Latest on Interest Rates

Thanks Mike for the update. Rates have trended down over the past 24-48 hours. A couple of events have the potential to influence rates over the next few days. The two main items will be that the Federal Reserve will conclude their two day meeting. The second event will be the President's State of the Union address.
Michael S. Miller, RiverWood Financial Group, 317-730-7049 (Cell)http://riverwoodfinancialgroup.blogspot.com

Noblesville, IN - Is A Great Place To Live

THANKS Riverwood Financial - Credit Score Info

This weekend Fannie Mae is providing a release that will tighten underwriting standards even more for conventional loans.

Any more it comes down to credit and credit score. This goes for just about everything right now. Did you know that a credit score between 600 and 649 represent a 31 percent default risk, and scores under 599 mean a 51 percent risk. While credit scores are snapshots they are a very important snapshot as they predict the risk of loss to the lender. What are the main components of a credit score is a common question. In general payment history accounts for 35 percent of the total score, outstanding debt is 30 percent, and the length of credit history is 15 percent, new credit and types of credit used each account for 10 percent of the total. Did you know that one 30 day delinquency can lower a credit score 40 points or more.
As always if I can be of any assistance please do not hesitate to contact me.
Mike Miller 317-558-7719

First-Time Homebuyer & Other Homebuyers Credit Extention

First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify

IR-2009-108, Nov. 24, 2009

WASHINGTON — A new law that went into effect Nov. 6 extends the first-time homebuyer credit five months and expands the eligibility requirements for purchasers.

The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

The maximum credit amount remains at $8,000 for a first-time homebuyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.

But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.

A new version of Form 5405, First-Time Homebuyer Credit, will be available in the next few weeks. A taxpayer who purchases a home after Nov. 6 must use this new version of the form to claim the credit. Likewise, taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, must also use the new version of Form 5405. Taxpayers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return.

A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.

Income Limits Rise

The new law raises the income limits for people who purchase homes after Nov. 6. The full credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.

For homes purchased prior to Nov. 7, 2009, existing MAGI limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.

New Requirements

Several new restrictions on purchases that occur after Nov. 6 go into effect with the new law:

Dependents are not eligible to claim the credit.
No credit is available if the purchase price of a home is more than $800,000.
A purchaser must be at least 18 years of age on the date of purchase.
For Members of the Military

Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.

Thanks to IRS... for more details on the credit, visit the First-Time Homebuyer Credit page on IRS.gov.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

$8,000 First-time Home Buyer Tax Credit at a Glance

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Neighbor Power!

There’s a whole lot of great work going on in Indy’s neighborhoods. And now some of the best will get the recognition they deserve thanks to an all-new Neighbor Power! awards program. Join LISC and MIBOR on Oct. 16 from 5:30-7:30 p.m. at University of Indianapolis Schwitzer Student Center (1400 E. Hanna Avenue), as we help showcase great neighborhood accomplishments. Hors d’oeuvres will be served and the event is FREE to attend! Then, be part of The Gathering on Saturday, Oct. 17 from 8 a.m. – 3:30 p.m. as more than 300 people talk about ways to make our city an even better place to live, work and play. The Gathering is also free and will include NBA star and community advocate Kevin Johnson, now the mayor of Sacramento. Register for both events and view the conference schedule at www.greatindyneighborhoods.org