Indy Home Marketing - March 2009 Newsletter

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March 2009 Newsletter

Volume 3, Number 3

			Indy Again Tops Nation's Home Affordability List Again, for the 14th consecutive quarter, Indianapolis was ranked as the most affordable home market in the nation, with just over 93 percent of all homes sold in the fourth quarter of 2008 being affordable to households earning the
	area’s median family income of $65,100. According to the National Association of Home Builders' Wells Fargo Housing Opportunity Index, nationwide housing affordability also surged at the end 2008 to its highest level in the last five years. Nationwide, 62.4 percent of all new and existing homes that were sold in the final quarter of 2008 were affordable to families earning the national median income of $61,500.

American Recovery and Reinvestment Act

Tax Credit Increased for First Time Home Buyers

You may remember that last year, Congress passed a $7,500 tax
credit for first-time home buyers with the caveat that the credit
must be repaid over 15 years. However, a new $8000 credit has
replaced the old one for any home purchased by a first-time buyer
on or after Jan. 1, 2009 and before Dec. 1, 2009. Better yet, the
new credit will NOT require repayment. Continued


	RECIPE OF THE MONTH Roman Style Chicken Here's a hardy meal that the entire family will enjoy... and it takes just 40 minutes or less to prepare. The recipe serves six and it is delicious! Courtesy: The Food Network

INGREDIENTS:

•	3 ounces prosciutto, chopped	•	1/4 cup olive oil
•	1/2 cup white wine	•	1 red bell pepper, sliced
•	1/2 cup chicken stock	•	1 yellow bell pepper, sliced
•	2 tablespoons capers	•	2 cloves garlic, chopped
•	1 (15-ounce) can diced tomatoes
•	1/2 teaspoon freshly ground black pepper, plus 1 teaspoon
•	1/4 cup chopped fresh flat-leaf parsley leaves
•	1 teaspoon fresh oregano leaves
•	1 tablespoon fresh thyme leaves
•	1/2 teaspoon salt, plus 1 teaspoon
•	2 skinless chicken thighs, with bones
•	4 skinless chicken breast halves, with ribs

DIRECTIONS:

Season the chicken with 1/2 teaspoon salt and 1/2 teaspoon
pepper. In a heavy, large skillet, heat the olive oil over me-
dium heat. When the oil is hot, cook the chicken until it's
browned on both sides. Remove from the pan and set aside.

Keeping the same pan over medium heat, add the peppers
and prosciutto and cook until the peppers have browned and
the prosciutto is crisp, about 5 minutes. Add the garlic and
cook for 1 minute. Add the tomatoes, wine, and herbs. Using
a wooden spoon, scrape the browned bits off the bottom of
the pan. Return the chicken to the pan, add the stock, and
bring the mixture to a boil. Reduce the heat and simmer,
covered, until the chicken is cooked through, about 20 to
30 minutes.

If serving immediately, add the capers and the parsley. Stir
to combine and serve. If making ahead of time, transfer the
chicken and sauce to a storage container, cool, and refrig-
erate. The next day, reheat the chicken to a simmer over
medium heat. Stir in the capers and the parsley and serve.

	CREDIT SCORES - What You Didn't Know, but May Have Been Afraid to Ask...
	If you're considering the purchase of a new home, one of the first things you need to do is to determine the amount of mortgage monies you can qualify for under today's more stringent lending requirements. While mortgage lending requirements will very from lender to lender, your FICO score will play a big part in both your ability to get the mortgage you want and the repay- ment percentage rate you'll be required to pay. FICO Credit scores are based on the information in your credit bureau reports. The majority of credit scores are between 300 and 850. Higher scores are better because they increase your chances of getting the loan you want. Any score below 700 could probably use some improvement. If your goal is to ob- tain a loan/mortgage with the absolute best interest rates lenders have to offer, then you will want to work on raising your credit score to at least 725, that's where the "very good" to "excellent" range typically begins. Keep in mind that when lenders evaluate a credit application, credit scores are not the only factor they use in making their decision. They usually ask for additional information (such as income and monthly pay- ments) to determine your ability to repay the loan. What goes into a score?

The basic credit scoring formula takes into account several factors
from your credit report. The impact of each element fluctuates
based on your own credit profile:

Payment history — A good record of on-time payments will help
boost your credit score.

Outstanding debt — Balances above 50 percent of your credit
limits will harm your credit. Aim for balances under 30 percent.

Credit account history — An established credit history makes you
a less risky borrower. Think twice about closing old accounts be-
fore applying for a loan.

Recent inquiries — When a lender or business checks your credit,
it causes a hard inquiry and a slight ding to your credit score.
Apply for new credit in moderation. "Soft" inquiries such as pre-
approved offers or checking your own credit score will not impact
your score.

Types of credit — A healthy credit profile has a balanced mix of
credit accounts and loans.

If you need more information about your credit score or its po-
tential impact on your ability to obtain a mortgage, contact us
and we'll help you find answers to your questions. Return to Top

Tax Credit Increased... (Continued)

The old credit still applies to first-time home buyers who made
their purchase between April 8, 2008 and Dec. 31, 2008 and will,
unfortunately, require repayment.

The definition of “first-time home buyer” for the purposes of this
credit is anyone who hasn’t owned another main home anytime
during the three years prior to the date of purchase. Meaning, if
a buyer purchases a home today, they cannot take the credit if
they owned or had ownership interest in a home anytime from
Feb. 23, 2006 through today. But, they could have owned a
home prior to February 2006 and still qualify as a “first-time
home buyer.” Married joint filers must both meet the first-time
home buyer criteria to take credit on a joint return.

Now that the “first-time” portion is defined, the definition of
“home” must be explained in the context of this credit. The law
requires that the home be the “main home” meaning you spend
50% or more of your time there. It can be a condo, single-family
detached, co-op, townhouse or something similar. It must also
be located in the United States. Vacation homes and rental prop-
erties are not eligible. If the home is a new construction, the
“purchase date” is the date you occupy the home.

The new credit is an $8000 refundable tax credit meaning that if
your total tax liability in the given year is less than $8000, the
IRS will send a refund for the balance.

There are a few restrictions on who can take the credit. However
if any of the following scenarios apply, you may NOT take the
credit:

• Your income exceeds the phase-out range. This means joint
filers with Modified Adjusted Gross Income (MAGI) of $170,000
and above and other taxpayers with MAGI of $95,000 and above.

• You buy your home from a close relative. This includes your
spouse, parent, grandparent, child or grandchild.

• You stop using your home as your main home.

• You sell your home before the end of three years

• You are a nonresident alien.

There are also more limits on income. Above, it lists $170,000
and $95,000 as the limit for married and single filers’ MAGI.
There is a phase-out period before those limits are met. For
single filers, the phase-out starts at $75,000 and for married
filers it begins at $150,000. This means that for singles making
over $75,000 and couples making over $150,000, the credit is
proportionately reduced as incomes approach the limits. So if
a couple makes $165,000, the excess amount is used to create
the fraction 15,000/20,000 (.75) which is then multiplied by the
credit amount. Seventy-five percent or $6,000 of the credit
would be disallowed. They would get a $2,000 credit.

More provisions? It’s got them. If a buyer takes the tax credit
and then sells the home prior to the end of three years of owner-
ship, the tax credit must be repaid. This is to prevent flipping
homes in order to get the credit.

The credit can be claimed on your 2008 tax return (to be filed
by April 15, 2009), an amended 2008 tax return, or your
2009 tax.

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