The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.

The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

E-mail me at MikeHutson@prusny.com and I will send you a copy of the plans highlights.

Success doesn't come to you…you got to go get it.
- Marva Collins

Below is a site for details regarding First Time Homebuyer tax credit.

http://www.realtor.org/wps/wcm/connect/b32db1004d05f6338052c5fd73e5610f/government_affairs_tax_credit_chart_021308.pdf?MOD=AJPERES&CACHEID=b32db1004d05f6338052c5fd73e5610f

Right now everything depends on your loan-to-value ratio. The best rates (below 5%) are reserved for the conforming loans (below $417k) with a loan-to-value below 60%, where the borrower is willing to pay up to 1 point.

If you are looking at the new High Balance loans (between $417k and $625.5k), there are now huge rate penalties for taking cash out or for a total loan to value (including any seconds or equity lines) up to 80%. You will get the best rates (mid-5%'s) is your loan to value is below 60% and you can pay up to 1 point.

There are still decent rates on jumbo 5/1 ARMs: around 5.125%, with 1 point.

Lenders are not only penalizing for high loan to values, but they are pricing their products such that "0" points loans don't make much sense any more; you get a much larger bang for your buck if you can pay 1 point, or even a little more. The 1 point can still be financed into your new loan, but please make sure that you plan to stay in the home for at least a few years so that your investment in your new loan makes sense.

Many of my clients are saving $300 to $400 per month by refinancing, so it can be well worth it if you are already in a pretty good position. If you bought your house fairly recently with 5 or 10% down, you will probably not be able to take advantage of these new low rates -- which is a shame.

Web Reference: http://natashalovas.com

Best Buy in Town at Cedar Ridge:
Cedar Ridge is a new subdivision with homes ranging form $158,000 up to $205,000. Cedar Ridge still has special financing on new construction. If you qualify for the financing through National City you could get up to 1.50% below the current market rate. All the financing questions can be answered by Brad James, Brett Winters and Scott Dillon at National City Mortgage.

For more information view a direct link at : http://michaelhutson.com/Content/Content.aspx?ContentID=527262

Real Estate Is a Solid Long-Term Investment
The news media is all abuzz these days with information about the real estate market. But if you rely on national news stories to tell you whether now is a good time to buy or sell, you may be missing a great opportunity. To get the proper perspective on the value of real estate, you have to go right to the source and that means talking to a REALTOR® in your local market.

Perceptions about real estate have been skewed in recent months due to the overwhelming focus on national figures. Real estate should be viewed at the local level. While average sales and prices help us identify trends, the fact is all real estate is local – conditions vary greatly from one city to the next. Unfortunately, that news is largely unreported and can be misleading if looked at Nationally.

Here are the facts on three popular misperceptions in the real estate market:

Misperception: No one is buying a home, and home prices are falling rapidly.
Fact: According to the Illinois Association of REALTORS®, home sales are expected to reach about the same level that we saw in 2000, which was still a great year for real estate. Nationally, this year is projected to be the fifth best year on record for home sales. That means an approximate 5.5 million homes will be sold in this year alone.
Fact: While it’s true that the growth rate for Illinois median home prices is down slightly from last year, the median home price in Illinois has increased more than $40,000 since 2002. And, the Chicago metro area showed over a four percent price gain in the third quarter of 2007 compared to third quarter 2006. Again, each market varies. A significant share of metro areas in the state saw gains in the median price in the third quarter of 2007.
Misperception: Foreclosures and delinquencies are rising rapidly in every state.
Fact: According to RealtyTrac, Inc., three states – California, Florida and Nevada – are responsible for most of the increase in foreclosures in the third quarter. Illinois actually saw a 4.2 percent decrease in foreclosure filings in the third quarter compared to the second quarter of this year.
Fact: The reasons for foreclosures vary from state to state.

First-time homebuyers can take advantage of the new temporary tax credit signed into law on July 30, 2008, by President Bush as part of the Housing and Economic Recovery Act of 2008. Below are some of the parameters of the new program. Link to FAQs on the tax credit developed by the National Association of REALTORS® (NAR).

The tax credit is for 10 percent of the cost of the home, not to exceed $7,500.
It’s important to note the tax credit must be paid back over a period of 15 years like an interest-free loan. It’s available for any single-family residence (including condos) that will be used as a principal residence. The tax credit reduces income tax liability for the year of purchase. It can be claimed on tax return for that tax year.

There is an income requirement. To be eligible for the full credit, individuals must have an adjusted gross income of no more than $75,000 ($150,000 on a joint return). The tax credit is not available for individuals with incomes of $95,000 or higher ($170,000 on a joint return).
Applicants must be first-time homebuyers. (The buyer and the buyer’s spouse may not have owned a principal residence in three years previous to purchase.) The credit applies for purchases on or after April 9, 2008, and before July 1, 2009.

Learn more about the tax credit. Source: National Association of REALTORS®

HOME SELLING TIP:
Remodeling, if done wisely, can result in a quicker sale and less negotiation with buyers over perceived shortcomings. Painting the house and updating the kitchen, baths, lighting fixtures and floor coverings are examples of improvements that can improve the sale price ,as well as, how quick the home will sell. Many sellers do not want to spend money to sell their house; however, I will tell you homes do sell faster when they have been updated.

The amount of return from a remodel investment that is recouped when the property is sold varies significantly from one place to the next and from project to project. For example, nationally, 70.7 percent of the cost of a major kitchen remodel was recouped at sale. What this report fails to mention is how fast these homes sell as opposed to homes that have not been remodeled. In Bloomington/Normal home sales, the kitchen seems to be the major item for recouping money and selling a home faster.

In today's slow economy, there are more contractors looking for work in some areas. And, in some cases, their prices have come down. This positively impacts the return on investment when the home is sold.

Uptown Normal Project and One Main Development:

The private residences at Uptown One will offer a selection of studio, one and two bedroom condo's. Each unit offers a balcony or roof line terrace. There will be 34 units available ranging from $205K to $450K. Units range from 800 to 2400 square feet. The building will consist of Condominiums, Office Space, and Retail.

Inspired by the aggressive environmental goals of the Town of Normal, Uptown One is striving to achieve LEED Silver certification that will include ways for this project to approach everyday activity in a thoughtful, environmentally responsible manner. The guiding focus of the planners, developers, and architects is to create the highest level of sustainability possible through energy, water usage to recycling and landscaping design. This isn't a goal but a lifestyle One Main and Uptown Normal is committed to creating for a better community.

For more information on this project please e-mail me at MikeHutson@prusny.com

Search homes in and around the area. For those that don't know, you can search all listings on my site at www.MichaelHutson.com . All you need to do is click in the middle of my web page on the house Titled Search All Listed Homes. This will take you to all MLS listings with Prudential Snyder Real Estate, Coldwell Banker Heart of America, Remax Choice, Crown Realty, Century 21 Alexander, Brokers Discount, Brady Weaver GMAC Real Estate and many more. Unlike other sites that just show there listings we show all the listings in the MLS for residential.

Home sales in my business were good through Sept, Nov, and Dec of 2008. In Sept of 2008 I had 3 closed sales, five closed in Oct and two closed in Dec. I had one closing fall through in Dec. The new year started off well with one closing in Jan. Most of my sales were with Prudential Snyder Real Esatate listings as well as some with Stelle Construction, Open the Home, Signature Homes, Coldwell Heart of America and Crown Realty.

I would like to reiterate that most of my Sales were at exceptionally good prices. Now is a great time to buy a home.

Today's Real Estate Market is slightly down, however rates have never been better. National City, Busy Bank, and Freestar Bank have been swamped re-financing loans. Brad James at National City said the last month he has had so many re-financed loans that he has taken work home every night.

Real estate agents and builders sold 2,253 homes around Bloomington-Normal last year, down 12.8 percent from a revised 2,585 homes sold the previous year, according to statistics from the Bloomington-Normal Association of Realtors. New homes sales totaled 361, down 4.2 percent from a revised 377 sold in 2007. Existing home sales totaled 1,892, down 14.3 percent from a revised 2,208 homes sold the year before. All in all, the home sales did slow down a bit, however, homesales have been the one constant throught history. They will bounce back.

Make sure if your buying land in McLean county outside of a city or in a rural area that you check on certain critieria before you purchase. Depending on your circumstances for purchasing a piece of property there are several items that you want to look into. Contact the local Township the property is located in and make sure you can use the property for what you would like to use it for. To often people want to purchase land for hunting or builder just a machine shed on. You need to know the rules before doing so. Plus they will be able to tell you what the requirements are on front, back and side set backs for building. Contact the health department in the area and make sure you have what you need before building anything. Last but not least make sure to use a Realtor and an attorney to make sure there is something your not missing. It's better to be safe than sorry when making such a big investment.