Top 5 Ways To Give This Christmas Season

Top 5 Ways To Give This Christmas Season

Nothing is as satisfying as extending your hand to help someone in need and bringing that person new hope and joy. This Christmas year, take a few moments of your time, a few dollars from your bank account, a little bit of love and change someone's life. Here's 5 ways you can make that happen:

1. Mat-Su Family Promise - An incredible non-profit dedicated to helping homeless families get back on their feet.
www.familypromisematsu.org

2. HeartReach Pregnancy Center - A local loving resource center dedicated to the care & support of struggling mothers and pregnant women.
www.heartreachalaska.com


3. Carry The Cure - Through innovative, creative, & unique workshops & events, Carry the Cure is dedicated to the eradication of Alaska youth suicide and substance abuse.
www.carrythecure.org

4. Feed The Children - a relief organization that delivers food, medicine & other necessities to children who lack these essentials due to famine, war, poverty or natural disaster.
www.feedthechildren.org

5. Heifer International - A fascinating organization who fights world hunger by providing families with sustainable tools and resources to survive.
www.heifer.org

The Salmans Group has researched and supports all the above organizations.

WASHINGTON - The Federal Reserve has decided to hold interest rates at a record low and pledged to keep them there for an "extended period".

Listening to a great presentation by Kristan Cole. She is an amazing speaker who GETS this market!

The Best Free (and nearly free) online tools for your real estate business.
http://ping.fm/NiRPY

Very cool stuff.

The best free and (nearly free) online tools for your real estate business. By Steve Rosenbaum
http://ping.fm/4OiZx

Headed to a closing.

Taking a full day class on Social Media. Its amazing how our world has changed.

$8,000 First-time Home Buyer Tax Credit at a Glance

I'm sure you've already heard about this, but just in case you hadn't, here's the particulars:

$8,000 First-time Home Buyer Tax Credit at a Glance

1. The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
2. The tax credit does not have to be repaid.
3. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4. The tax credit applies only to homes priced at $800,000 or less.
5. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
6. For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.

For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.


The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

1. To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
2. The tax credit does not have to be repaid.
3. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
4. The tax credit applies only to homes priced at $800,000 or less.
5. The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
6. ingle taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
   

Bria J. Johnston
Home Mortgage Consultant
"Giving you the power to OWN your dreams!"
Wells Fargo Home Mortgage
MAC K3241-012
1401 S Seward Meridian, Unit F
Wasilla, AK 99654
907.352.5213 Tel
907.242.0980 Cell
888.922.5518 Toll-free
866.659.2876 eFax
bria.j.johnston@wellsfargo.com

Apply online: http://www.briajohnston.com

The Salmans Group National Market Update

A Snapshot of Monthly Housing Indicators

Pending Home Sales Index

Pending Home Sales maintained their uptrend in August. NAR’s pending home sales index posted a reading of 103.8 for the month – a 6.4% increase from July’s 97.6 and 12.4% above the reading in August of 2008. August’s pending home sales index is the highest index since March of 2007 and the seventh consecutive month in which the index rose. On both a month to month and year over year basis, pending sales were up in every region of the country.

Existing-Home Sales

Existing-home sales slipped 2.7% in August to a seasonally adjusted annual rate of 5.10 million units – 3.4% above their ales level in August of 2008. The national median sales price for n existing home was $177,700. The inventory of existing homes available for sale at the end of August fell to 3.62 million units – an 8.5-month supply at the current sales pace.

New-Home Sales

New home sales rose slightly in August, posting a seasonally adjusted annual rate of 429,000 units – 0.7% ahead of July’s revised rate of 426,000. New home inventory continued to decline to a 7.3 month supply at the current sales rate. That is down 3.9% from the previous month and more than 34% off its year-ago level

Housing Starts

Housing starts also posted a small increase in August, registering 598,000 units – up 1.5% from July’s level of 589,000. Despite the rise in August, starts were still 29.6% below their level a year ago. Building permits – generally a reliable indicator of future starts – posted a seasonally adjusted annual rate of 579,000 – 2.7% above July’s level.

Housing Affordability

Housing affordability continued at very healthy levels. NAR’s Housing Affordability Index (HAI) posted a reading of 159.1 in August – up from July’s reading of 155.5 and significantly higher than the 125.8 reading in August of 2008.

Mortgage Rates

Mortgage rates declined in September. The average 30-year fixed mortgage rate for the month was 5.06%, down from the average 5.19% in August and almost a full percentage point lower than in September of 2008. While slight upticks are possible, interest rates are expected to remain exceptionally low throughout the rest of this year.

Employment

The economy shed 263,000 jobs in September – a larger number than anticipated and a sign that despite other encouraging figures on the economy, the job market remains a drag on a more robust economic recovery. The unemployment rate rose to 9.8% – its highest level since June of 1983.

Economic Growth

The U.S. economy showed some improvement in the 2nd quarter of this year. Real GDP growth registered -.7% -- a significant increase from the -6.4% figure in the 1st quarter Going forward, GDP growth should turn positive in the 3rd quarter, but consumer spending activity may be tempered by the still-worrisome job market.

http://www.realtor.org/press_room/news_releases/2009/10/streak_continues

We will consistently work hard to help your clients meet their real estate goals and EARN their business.

Our Mission Statement.

“Helping our clients create lasting wealth through real estate investment."

Here Is What’s Happening In The Mat-Su Valley

Salmans Group
-Market update
-Box City – A night of sleeping in a box.
-Tax Credit
-Energy Rebates

Market update
Here Is What’s Happening In The Mat-Su Valley

Mat-Su Valley – Year over Year 08 09
Number of Sales 819 735
Average Price 224,354 210,562
Active Listings 2456 2348
Percentage of list to sale price 93% 95%
Average Days on Market 87 114

Even though our overall market is down about 24% year over year, homes in good shape and priced correctly are still selling.

This market provides some amazing opportunities. If you would like a copy of my in-depth market report just hit 'reply' to this email.

We are on the cutting edge of this market. My team is currently up over 85% from last year. Why? Because what used to work doesn’t anymore. We are not waiting for the market to “get better” we are whole heartedly embracing the current market and seeing great success for our clients.


Box City – A night of sleeping in a box.
I just wanted to say thank you to all of you who supported Cardboard City 2009.

It was a great event to raise awareness for the homeless here in the Valley. I think I might need to go back to building school! My home didn’t quite make it through the wind and rain, which lead to a very cold night. I think the weather gave all of the participants a taste of what it is really like to be homeless.

There are over 470 homeless persons in the Valley so the need is very real. With your support the Salmans group alone raised over $1,300. We were the largest donor at the event! I am truly humbled to have such amazing people around me. The money we raised will go toward helping families get back on their feet by providing shelter, food, counseling and a step-by-step path to brighter future.

Thank you all so much for being apart of this event! Who knows when it may be one of us in need.

Tax Credit
There are only 60 days left to take part in the first time home buyer $8,000 tax credit.
Your home purchase must be completed by November 30, 2009.

Energy Rebates
In Alaska we have tons of programs to help you get your home more energy efficient.
Here are just 3 of the available programs.

1. The Weatherization Program, is available to Alaskans, either homeowners or renters, who meet certain income guidelines and provides weatherization services at no cost to qualified applicants.

2. The Home Energy Rebate Program is for homeowners who do not qualify for the Weatherization Program, but want to make their own energy-efficiency improvements to their home. Up to $10,000 per household.

3. There is also a $7,500 rebate for purchasing a new 5 Star Plus homes.

4. The Second Mortgage Program for Energy Conservation is a loan for borrowers to make cost-effective energy improvements on owner-occupied properties.
Let me know if you would like to see a full list of programs

Who do you looking to purchase a home? Please send them our way. We will work hard to earn their business.

This Friday night I will be sleeping outside in a cardboard BOX.

This Friday night I will be sleeping outside in a cardboard BOX.

Not because it is fun but because there are over 470 homeless persons in the Valley!


At Keller Williams we are passionate about home ownership and not just for the well-off. We believe that shelter is something no one should be without.

Most of us have been down and out at some point in our lives and have been extended a helping hand by someone. Now it is our turn to pay that forward.

That’s why I have committed to support Family Promise. They are committed getting individuals back on their feet.

“Family Promise mobilizes community resources and local congregations to provide compassionate care through shelter, meals, and case management to families without housing. Guest families are sheltered overnight in area churches and receive hospitality from church members/volunteers. FPMS Office/Day center staff provide case management ensuring guests can regain their self sufficiency.”


The Wasilla Keller Williams Group has decided to supply over 400 water bottles for those of us sleeping in boxes!


We have two more needs:

1. There are 4 couples who are currently homeless and would like to participate in the event. Each individual needs a minimum of $50 to participate. So we are looking for 8 sponsors at $50 each to help these individuals.

2. We also need general cash donations. We have two matching sponsors. For each dollar we raise it will be matched by two dollars.


This is going to be a great event with an estimated 200 participants.


Lets be the change we want to see in the world starting at home!

Only 110 Days Left To Get The $8,000 Tax Credit

Only 110 Days Left To Get The $8,000 Tax Credit

110 days may seem a long way off but if you are planning on purchasing a home in the next 3-6 months now is the time. The $8,000 tax credit is a big deal.

Why do you need to get aggressive about this opportunity now?


1. In our current market is it taking anywhere from 45 days to 60 days to close on a normal transaction if you are dealing with foreclosures or short sales 90 days to 120 can be expected.


2. Interest rates will go up. Yesterday I listened to Ted Jones one of the top economist in the nation, he promised that we will see interest rates move up toward the end of the year. A 1% interest rate increase reduces your purchasing power on average by $50,000.

• $425,000 sales price, at 8.25% interest, your payment is $2,554.
• $450,000 sales price, at 7.75% interest, your payment is $2,579.
• $475,000 sales price, at 7.25% interest, your payment is $2,592.
• $500,000 sales price, at 6.75% interest, your payment is $2,594.
• $525,000 sales price, at 6.25% interest, your payment is $2,586.

3. You may not be able to buy in 6 months. The lenders are daily increasing their guidelines making it harder and harder to get qualified and purchase a home. You may qualify today but not in 6 months.


4. Real estate is still the greatest investment. If you bought gold in the 80’s today you could sell it and recoup your money (not including the 40% you lost because of inflation) if you purchase a home in Wasilla in the 2000 for $140,000 today it is worth $235,000. That’s $70,000 in appreciation plus you have been able to write off the interest on your taxes all those years.


If you would like more information on the tax credit visit www.waynesalmans.com

I look forward to earning your real estate business.

Your friend,

Wayne L. Salmans
Real Estate Consultant
Keller - Williams Realty
(907) 841-8231
Salmans@mtaonline.net
www.waynesalmans.com
http://valleymarket.blogspot.com

Voted one of the top 30 Realtors in the Nation, under 30 by Realtor Magazine.

HUD HIGHLIGHTS August 2009

HUD HIGHLIGHTS

August 2009

HUD e-Briefs from Alaska, Idaho, Oregon & Washington

Martha Dilts, Region X Deputy Director 206/220-5356 Leland Jones, Editor

REFINING REFI’S

HUD Secretary Shaun Donovan has announced that, by August 15th, FHA insured borrowers will be able to seek a Making Homes Affordable loan modification and “significantly reduce their monthly mortgage payments.”In guidelines released on July 30th under authority of the Helping Families Save Their Homes Act of 2009, lenders and servicers are expected to use partial claims to defer the payment of some amount of outstanding mortgage principal through an interest-fee, subordinate mortgage that does not come due until the first mortgage is paid off. FHA also will pay an incentive to loan servicers for every FHA loan modified under the program. Bringing this “important tool to the table,” says the Secretary will enable FHA borrowers “to modify their mortgages in the same manner as so many others who are taking advantage” of the program. For more, read FHA Mortgagee Letter 09-ML-23 at http://portal.hud.gov/portal/page?_pageid=73,7774665&_dad=portal&_schema=PORTAL

BRIEF BRIEFS

Low Income Housing Institute and Enterprise Community Partners celebrates grand opening of the 49-unit, HUD-assisted Bart Harvey, a residence for low-income disabled or homeless 62 and older in Seattle. . .USDA awards $5.3 million to Priest River, Idaho and $9.5 million to upgrade water and wastewater infrastructure. . .Community Frameworks breaks ground for 30 town homes in Spokane. . .American Institute of Architects selects Green Lake Residence in Seattle as one of 20, 2009 Small Project Award winners that succeed “no matter the limits of size and scope”. . .Maggie LaMont named chair of the Oregon State Housing Council, succeeding a retiring Larry Medinger. . .King County Housing Authority wins 100 and Tacoma Housing Authority wins 50 family unification vouchers to reunite foster children with their families . . . Journal of Business reports Spokane United Methodist Homes to build 38-unit senior housing complex in Spokane Valley. . .Portland Bureau of Housing & Community Development wins a 2009 IEDC Excellence in Economic Development Award. . .Idaho and Oregon associations of REALTORS among 25 groups to win Foreclosure Prevention & Response grants from the National Association of REALTORS. . .His Eminence Archbishop Alex Brunette offers blessings at the grand opening of the 56-unit Frederic Ozaman House and at the ground breaking for the 51-unit Monica’s Village Place, both in Seattle and both projects of the Archdiocesan Housing Authority. . .Saying she knows “how much of a challenge it is” to administer Housing Choice Voucher programs, “especially during a recession,” HUD Assistant Secretary for Public Housing Sandra Henriquez says HUD shortly will award remaining $11 million of $100 million set-aside as well as another $30 million to public housing agencies prevent the termination of families from program.

.

WELCOME.

Agriculture Secretary Tom Vilsack has named Jim Norlund, owner of Norland Carpentry in Anchorage and the former Director of Public Assistance for the State of Alaska, as director of USDA Rural Development in Alaska, Wallace Hendrick, former general manager of Esco Supply, as director of USDA Rural Development in Idaho and Mario Villanueva, director of Catholic Charities Housing Services in Yakima, as USDA Rural Development in Washington.

INVET-MENT

HUD will be providing an additional 650 rental housing vouchers for homeless veterans served by Department of Veterans Affairs medical clinics and hospitals in American Lake, Anchorage, Boise, Portland, Roseburg, Seattle, Spokane, Vancouver, Walla Walla and White City. The new vouchers are over and above the 450 vouchers for homeless veterans that HUD awarded to Northwest housing authorities under the HUD-Veterans Affairs Supportive Housing Program. The vouchers, said HUD Secretary Donovan, will provide those who “have put their lives on the line” permanent housing and, in collaboration with local Continuums of Care, “critically needed supportive services.”

BRIEF BRIEFS TOO

HUD awards almost $5.5 million in Recovery Act funds under the Tax Credit Assistance Program to help “jump start” stalled affordable housing projects in Alaska. . .Urban League of Portland releases State of Black Oregon report that finds “ black Oregonians remain at or near the bottom of every meaningful social and economic measure”. . ..Yakima Habitat for Humanity celebrates 25 years and 126 homes worth of service to the community. . .Twin Falls selected as Idaho’s 21st Heritage City for “protecting” historic properties. . .Former Long & Foster Companies President and CEO David Stevens sworn in as Federal Housing Administration Commissioner. . .HUD okays $23 million loan to build 25-unit hospital to replace one almost 50 years old in Grand Coulee. . .Looking Glass – a Eugene group that helps homeless young people but was itself made homeless by fire – has returned to its old home, now newly-rebuilt. . . Washington State Housing Finance Corporation proposes to allocate Recovery Act funds under Tax Credit Assistance Program to eight projects to provide 456 units of affordable housing in Centralia, Graham, Renton, Seattle, Spokane, Toppenish and Yakima that have been stalled or adversely affected by the economic downturn. . .Saying they’ll “not only help our vulnerable neighbors” but also “create well-paying jobs,” Seattle Mayor Greg Nickels announces award of $8.1 million to rehabilitate nearly 200 units of housing for low-income seniors and to build 70 units of workforce housing. . .Work is well underway on 36-unit Adams Square Family Center that will “greatly expand” the Tacoma Rescue Mission’s efforts to give needy women and families an opportunity to live happy, productive lives”. . .Spokane Urban Ministries celebrates grand opening of 47-unit Walnut Corners. . .HUD competitively awards $18.3 million in Indian Housing Block Grant and Indian Community Development Block Grant funds under the Recovery Act to Chilkoot Indian Association, Cook Inlet Housing Authority, Akiachak Native Community, and Yakutat Tlingit Tribe in Alaska; Coeur d’Alene Tribal Housing Authority in Idaho; the Coos, Lower Umpqua & Siuslaw Tribe and Confederated Tribes of the Grand Ronde in Oregon; and the Kalispel Tribe, the Cowlitz Tribal Housing Authority and the Suquamish Tribe in Washington.

QUOTE TO NOTE

“If you haven't been to Mountain View lately you ought to pay it a visit and see what a great job Cook Inlet Housing Authority has been doing to build new homes and clean up an old neighborhood.” – Mike Jens in July 29th Anchorage Daily News after “a few of us decided to jump on our bicycles and, in the spirit of the Tour de France,” did “our own Tour de Anchorage.”.

The Children

As many of you know my buyers assistant, Brittni Radford ran a 100 mile marathon last month to raise money for children orphaned by aids. The money they raised fed these children today and many more. For more information go to http://aidsorphans.blogspot.com/

Best places to live - Anchorage, Alaska—where 28% of employers said they planned to do some hiring in the third quarter—topped the list,

Looking to start over? Find a new job? A new house? Here are U.S. markets where jobs are available and real estate is affordable.

Thousands of Americans across the U.S. are wondering if they would be better off somewhere else. The question is where?

As unemployment and foreclosures continue to rise, stocks keep fluctuating, and cash-strapped state and city governments move to increase taxes and trim services, many people are finding that careers and communities they once believed secure are no longer dependable. Either they have lost jobs, are in fear of losing a job, are stuck paying more mortgage than their homes are currently worth, or have seen their family's quality of life evaporate. For those troubled Americans who are willing to relocate, the U.S. can still be a land of opportunit

No state is totally buffered from the downturn, but several have gotten a boost from energy, military, and agricultural sectors. The healthiest states include Alaska, Nebraska, North Dakota, Oklahoma, South Dakota, Texas, and Wyoming. In the Washington area, federal government and defense jobs have given the economy a boost. And Iowa, which has seen its economy somewhat deteriorate, has also benefited from agricultural and alternative-energy jobs.

Fargo, N.D.: jobs, safety, schools

Moving isn't an option for many Americans tied down by family responsibilities and houses they can't sell. Others are reluctant to leave relatives, friends, churches, and school districts to make a fresh start in an unfamiliar place.

For job-seekers with some flexibility, relocation can open up opportunities, said Ernie Goss, professor of economics at Creighton University in Omaha. Some of the best job markets, such as Omaha and Fargo, N.D., are also places with low crime, decent schools, and a low cost of living, Goss said.

"If people are looking for a job and they're in Detroit, they're in the wrong place," Goss said. "They need to be considering geographic mobility."

BusinessWeek.com, working with survey results from Milwaukee staffing firm Manpower, came up with the best places to start over. These are areas where the greatest proportion of employers said they planned to hire in the next quarter, based on a survey of 28,348 U.S. employers that Manpower conducted in April.

Urban Alaska Needs Qualified Workers

Anchorage, Alaska—where 28% of employers said they planned to do some hiring in the third quarter—topped the list, which also included such metropolitan areas as Provo-Orem, Utah; Omaha; Washington; and Amarillo, Tex. (The resort town of Barnstable, Mass., on Cape Cod topped Manpower's survey with 32% of employers saying they planned to hire in the next quarter, but BusinessWeek did not include it in the ranking because of the likelihood that many of those hires will be temporary seasonal workers.)

Alaska's unemployment rate, which fell to 8% in April, might not suggest that the state has a great job market. But the state's urban employers are hungry for educated, skilled workers. Alaska's tourism industry has been hit but its military bases, hospitals, and oil industry have stayed strong.

"The probability of getting a job, depending on your qualifications, is probably relatively high here," says Scott Goldsmith, professor of economics at the University of Alaska Anchorage. "We haven't been negatively impacted as much as the rest of the country."

Goldsmith said it's possible that out-of-work Californians who have come to Alaska looking for opportunities might be responsible for pushing up the unemployment rate a bit.

"In some sense, it's the end of the road," Goldsmith said. "You tend to get two kinds of people [moving to Alaska]: people running away from something or people looking for something. That 'something' historically has been opportunity—and there's still some of it here."

Team member Brittni Radford running 100 miles to help orphaned children.

We are so proud of our team member Brittni Radford who this week is running an ultra-marathon. That's 100 miles! She is doing it in order to raise money for children who have been orphaned due to aids. She alone raised over $10,000 for the charity group.

Check out the link and video of her team being interviewed by the Miami Herald.

http://www.miamiherald.com/news/breaking-news/v-fullstory/story/1049778.html

Brittni works as a buyer’s assistant for our team and she is passionate about helping those in need.

Way to go Brittni!

Mexico.

Salmans Group

March 18, 2009

The air smells heavy, our feet are sore and man is it ever hot! This past week in Mexico was amazing.
I had the privilege of leading a team of 15 to Mexico for the past week. Our goal was to build homes for those in need. Our amazing team ranged in age from 13 to 27.
We ended up flying to San Diego then driving to our site in Mexico. We literally camped out for the week as we built the homes. Our team of mostly teenagers did absolutely amazing. It was awesome to see them sit up and take responsibility when they saw the real need in this world. They worked hard and we had a lot of fun getting out butts whooped in soccer by the Mexican children.

Our week was very successful. We were able to build two homes in the time it takes most teams to finish one. I guess that’s the Alaskan way!
Thank you for continuing to use the Salmans Group for all your real estate needs. You bless us with your business and we are able to bless others around the world.

For pictures from our trip check out. http://amor09.shutterfly.com/

Again thank you!

The $8,000 tax credit and what it means to you.

Good Afternoon, March 16, 2009

As the Chairman for RPAC, the Realtor Political Action Committee here in Alaska I want you to know that I fight every day for the rights of home owners. Part of my job as Chairman is staying in touch with what happens here locally and what happens in Washington.
This article was sent to me and I thought it did a great job of explaining the $8,000 tax credit and wanted to get it to you.

Please know you can call me any time if you have questions about our market locally and nationally.

You are my friends and clients, my family and I appreciate you!
-
The $8,000 tax credit and what it means to you.

The $8,000 tax credit is included in the $787 Billion (yes, with a B) stimulus plan with various tax cuts and spending programs.

Part of the stimulus included a revision to last year's repayable tax credit to an $8,000 tax credit that does NOT need to be repaid.
Be advised, not all tax preparers are aware of all of the provisions of the new tax credit. I had a client call me from Jackson Hewett saying they would not apply the $8,000 tax credit for a house she purchased in 2009 to her 2008 tax year. This is not correct, see When Can the Credit be Claimed below.

So here's a breakdown of the new $8,000 tax credit:
All first-time homebuyers who purchase a home between January 1, 2009 and November 30, 2009 may be eligible for a tax credit of $8,000 or 10% of the purchase price, whichever is lower. Unlike its $7,500 predecessor, the $8,000 does not need to be repaid.
Tax Credit vs. Tax Deduction

This is a tax credit, not a tax deduction, meaning it’s a dollar-for-dollar decrease to your tax liability. Also, the tax credit is refundable, meaning you can receive the full value of the credit even if you do not have an $8,000 tax liability.

Phase-Out
The tax credit phases-out for individuals making $75,000 or over modified adjusted gross income (MAGI), and couples making $150,000 or over MAGI. Below are examples of how the phase-out will apply to the two different scenarios.

Individual Making $75,000 or Over
Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
Couple Making $150,000 or Over

Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
I'm not sure of the $20,000 significance, other than it's defined as the factor to use on pgs. 615-616 of HR 3221.


Who Cannot Take the Tax Credit

If any of the following apply, you cannot take the tax credit:
1. Individuals making $95,000 or over MAGI, and couples making $170,000 or over MAGI; meaning you receive no tax credit if your income is this much or more a year.
2. You buy your home from a close relative, including: parent, sibling, spouse, grandparent, child, etc.
3. You sell your home within the first three years of purchasing it. If this occurs, the tax credit must be repaid.
4. You are a non-resident alien
5. If home ceases to be your primary residence within first year of purchase. In other words, if you purchase a home in 2009, and move-out or sell in 2009, then you can't take the tax credit on your 2009 tax return. I'm assuming you are subject to recapture if you purchase the home in 2009, take the credit on your 2008 tax return, and move-out or sell in 2009.

First-time Homebuyer Definition
A first-time homebuyer is defined as someone who has not owned a home within the last three years. If married filing jointly, both spouses must meet the first-time homebuyer definition to take the tax credit.
The bill states both spouses must be first-time homebuyers to qualify for the credit. There doesn't seem to be an exception to this rule if filing separately. However, I'd consult your tax preparer.

Recapture Period
If you dispose of the primary residence or it ceases to be your primary residence during the first three years of purchase, the tax credit is recaptured. In doing my research, there seems to be conflicting opinions on whether you're subject to recapture if the home "ceases" to be your primary residence during the first three years of purchase. The National Association of Realtors seems to believe recapture only applies to & selling your home. However, it seems to me that moving out of the property within three years would also make you subject to recapture. I'd recommend reading the bill's verbiage for yourself (carries over from HR 3221, pg 619) and consulting your tax preparer. The section reads:

ACCELERATION OF RECAPTURE.—If a taxpayer disposes of the principal residence with respect to which a credit was allowed under subsection (a) (or such residence ceases to be the principal residence of the taxpayer (and, if married, the taxpayer’s 20 spouse)) before the end of the recapture period.

When Can the Tax Credit be Claimed?

The $8,000 tax credit can be claimed for your 2008 tax year (filed by April 15th 2009), 2008 amended return or 2009 tax year.
Homes That Qualify

The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify. For new construction, the purchase date is considered the day you occupy the home; therefore you must move-in by November 30th 2009 to qualify for the tax credit.

Also, homes in the District of Columbia qualify for the tax credit. However, it cannot be used in conjunction with the existing District of Columbia tax credit.
If you purchased a home under the Mortgage Revenue Bond Program, you can utilize the $8,000 in conjunction (different than 2008 $7,500 repayable tax credit).
How About Those Who Purchased Homes in 2008?
Homes purchased in 2008 are subject to the $7,500 repayable tax credit.
Sources:
HR 1, American Recovery and Reinvestment Act
HR 3221: Housing Economic and Recovery Act of 2008

Please shoot me an e-mail or call if you are ready to take part in this great opportunity.
Your friend,
Wayne Salmans
Real Estate Consultant
Keller - Williams Realty
(907) 841-8231
Salmans@mtaonline.net
www.waynesalmans.com