Prices are low. According to the The Arizona Regional Multiple Listing Service (ARMLS) the median priced single family resale home sold for $127,000.00 from January 2009 through September 2009. For the same period in the 2008 the median price was $205,900.00. By the way the peak median price resale home was $253,418.00 in May 2006 according The Cromfort Report.
The Basics: Extended Home Buyer Tax Credit 2009/2010.
Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.
Who Qualifies for the Extended Credit?
First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
If you purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000. The maximum allowable credit for current homeowners is $6,500.
How is a Buyer's Credit Amount Determined?
Each home buyer’s tax credit is determined by tow additional factors:
1. The price of the home. 2. The buyer's income.
Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
Source: REALTOR.ORG
Down Payment Help. But wait there’s more! The State of Arizona, the City of Phoenix and Non Profit Organizations have down payment assistance programs. You do not have to be a first time homebuyer for some of these programs.
State - 22% down payment assistance. The state Your Way Home AZ program provides 22 percent of a home’s purchase price for eligible Arizonans, provided the home has been foreclosure upon. You must commit at least 1% of the purchase price from your own moneys. This assistance will be in the form of a differed second mortgage loan with zero percent interest, no monthly payment and the opportunity to be forgivable after a period of time. This type of loan is commonly referred to as a” Silent Second.” To learn more click here.
Phoenix. The city of Phoenix has kicked off their first Neighborhood Stabilization Program, "Homeownership Assistance" assisting buyers of foreclosed homes, townhouses or condominiums with $15,000 in down payment and closing cost assistance. The full amount of the loan is paid back to the city when the homebuyer sells the home or refinances. And you only have to invest $1,000 from your own moneys. To learn more click here.
Neighborhood Housing Services of Phoenix (A Non Profit Organization).
The HOME Down Payment Initiative program features down payment assistance up to $40,000. You only have to invest $1,000 from your own moneys. This program is for the first time homebuyer. And the property must be located in City of Phoenix. To learn more click here.
Bank Programs. In addition to the above programs some banks have special programs can make owning a home easier. Some of these programs feature:
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Easier qualification than traditional mortgages
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Credit requirements that are less stringent
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Low down payments
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Closing cost assistance
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Affordable monthly payments
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No mortgage insurance
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High loan to value
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Repair money
Not all banks have all of these features.
