Author: Alison Paoli

The tax credit for homebuyers will be coming to an end shortly. Here is what you need to know to get in on it:

Deadline:

A binding contract must be complete by April 30, 2010 and escrow must be closed by June 30, 2010. In layman’s terms, you need to have an agreed-upon purchase price in writing by April 30 and you’ll have an additional two months to go through the process of actually making the purchase official.

Qualifications:

First-time home buyer tax credit: The first-time homebuyer tax credit of 10 percent of the purchase price up to a maximum of $8,000 is available to those who have not owned a home in the past three years.

Existing home buyer tax credit: The existing homebuyer tax credit of $6,500 is available to homeowners who have owned and occupied their home for five out of the past eight years.

There are income limits for both of the tax credits so make sure to check out the IRS Web site for more information and to find out how to file for the tax credit.

For more information on the tax credit, check out the following blog posts:

• $8,000 Tax Credit Extended Through April 30, 2010
• The Tax Credit Landslide: Homebuyer Credit Extended though June 2010
• $8,000 Tax Credit is Extended through April 30, 2010… and it’s been Expanded!
• Is Homebuyer Credit Really Helping the Buyer?

After criticism that the government’s Home Affordable Modification Program (HAMP) isn’t helping as many people as it should, the Obama administration this morning announced significant modifications to the program. The changes are intended to help responsible homeowners who are underwater and are in need of a more affordable mortgage, including those that are unemployed.

To help unemployed homeowners, the program will require loan servicers that participate in the program to reduce monthly payments so they are at or below 31 percent of the borrower’s income. If necessary, servicers would suspend monthly payments for a minimum of three months and a maximum of six months.

According to ABC News, to qualify for this program, out-of-work homeowners must be eligible for HAMP and be receiving unemployment benefits. The monthly payment would be no more than 30 percent of the homeowner’s unemployment benefits. However, the amount not paid each month would be tacked on to the end of the loan balance.

Additionally, the plan is chock full of financial incentives for lenders to help underwater borrowers. According to the Washington Post, incentives will be given to lenders who reduce the principal owed on a loan amount if the amount is 15 percent more than the home is worth; to those who modify second loans including piggyback loans (i.e. 80/20 loans) and home equity lines of credit; to those who find alternate ways to keep a homeowner out of foreclosure even if they do not qualify for mortgage relief (i.e. approving a short sale) and finally to those who assist borrowers who are keeping up their monthly payment but need to get into a more affordable loan, by cutting the primary mortgage by at least 10 percent.

The new measures are in response the the large numbers of homeowners who are out of work (10.4 percent nationally- Feb. 2010) and who are underwater on their mortgage. According to Zillow’s Q4 Real Estate Market Reports, 21 percent of of all single family homes with mortgages owe more than their home is worth.

Mortgage rates for 30-year fixed mortgages declined this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.80%, down from 4.84% at this time last week. The 30-year fixed mortgage rate peaked at 4.87 percent late last week before hovering below 4.80 percent over the weekend.

Additionally, 15-year fixed borrowers were quoted on average, 4.23% and for 5/1 ARMs, 3.57%.

What are the rates right now? Check Zillow Mortgage Marketplace for up-to-the-minute mortgage rates for your state.

The Home Affordable Refinance Program (HARP),  which was scheduled to end on June 10, 2010, has been extended to June 30, 2011, according to an announcement by the Federal Housing Finance Agency.

The program was designed to help 5 million underwater homeowners refinance into a more manageable loan, but so far has helped approximately 200,000 struggling borrowers.

Since the program launched in spring of 2009, the HARP program expanded eligibility by increasing the loan-to-value (LTV) ratio to 125% from 105% to include more underwater borrowers. However, so far only an additional 1,923 borrowers with an LTV greater than 105% have been helped.

As of Dec. 31, 2009, 21.4 percent of all single-family homes were underwater (owing more on their mortgage than their home is worth), according to Zillow’s Q4 Real Estate Market Reports.

Learn more about HARP:

• Making Home Affordable Plan Expected to Help 4-5 Million Homeowners Refinance
• Am I eligible for a Home Affordable Refinance?

For this season’s “The Bachelor” TV series and its bachelor, Jake Pavelka, it is down to two women, Vienna Girardi and Tenley Molzahn. On Monday, March 1, Jake is expected to to select his bride-to-be. Whomever it ends up being we thought we’d take a look at what living situations would be like with each of the women.

Vienna – Sanford, FL

Vienna lives in Sanford, FL, which is in central Florida — roughly 30 miles northeast of Orlando. Vienna has lived in the general area most her life. She has earned the TV reputation of the girl that many of the other Bachelorettes dislike. Should Jake select Vienna, it is unknown where the two would reside but assuming they move to her present locale of Sanford, we have hand-picked a home we think would be a great fit. And since Sanford’s Zillow Home Value Index is $115,000, you can sure get a lot for your money.

408 Key Haven Drive Sanford, FL 32771 — For Sale: $140,000

This huge 2,844 sq. ft. 4-bedroom, 2.5-bath home would be perfect for a growing family (she says she wants kids). It looks to be in fantastic condition, has an open floor plan, a bonus room and a community pool.

Based of of a 20% down payment and good credit scores, the monthly payment could be as low as $598 per month.

> See more homes for sale in Sanford, FL

> See Sanford, FL home values

Tenley – Huntington Beach, CA

Though Newberg, OR is Tenley’s hometown, she currently resides in Huntington Beach, CA which is about 10 miles from where she works at The Fashion Institute of Design & Merchandising in Irvine, CA.

Tenley has already told Jake that she would not live with him until after they were married. With that said, we found a good rental in Huntington Beach that Jake could live in before he walks down the aisle.

16733 Arbor Circle #46B Huntington Beach, CA 92647 — For Rent $1,395/month

Listed at $1,395 per month, this 2-bedroom, 1-bath home could be the perfect fit for Jake. It overlooks a greenbelt and has a one-car garage for his beloved motorcycle.

> See more homes for rent in Huntington Beach, CA

> See home values in Huntington Beach, CA

Jake – Denton, TX

And last, there is always the option one of the ladies will move to Jake’s hometown of Denton, TX. Located northwest of Dallas, Denton’s median list price has fallen from $182,900 in Jan. 2009 to $169,900 in Jan. 2010.

2712 Hilcroft Ave. Denton, TX 76210

Listed at $142,000, this 4-bedroom, 2-bath home has been very well cared for. It boasts a large kitchen, access to the community pool and has solar screens for energy efficiency.

> See more homes for sale in Denton, TX

> See Denton, TX home values

We’ll see who Jake ends up picking. If he decides that neither girl is the future Mrs. Pavelka, there is always Christina McCasland from San Diego, CA. She was the Bachelorette let go during Episode 2 who Jake said in The Bachelor: The Women Tell All (the episode right before the finale) that wishes he had gotten to know better.