Over the New Year‘s holiday weekend, much of the housing commentary was about when and if the recovery will happen. What factors will help and what will deter this recovery is yet to be seen. A few guesses will be employment, interest rates and availability of money. The mortgage industry and upcoming changes will also have great affects on housing.

One thing that might have a positive affect is the extension of the Homebuyer Tax Credit.  May I remind potential home buyers and their professionals, that the tax credit is not a reason to buy a home but a benefit for being ready to buy one now. Much of the chatter and advertising about the tax credit being a great reason to buy a home now or that it is a catalyst for fueling the market is false fluff.  An advertisement stating that “this house comes with $8,000” is the same as past ads for “no money down”! Not a good idea!

A few high points for those that are ready willing and able to buy a home before April 30th, 2010:

• First time homebuyer tax credit of $8,000 ($4,000 for married couples filing separately) First time buyers must not have has an interest in a primary residence for the past three years
• Current home owners’ credit of $6,500 ($3,250 married filing separately) must have used the previous home as a principal residence for 5 of the 8 previous years
• Income limits are $125,000 for single buyer and $225,000 married couple
• The maximum cap on the home purchase price is $800,000

A few other tidbits:

• A written contract must be fully executed and binding by April 30, 2010 but the transaction can close up to July 1, 2010
• Proof of purchase must be attached to 2010 tax returns
• There probably will not be any extension after April 30, 2010
• The credit cannot be used as a credit towards the purchase price or closing costs

Remember to ask your legal and tax professional if you qualify for this tax credit. 

Note: This is my first entry of the New Year! Yes, I had been lax on blogging at the end of December! There has been not much in the way of changes in December but tons of new mortgage rules and regulations are coming January and into the first quarter. In preparation of this, we created a brand new site and have been working diligently through the month on it. I am hoping to launch it the second week January full speed. In addition, the new semester at NYU begins for the 20 Hour Mortgage Loan Originator S.A.F.E. Comprehensive Course in February.  This has taken hours upon hours of preparation and basically took over my holiday break. So you see, I have not been dodging my responsibilities and trekking in China this year! Onward to a happy and a healthy new year to all!