The Tax Credit Has Been Extended

RISMEDIA, November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.


The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee.

The tax credit has fired-up the housing market, driving existing home sales to the highest level in over two years. The National Association Realtors reported sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2% higher than the 5.10 million-unit pace in September 2008.

How To Protect Your Mortgage Payment Agains Job Loss

The car manufacturers are doing it now, so why can't we do it with a mortgage? What am I talking about? You hear just about every car manufacturer has payment protection policy against the car, such as if you lose your job, we'll make your payment for 3 months.

I am exited to have this same concept applied to mortgage loans. We have put together a program called "The Worry Free Mortgage". This program does exactly that. Our program will make your mortgage payment for up to 6 months in the event that you lose your job. I see this as such a huge thing right now because it's what is on consumer's minds.

Here are a few highlights:

Mortgage Protection - In the event that you were to lose your job within 1 year after buying a home, this would cover your entire mortgage payment up to $1,800 per month for 6 months. It comes in 1 year and 2 year coverages and is renewable. This ensures that if you lose your job, you will not lose your home.

Rainy Day Program - There are many home buyers who during their first year or so of home ownership encounter short-term financial difficulties. These challenges often lead to early defaults or delinquencies. Suddenly the dream of home ownership is not as fulfilling as once thought. This is where the Rainy Day Program comes in to play. In short, the Rainy Day Program is a safety net for homeowners. If the homeowner experiences an unexpected financial emergency, the Rainy Day Program may provide gift funds to be used for the express purpose of making a mortgage payment. (Examples of items that will be covered are unexpected medical expenses, protection for various short-term disabilities, unusually high car repair bills, catastrophic events, or other major financial events)

Early Delinquency Counseling - This is a positive approach to provide assistance to well-intended homeowners who have nonetheless demonstrated difficulty in making the monthly mortgage payments. A counselor will determine the reason the existing delinquency and work with the individual borrowers, analyzing their overall financial situation and the probability of continued financial difficulty. The goal of this program is to provide borrowers with the opportunity to review their entire financial situation, develop a successful budget, create capacity for regaining financial control and secure financial assistance.

This program does have to be set up with the mortgage initially during a purchase or refinance. We are trying to make this a standard benefit for all of our customers. If you would like to find out more about The Worry Free Mortgage, call me at 972-270-8100.