I am excited to share with you some great new programs that are assisting homebuyers in the purchase of their home. Please take some time to read the information below and feel free to call me with any questions!!

Clearfield City Down Payment Program – Ends December 31, 2008

This grant program will assist qualified first time home buyers with a maximum grant amount of $5000 to assist with closing costs or down payment.  The home must be located in Clearfield City and must be owner occupied.  The Davis Community Housing Authority will be administering Clearfield City’s Down Payment Assistance funds.  You can access the entire guidelines document at http://www.webernorthdavisrealtors.com/members.html.

Own In Ogden

This program is an Ogden City program designed to increase home ownership in specific targeted neighborhoods.  Persons buying primary residence homes in the overall Own in Ogden target area can qualify for a $3000 zero interest, deferred payment, declining loan to assist with that purchase.  Specified target neighborhoods receive $5000 loans.  Income qualified, sworn Ogden City Police Officers and Ogden City Fire Fighters receive $10,000 loans when buying a primary residence within the overall target area.  To view the entire program guidelines go to www.WNDAR.com on the front page, right navigator there is a link.

For most homeowners, each month means another mortgage payment. However, it may be prudent to consider a slight alteration to the routine. By adding just one extra payment a year, borrowers can cut thousands of dollars in interest and shave several years off the life of their loan.

Depending on your situation, paying your mortgage off early can reap tremendous benefits. Whether it is paying more now to preserve your retirement funds or simply reducing the amount of interest you pay over time, there is likely a way for you to significantly benefit.

If your ultimate dream is to pay off your home mortgage, consider your options. Take a realistic look at your current financial situation. The most important thing to do is reduce your debt. Once accomplished, consider the many ways to accelerate your mortgage payoff.

Pay Biweekly

Splitting up biweekly payments allows you to make 26 payments (one extra full payment) a year, which gets you closer to paying off your mortgage.

Make One Additional Payment Each Year

Transfer your biweekly payment into a separate account, and then withdraw your monthly payment from the same account. Gradually, an additional monthly payment will accrue, plus you will earn interest on the account.

Keep Your Eye On The Ball

Squeeze any additional money that may fall your way (work bonus or tax refund) toward your goal of paying off your mortgage. Be sure to specify that the payment is to be applied to the principal, not future payments.

Be There Before You Know It

Every little bit helps. Paying an additional $20 per month on a $100,000 loan at 6.5% interest will save you $13,000 over the course of your loan. Be serious about your goal. It is achievable with wise financial planning

Have a Heavenly Day!™

Angel

I have received such great feedback on the information we sent you last month. I have also been asked quite a few questions in regards to the first-time home buyers credit that has been offered in the Housing and Economic Recovery Act. In response, I have contacted various resources available to me in order to get the best answers for my clients.

The Housing and Economic Recovery Act of 2008 authorizes $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009. These questions and answers provide basic information about the tax credit

1. Who is eligible to claim the $7,500 tax credit?

First time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

2. What is the definition of a first-time homebuyer?

The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.

3. What types of homes will qualify for the tax credit?

Any home purchased by an eligible first-time home buyer will qualify for the credit, provided the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached

homes like townhouses, and condominiums.

4. Instead of buying a new home from a home builder, I’ve hired a contractor to build a home on a lot I already own. Do I qualify for the tax credit?

Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy

must be on or after April 9, 2008 and before July 1, 2009. In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

5. Can you give me an example of how the partial tax credit is determined?

As an example, assume a married couple has a modified adjusted gross income of $160,000. The applicable phase out to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time

home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.

6. Does the credit amount differ based on tax filing status?

No. In general, the credit is equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as “married filing separately” (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

7. I heard that the tax credit is refundable. What does that mean?

This means the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit. For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Supposing the taxpayer qualifies for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

8. What is the difference between a tax credit and a tax deduction?

A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS. A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer’s tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.

9. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?

No. The tax credit cannot be combined with the MRB home buyer program.

10. I am not a U.S. citizen. Can I claim the tax credit?

Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication519.

11. Will I be required to pay back to the government? If so, what are the payback provisions?

Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making

repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

12. Why must the money be repaid?

Congress’ intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

13. Because the money must be repaid, isn’t the first time home buyer program really a zero-interest loan rather than a traditional tax credit?

Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through

a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

14. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?

Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed

(tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

15. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009?

Yes. If the applicable income phase out would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

It is that time of year again! We here at Sold By An Angel Real Estate® want to help ensure the safety of your family during this time. Please take a moment to read through the safety tips offered here:

When you drop off your child at school, use this checklist to make sure these hidden hazards aren’t waiting to cause injury or death.

1. Drawstrings on Jackets and Sweatshirts — There should be no drawstrings on hoods or around the neck. Drawstrings at the waist or bottom of jackets should extend no more than 3 inches to prevent catching in car and school bus doors or getting caught on playground equipment.
2. Loops on Window Blind Cords — Cut the loop and attach separate tassels to prevent entanglement and strangulation in window blind cords. One child a month strangles and dies in the loop of a window blind pull cord or inner cord. Keep cords out of childrens’ reach. Install cord stops to prevent formation of loop in inner cord.
3. Bike Helmets — Buy a helmet that meets one of the safety standards (U.S. CPSC, Snell, ANSI, ASTM, or Canadian), and insist that your children wear the helmet each time they ride their bike. About 900 people, including more than 200 children, are killed annually in bicycle-related incidents, and about 60 percent of these deaths involve a head injury. More than 500,000 people are treated annually in U.S. hospital emergency rooms for bicycle-related injuries. Research indicates that a helmet can reduce the risk of head injury by up to 85 percent.
4. Soccer Goals — Make sure that the athletic director or the custodian anchors the soccer goals into the ground so that the soccer goal will not tip over and crush a child.
5. Playgrounds — Check the surfaces around playground equipment at schools and parks to make sure there is a 12-inch depth of wood chips, mulch, sand, or pea gravel, or mats made of safety-tested rubber or fiber material to prevent head injury when a child falls. Each year, more than 200,000 children go to U.S. hospital emergency rooms with injuries associated with playground equipment. Most injuries occur when a child falls from the equipment onto the ground.
6. Recalled Products — Make sure your child’s school has up-to-date information on recalled toys and children’s products. Schools, daycare providers, and parents can receive recall information by e-mail, or in the regular mail free of charge by calling the CPSC hotline, or writing to the U.S. Consumer Product Safety Commission, Washington, D.C. 20207.

Stay safe and have a great new school year!

Have a Heavenly Day™

Angel

The Utah Association of REALTORS® has sent this exciting information to me about mortgage financing that I wanted to share with you!

President Bush signed the Housing and Economic Recovery Act of 2008 Wednesday, a bill that will assist an estimated 400,000 homeowners facing foreclosure by allowing them to refinance their current mortgages with a Federal Housing Administration-backed loan. The bill also permanently increases the conforming loan limit to as high as $625,500.

“One of the biggest reasons we’ve seen a slowdown in home sales is because buyers are having difficulty obtaining mortgage funds. That’s why this bill is significant: It increases the access to affordable, stable mortgages,” said Chris Sloan, president-elect of the Utah Association of REALTORS®.

The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008. 

Another part of the bill includes a temporary tax credit for first-time home buyers of up to $7,500 for those who purchase between April 9, 2008, and July 1, 2009. This credit is available to anyone buying their first house or anyone who has not owned in three years. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full credit. A home is eligible for the credit if it is any residence that will be used as a primary residence (single-family, townhouse, condo, etc.)

For more detailed information about the bill and the tax credit, visit www.Realtor.org or click here. Another Web site, www.federalhousingtaxcredit.com, also provides information about the tax credit.

Have a Heavenly Day!™

Angel

The Salt Lake Board of REALTORS® has just announced the foreclosure statistic rates for subprime loans. I thought I would share this information with you.

In Utah, the subprime loan foreclosure rate at the end of the first quarter was 4.84 percent. This figure is well below the United States subprime loan foreclosure rate of 10.74 percent. This means that 95% of Utah’s subprime loans are NOT in foreclosure!

This information continues to show that Utah’s families are not affected similarly as others are across the country. Utah is still a great state and a wonderful place to call home. It is my goal that everyone has the opportunity to achieve the American dream of homeownership.

If you know of anyone who is interested in moving but may be hesitant due to financing, please contact me at 801-390-8015. I have several dedicated lending partners that I can refer your friends and family to that can provide them with valuable, real-time, market information to help everyone attain the goal of home ownership!

Recently I was purchasing gas. I did the usual routine, got out, paid, started pumping, and returned to my car. When the gas was finished pumping I started to get out of my car to remove the nozzle and be on my way. It was then that a gentleman told me to stay seated, that he would remove the nozzle for me. He did so and then went on his way.

It was this one little act of kindness that made such an impression on me. How many times could we do just one little act of kindness to show truly “Heavenly Service”. I went on my way that day with a solid reassurance that kindness and chivalry are not dead.

The mere small act of removing my gas nozzle put me on cloud nine for the rest of the day!

Have a Heavenly Day!™

Angel

The latest OFHEO report states that Utah had the second highest appreciation rate of 5.6% with Wyoming experiencing the first highest appreciation rate at 6.3%. Additionally, Provo/Orem finished sixth in the United States of the highest city appreciation and Ogden/Provo came in at the ninth position.

Our great state of Utah continues to prove to be a great real estate investment for home owners and investors!

For more information, please feel free to call me directly at 801-390-8015

Have a Heavenly Day! ™

Angel

Many of my clients have been asking me about the list to sales price ratio. We are finding that even in today’s market we are receiving multiple offers on some of our listings. Price and condition are critical.

With an eye to the market, Sellers are finding it necessary to make course corrections. As we monitor the other homes that have sold, sellers are adjusting their price position accordingly.

Once the appropriate market adjustment has been made, the local market is seeing an average of 94% – 102% list to sales price ratio.

Sold By An Angel Real Estate’s current average days on the market for our listings is 38.7.

If you or someone you know is considering making a move, please call me at 801-390-8015 and I will be happy to take great care of them!

Have a Heavenly Day!™

Angelina