York, PA Real Estate

Welcome to the radio show about all-things real estate with award-winning broadcaster Gil Gross. We deliver everything you need to know about your home, from buying and selling to improving its value... even the current state of the market.

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

• 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.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• 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.
• 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

• 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.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• 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.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

FHA financing has become very popular over the last few years, as it offers a way for home buyers to purchase a home with only 3.5% cash out of pocket.  Dramatic changes to FHA were just enacted and some are still pending to be enacted in the next 3 months. 

•1.     As of today there is no longer 3 months seasoning for investor properties.  Let me explain...... If you buy a home as an investor, you can sell that property the next day for the appraised value......as long as that value does not exceed 20% above your purchase price.

•2.     Increase MIP up front Fee for FHA loans in the next months, It appears FHA upfront MIP will increase from 1.75% to 2.25%.

•3.     Seller's concession "help" is slated to be reduced from 6% to 3%.

•4.     No loan under 580 FICO will be done with FHA in the future.

•5.     580 to 619 FICO will be required to have a 10% down payment (most lenders already will not take a loan under 620 FICO)

WHAT DOES THIS MEAN?

If you are on the fence about buying a home, this should make it even more enticing to purchase before the Spring of 2010.  The tax credit will end for any contract signed after April 30^th 2010; your buyer will not be able to get 6% sellers help, but rather 3%.  This will probably take affect in early spring. 

The Realtors Association of York and Adams Counties (RAYAC) reports that a total of 647 homes were sold in Adams County in 2009, a decrease of 7%.  In York County, 4046 homes were sold in 2009, a 4% increase from 2008.  The median sales price in Adams County was $185,000, a 7% decrease from last year.  In York County the median sales price in 2009 was $159,900, reflecting a drop of only 3%.  "Starting in June, each month we have seen a positive increase in the number of homes sold in York & Adams counties," stated Kraig Hursh, 2010 RAYAC President.