Gary's Blog

Homestead Exemption Saves You Money

If you have not filed for a Homestead Exemption and own a home as your primary residence, you need to do so now!  It will save you a nice amount on your property tax bill.  I have included most metro-Atlanta counties wesites, deadlines, and phone numbers.  This only has to be done once and as long as you own the home as your primary residence in automatically renews each year.

Thank you to Realtor Karen Smyth for putting together this concise and valuable information.  Karen can be reached at www.karensmyth.com or at 404.234.1196.

FILING FOR HOMESTEAD EXEMPTION IN 2010

Homeowners may need to provide their Warranty Deed book and page, proof of residence, social security numbers, driver’s license and car tag info

Fulton County – deadline is April 1, 2010 404-612-6440

http://www.fultonassessor.org/Forms/HtmlFrame.aspx?mode=content/Exemptions.htm&taxyear=2007&ownseq=1&jur=&LMparent=180

DeKalb County – deadline is March 1, 2010 404-298-4000

http://web.co.dekalb.ga.us/taxcommissioner/index.asp?pg=homestead

Gwinnett County – deadline is March 1, 2010 770-822-8800

http://gwinnetttaxcommissioner.manatron.com/Tabs/Property/HomesteadExemption.aspx

Cobb County – deadline is April 1, 2010 770-528-8600

http://www.cobbtax.org/Forms/HtmlFrame.aspx?mode=content/Exemptions.htm&LMparent=189

Clayton County - deadline is April 1, 2010 770-477-3311

http://www.co.clayton.ga.us/tax_commissioner/exemptions.htm

Cherokee County – deadline is April 1, 2010 678-493-6122

http://www.cherokeega.com/departments/department_section.cfm?displaySection=Homestead%20Exemptions.txt&departmentid=30

Henry County – deadline is April 1, 2010 770-288-8180

http://www.co.henry.ga.us/taxcommissioner/PropertyTaxExemptions.shtml

Forsyth County – deadline is April 1, 2010 770-781-2106

http://www.qpublic.net/ga/forsyth/faq.html

Douglas County – deadline is April 1, 2010 770-920-7272

http://www.douglastaxcommissioner.com/

Fayette County – deadline is March 1, 2010 770-461-3652

http://www.fayettecountytaxcomm.com/HOMESTEA.html

Paulding County – deadline is April 1, 2010 770-443-7606

http://www.paulding.gov/index.aspx?NID=210

Happy Savings!

Gary Parkes

NorStar Mortgage Group

Gary@Georgiabankloan.com

T: 404-936-5601

HOME BUYER TAX CREDITS

Since I get a lot of questions about this subject I thought I would share a concise and clear breakdown of the two tax credits below.

$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 unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• 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.

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 unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• 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.

For more information or to see if you qualify please contact me today!

Gary Parkes

NorStar Mortgage Group

404-936-5601

Gary@GeorgiaBankLoan.com

Information brought to you by the National Association of Home Builders www.nahb.org

As we start a new year, the mortgage industry continues to change, almost daily. I wanted to dispel some common myths about mortgages in our current lending environment.

1. I have to have perfect credit to get a mortgage.

FALSE-You can qualify for a mortgage with a middle credit score a low as a 620.

2. I need to have a large down payment.

FALSE-For an FHA mortgage only 3.5% of the purchase price is required as a down payment. The down payment can even be a gift from a relative, close friend, employer, etc. In fact, you can buy a HUD Home with as little as $100 down! (A HUD home is one that HUD has foreclosed on and is trying to sell)

3. I have to be able to verify consistent income.

TRUE-The days of Stated Income, No Income, and No Ratio are gone. Income must be fully verifiable.

4. I must be employed.

FALSE-Those that are retired, on Social Security, Permanent Disability, or any other verifiable income are typically able to get mortgages as long as we can show the continuance of future income for at least three years.

5. The $8000 first time home buyer credit is expiring on 4/30/10.

TRUE and FALSE-Yes, 4/30/10 is the last day to be under contract to buy a home; however, you have until 6/30/10 to close and still be eligible to get the credit.

6. I have not owned a home the last three years and qualify for the $8000 first time home buyer credit.

TRUE-You are considered a first time home buyer if you have not owned or resided with a spouse who owned a primary residence in the last three years.

7. I am currently in a Chapter 13 Bankruptcy so I cannot get a mortgage.

FALSE-You can typically get a mortgage during your Chapter 13 repayment as long as you have made at least 12 months payments on time and you have permission from the court.

8. I filed a Chapter 7 Bankruptcy three years ago so I cannot get a mortgage.

FALSE-You would be eligible for a mortgage two years after your bankruptcy has been discharged.

9. I can qualify for a mortgage if at least three years has passed since I had a foreclosure.

TRUE

10. I cannot qualify on my own, but my Mother can be a co-signor.

TRUE-Your Mom can be a co-signor so long as her credit is satisfactory and her debt to income ratios are good. She would have to qualify via the same process of you. You would still be able to get the $8000 first time home buyer tax credit in this instance!!

Please let me know if you have any questions. I hope this post helps answers some myths and gives you hope for home ownership!

Gary Parkes, Sr. Loan Officer (NMLS #208721)

NorStar Mortgage Group

Gary@GeorgiaBankLoan.com

404-936-5601

Some great news worth sharing!

$8000 Tax Credit Can Be Used for Down Payment

This was just announced today so the logistics are not in place yet but I will give you more info as I know more. The Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment. Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, says. He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table. For more info visit http://www.realtor.org/RMODaily.nsf/pages/News2009051202?OpenDocument

$1800 Tax Credit signed by Governor Perdue

Governor Sonny Perdue Monday signed House Bill 261, which provides a $1,800 tax credit for home purchases. The credit, which would be taken over three years, takes effect immediately and is meant to spur activity in the housing market. The bill provides an income tax credit for the purchase of a single family residence during the next six months. The amount of the credit will be the lesser of $1,800 or 1.2 percent of the purchase price. A taxpayer may claim one-third of the credit available in each taxable year, and may carry forward unclaimed amounts. The state credit is available to all buyers(investor too) for six months.

Gary Parkes

NorStar Mortgage Group

T: 404-936-5601

F: 404-806-3838

http://www.GeorgiaBankLoan.com

Your referrals are much more than business to me, they're the highest compliment I can ever receive! Thank you in advance for your confidence!

30-YEAR FIXED TIES RECORD LOW REACHED EARLIER IN APRIL

McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78 percent with an average 0.7 point for the week ending April 30, 2009, down from last week when it averaged 4.80 percent.  It has never been recorded lower in Freddie Mac's survey, which goes back to 1970.

The 15-year FRM this week averaged 4.48 percent with an average 0.7 point, unchanged for the third week in a row. This is tied with the last two weeks for the lowest the 15-year FRM has been since Freddie Mac began tracking it in August 1991.

"Rates for fixed-rate mortgages hovered at record lows this week as ARM rates eased further," said Frank Nothaft, Freddie Mac vice president and chief economist. "Mortgage rates for 30-year fixed rate mortgages, the most popular loan among homebuyers and families seeking to refinance, are more than 1.6 percentage points below the recent peak set at the end of October 2008. For a $200,000 loan, this means a monthly savings of almost $212 in mortgage payments or over $2,500 per year. In aggregate, borrowers who refinanced during the first quarter reduced their mortgage payments by about $2.5 billion over the coming year.

"The housing market may be edging towards a bottom. Existing home sales stayed near its four-month average in March while new home sales were stronger than the market consensus. More importantly, the inventory of unsold new homes fell to the lowest number since January 2002. And, the S&P/Case-Shiller® 20-city composite index did not show a record year-over-year decline in February for the first time since December 2006. Finally, housing affordability hit record highs in the first quarter of this year, according to figures from the National Association of Realtors, which date back to January 1971."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

Article taken from www.freddiemac.com

For more information please contact:

Gary Parkes

NorStar Mortgage Group

404-936-5601

A lot of people want to know about this great incentive!  Here are the basics.  Contact me today to get pre-approved and take advantage of this unique opportunity!

$8,000 Home Buyer Tax Credit at a Glance

• The 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 credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

For more information visit www.federalhousingtaxcredit.com or contact me at:

Gary Parkes

NorStar Mortgage Group

404-936-5601

Gary@GeorgiaBankLoan.com

President Obama announced a new plan today to help homeowners who currently owe more than their house is worth.  One of the best points announced is that you do not need to be delinquent to qualify.  The guidelines/rules are set to be published March 4th and I will have more details as they come available.

Over the last several months I have been unable to help many people due to the appraised value of their homes.  This may be changing and we may want to revisit the options once these new guidelines are announced.  Stay tuned and feel free to check in with me.  I will work my hardest to get everyone taken care of as quickly as possible.

To quote an AP article from today:

Another key component would specifically help those said to be "under water" -- with dwellings whose market value have sunk below the principal still owed on the mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 million to 5 million families do just that -- if their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac.

Housing Secretary Shaun Donovan stressed that homeowners don't need to be delinquent in order to get help.

"This is necessary policy. It's smart economics. And it's just and fair," Treasury Secretary Timothy Geithner told reporters.

And he said relief would be almost instantaneous, basically as soon as . "You'll start to see the effects quite quickly", Geithner said.

Finally some great news for investors!!  You will once again be able to finance more than four properties.  I have included the Fannie Mae announcement from earlier today.  If you are looking to buy or refinance, please let me know and I can assess your options!    

Gary Parkes

www.GeorgiaBankLoan.com

404-936-5601

Multiple Mortgages to the Same Borrower
To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower. We will allow five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70-75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower's other mortgages.

Second home and investment property loans to borrowers with five to ten financed properties will be accepted for whole loan purchase or delivery to Fannie Mae with purchase dates on or after March 1, 2009.

Reserves Definition and Policy Requirements
We also are updating our definition of liquid financial reserves to include all components of the monthly housing expense - which will now be known as PITIA - including homeowners' association dues, special assessments, ground rents, and subordinate financing payments.