George's Blog

The seasons in New England are very distinct and very different from one another.  Spring is filled with crisp air, blooming flowers, budding trees, and grass that is beginning to grow.  Summer is warm, with a couple of weeks that gets very hot and humid.  The flowers are in full bloom, trees are thick with green leaves, and cutting the grass is a weekly chore.  Fall is a canopy of colors, as the leaves on trees begin to turn bright shades of orange, yellow, and red, and different shades of green.  The weather is also cooler and crisp, but different from Spring.  Winter is cold and snow is plentiful.  The grass has stopped growing, and is usually covered with snow, as well as are the trees.

But there is a fifth season, one that is not talked about, but equally distinct as the other four.  This fifth season is not as beautiful as the other four, or one that New Englanders look forward to.  This fifth season occurs between the bright colors of Fall, and the beautiful white fluffy snow of Winter.  It is a time that the trees have lost their leave and are not very pleasant to look at.  It is a time that is cold, raw, and rainy.  It is a time that isn't very pleasant.  But it is a time that has it's own very distinct character, and should be shared like the other four.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

I just was made aware of this and wanted to get the word out to our Military Service Men and Women, as well as all our Veterans.  Applebee's is offering all our Veterans and Active Duty Military Members a free meal today to honor all our Military Personal and Veterans on Veterans Day.

Applebee's will be offering six entrees on their menu to choose from, all that a Veteran or Military Service Man or Women needs to do is to provide one of following as proof of service:

• U.S. Uniform Services identification card
• U.S. Uniform Services Retired ID card
• Current leave and earnings statement
• Veterans organization card
• A photograph in uniform
• Service members may also wear their uniforms as proof of military service.

A free meal always sounds good to me, and as a Vietnam Veteran I might just take Applebee's up on this offer today.  Thank you Applebee's for your show of support to all our Military Personal. 

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

This is a picture that my brother just took in his back yard in Arizona.  It is almost as if the Hawk was posing for him :)

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

As promised below is an overview and comparison between the present Tax Credit and the New.  The information below was just given to us by Senator Dodd's Office.

Homebuyer Tax Credit Overview:

• First‐time homebuyers (those who have not owned a principal residence in the three years prior to the purchase date of their subsequent home) are eligible for a refundable tax credit of 10 percent of the purchase price of a principal residence up to $8,000 for homes bought between January 1 and December 1, 2009.
• If the home is sold within three years, the taxpayer must pay back the credit (called "recapture").
• Income limits for the current credit are $75,000 for single filers and $150,000 for joint filers, phasing out completely after $95,000 for individuals and $170,000 for couples. Income limits are based on Modified Adjusted Gross Income (MAGI).

Extended and Expanded Homebuyer Tax Credit:

• Extends the availability of the $8,000 first‐time homebuyer credit to taxpayers who have a principal residence under a binding contract before April 30, 2010, allowing 60 days to close.
• Creates a new $6,500 credit for move‐up buyers. Move up buyers are defined as people who haveLike the credit for first‐time buyers, lived in their current home for 5 or more consecutive years during the 8 year period ending on the date of purchase of the their subsequent principal residence. this credit is available to taxpayers who have principal residences under a binding contract before April 30, 2010, allowing 60 days to close. 
• Raises the income limits for both the first time and move‐up buyer to $125,000 for single filers, $225,000 for joint filers with a $20,000 phase‐out. The $20,000 phaseout means that no credit can be claimed by those with MAGI above $145,000 for single filers, $245,000 married joint filers.
• Both the first‐time and move‐up credit are available for principal residences with a purchase price up to $800,000. Purchase price is defined as the adjusted basis of the principle residence on the date such residence is purchased.
• Includes strong anti‐fraud provisions: 
  • Gives the Internal Revenue Service math error authority which they have requested when processing IRS form 5405. This would allow the IRS to correct certain errors during credit processing, and avoid the need for a post‐refund, labor intensive audit. 
  • Requires a copy of the settlement statement (HUD‐1) which would verify the date of purchase, the residence address, and the purchase price. 
  • Introduces an explicit age limitation, allowing no one under 18 to claim the credit
  • Excludes individuals who are claimed as dependents and married individuals who purchase the home from the family of their spouse from claiming the credit
• Eliminates the recapture requirement for military personnel and members of the Foreign Service and intelligence community who are forced to sell their homes within three years as a result of an official extended duty of service. In addition, these individuals have one additional year to qualify for the credit if they served for at least 90 days outside the U.S. in 2009 or 2010. 
• Purchases made in 2010 can be claimed on the 2009 tax return. 
• The score of $10.8 billion over 10 years is paid for by a seven year delay of the worldwide allocation of interest rule until 2017, not stimulus funds. 
• Effective after the date of enactment. 
• Homebuyers who were eligible for the first‐time homebuyer tax credit pre‐WHBAA will be able to continue to claim the credit. Homebuyers who qualify for the credit under the expanded terms will only be able to claim the credit if they close on their home purchase after the date of enactment of this bill (the binding contract can be signed before enactment).

Some of this, like any new Legislation, is going to take a few days to fully understand.  As further clarification is made available I will try to provide it.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Looks like the long awaited New Tax Credit Bill will be signed into law tomorrow.  The New Tax Credit Bill was passed by the Senate earlier today, and by the House a few minutes ago.  The President has already stated that he will sign the Bill tomorrow once it hits his desk.

The New Tax Credit Bill will look a little different than the current one, but until it is passed by both the Senate and the House, and signed by the President, it is always subject to change.  As it stands right now the New Tax Credit Bill is suppose to contain the following:

• First-time homebuyers will continue at $8,000
  
• Tax credit for “move up” purchasers will be up to $6,500
  
  • Must have used previous home as a principal residence for 5 of the 8 previous years.
• Income limits increased and are the same for first-time and “move up” purchasers: $125,000 for single filers/$225,000 for joint filers
  
• Limitation on eligible home prices has been increased to $800,000
  
• Time Frame: December 1, 2009 to April 30, 2010 plus 60 day extension if binding contract is in place by April 30, 2010.
• Anti-fraud measures have been added

The two big differences between the present Tax Credit and the New Tax Credit Bill in my opinion are: 

• The New Tax Credit will be expanded to include present homeowners that have owned their home for at least 5 years.  The New Tax Credit still only applies to Primary Properties, which means that Investment Properties or Vacation Homes do not qualify for the New Tax Credit.
• Instead of the cut-off date being the Closing Date, it will now be the Date that the Buyer goes under Contract, and then having to Close 60 Days from that date.  This makes a lot more sense to me then having the Closing Date be the cut-off.

The $6,500 Tax Credit for existing Homeowners will be effective upon the New Tax Credit Bill being signed by the President.

Let's see if what we are being told is actually with ends up being signed, and we should know that some time tomorrow.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com