If you’ve recently purchased a home in 2009 or are considering purchasing a home this year, you might have heard about the tax credit that President Obama has issued and passed as part of stimulus plan recently. Even though this isn’t everything that’s suppose to be laid out from my understanding, what we do know is that this $8000 tax credit is active and will certainly help a new homeowner out.

One of my clients qualifies, and will be getting this rebate, so if you are also on the same boat, you should too!

The Wall Street Journal has a good explanation for anyone who wants to find out if he or she qualifies. Afterwards, it’s always best to speak with your own tax advisor or accountant as they will be the best person who will tell you if you qualify or not.

1. To find out whether you qualify for the bailout, check your financial statements and do the math. Under the current proposal, you’ll only qualify if your monthly payments are at least 38% of your income. Some people may have an incentive to quit their jobs, or at least dump their second job, to hit this threshold, because this bailout can be valuable.
Taxpayers and your mortgage lender will share the costs of lowering your payments to 31% of your income.

That may mean interest rates as low as 2%. Or you may get the principal reduced. And if you pay your mortgage on time, the taxpayers will pay off as much as $1,000 of your loan each year for five years. For someone on $50,000 a year, this could be worth $4,500 a year, tax free. Those whose mortgage payments are less than 38% of their income get no help.

2. If you are a responsible homeowner but are locked out of the refi market because the housing collapse wiped out your equity, you may benefit from the new refi assistance. The government will help you refinance your mortgage if you owe between 80% and 105% of your home’s value. Zillow, the real estate information company, estimates that 14.8 million homeowners may qualify.

The problems? Only those with mortgages owned by Fannie Mae or Freddie Mac get cut in. And the proposal excludes many homeowners in the worst-hit areas, like Florida, Nevada, Arizona and California, where homes prices have plummeted far below the level of many mortgages. Nationally, Zillow estimates 14.1 million homes are actually worth too little, in relation to their mortgages, to qualify.

3. Anyone who hopes to qualify for either program should start gathering their paperwork now. You’ll need proof of current income and assets, and those seeking refinancing help should get a handle on their home’s current value. But Josh Denney of the Mortgage Bankers’ Association says you should wait until March 4 before contacting your mortgage lender or servicer. That’s when more details on the plan are due.

4. Many renters have been kicked out of their homes because deadbeat landlords walked away from their loans, leaving the banks to foreclose. If you’re in that boat, good news: The administration is about to offer $1.5 billion in relocation and other forms of assistance. Yet again, more details will be revealed in March.

5. Middle class taxpayers should take a look at one $8,000 freebie. Anyone who hasn’t owned a home for at least three years is entitled to a helpful tax credit, for up to 10% of the cost, up to $8,000, if they buy a home this year. That won’t go far in NYC, but it will in the cheaper parts of the country.

(Oklahoma ho!) You might also take a look at burst bubble territories, from Florida to Arizona. There’s a lot of very cheap property around. It’s a refundable credit – so if you don’t pay $8,000 in taxes, or indeed any taxes at all, you get the rest as a check. Those with higher incomes are out of luck – the credit phases out above a modified adjusted gross income of $75,000, or twice that if you file jointly.

6. Living in an expensive home in San Francisco or New York and missing out on the refi boom? Good news. The government just raised the “conforming loan” limits to $729,750 from $625,500, so those with more expensive properties can get in. Good deal. There are 30-year conforming loans out there for about 5% or so.

7. This is a good time to get some double glazing, insulation, and other energy-efficient home improvements. The stimulus package gives a tax credit of up to $1,500, covering 30% of the costs.

8. And if grandma is looking for a reverse mortgage, the limits for reverse mortgages backed by the Federal Housing Administration have been raised to $625,000 from $417,000. The financial crisis has left the FHA as the main player in the market of reverse mortgages, which allow older homeowners to tap the equity in their home for living expenses.

To read the about the tax credit, click here,First-Time Home Buyer Tax Credit

To read the full article, click here,The Housing Bailout: Do You Qualify?
Source: Wall Street Journal

San Francisco is among the most expensive cities in America, and for most renters, considering becoming a homeowner seems unrealistic, if not, impossible.

The city of San Francisco understands many of the renters concerns and they have many programs that assist renters in the pursuit of homeownership. I meet and speak with a lot of people who are ‘curious’ with the market and that they would love to be able to afford a home, but that’s its difficult with the home prices so high.

I’ve met some people who work two jobs, some have parents who “gift” them money for a down payment, and I’ve spoken with other real estate advisors and they’ve seen groups within a family pull their money in to afford one single family home. It’s crazy – I know.

So that brings me to the Mayor’s Office of Housing (MOH), which has several programs like their Below Market Rate homes (BMR), their Down Payment Assistance Loan Program (DALP), or their Teacher Next Door Program (TND) among other programs.

An example, a 1 Bedroom, 1 Bathroom Condo in Diamond Heights typical sells for $470,000, but under the MOH’s Below Market Rate program, a comparable home (95 Ora Way # 101F) that is currently in the market is asking for $217,845. That’s a BIG difference!

There are of course some draws and requirements when purchasing a BMR from the city – one major issue is that homes bought within the program can not be sold for gain when a homeowner resells it back out in the market – so appreciation may not happen and should not be expected. The program’s concept is for renter’s to become homeowners, and it can only be sold and bought by individuals within the program.

This is a peak at something that most renters may not know about, but should. Explore your options, be knowledgeable with what programs and services are available and, hopefully, you won’t feel like homeownership isn’t just for the rich or for the lucky ones who bought 10-20 years ago.

If you have any additional questions, feel free to contact Michael directly, 415.680.8031.

If you didn’t know, the city of San Francisco has free passes for residents and visitors to the city at their public destinations like the San Francisco Zoo.

In a time with both head of households working to pay the bills and the children keeping their heads in front of the tube, how often can you say the family spends time together?

If it’s not as much as you would like, here’s your answer.

On the first Wednesday of each month, you, your friends, and your family can visit the zoo with no admission fee!!! How great is that.

So why don’t you take the next first Wednesday of April go visit the zoo with friends or family courtesy from the city of San Francisco!

We all know the Bay Area is among the “Greenest” cities in the world and that people in the San Francisco Bay Area try their best in keeping fit. Well, good news, it’s official, the city of San Francisco has been acknowledged as one of the best cities that residents do “walk” to from home to at work!

The “foot” experts at the APMA (American Podiatric Medical Association) recently released their study that consist more than 500 cities and they ranked San Francisco among the most conscious for its residents to actively consider alternative means to getting to work than to get stuck in traffic with their cars.

Here’s the list of the 10 best and 10 worst cities to “walk” in.

Here are the 10 best cities for walking:

Cambridge, Mass.
New York City
Ann Arbor, Mich.
Chicago
Washington, D.C.
San Francisco
Honolulu
Trenton, N.J.
Boston
Cincinnati, Ohio

Here are the 10 worst cities for walking:

Oklahoma City, Okla.
North Las Vegas
Gadsden, Ala.
Davenport, Iowa
Mount Pleasant, S.C.
Enid, Okla.
Laredo, Texas
Springdale, Ark.
Clarksville, Tenn.
Lafayette, La

If you’ve been looking into home prices online, you’ve probably have come across using Yahoo’s Real Estate section in their website. Much less, if you’re looking for bargains in the real estate market and if your real estate advisor hasn’t mentioned this to you, but looking into foreclosed, probate, and short sale properties is always an option that you should explore.

What homebuyers have asked me in the past is that they’re never sure If a home is a general sale or if it’s a short sale or probate sale. When looking at the description of the property, it’s a general practice to disclosure if the home for sale is within the foreclosed, REO (Real Estate Owned), short sale, or probates, but if you’re like most people, you tend to want things done in a much more efficient and simpler way.

What I’ve always noticed is that Yahoo has an option for foreclosures. It’s a nice added feature that other search engines like the San Francisco MLS, MLSListings.com, or any other real estate search when you go look for homes on your own before deciding to work with a real estate advisor.

Given the fact that Yahoo is the official real estate partner with Prudential California Realty also adds to the security that there’s an experienced and well-established company assisting them in that field.