ARE YOU ONE OF THREE TYPES OF PEOPLE WHO CANNOT
AFFORD TO MISS THE HBA 2009 HOME SHOW?
Springfield, MO — The HBA Home Show has something for everyone, and thousands of people annually attend the eagerly-anticipated regional event at the Springfield Expo Center. But in the uncertain economic times of 2009, certain people simply cannot afford to miss the opportunity they can find at the HBA Home Show.
Three Profiles of Those Who Can’t Afford to Miss the 2009 HBA Home Show:
The First Time Home Buyer.
State and Federal government incentives and today’s unique set of market conditions make this possibly the best time in the history of the U.S. for a first time home buyer to make their move.
Record low interest rates
No home to sell
State and federal incentive dollars now available:
Missourians are especially well-positioned to take advantage of the $7500 federal tax credit for first-time homebuyers. Thanks to a program just launched by the Missouri Development Housing Commission. With over 30 years experience funding mortgages for first-time homebuyers, MHDC knows that the biggest barrier faced by first-time homebuyers is acquiring money for downpayment and closing costs. As a result, MHDC created a first of its kind program that allows homebuyers to receive the value of the tax credit at the time of closing. How the Federal First-Time Homebuyer Tax Credit Works: First-time homebuyers receive a tax credit worth 10% of their home purchase, up to $7,500. The credit is claimed on the homebuyer’s federal tax returns. The credit is refundable, which means that the homebuyer receives a refund for the amount of the credit minus any federal tax liability. The credit is essentially an interest-free loan from the federal government and must be repaid through an increase in federal income taxes over a period of 15 years.
How the MHDC Tax Credit Advance Loan Program Works: MHDC makes a second mortgage to the homebuyer at the time of closing worth up to 6% of the home purchase price or a maximum of $6,750, which is used to cover downpayment and closing costs. The tax credit advance loan is paired with MHDC financing for the first mortgage in the form of a safe 30 year, fixed rate mortgage. The homebuyer then files for the federal tax credit and uses the credit refund to pay off the MHDC tax credit advance loan. If the tax credit advance loan is paid off by the designated deadline (no later than June, 2010), the homeowner pays no interest other than a modest servicing fee. If the tax credit advance loan is not paid in full by the deadline, principal and interest payments to repay the loan over 10 years begin automatically. MHDC loan programs are available for households with incomes up to $85,500. The federal tax credit and the MHDC tax credit advance loan program are both currently set to expire June 30, 2009.
The Stock Market Roller Coaster Victim.
Too many people have watched their investments lose 30%, 40% or 50% or more in the up-and-down stock market. Meanwhile, even in difficult times for the housing market, local home values have held generally steady. That’s a considerable investment advantage over other options today. And, while you watch your safe investment in your home appreciate over time, you get the added benefits of living in and enjoying this investment far more than you ever could any other.
The Savvy Saver.
Let’s face it. Difficult economic times are when most of us start looking for ways to reduce our monthly and long-term expenses, and prudent investments in your home are a great way to do just that.
Energy Efficiency Improvements:
With high energy costs near the top of consumer concerns, it’s good to know that new homes today are more energy- and resource-efficient than ever before. Through the use of new materials and construction techniques, today’s homes are built twice as energy efficient as new homes a generation ago, making them more affordable to own and operate.
Head Off Long Term Maintenance Costs
Get More House for Your Money in a Buyer’s Market
If there’s a silver lining to the housing downturn, it’s that homes are more affordable. Prices have moderated significantly in many areas. Any buyer planning to buy a home of higher market value than the home they are selling is in position to win big in a buyers’ market.
Let’s assume a family is selling a home they believe is worth $100,000, to buy a home they believe is worth $200,000. Too many such buyers are hesitant to make their move because they believe they would “lose” money on the sale of their house in a “depressed” housing market. A little quick math proves otherwise.
Let’s say the market “depression” equates to about 25% (meaning, homes today will only bring 75% of what they would have brought a couple of years ago). That means that $100,000 home would only bring $75,000. So, the family considering a move has “lost” $25,000, right? Not so fast. In a “down” market, that home won’t be the only one bringing a lower price. The $200,000 home the family wants to buy is also down by 25%. It can be had for a mere $150,000. The family that “lost” $25,000 on the first house turned around and “made” $50,000 on its next home. That’s a net gain of $25,000 in equity! The more “down” the housing market is, the more this type of buyer stands to gain.
If one of these profiles describes you, you simply cannot afford to miss the HBA’s 2009 Home Show!
There are also many remodeler members of the HBA in the show this year – so if you’ve decided you want to stay put in your home, but there are changes or updates you’d like to make that better accommodate your lifestyle, come talk to an HBA remodeler in the Home Show. And, there are several seminars offered related to smart choices in the remodeling arena including how to select the right person for your job and which improvements add the most value to your home.