill neighborhood came on the market yesterday.
1420 Kelly Park Circle is a 3 bedroom/2 bathroom, 1299 sq.ft. home on a 5,227 sq.ft. lot. This is a bank-owned home (i.e. usually smoother transaction than a short sale.) The Kelly Park Circle community has an HOA pool/spa and the association fee covers many amenities for approximately $193/month. This neighborhood feeds into Nordstrom Elementary School.
Homes in the Kelly Park Circle neighborhood sold in the mid-$600,000s during the peak of 2005 and 2006. For more information on this home or other residences in our South County area, please contact me. I am also able to lead you through an investment analysis to determine if any property will suit your needs.
