Guest Post by:
James Kelley blogs on veteran’s issues, real estate and finance across American markets at VA Benefit Blog .He also works with VA Mortgage Center, proudly serving American military families as a leading national VA lender.

Due to new, stringent practices many lenders have implemented since the credit crisis of 2008, many veterans are finding it harder and harder to get VA loans for their new home. But the news isn’t all bad for America’s servicemen and women.
For first time military homebuyers who have been abroad, good news actually awaits: they still have a full year to qualify for up to an $8,000 tax credit when buying a home. The deadline has passed for all other homebuyers except U.S. military members who have served overseas for at least 90 days sometime between Jan. 1, 2009 and May 1, 2010 – this tax credit has been extended specifically to account for their being away and unable to look for a home. If you or your spouse served abroad between those dates, don’t pass up this opportunity as you look for your new Oregon home.

To qualify for the full $8,000 tax credit, you must also be considered a first-time homebuyer. This means that you are looking to buy your first primary residence of the past three years. If you are considered a long-time resident – meaning that you’ve owned and lived in the same house for five of the past eight years – you can qualify for up to $6,500 in credit. Other requirements include:

• Home purchases cannot exceed $800,000
• Incomes filed jointly (you and your spouse) cannot exceed $225,000
• Single-filed incomes cannot exceed $125,000

Some allowances may be made on a case-by-case basis for some veterans who are above the annual income requirements

The credit extension lasts until April 30, 2011 for you to put a house under contract and until June 30, 2011 for you to close all purchases. Finally, some veterans have been concerned that they may lose the credit if they are forced to move from their new home due to redeployment. However, the Internal Revenue Service has exempted those who are redeployed from having to repay the credit.

And, while it has become harder to obtain, veterans still have the opportunity to couple their tax credit with VA financing. If you’re looking to finally own your own Oregon home, you ought to take advantage of this opportunity as soon as possible. Contact an agent or lender today and take the first step toward owning your own home.

I am amazed at how many people are totally unaware of what the tax credit is and how helpful it can be to a home buyer. The current home buyer tax credit does not just benefit the first time home buyer but any homebuyer.

Below is a quick list of qualifications for the home buyer tax credit.

1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.

2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.

3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.

4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.

5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250. The maximum credit for first-time homeowners is $8,000 (up to $4,000 for married filing separately).

6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.

7. The IRS will issue a revised Form 5405 to claim this credit on 2009 tax returns. The revised form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.

8. Homebuyers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return. For homes purchased in 2009 there is an option to take the credit on an original or amended 2008 tax return.

9. The new law includes documentation requirements. See revised Form 5405 for details.

10. No credit is available if the purchase price of the home exceeds $800,000.

11. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.

12. A dependent is not eligible to claim the credit.

These qualifications are taken directly from the IRS website and the publication is referenced with a link at the bottom of this post.

One of the things that is misunderstood is that any buyer qualifies obviously that is not necessarily the truth.  Another is that you must close by April 30th – note it says be under contract – this means an accepted offer – with all parties agreeing to the terms of the contract.  If you are looking to purchase a short sale you may not have enough time to close escrow as you are at a the mercy of a third party to agree to the transaction.

IRS Publication 4819

So, you are starting to look for a new home and you find bank owned homes to be the most affordable!  So do a lot of other buyers, many times even in “this market” we are finding the bank owned home priced so well that there are multiple offers.

Homes you can expect a multiple offer situation is the home that is clean, not stripped of it’s fixtures and ready to move into.  So, how do you insure you are the winning offer on one of these properties?

1. Know the market – and make an offer that is reasonable.  If you are asking the bank to pay your closing costs, you may need to make your offer closer to the list price or possibly higher than list price.  Most banks are willing to pay up to 3% of the purchase price in closing costs, however if you are in a multiple offer situation you may want to formulate your offer so this is off set in the purchase price.
2. Apply for your loan ahead of time.  Most banks will ask for a pre-qualification letter (prequal) with the offer.  Having a good relationship with your lender will make getting this ahead of time or at the time of the offer much quicker.  If you plan to purchase with cash, the bank will want proof that you have these funds available.
3. Inspection – be sure you have a home inspection, many of these homes have sat vacant for some time prior to going on the market.  Many of the deficiencies of the home may not be as obvious as they would be if the home was occupied.
4. Make sure you have your own agent.  The bank has their agent, and using their agent will not get you a better price.  You deserve to have someone on your side and watching out for your best interests.

As a Certified Distress Property Expert, I am happy to help you purchase a bank owned home, short sale and even a standard resale property.  Real Estate is a crazy world, let me help you make it through the process without the stress.

Many buyers were anxious to find the perfect home in time to close escrow by November 30, 2009 so that they could take advantage of the $8000 (or 10% which ever was less) tax credit being offered to first time home buyers. 

I know a few of my buyers worked hard to get approved for a loan, only to find that the homes they had an interest in were flying off the shelves because they were priced well and the market is improving.

Today our President signed the bill that not only extends unemployment but also the First Time Home Buyer’s TAX credit.  There are also revisions that may make a few other buyers very happy. First of all, the income qualifications have increased, the time has extended and this is not a loan.  Keep in mind it is a TAX CREDIT though.

Another Credit

There is another credit that was included in the bill today and that credit is a little tougher for buyers to fall into place but if you do there could be up to $6,500 in a credit for you.  The basic to qualify is you have to have owned a home for 5 consecutive years of the last 8 years.  You have to be in escrow between today November 7, 2009 and April 30, 2010, but you can close escrow as late as June 30, 2010.  My guess is there will be a lot of confusion over this I would strongly suggest talking to your tax advisor and checking the IRS website at www.irs.gov as this progresses.

I remember when Gilchrist was known to us locals as Brown Town.  The entire town was once owned by the Gilchrist Timber Company and painted the same brown that the mill was.  The homes currently there were mostly built in 1938 and 1939 for the mill workers. 

The family owned mill created jobs for the local residents of Central Oregon.  In 1998 the homes of Gilchrist were sold to the residents and investors.  Ending an era of a Mill owned town.  Today, Gilchrist is a quiet small town with great opportunities for the outdoor enthusiast. 

This week the mill now owned by Interfor Pacific has announced that there will be 70 jobs in mid July and possibly 65 more jobs in the near future if business keeps improving.  It is rumored that the mill will be starting production on some specialty items.  In the times we are currently facing adding to your product line may very well give this quiet community the boost it needs.

I personally have fallen in love with this town and the immediate area.  If you are looking for a home or second home near Crescent Lake, Odell Lake or just want to be where you can get away from it all Gilchrist may be the place for you.

Here are just a couple of the homes currently for sale in Gilchrist – click the arrow to see these great homes that back up to miles of timberland, each has been updated and offer a great home for the price.  Now is the time to take a serious look at Gilchrist Real Estate.