Open house activity at a Worthington Ohio area condo

Last Sunday there was an open house at 68 Highbluffs Blvd. I wanted to provide an update on what was discussed at the open house.  The day was cold and dreary typical February weather; was hoping for a sunny day.  I was pleasantly surprised at the number of prospective buyers that stopped by. The condo is listed at $186,900 so it wasn’t surprising that all the open house guests were first time buyers. There was a little confusion about the terms of the first time buyer tax credit which was signed into law on February 17, 2009.

 Great opportunity for first time buyers

Some buyers were unsure if they could take advantage of the tax credit if they purchased a condo. All the buyers were aware of the tax credit they just were not sure of the following provisions.

  • Only owner occupied single family homes, condos and town homes qualify, must be a principal residence
  • Purchase time frame is from January 1, 2009 thru November 30, 2009
  • Credit is for 10% of the value of the home up to $8,000 ($4,000 for a married individual filing separately)
  • Buyer’s income can’t exceed $75,000; joint return income not too exceed $150,000
  • Definition of a first time buyer – have never owned a single family home, condo or town home or those without an ownership interest within the previous three years
  • No repayment is required unless the buyer ceased to use the home as a principal residence within 36 months of the date of the purchase then the total amount is due.  

Condo purchase scenario

One interested buyer asked what needed to be done to purchase this condo

  • Buyer needs to provide the seller with a lender pre-approval letter
  • If a buyer is approved for an FHA loan they will need a 3.5% down payment $6,541
  • Closing cost could range from $1,500 to $2,100 depending on the lender and title company charges 
  • Principal/interest payment would be $1,003, taxes $301, mortgage insurance $85 condo fee $115 – total estimated monthly payment would be $1,504 based on a 30 year FHA loan with 5% interest.
  • If you had $400 in monthly debt your annual income should be no less than $56,000 a year

 Looking to purchase a real deal

I had the following comments from the open house attendees. Is this condo a model, the buyers loved all the quality features such as the  ceramic tile floors, quality carpet, 42” maple cabinets, stainless steel appliances, rubbed bronze lighting fixtures, 3 floors of finished living space, so much storage space, gas log fireplace and the huge kitchen pantry. Both bedrooms have a private bath, the front load washer and dryer does remain, there is a two car garage, maintenance free living and yes you will have fun at the clubhouse and pool.

 

In conclusion

If you are a first time buyer please do not delay; the tax credit is a home buying incentive that you should not pass on. A few years ago I was fortunate to purchase a Toyota Prius which enabled me to take advantage of a tax credit that was available at that time; that credit is no longer offered. So don’t miss out on what could be the best investment of your lifetime. Before making any financial decisions it’s best to talk to a tax accountant and a reputable lender. At Real Living HER we have a Wells Fargo mortgage affiliate who is always available to explain the loan process in detail. If you are interested in learning more about the mortgage process please don’t hesitate to contact June Zepp, e-mail June.e.Zepp@reallivingmortgage.com office 614-825-8806

 

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