4 Reasons to Update a Bathroom
By E. E. Kane
Bathrooms may not hold the most glamorous spot in your home, but they must remain functional or everyone suffers. Remodeling can be very expensive, so how do you know when it's time to invest money in your bathroom? The following four reasons explain why remodeling may be worth the expense.
1. Signs of Water Damage.
Leaks in the plumbing can easily lead to problems like mold, loose tiles, and structural damage to the floor underneath. Water damage can wreak havoc on a bathroom, and in some cases will require tearing everything out. If you simply have a mold issue, you may be able to resolve it with ventilation. Install an exhaust fan or a new window, and then kill the mold with a bleach-and-water solution. Finally, use primer and paint that specifically hinder mold growth.
2. Electrical Safety.
Do the lights flicker? Does the outlet sizzle when you plug in the hair dryer? Has the exhaust fan stopped working? Whether you need to overhaul the electrical circuits or simply change a few receptacles, don't ignore electrical problems in the bathroom. Every bathroom should have a GFCI outlet, which prevents electrocution should a shaver or hair dryer drop into water.
3. Just Plain Gunky Issues.
Stained carpeting, cracked vinyl flooring, broken or missing tiles, a bathtub or sink that never looks clean no matter how much you scrub, Pepto-Bismol pink tiles—these are all reasons to feel ambivalent about your bathroom. If "gross" is the first word you think of to describe your bathroom, it's time to remodel.
4. Planning to Sell in a Few Years.
If you know you'll be moving within the next five years, remodeling an outdated bathroom can increase the value of your property. Although you may not recoup everything you spend, bathroom remodels have shown a greater return on investment than most other areas of the house. Focus on functionality, storage, and neutral palettes.
Resolving the issues and making repairs should always come before cosmetics like paint or wallpaper. Remodeling a bathroom can be very disruptive to family life, so if you can't make the repairs yourself, find a reputable contractor who will work with your budget and your time frame.
Friday, August 14, 2009
Tuesday, July 7, 2009
How do I keep important documents safe?
This is one of the best lists I've seen. Think about purchasing a safety deposit boxe or a fire safe box for storage. If it's a safety deposit box, getting access to important papers might be difficult, so make sure you know in advance who will be able to have access. Different states have different laws on who can access the box when you die. Make sure if you give someone a key to your safe deposit box they are on the bank contract.
• Adoption Papers
• Automobile title(s)
• Bank account numbers and contact information
• Baptismal and other Religious Certificates
• Birth certificates
• Cemetery Deed
• Child Custody Agreements or Parenting Plans
• Citizenship papers
• Collectibles that are valuable
• Credit card account numbers
• Death certificates
• Diplomas
• Divorce decree
• Employee Benefit Records
• Family historical information
• Household inventory and appraisals
• Important contracts
• Immunization Records
• Insurance policy names and numbers
• Investment certificates
• Jewelry and jewelry appraisals
• Leases
• Marriage certificate
• Medals
• Military records
• Mortgage
• Naturalization Certificates
• Negatives of important photos
• Patents and copyrights
• Photos of Possessions
• Rare Stamps and Coins
• Real Estate Deeds
• Retirement plan information
• Stock and bond certificates
• Veteran’s Papers
• Adoption Papers
• Automobile title(s)
• Bank account numbers and contact information
• Baptismal and other Religious Certificates
• Birth certificates
• Cemetery Deed
• Child Custody Agreements or Parenting Plans
• Citizenship papers
• Collectibles that are valuable
• Credit card account numbers
• Death certificates
• Diplomas
• Divorce decree
• Employee Benefit Records
• Family historical information
• Household inventory and appraisals
• Important contracts
• Immunization Records
• Insurance policy names and numbers
• Investment certificates
• Jewelry and jewelry appraisals
• Leases
• Marriage certificate
• Medals
• Military records
• Mortgage
• Naturalization Certificates
• Negatives of important photos
• Patents and copyrights
• Photos of Possessions
• Rare Stamps and Coins
• Real Estate Deeds
• Retirement plan information
• Stock and bond certificates
• Veteran’s Papers
Thursday, July 2, 2009
Grill Burgers, Not Your Home
For years, New York City has prohibited propane barbecue grilling on a balcony, terrace or roof. Residents can barbecue with charcoal on a balcony or terrace provided there's sufficient clearance and a source of water to douse any flare-ups.
Last year, Washington State began banning open-flame gas or charcoal barbecues on certain multifamily housing balconies where there's no overhead sprinkler.
And beginning this year, Silicon Valley placed a permanent ban on charcoal and gas fired grills on multi-family housing balconies made of wood or other combustible materials, if there is no sprinkler overhead. Propane tanks heavier than one pound are forbidden on such balconies -- sprinkler or not.
Residential barbecue bans amount to gustatory purgatory for a growing number of barbecue fans who have to wait get their thrill from a grill away from home.
Nearly 80 percent of households own an outdoor barbecue appliance and nearly 60 percent use them year round, according to the Hearth, Patio & Barbecue Association (HPBA).
But firing up a grill with an open flame presents a clear and present fire danger, especially in confined spaces.
The U.S. Fire Administration's National Fire Data Center estimates that barbecuing accounts for more than 6,000 fires, 170 injuries, a half dozen fatalities and some $35 million in property loss each year.
Grilling responds to our primal longing for fire-kissed feasts, but singeing sustenance into submission comes with another primal directive -- protecting life and property.
The HPBA offers these tips to get you safely through a barbecued meal.
Read the owners manual. As simple as it sounds, many fail to follow instructions in their rush to barbecue heaven. The manual contains specific assembly, use and safety procedures, as well as manufacturer contact information.
Never use a grill indoors. Barbecuing in your trailer, tent, house, garage, fireplace or any enclosed area can become a carbon monoxide accumulation hazard and kill you. Barbecue smoke can clog your fireplace flue.
Even outdoors, use a well ventilated area. Laws prohibit use on certain small balconies because they don't have sufficient clearance from the building, can produce a back draft into the home and provide limited safe maneuvering space. Set the grill away from buildings, overhead combustibles, dry leaves, brush and swimming pools and swimmers. Beware of wind-blown sparks.
Follow other codes. Electric grills or accessories (rotisseries, etc.) must be properly grounded in accordance with local codes. Place electrical cords out of traffic, walkways or where people can trip over them.
Keep the grill still. Be sure all parts of the grill are level and firmly in place so that it cannot be tipped over. Don't allow play or young children near the grill. Never attempt to move a hot grill. If you stumble and drop the grill, nasty burns are possible.
Use the proper equipment. Use long-handled utensils designed for barbecue work to avoid burns and splatters. Wear clothing that does not have hanging shirt tails, frills, or apron strings that can catch fire, and use flame-retardant mitts when adjusting hot vents.
Keep the fire controlled. To put out flare-ups, either raise the food grid, spread out the coals evenly, or adjust the controls to reduce oxygen and/or lower the temperature. If you must douse the flames with a light spritz of water, first remove the food from the grill. Never leave a grill unattended once lit.
Be ready to extinguish flames. Use baking soda to control a grease fire and have a fire extinguisher handy. Keep a bucket of sand or a garden hose near if you don’t have a commercial extinguisher.
Buy a grill pad or splatter mat. Heat resistant pads placed beneath the grill are usually made of lightweight composite cement or plastic and will protect your deck or patio from any grease that misses the drip pan.
Written by Broderick Perkins
Last year, Washington State began banning open-flame gas or charcoal barbecues on certain multifamily housing balconies where there's no overhead sprinkler.
And beginning this year, Silicon Valley placed a permanent ban on charcoal and gas fired grills on multi-family housing balconies made of wood or other combustible materials, if there is no sprinkler overhead. Propane tanks heavier than one pound are forbidden on such balconies -- sprinkler or not.
Residential barbecue bans amount to gustatory purgatory for a growing number of barbecue fans who have to wait get their thrill from a grill away from home.
Nearly 80 percent of households own an outdoor barbecue appliance and nearly 60 percent use them year round, according to the Hearth, Patio & Barbecue Association (HPBA).
But firing up a grill with an open flame presents a clear and present fire danger, especially in confined spaces.
The U.S. Fire Administration's National Fire Data Center estimates that barbecuing accounts for more than 6,000 fires, 170 injuries, a half dozen fatalities and some $35 million in property loss each year.
Grilling responds to our primal longing for fire-kissed feasts, but singeing sustenance into submission comes with another primal directive -- protecting life and property.
The HPBA offers these tips to get you safely through a barbecued meal.
Read the owners manual. As simple as it sounds, many fail to follow instructions in their rush to barbecue heaven. The manual contains specific assembly, use and safety procedures, as well as manufacturer contact information.
Never use a grill indoors. Barbecuing in your trailer, tent, house, garage, fireplace or any enclosed area can become a carbon monoxide accumulation hazard and kill you. Barbecue smoke can clog your fireplace flue.
Even outdoors, use a well ventilated area. Laws prohibit use on certain small balconies because they don't have sufficient clearance from the building, can produce a back draft into the home and provide limited safe maneuvering space. Set the grill away from buildings, overhead combustibles, dry leaves, brush and swimming pools and swimmers. Beware of wind-blown sparks.
Follow other codes. Electric grills or accessories (rotisseries, etc.) must be properly grounded in accordance with local codes. Place electrical cords out of traffic, walkways or where people can trip over them.
Keep the grill still. Be sure all parts of the grill are level and firmly in place so that it cannot be tipped over. Don't allow play or young children near the grill. Never attempt to move a hot grill. If you stumble and drop the grill, nasty burns are possible.
Use the proper equipment. Use long-handled utensils designed for barbecue work to avoid burns and splatters. Wear clothing that does not have hanging shirt tails, frills, or apron strings that can catch fire, and use flame-retardant mitts when adjusting hot vents.
Keep the fire controlled. To put out flare-ups, either raise the food grid, spread out the coals evenly, or adjust the controls to reduce oxygen and/or lower the temperature. If you must douse the flames with a light spritz of water, first remove the food from the grill. Never leave a grill unattended once lit.
Be ready to extinguish flames. Use baking soda to control a grease fire and have a fire extinguisher handy. Keep a bucket of sand or a garden hose near if you don’t have a commercial extinguisher.
Buy a grill pad or splatter mat. Heat resistant pads placed beneath the grill are usually made of lightweight composite cement or plastic and will protect your deck or patio from any grease that misses the drip pan.
Written by Broderick Perkins
Saturday, May 30, 2009
Stat's from NAR for April Real Estate #'s
Source: NAR 5/27/09 (NATIONAL ASSOCIATION OF REALTORS®)
NAR: Existing-Home Sales Jump Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.
Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. “Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”Buyers Once Again Emerge An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago. “This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.It's critical that distressed homes be quickly cleared from the market, Yun says. “Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans. “We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.
NAR reported the that the Northeast jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
NAR: Existing-Home Sales Jump Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.
Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. “Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”Buyers Once Again Emerge An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago. “This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.It's critical that distressed homes be quickly cleared from the market, Yun says. “Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans. “We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.
NAR reported the that the Northeast jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
Saturday, May 23, 2009
Mortgage Rates Update
Mortgage Rates Continue to Fall
Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent. The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.
Source: Investor's Business Daily (05/22/09)
Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent. The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.
Source: Investor's Business Daily (05/22/09)
Friday, May 1, 2009
No $$ to Buy a Home...Try these savings tips
For many people, buying their own home is still the American dream. Yet, it remains out of reach for a lot of people, even though the housing affordability index in many areas of the country is as good as it has ever been. But if you're not prepared to buy a house, then the index doesn't mean a thing to you—except, perhaps, to create a painful sting and a constant reminder that you're missing out on a good opportunity to buy real estate at lower prices.
For those who are planning to stay in the same house for a few years, experts are advising now is the time move from renting to owning. The cost of buying and relocating in a short period (a couple years) can make the concept of buying not appealing or cost effective. But if it's for the long term, owning can make perfect sense. But what if you're a first-time buyer or you haven't owned a home in a while, how do you prepare for what is often the largest purchase you'll ever make? Buying a home isn't that difficult but it does require you to make sure that you're in the right financial (and emotional) position to do it. How do you get there when so many other expenses often take precedence? Simple but not necessarily easy steps can help you position to transition from renter to home owner. It starts with getting familiar with your financial picture. If you are aware of what lenders are looking for before you apply for a loan, you'll have a greater chance of getting it and it'll be helpful when you meet with your real estate agent. No time will be wasted looking at homes that aren't in your price range. You will have a clear-cut idea of what you can afford and then you can confidently look for the most suitable home.
Take a keen look at your budget. This presumes that you have a budget. If not, develop one. You can use numerous software programs to create a budget; many are free, or you can even use a basic spreadsheet. If you're self-employed, take a look at free online bookkeeping software offered by Outright.com. It can help you track your income and expenses for your business allowing you to create a better recording system to help you save time and money. Review credit history. If you have no idea how your credit looks, then it's time to give it a review. When you take a look at your credit report, you will be able to see if there are errors or dings from late payments that are negatively affecting your credit score. This gives you a chance to dispute errors or work to clean up your credit before you apply for a home loan. When I reviewed my credit cards, I found a few hundred dollars that had been automatically billed to my credit card in erroneous subscription fees. Your credit card can file a dispute with the companies and credit the funds back to your account. It pays to double check; you just never know what you'll find.
Redistribute your money. Don't think of it as cutting back, but rather as moving your money from one place to another. For example, if you're spending $3 on a specialty coffee five days a week, think about making your java at home and putting that $15 a week into an account that is going to be used to purchase your home. It all adds up and most of the time, we don't realize how much money a dollar spent here or there can accumulate.
Another way to redistribute money is to examine your insurance policies and consider raising the deductibles. A lot of people want low deductibles in case of a loss or an accident, but you can actually save money and redistribute that money into an account that is set aside for purchasing your home. But some statistics show that the average person files a claim only once every 13 years, according to insurance broker, Michael Rice of Thomas Ward Insurance Group. So raising your deductible from, say, $500 to $1,000 can give you an annual premium savings of 10 to 15 percent. Rice also recommends paying your premium in full if the insurance company offers you a discount to do so; some offer a five percent or more deduction and you won't be charged administrative fees for periodic billing.
Keep your eye on the goal. Staying focused on the goal of buying a home will help you to remember that cutting costs now will allow you to have what you want in the long run. Our society is accustomed to instantaneous gratification so delaying the reward can be very challenging but well worth it. Owning your own home and, being able to purchase it while in a down market, is an exciting win-win.
Written by Phoebe Chongchu
For those who are planning to stay in the same house for a few years, experts are advising now is the time move from renting to owning. The cost of buying and relocating in a short period (a couple years) can make the concept of buying not appealing or cost effective. But if it's for the long term, owning can make perfect sense. But what if you're a first-time buyer or you haven't owned a home in a while, how do you prepare for what is often the largest purchase you'll ever make? Buying a home isn't that difficult but it does require you to make sure that you're in the right financial (and emotional) position to do it. How do you get there when so many other expenses often take precedence? Simple but not necessarily easy steps can help you position to transition from renter to home owner. It starts with getting familiar with your financial picture. If you are aware of what lenders are looking for before you apply for a loan, you'll have a greater chance of getting it and it'll be helpful when you meet with your real estate agent. No time will be wasted looking at homes that aren't in your price range. You will have a clear-cut idea of what you can afford and then you can confidently look for the most suitable home.
Take a keen look at your budget. This presumes that you have a budget. If not, develop one. You can use numerous software programs to create a budget; many are free, or you can even use a basic spreadsheet. If you're self-employed, take a look at free online bookkeeping software offered by Outright.com. It can help you track your income and expenses for your business allowing you to create a better recording system to help you save time and money. Review credit history. If you have no idea how your credit looks, then it's time to give it a review. When you take a look at your credit report, you will be able to see if there are errors or dings from late payments that are negatively affecting your credit score. This gives you a chance to dispute errors or work to clean up your credit before you apply for a home loan. When I reviewed my credit cards, I found a few hundred dollars that had been automatically billed to my credit card in erroneous subscription fees. Your credit card can file a dispute with the companies and credit the funds back to your account. It pays to double check; you just never know what you'll find.
Redistribute your money. Don't think of it as cutting back, but rather as moving your money from one place to another. For example, if you're spending $3 on a specialty coffee five days a week, think about making your java at home and putting that $15 a week into an account that is going to be used to purchase your home. It all adds up and most of the time, we don't realize how much money a dollar spent here or there can accumulate.
Another way to redistribute money is to examine your insurance policies and consider raising the deductibles. A lot of people want low deductibles in case of a loss or an accident, but you can actually save money and redistribute that money into an account that is set aside for purchasing your home. But some statistics show that the average person files a claim only once every 13 years, according to insurance broker, Michael Rice of Thomas Ward Insurance Group. So raising your deductible from, say, $500 to $1,000 can give you an annual premium savings of 10 to 15 percent. Rice also recommends paying your premium in full if the insurance company offers you a discount to do so; some offer a five percent or more deduction and you won't be charged administrative fees for periodic billing.
Keep your eye on the goal. Staying focused on the goal of buying a home will help you to remember that cutting costs now will allow you to have what you want in the long run. Our society is accustomed to instantaneous gratification so delaying the reward can be very challenging but well worth it. Owning your own home and, being able to purchase it while in a down market, is an exciting win-win.
Written by Phoebe Chongchu
Wednesday, March 4, 2009
First time buyers....does $8,000 tax credit get your attention?!
Homeowner Tax Credit - Explained!
The Homebuyer Tax Credit portion of the American Recovery and Reinvestment Act of 2009 provides an $8,000 tax credit to first-time home buyers (or buyers who have not owned a private residence in the past three years) who purchase a principal residence on or after January 1, 2009 and on or before November 30, 2009. The credit does not require repayment and will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
What are the important points to know? The Tax credit has been raised from $7,500 to $8,000 or 10% of the purchase price (whichever is less) The credit does not require repayment First time homebuyers or buyers who have not owned a home in the last 3 years are eligible To qualify, a single person must make less than $75,000 a year in income Joint must make less than $150,000 a year in income to qualify. Qualified buyers must purchase home on or after January 1, 2009 and no later than November 30, 2009. The property must be the primary residence. Purchaser must remain in home for 3 years or the credit will be recaptured at the sale of home.
Are there restrictions for the home I want to purchase? The primary residence can be a condo, single family detached, co-op, townhouse or something similar. The home must be located in the United States. Vacation homes and rental properties are not eligible. For new construction, the "purchase date" is the date you occupy the home. So the move in date must be before December 1, 2009.
Who is not eligible for the credit? If your income exceeds the phase-out range. This means joint filers with Modified Adjusted Gross Income (MAGI) of $170,000 and above and other taxpayers with MAGI of $95,000 and above. You may not buy your home from a close relative. This includes your spouse, parent,grandparent, child or grandchild. Vacation homes and rental properties are not eligible. If you stop using your home as your main home. If you sell your home before the end of three years. If you are a nonresident alien you are not eligible.
Recapture 3 year residency If the home is sold prior to three years of ownership, the tax credit must be repaid at closing This provision is designed to prevent flipping homes in order to get the credit.
Other provisions Purchasers who utilize state/local revenue bond financing can now use the credit. Purchasers who bought before January 1, 2009 and received the previous $7,500 tax credit are still subject to the terms of that repayable credit.
When can I claim the Credit? It can be claimed on your 2008 Tax Return (to be filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return.
Source: National Association of REALTORS®
The Homebuyer Tax Credit portion of the American Recovery and Reinvestment Act of 2009 provides an $8,000 tax credit to first-time home buyers (or buyers who have not owned a private residence in the past three years) who purchase a principal residence on or after January 1, 2009 and on or before November 30, 2009. The credit does not require repayment and will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
What are the important points to know? The Tax credit has been raised from $7,500 to $8,000 or 10% of the purchase price (whichever is less) The credit does not require repayment First time homebuyers or buyers who have not owned a home in the last 3 years are eligible To qualify, a single person must make less than $75,000 a year in income Joint must make less than $150,000 a year in income to qualify. Qualified buyers must purchase home on or after January 1, 2009 and no later than November 30, 2009. The property must be the primary residence. Purchaser must remain in home for 3 years or the credit will be recaptured at the sale of home.
Are there restrictions for the home I want to purchase? The primary residence can be a condo, single family detached, co-op, townhouse or something similar. The home must be located in the United States. Vacation homes and rental properties are not eligible. For new construction, the "purchase date" is the date you occupy the home. So the move in date must be before December 1, 2009.
Who is not eligible for the credit? If your income exceeds the phase-out range. This means joint filers with Modified Adjusted Gross Income (MAGI) of $170,000 and above and other taxpayers with MAGI of $95,000 and above. You may not buy your home from a close relative. This includes your spouse, parent,grandparent, child or grandchild. Vacation homes and rental properties are not eligible. If you stop using your home as your main home. If you sell your home before the end of three years. If you are a nonresident alien you are not eligible.
Recapture 3 year residency If the home is sold prior to three years of ownership, the tax credit must be repaid at closing This provision is designed to prevent flipping homes in order to get the credit.
Other provisions Purchasers who utilize state/local revenue bond financing can now use the credit. Purchasers who bought before January 1, 2009 and received the previous $7,500 tax credit are still subject to the terms of that repayable credit.
When can I claim the Credit? It can be claimed on your 2008 Tax Return (to be filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return.
Source: National Association of REALTORS®
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