Hurry to Take Advantage of the First Time Home Buyer Tax Credit

If you are a first time homebuyer, you are entitled to a First Time Home Buyer Tax Credit as a result of the “The American Recovery and Reinvestment Act” signed into law on February 17, 2009.

In order to take advantage of this program, you must CLOSE on your purchase by November 30, 2009. That only gives you 4 months to find a home, negotiate the contract, get your mortgage approved and close on the loan.

For more information on the specifics of the program go to http://www.barkerblog.com/2009/02/first-time-homebuyer-tax-credit.html

Call (708) 473-7688 or email me today if you have questions, or need info on getting a mortgage or a refinance. Advice and answers are always free! :)

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New Home Sales Surge 11% in June

Sales of new homes rose more than expected in June, up 11% - the largest increase since November 2008. This is the third straight month of gains and another indication that the housing market may be rebounding.

New home sales grew to a seasonally adjusted annual rate of 384,000 homes, above expectations of 355,000 homes. These reports are subject to revisions and errors and, according to the government, it can take up to 5 months to establish a new sales trend. But, many analysts are calling this a good sign.

On economist, Richard Moody of Forward Capital warned that home sales are still at “exceptionally low levels.” And, others caution that the housing market has a long way to go, especially in the face of rising unemployment.

Inventories of new homes fell 4.1% to 281,000 which represents a supply of 8.8 months. Sales rose in the Northeast (+29.2%), Midwest (+43.1%), and West (+22.6%) while falling in the South (-5.3%).

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Existing Home Sales Up in June

Sale of existing homes rose 3.6% from May to June. This marks the third consecutive monthly gain and is an indication that a housing recovery may have begun across much of the country. “The housing market appears to be healing,” said Lawrence Yun, Chief Economist at the National Association of Realtor (NAR).

The NAR said that existing home sales rose to a seasonally-adjusted rate of 4.89 million homes in June, up from 4.27 million homes in May. Inventories of homes fell to 9.4 month from 9.8 months. According to Yun, inventories must be at or below 7 months to achieve price stability.

This is the highest level of sales since October 2008 and beat economist expectations. According to Thomson Reuters, sales were expected to only rise to 4.84 million homes.

Median home sale price also rose in June. Median prices were $181,800 compared to $174,700 in May. However, home prices were still down significantly from the same period last year – losing 15.4%.

These are very positive signs for the housing market and overall economy!

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Illinois Property Tax Deferral Progam a Huge Plus for Senior Citizens

The State of Illinois offers a program for senior citizens that allows them to defer the payment of their real estate taxes on their primary residence. The Senior Citizen Real Property Deferral program is a tax-relief program that works like a loan on the property. This program allows qualified seniors to defer all or a portion of their real estate taxes on their home and is repaid when the property is sold, transferred or refinanced.

In order to qualify, an applicant must:

• Be 65 years or older by June 1 of the year that the taxes would be paid


• Have an annual household income of $50,000 or less


• Have owned and occupied the property (or other qualifying property) as their primary residence for the past 3 years


• Not have a lien on the property for past-due taxes or special assessments.


• Have adequate homeowners insurance coverage


• Be 55 years old within 6 months after the death of the qualifying taxpayer’s death.

A qualified senior can defer up to 100% of their real estate taxes as long as they maintain at least 20% of the equity in the property. To calculate the equity subtract any mortgages or other liens on the property, including previously deferred real estate taxes, from the value of the property. If the remaining equity is at least 20% of the value, then they are qualified for the tax deferral.

The tax deferral program works like a mortgage because there is a lien placed on the property and interest accrues on the loan at a 6% annual rate. So, the balance of this tax deferral will increase as time goes by. This is a good program for those seniors who are house-rich and cash-poor.

I have a mortgage on my property, do I still qualify?

If you have a mortgage on your property you will still qualify (subject to the minimum equity requirements) and you will not need prior approval from your mortgage lender. It is similar to taking out a second mortgage on the property. The only exception to this is in the case of a reverse mortgage – contact your mortgage lender prior to applying for this tax deferment.

When are the deferments repaid?

You may pay these deferments off at any time. However, within 1 year of the death of the qualifying senior (unless the surviving spouse turns 55 within 6 months of death) or within 6 months of the sale, transfer, or refinance of the subject property, the deferments must be repaid.

Applications are accepted January 1 through March 1 of the year the taxes are to be paid. Applications can be obtained from the County Treasurer office beginning January 1.

Click here for a brochure with more details on this program.

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