Feb

16

Fannie Mae Loosens Credit for Home Investors

Filed Under Government, National Market | Leave a Comment

Last week Fannie Mae announced it would reverse their policy limiting investors to four properties. The change will go in effect on March 1, 2009. Last year Fannie Mae introduced the restriction while under close scrutiny from the government for their lending practices.

Fannie Mae is now changing their policy to allow investor and second home borrowers to own up to ten financed properties provided they meet certain eligibility and underwriting requirements as outlined in the following release:

Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery and Fannie Mae’s continued support for investor borrowers is consistent with its mission to provide stability, liquidity, and affordability to the nation’s housing system. To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower to allow five to ten financed properties per borrower, with certain eligibility, underwriting, and delivery requirements, including a 720 minimum credit score and 70–75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower’s other mortgages.

https://www.efanniemae.com/lc/newsletters/sfnews/0209mortgages.jsp

Jan

15

Kootenai County Economic Stimulus Proposed Projects List

Filed Under Government, Kootenai County | Leave a Comment

The Kootenai Metropolitan Planning Organization blog has recently posted a list of transportation/infrastructure projects that could be ready within 180 days should president-elect Barack Obama’s economic stimulus package pass. Currently this is only a draft list of possible projects.

KMPO has been working with Kootenai County agencies involved in transportation on a list of projects to submit for possible stimulus funding. At this time, we don’t have specific numbers on how much money would come into the area through this package if passed, nor do we know the federal requirements, or the timeline involved. If the stimulus package is passed, we cannot guarantee that the proposed projects will be constructed. The only thing we do know for sure is that this is a draft list and the projects included need to be considered ‘shovel ready,’ meaning they can be ready for construction within 90 to 180 days.

The proposed project list consists of roadway projects only at this time. KMPO’s Public Transportation Roundtable committee has been asked to submit transit projects as well, which will be added to the list.

Kootenai County Economic Stimulus Proposed Projects List

Nov

12

Upcoming Changes in Capital Gains Tax

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What is Capital Gains Tax? When a taxpayer sells assets that have been held for more than a year and one day (366 days) the taxpayer is subject to capital gains taxes.

The rates are currently as follows:

Long Term Capital Gain – Since 2003, the rate for Long Term Capital Gain has been 15% (lowered from 20%) for taxpayers in the 25% income tax bracket or higher. For taxpayers in the lower income tax brackets (10% and 15%), the rate has been lowered to 5% from 10%.

In 2008, the 15% rate has remained the same; however, the 5% rate has been reduced to zero! In order to qualify for this rate, a married couple may make no more than $65,100 annually or $32,550 annually for single filers.

These rates are scheduled to remain through the end of 2010 as outlined in the Tax Increase Prevention and Reconciliation Act of 2006. In 2011, the capital gain rates are scheduled to return to the previous rates of 20% and 10%. Although these rates are scheduled to increase to 20% in 2011, many experts believe the future tax rates will be changed more significantly due to the outcome of the recent Presidential Election. President-Elect Obama has stated that he is in favor of increasing capital gains tax to 25%.

State Rate – In addition to the Federal capital gains tax, each state has individual capital gains rates. In some states, there are no capital gains taxes (tax rate is determined by the state in which the real estate is sold). It is advisable to check with one’s own tax advisor to determine the appropriate rate.

Depreciation Recapture – There is also a 25% tax rate also known as Depreciation Recapture. This rate applies to the portion of real estate that has been depreciated.

In the interim, we will have to standby until Congress addresses the issues surrounding capital gains. Whatever the proposed tax changes may be, one of the best ways to successfully navigate around capital gains tax is simply to utilize a §1031 Tax-Deferred Exchange.

Compliments of:
Whitney Brennan
www.ncs1031.com

Apr

4

RealEstateJournal – Builder Tax Break in the Works

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According to the Real Estate Journal, legislation is in the works to allow builders to apply current losses to taxes paid four years ago, instead of the current two-year carry-back. This proposal would cost approximately $6.1 billion over the next decade.

RealEstateJournal | Legislation Would Give Builders a Big Break

Feb

22

Idaho Real Estate Price Disclosure Approved by Panel

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Idaho is a non-disclosure state which can be a major advantage to investing in North Idaho.   Recently a bill requiring residential price disclosure cleared committee and could become law in the near future.  Although this excludes commercial real estate at the time, it opens the door to future legislation and taxes.  It will be interesting to see how this pans out.

For more please read: Panel OKs Real Estate Price Disclosure | Chron.com – Houston Chronicle

Jan

21

Impact Fees for Spokane on the Table

Filed Under Government, Local News | Leave a Comment

Spokane has proposed impact fees that the City of Spokane will impose on developers building projects in the city limits. Here is a link to the Spokesman Review article this weekend discussing the issue.

SR.com: Spokane eyes impact fees