Best Elementary Schools: The Rankings - Chicago magazine - October 2010 - Chicago

Best Elementary Schools: The Rankings - Chicago magazine - October 2010 - Chicago

What you need to file for the Taxpayer Credit

IRS Clarifies What's Needed to Claim Tax Credit
The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.

While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.

The IRS clarification says: "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”

For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

Source: Washington Post (02/20/2010)

Bungalow Mania ? Maybe just some good home improvement tips.

If your mad about bungalows you should read up on this years calendar of events for restoring, improving and making your home more energy efficient at the Historic Chicago Bungalow Association. A lot of these ideas will apply homes that were built 40-100 years ago even if they not a bungalow. For those of your with certified historic bungalows don't pass up on grant and cash savings when improving your home.

http://www.chicagobungalow.org/pages/calendar_of_events/18.php

How would you like getting tax money back? :-)

If you own a home and you live in Chicago then you need to go get your property tax relief funds. The are of course other rules you must meet. Go here check the rules and see if you can get the maximum of $200. All that it requires is filling out a form and copying your state and tax bill. This better than free money...it's money recovered.

http://webapps.cityofchicago.org/PropertyTaxReliefWeb/

The times are a changin!

Read this article about the new changes FHA loans are facing. This will create new hurdles for buyers to clear. That means a tougher time for sellers to close their home sale. According to the article FHA loans make up approximately 40% of the loans written, this from a former HUD official.

http://www.nytimes.com/2010/01/20/business/20home.html?ref=todayspaper

Top Reasons to List your home Now

Typically the Chicago Spring real estate market starts after Super Bowl Weekend, during this time the amount of inventory and buyer traffic begins its seasonal upswing. However, the last few years have been anything but typical and we are recommending to our clients that the time to list will be sooner than in previous years. We see a few factors that will affect the ability to purchase and sell a home this year.

Our top three concerns for our buyers and sellers in first half 2010 are:

1. Federal Reserve $1.25 trillion mortgage-backed securities purchase program will end at the end of March.

a. How this impact our clients: prior to the financial crisis mortgage-backed securities were an attractive investment option for large scale investment houses which helped keep rates low. Now that the government will stop purchasing mortgages the anticipation is that rates may climb to 6%.

2. The Federal Housing Administration will tighten underwriting standards in April.

a. How this impact our clients: there is discussion that the FHA may require buyers to bring more cash to the closing, raise minimum credit scores for qualification, and reduce seller contributions by half. This will result in fewer buyers qualifying for a loan.

3. The End of the Housing Stimulus Package.

a. Those who qualify for a tax credit will need to be under contract by April 30^th and close by June 30^th in order receive their tax credit.

We think it is wise to take advantage of this opportunity to list sooner than later before some of the changes in policy and rules could limit a buyer’s ability to purchase a home and raise inventory levels of properties on the market.

Closing an FHA loan before the tax credit runs out

If you're buying and you're thinking of new construction, FHA loan, and closing in time for the federal tax credit...please consider the following. Today is October 19, 2009, that means you have 28 business days before COB November 30th. With a push for closings to receive the tax credit, everything will take longer, turn around for the appraisers will increase, underwriting times will increase. Consider a recent transaction for an FHA buyer that I worked with. I explained to him up front that my previous 6 transactions with an FHA backed loan failed to close on time. The average days past the closing day...4. For our transaction the his loan languished in underwriting for 18 business days and the appraisal turn around was 6 business days. 6 + 18 = 24...28 - 24 =4. That's right if I put him into a contract today, he likely would not close by the end of business on November 30. On three transactions this year, I was the listing agent for all three, the lender's project closing costs were off, forcing the new mandatory 72 waiting period. 4- 3=1 day. Cutting it close. When your considering who represents you as a realtor, lender, and lawyer. It imperative you ask good questions. Interview before you hire. If your considering buying with an FHA loan and closing by November 30th, be prepared to miss the tax credit unless the congress extends the credit.