Good News in Tough Economic Times

2009 First-Time Home Buyer Tax Credit Fact Sheet

courtesy of Bob Moore, Home Mortgage Consultant

Who is Eligible

• The $8,000 tax credit is available for first-time home buyers only.  

• The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

• All U.S. citizens who file taxes are eligible to participate in the program.  

Payback Provisions

• The tax credit is a true credit. It does not have to be repaid.  

• The only repayment requirement is if the home owner sold the home within three years after the purchase.

Income Limits  

• Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income (MAGI) is less than $75,000.

• For married couples filing a joint return, the income limit doubles to $150,000.  

• Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit.

• Married couples who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit.  

• The credit is not available for single taxpayers whose MAGI is greater than $95,000 and married couples with a MAGI that exceeds $170,000.

 Thursday, January 15, 2009                                                                                  Tulsa World

Tulsa has ability to ride out recession   

Business Viewpoint by Stan Lybarger

     What a difference a year makes.

     There are a number of challenging issues facing the Tulsa region and the state of Oklahoma, and today in Washington, D.C., restoring economic growth and creating jobs is the number one domestic priority.

     This is not the average cycle facing the economy, and experts predict that it will last longer and run deeper than most economic downturns. The sky isn’t falling in Tulsa, but the ramifications are yet to be seen.

     While it is important to be cautious, there is no cause for alarm. Tulsa has many strengths that will serve us well during this economy.  Here is what we know.

     Tulsa has been here before. In fact, we were just here a couple of decades ago and as recent as 2003. We know Tulsa has the resilience and the fortitude to withstand a tough economy.

     Tulsa still remains below the national average in unemployment, and we continue to report net job growth.

     Tulsa was selected in October by ForbesMagazine as the fifth-best city in the country to “ride out” the recession, based on its low unemployment rate and stable homeowners equity.

     Tulsa is forecast to be the fifthstrongest market for residential real estate in the nation through September 2009.

     Tulsa is ranked by MSN Real Estate as the ninth most livable city in terms of best bargains for real estate.

     The Tulsa region is ranked by Forbes as the sixth best metropolitan area for jobs among the 100 largest metro areas in the country based on median household income, unemployment, income growth, cost of living and job growth.

     The following is an economic snapshot of the state and our region:

• Our cost of doing business is 7.1 percent below the national average.
• Tulsa’s cost of living is 11.5 percent below the national average.
• Tulsa County per capita income is 20.7 percent above the national average, while the state’s is 11.8 percent below.
• The Tulsa area added 1,890 jobs in 2008.
• Tulsa’s current unemployment rate is 4.6 percent — lower than the nation’s 6.5 percent in the comparable month.
• In 2009, the number of jobs in the Tulsa area is projected to remain virtually unchanged to down 0.2 percent, along with the state — both better than the U.S., which is expected to decline 1.5 percent.

     These statistics are not a secret, and the TulsaMetro Chamber will continue to use our strengths to positively position and promote the Tulsa region.

     Today, the global competition for markets, capital, labor and natural resources has grown more fierce than ever. This unsettles many Americans, as does the rapid pace and uncertainty of change.

     But in these changes lies opportunity.

     The chamber is committed to stemming job losses and bolstering our economy to further protect our community. Together, chamber executives, staff and board members are committed to focus on key priorities that are central to the organization and our mission.

     While other places recover, Tulsa chooses to invest in streets, education and infrastructure.

     While other communities wait, Tulsa continues to rebuild downtown by opening the BOK Center, a world-class arena, by remodeling and expanding the Tulsa Convention Center, and by breaking ground on Oneok Field, our new downtown home for the Tulsa Drillers baseball team.

     But there is much more to do.

     Last year, the chamber worked with government at all levels, elected offcials across the political spectrum and partners across the region to join us in advancing a clear mission: build a more competitive economy and improve the quality of life for citizens of the Tulsa region.

     And in 2009, we must remind leaders that business is the institution that continually reinvents itself, develops new industries and markets, creates jobs and unrivaled opportunities.

     Small business is an economic driving force for our region, and the chamber continues to involve more small businesses and provide them more opportunities to grow.

     Today, Tulsa is on the path of progress, and we need to continue to build on our momentum rather than allowing it to dissipate in tough times. The chamber and the business community have responded proactively and aggressively.

     Expect no less now.

Stan Lybarger is president and CEO of BOK Financial Corp. Next week he will complete his one-year term as chairman of the Tulsa Metro Chamber.

Tulsa region.

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability.  Even though interest rates have gone up in the last six months, they are still near historic lows.  Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life.  It’s important to live in a home that reflects your taste and values, yet is within your financial “comfort zone.”  To that end, it may be more important to lock in today’s relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today’s market.