We have certainly seen a number of buyers take avantage of the First Time Home Buyer credit that expires on November 30 in the Bennington VT real estate market.

The new legislation recently passed includes a First Time Home Buyer credit and a Repeat Buyer credit.

Of course, this causes those looking in the Bennington Vt real estate market to ask questions, and I can’t blame them, becuase it can all seem so confusing.

Here is an example of a question that was received by a local Mortgage Officer, who sent it along to educate us all:

We have certainly seen a little up-tick in activity over the past few weeks in the Bennington VT real estate market.  This article from the National Association of Realtors gives a more macro view of the national real estate market.

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Driven by the home buyer tax credit, existing-home sales showed another big gain in October with a strong uptrend established over the past seven months, according to the NATIONAL ASSOCIATION OF REALTORS®. At the same time, inventories have continued to decline.

Existing-home sales—including single-family, townhomes, condominiums and co-ops—surged 10.1 percent to a seasonally adjusted annual rate of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, and are 23.5 percent above the 4.94 million-unit level in October 2008. Sales activity is at the highest pace since February 2007 when it hit 6.55 million.

Tax Credit Fuels Surge (more…)

Confused about the Home Buyer Tax Credit?  You’re not alone.  Here is a video to help explain it further.  This is important information for you to have if you’re looking for a home in the Bennington Vt real estate market.

Home Buyer Tax Credit Explained

Home sales are up around the country, according to the latest survey by the National Association of Realtors®. Sales of existing homes, including single family homes and condos, increased 11.4% in the third quarter. And it could be the extended tax credit had something to do with it.

 The $8000 credit will continue to be in effect until June 2010. Homebuyers must sign contracts before April 30 and close by June 30. And there’s more good news: single buyers can earn up to $125,000 (married couples can earn $225,000) and still qualify.

“Extending and expanding the tax credit to more buyers through the middle of next year is the right medicine,” said Charles McMillan, president of the NAR. “Congress understands the impact of housing on the economy, so consumers who aren’t able to complete a transaction before the end of this month now have a second chance.”

Call Troy Richardson to start looking for your new Bennington, Vermont real estate!

The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer’s credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.

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HomeSteps “SmartBuy” expiring Oct. 30 Offers 2-Year Comprehensive Home Warranty

MCLEAN, Va., Oct. 5 /PRNewswire-FirstCall/ — Freddie Mac (NYSE: FRE) today reminded homebuyers they have less than a month left to take advantage of Freddie Mac’s offer to pay up to 3.5 percent of the buyer’s closing costs when they buy a single family HomeSteps® home as their primary residence under HomeSteps “SmartBuy.”
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Young people just starting to invest and buying their first homes are potentially the winners in this recession.

First-time homebuyers, most between the ages of 25 and 45, accounted for about 45 percent of home sales from January through July 2009, according to the National Association of REALTORS®
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Your real estate agent may not write your home loan, but that’s who will probably be there when you begin discussing mortgage options.  Knowing some of the nuts and bolts before you start your home search can help you find the right loan.

Factors affecting your terms are the amount, the length of the loan, and the loan-to-value ratio (how much of the home’s value you are financing).  Larger loans carry more risk to the lender, so the interest rate may be higher.

Similarly, a smaller down payment represents more risk, possibly warranting a higher interest rate.  Get the best rate by putting down as close to 20% as possible.

The difference between a 15- and 30-year loan is also critical.  Payments for a shorter term will be larger, but you’ll build equity much faster, and enjoy a slightly lower interest rate.

Also understand the workings of an adjustable rate mortgage (ARM).  You need to be fully prepared for what may happen to your payments after the first adjustment.  However, something like a 5/1 ARM (a fixed rate for five years and an adjustment each year thereafter), could be a good idea if you’re buying your first home and don’t plan to stay longer than five years.

Discuss your hopes and objectives with an agent, who can help guide you down the road to homeownership.  Troy Richardson always recommends that you work with a local mortgage professional who can guide you to the correct mortgage for your personal situation.
Bennington Vt, Buying, Mortgages, First Time Buyers

Troy Richardson of RE/MAX Maple Leaf Realty can assist you with more information on the FIrst Time Homebuyer Tax Credit of up to $8,000. when you purchase a home and close on the transaction on or before November 30, 2009.

Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.

Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit. He was quoted by the Las Vegas Sun saying, “It’s something we can get done.”

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren’t as good, observers say.

Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)

Bennington VT, Buying, First Time Buyers