Did you know there are more than 27 million veterans eligible for VA financing? These potential homebuyers enjoy significant loan advantages not available to non?veteran homebuyers. If you’re working with prospective homebuyers right now, check with them to see if they are veterans. If they are, make sure they are aware of the VA financing advantages available to them.

What are the advantages of VA financing?

? Loan may be up to 100 percent of the property value. Generally, loans may not exceed $417,000. Subject to change each year.

? You don’t have to be a first?time homebuyer.

? No PMI required.

? The VA limits the closing costs the buyer pays.

? Closing costs may be paid by the seller.

? Right to prepay the loan without penalty.

? VA offers personal loan servicing and financial counseling to help veterans during financial difficulties.

Who is eligible?

? Veterans and active duty personnel.

? Certain reservists and National Guard members.

? Surviving spouses of persons who die on active duty or of service?connected disabilities.

? Certain spouses of active duty personnel who are (a) missing in action, (b) captured in line of duty by a hostile force, or (c) forcibly detained by a foreign government or power.

What are the buyer requirements to obtain a VA loan?

? The applicant must be an eligible veteran who has available entitlement.

? The loan must be for an eligible property.

? The veteran must occupy the property as a home within a reasonable period of time after closing the loan.

? The veteran must be a satisfactory credit risk. The income of the veteran and spouse, if any, must be stable and sufficient to meet the mortgage payments, cover the costs of owning a home and other obligations and expenses.

What can you use a VA loan for?

? Purchase a home, condominium in a VA?approved project or cooperative.

? Purchase and improve a home.

? Refinance an existing home loan (up to 90 percent of the value) or refinance an existing VA loan for a lower interest rate.

? Buy a manufactured home and/or lot.

? Build a home.

? Improve a home by installing energy?related features such as solar or heating/cooling systems, water heaters, insulation or other energy efficient improvements.

How is the loan application process different?

Aside from securing a Certificate of Eligibility and the appraiser is assigned by the VA, the application process is the same as other mortgage loans. Your buyer gets the loan from a private lender and the VA stands behind the loan.

Four easy steps to obtain a VA loan

1. The veteran must apply for a Certificate of Eligibility (COE). To get a Certificate of Eligibility, visit online at www.ebenefits.va.gov or call the VA Help Desk at 1?800?983?0937.

2. Choose a home to buy and sign a purchase agreement.

3. Apply to a mortgage lender for the loan.

4. Order an appraisal from the VA. (Usually done by the lender.) While the appraisal is being done, the lender can gather credit and income information. If the lender is authorized by the VA to process loans on the automatic basis, the loan can be approved and closed upon receipt of the appraised value determination without waiting for a VA review of the credit application.

Want to learn more about VA loans?

For additional information or to obtain forms please visit: http://www.homeloans.va.gov/. Or call: 1?800?827?1000.

September 2012

After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension to new closing deadline for eligible transactions, which is now September 30, 2010. There will be no gap between June 30 and the date the President signs the bill into law.

CONTACT US AT THE BOLD COMPANY FOR MORE INFORMATION

Mortgage Rates Hit an All-Time Low

Average interest on a 30-year fixed mortgage fell to an all-time low of 4.69 percent this week, down from 4.75 percent a week ago, reports Freddie Mac. Do not expect these rates forever. Once the economy picks up rates will raise quickly. Build now to lock in these rates for the next 30 years.

*The Kentucky New Home Tax Credit has been Extended. To qualify for this credit, home purchases must be concluded before January 1, 2011.

*The Kentucky New Home Tax Credit is NONREFUNDABLE. This means that if your Kentucky tax liability is less than the $5,000 credit, then you will only receive a credit for the amount that you owe; you will not receive a refund for the difference, nor can you carry the difference back or forward to other years. If your Kentucky tax liability is $5,000 or more you will receive the entire credit.

*In Order to Qualify for the Kentucky New Home Tax Credit:

*the home must be a previously unoccupied, single family dwelling in the State of Kentucky

*the home must become the buyers’ principal residence for at least two years

*the home must NOT have been built by the homeowners themselves

*Tax Credit Applications MUST be FAXED, not mailed. The fax number is (502) 564-3706. Applications must be received within seven days of the purchase date. Mailed applications will NOT be approved.

*It’s Not Too Late to Apply for the Credit if you purchased a qualifying new home between November 7, 2009 and June 4, 2010. Applications must be received by July 6, 2010.

*You May Qualify for BOTH the Federal Homebuyer Credit AND the Kentucky New Home Credit if you purchased a home between November 7, 2009 and June 4, 2010.

*For more information or for an application, refer to the Kentucky Department of Revenue: Kentucky New Home Tax Credit

ASK THE BOLD COMPANY FOR MORE INFORMATION ON THE KENTUCKY NEW HOME TAX CREDIT

Buying a home is one of the smartest purchases you can ever make. One reason is that homeownership has many positive tax implications. The three most important sources of tax savings for home owners are the:

• deductions for mortgage interest
• deductions for real estate taxes
• capital gain exclusion for the sale of a principal residence

The deductions for mortgage interest and real estate taxes reduce the annual cost of homeownership by reducing the home owner’s tax liability each year. For example, a home owner with $10,000 in annual mortgage interest payments and real estate taxes and who falls in the 25 percent tax bracket could realize up to $2,500 in tax savings each year. Home owners who itemize their taxes can deduct from taxable income interest allocable to a first or second home for up to $1 million of mortgage debt and $100,000 of home equity loans. And most state and local taxes paid on homes are also deductible.

When the home is sold, the capital gain exclusion can again provide home owners a tax benefit. Under present law, sellers of a principal residence can exclude from taxation profits from the sale of a home, up to $500,000 for married taxpayers and $250,000 for single taxpayers. With capital gain tax rates expected to increase from 15 to 20 percent in coming years, these tax savings can be substantial.

Research by NAHB economists has estimated the tax savings for home owners for certain income and mortgage amounts. For a married couple with an income of $80,000 per year and an initial mortgage amount of $250,000, the tax savings from the mortgage interest and real estate tax deductions are estimated to save the couple more than $11,000 in the first five years of homeownership. Assuming the couple owns the home for twelve years, these savings grow to more than $25,000 over the time period. Combined with the capital gains exclusion, the total tax savings for the entire period of ownership exceeds $52,000.

For a couple with an income of $60,000 and an initial mortgage of $180,000, the five years tax savings total more than $6,000 and the total savings over a twelve year period are estimated to be more than $33,000.

May 24, 2010 – Even though the home buyer tax credit expired on April 30 and won’t be renewed, there may never be a better time to buy a home than today, according to the National Association of Home Builders (NAHB). Many outstanding opportunities still exist for home buyers, but they may not be around forever.

“The home buyer tax credit was just one of many factors motivating Americans to buy homes,” said NAHB Chairman Bob Jones, a builder and developer in Bloomfield Hills, Mich. “But buyers can still take advantage of today’s low interest rates and competitive prices to get a home they may not have been able to purchase just a few years ago.”

Besides mortgage interest rates that have been hovering at near-record lows, homes in many markets have become more affordable. Prices have moderated from the highs of the housing boom that occurred in most of the country, especially in major markets where they had increased significantly.

Today’s new homes are also built to be much more energy efficient than homes constructed a generation ago, making them more affordable to operate. New homes are designed to support modern lifestyles with open floorplans, flexible spaces, improved safety features, and low-maintenance materials.

Consumers who are thinking about buying a home should not count on interest rates or prices staying at current levels, however. Mortgage rates are sensitive to market conditions, and even a slight increase can push monthly payments beyond a family’s budget. As the country recovers from the recession and people stabilize their financial situations, NAHB economists expect that home prices will begin to increase by 2011.

NAHB’s home buyer brochure “Opportunity Knocks for Home Buyers” describes many of the opportunities in today’s market, as well as the long-term financial benefits of homeownership. It provides examples of how interest rates affect monthly mortgage payments and the typical federal tax savings over the first five years of homeownership. The brochure can be downloaded from NAHB’s web site at: www.nahb.org/homebuyerbrochure.

The home buyer tax credit is still available for eligible home buyers who had a signed sales contract by the April 30 deadline and who close by June 30, 2010, as well as for qualified members of the military, foreign service and intelligence communities, who have until April 30, 2011, to sign a contract. For more information, go to www.federalhousingtaxcredit.com.