» Ohio Mortgage Credit Certificate - Up to $2,000 Federal Tax Credit Per Year, Every Year

There is a special Federal tax credit available for Ohio homebuyers. This is not a one time tax credit but one that a homebuyer may claim year after year. It is called a mortgage credit certificate and it creates an income tax deduction that reduces a household's federal income tax liability and allows the household to have more discretionary income or more income to make a higher mortgage payment. The mortgage credit certificate (MCC) is being administered by the Ohio Housing Finance Agency (OHFA) and is available for Ohio home purchases only. A percentage of what a borrower pays in mortgage interest becomes a tax credit that the borrower can deduct dollar-for-dollar from their income tax liability. This percentage can be 20%, 25% or 30%. 20% for non-target area homes, 25% for target area homes and 30% for REO properties. The remaining portion of the mortgage interest continues to qualify as an itemized tax deduction, as long as the borrower has a sufficient tax liability. The mortgage credit certificate is only available for a home purchased as a principal residence.

How To calculate the tax credit.
The calculation is not difficult. The borrower can calculate the tax credit by taking the amount of mortgage interest paid on the qualifying property in the calendar year and multiplying it by 20%, 25% or 30% depending on the classification of the purchase. Again, 20% for a non-target area home, 25% for a targeted home or 30% for an REO property. Please, keep in mind the maximum tax credit that can be claimed is $2,000 per year with the mortgage credit certificate and a borrower cannot claim an amount exceeding their Federal income tax liability for the year.


There are income requirements for the program and the income varies by county, number of people in thehomebuyer's family, whether the home purchased is in a target or a non-target area and if the property is a 1-family, 2 family, 3 family or 4 family home. The purchase price limits vary depending on whether the home is new, existing or located in a target or non-target area. Caution- The FHA loan limits may be less than the purchase price limits.


Other than income and purchase price limits, in order to qualify a homebuyer must also meet the following three conditions:

1. Occupy the property you are buying as your primary residence for every year you
claim the MCC. If the property ever ceases to be your primary residence, OHFA may
revoke your MCC approval.
2. Be creditworthy. You must meet standard credit and underwriting criteria
established by the IRS and HUD for the MCC Program.
3. Meet one of the following:
A. Be a first time homebuyer (Not having an ownership interest in their
principal residence in the last three years.)
B. Purchase a home in a target area.
C. Be a military veteran who has received an honorable discharge.

Additional Property Requirements
• New or existing single-family units, condominiums, and planned unit
development homes within the State of Ohio.
• Modular or manufactured homes must be permanently affixed to the foundation
and titled as real estate to be eligible.

Loan Types
• Must be a fixed rate loan.
• May not be a refinance loan.
• FHA, Conventional, VA, USDA-RD all qualify.

Mortgage Credit Certificates will be available for homes which close on or after March 23, 2009.

This program is not available through all lenders. If you are interested in learning more or to see if you qualify your next step is to contact the right mortgage professional who can advise you on The Mortgage Credit Certificate program. A mortgage professional who is familiar with the mortgage credit certificate program can check out the guidelines and qualifying criteria to determine if you qualify.


Bill Burress, Nationwide Mortgage Expert is a mortgage professional who can help you determine whether you qualify for the Ohio Mortgage Credit Certificate and can help you with a pre-approval for your home purchase. For information on this article or any of your mortgage needs, You may contact Bill Burress, Nationwide Mortgage Expert at Toll Free 1-800-239-1416. or fill out the 30 Second Inquiry Form



Bill Burress, Nationwide Mortgage Expert has over 29 years experience in the mortgage business. Bill Burress is now assisting homebuyers Nationwide.

» $8,000.00 Homebuyer Federal Tax Credit Details with Video

Homeowners who act quickly may take advantage of the expanded tax credit. Remember back in November, 2009 when The President signed into law the home buyer tax credit extension? Well, time is running out for would be home buyers because the extension was not a very long one. Those who are considering purchasing a home in 2010, should not let their tax credit deadline expire. You must purchase a home before April 30, 2010. Unless you already have a home picked out, this means you should get moving on it. The buyer must have an accepted contract by April 30, 2010 and have until June 30, 2010 to close. Searching for a home and negotiating the terms of a purchase contract is not an easy task and its better to get it done early than to close too late to pocket the tax credit.





What does the tax credit extension do? Well for starters, it includes not only first time home buyers but also existing homeowners. Existing homeowners can receive a tax credit up to $6,500.00 and first time home buyers can receive a tax credit up to $8,000.00. Purchase contracts exceeding $800,000 will not qualify for the tax credit. First-time home buyers and existing homeowners who purchase homes between November 7, 2009 and April 30, 2010 can participate. A current homeowner is defined as a homeowner who has used the home being sold as a principal residence for five consecutive years within the last eight years. Also, in order to qualify as a first-time home buyer, the purchaser or the purchaser’s spouse may not have owned a residence during the three years prior to the purchase. The income limits are as follows, $125,000 annual income for a single purchaser and $225,000 annual income for a couple.

What should be your first step? The first step to purchase a new home should be to get pre-approved for the new mortgage. With credit guidelines becoming tighter, the sooner you begin this process the better off you will be. It is always better to start earlier than you planned on starting in case there is any unforeseen items on your credit that need to be cleared up.


You can apply for a FREE pre-approval from Bill Burress, Nationwide Mortgage Expert.

Bill Burress, Nationwide Mortgage Expert has over 28 years experience in the mortgage business . For information on getting pre-approved for a mortgage loan or any of your mortgage needs, You may contact Bill Burress, Nationwide Mortgage Expert at Toll Free 1-800-239-1416. or fill out the 30 Second Inquiry Form

Now originating mortgages and negotiating short sales in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington D.C., West Virginia, Wisconsin and Wyoming.

Copyright © 2009 - 2010 Bill Burress, Nationwide Mortgage Expert. All rights reserved worldwide.



Sources:
HR 3548
SA 2712 (Sec 11 is the applicable section)
IRS.gov/recovery

» Need to Refinance or Purchase A Home? It May Be Time For Credit Repair

Those who are trying to get approved for a mortgage may find themselves fighting an uphill battle. Not too long ago it seemed if you had a pulse you qualified for a mortgage. This no doubt contributed to the real estate bubble and collapse of the mortgage and financial markets. Now there are more being turned down for mortgages than being approved it seems. If you are sitting on the sidelines waiting for the credit guidelines to relax a bit before purchasing or refinancing your home, you really have a better chance of being struck by a meteor.


Being turned down for a mortgage loan due to a low FICO score may be remedied with sound credit repair techniques. Most in this situation should not attempt to repair their credit report on their own. I have seen too many cases where a borrower will shoot themselves in the foot by attempting to repair their own credit. The reason this happens is in credit reporting, logic does not always prevail. For example, a borrower may decide to close out a few credit cards they don’t use in order to raise the credit scores. This is the exact wrong move to make. Another mistake I have seen is when a borrower pays off all of their collections. This again, may lead to a large FICO score reduction. There are countless other mistakes a borrower can make while trying to repair their credit, despite their good intentions. A good credit restoration company can steer you away from the pitfalls of credit repair without costing you an arm and a leg.


If you are interested in having your credit repaired, give me a call and I can refer you to a reputable credit restoration company that does business in your area. They can answer any questions you may have and let you decide if it’s the right thing for you to do. The company’s I refer are not in it to make a quick buck. The people I work with in these companies truly care about the borrowers they help. I have heard their excitement when they get a score raised on all three bureaus. I have also heard their disappointment when they are trying to negotiate with an uncooperative creditor or lien holder.

Bill Burress, Nationwide Mortgage Expert has over 27 years experience in the mortgage business . For information on getting approved for a mortgage loan or any of your mortgage needs, You may contact Bill Burress, Nationwide Mortgage Expert at Toll Free 1-800-239-1416. or fill out the 30 Second Inquiry Form

Now originating mortgages and negotiating short sales in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington D.C., West Virginia, Wisconsin and Wyoming.

Copyright © 2009 - 2010 Bill Burress, Nationwide Mortgage Expert. All rights reserved worldwide.


Image by Free-StockPhotos.com

$8,000.00 First Time Home Buyers Tax Credit

First-Time Homebuyer Credit Questions and Answers: Basic Information

Q. What is the credit?

A. The first-time homebuyer credit is a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008. For homes purchased in 2008, the credit operates like an interest-free loan because it must be repaid over a 15-year period.

The credit was expanded in 2009 for homes purchased in 2009, increasing the amount of the credit and eliminating the requirement to repay the credit, unless the home ceases to be your principal residence within the 36-month period beginning on the purchase date.

Q. How much is the credit?

A. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 ($8,000 if you purchased your home in 2009) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $75,000 or more.

For more information on applying for the credit: 30 Second Inquiry Form




Q. Which home purchases qualify for the first-time homebuyer credit?

A. Any home purchased as the taxpayer’s principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before December 1, 2009, to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home.
Taxpayers (including spouse, if married) who owned a principal residence at any time during the three years prior to the date of purchase are not eligible for the credit. This means that you can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 or 2009 income tax return.

Q. Can I apply for the credit if I bought a vacation home or rental property?

A. No. Vacation homes and rental property do not qualify for this credit.

Q. Who is considered to be a first-time homebuyer?

A. Taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase.

Q. When do I have to buy a new home to get the credit?A. The home must be purchased after April 8, 2008, and before December 1, 2009, in order to obtain the credit. For a home you construct, the purchase date is considered to be the date you first occupy the home.

Q: How do I apply for the credit?

A: The credit is claimed on new IRS Form 5405 and filed with your 2008 or 2009 federal income tax return.


For more information on applying for the credit: 30 Second Inquiry Form


Q. Are there income limits?

A. Yes. The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income (MAGI). For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.

Q. I purchased a home that qualifies for the first-time homebuyer credit. I will be renting two of the bedrooms and reporting the rental income on Schedule E. Will I still qualify for the credit if I use the home as my principal residence?

A: Yes, if you meet all first-time homebuyer eligibility requirements. See Form 5405, First-Time Homebuyer Credit, for more details.

Q: If two unmarried people buy a house together, how do they determine how much each may take of the credit?


A: IRS Notice 2009-12 provides guidance for allocating the first-time homebuyer credit between taxpayers who are not married.

Q. I am a single co-owner of a home. How do I get this credit?

A. Depending on the year of purchase, you will claim the credit on either your 2008 or 2009 federal income tax return.

Q. I don’t owe taxes and/or my income is exempt from tax and I do not have a filing requirement. Do I qualify for the credit?

A. The credit is fully refundable and, if you qualify as a first-time homebuyer, having tax-exempt income will not preclude eligibility. Although there are maximum income limits for qualifying first-time homebuyers, there are no minimum income criteria. Thus, someone with no taxable income who qualifies as a first-time homebuyer may file for the sole purpose of claiming the credit for a refund.

Q. Does the first-time homebuyer credit apply to homes located in the U.S. Territories?

A. No.

Q. Would I be considered a first time homebuyer if I owned a principle residence outside of the United States within the previous three years?


A. Yes. A taxpayer who owned a principal residence outside of the United States within the last three years is not disqualified from taking the credit for a purchase within the United States.

For more information on applying for the credit: 30 Second Inquiry Form




Q. If qualified, are homebuyers required to claim the first-time homebuyer credit?

A. No.

Q. Who cannot take the credit?

A. If any of the following describe you, you cannot take the credit, even if you buy a new home:
• Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.
• You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
• You do not use the home as your principal residence.
• You sell your home before the end of the year.
• You are a nonresident alien.
• You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Bill Burress, Nationwide Mortgage Expert has over 27 years experience in the mortgage business . For information on getting approved for a mortgage loan or any of your mortgage needs, You may contact Bill Burress, Nationwide Mortgage Expert at Toll Free 1-800-239-1416. or fill out the 30 Second Inquiry Form

Now originating mortgages and modifying mortgage loans in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington D.C., West Virginia, Wisconsin and Wyoming.

Copyright © 2008 - 2009 Bill Burress, Nationwide Mortgage Expert. All rights reserved worldwide.

Source: http://www.irs.gov