CHFA 20% Tax Credit

Uncle Sam is doing everything he can to help first-time homebuyers get into a house. Sponsored through the Colorado Housing Finance Authority (CHFA) is a new mortgage certificate program that will allow a buyer to deduct from their federal income tax liability 20% of the annual mortgage interest paid on their home. Everybody knows that the payments in the first years of a mortgage go almost entirely to interest. Let's say that you had a $200,000 loan at 5 1/2% annual interest rate, then you would have paid approximately $11,000 in interest in year one. Under this mortgage certificate program, 20% of that amount... $2,200... could be deducted dollar for dollar from your federal tax liability. The balance of the $11,000... $8,800... can still be taken in the taxpayers itemized deductions. This is a significant savings and does not cover just the first year, but is supposed to apply to the life of the loan. There are some restrictions of course so please give us a call and we can discuss those with you. One restriction is an income limit and another is the sales price of a home. Also, you have to be a first-time home buyer.

This program does not expire at the end of November like the $8,000 tax credit and it can be taken in addition to the $8,000 tax credit. We would love to help you find your first home so please give us a call and I'll hook you up with the number one buying agent team in the County for three years running.

Beer and Homebuyers Workshop

Having a beer and getting educated. Isn't that what every college kid tells their parents they are doing? Well Team Lorenz is going to sponsor a first-time home buyer workshop at Carver's Brewing on Thursday, September 10th. We will have beer and some appetizers from 5:00 PM to 5:30 PM in the back room at Carver's. From 5:30 PM to 6:30 PM we will put on a workshop and answer all your questions about the buying process and especially about the $8,000 first-time home buyer tax credit which will be expiring November 30th. In addition, you'll learn about an additional 20% tax credit that can be available as well. Have no money for down payment? We even have some answers for that. Nicole and Lisa from our Team as well as Suzi Loether from Vectra Bank will be there to explain the process, show you some properties online, get you set up with a banker and answer your questions. They will have a beer also.

So many first-time homebuyers are afraid and don't understand the process and that's why we are going to have the number one buyer representative team in all of Durango for the last three years there to help you. They have taken more buyers to the closing table than anybody. They know how to get the job done and will work hard for you.

There are so many great deals out there right now and money is so cheap it's just crazy not to be buying real estate assuming you can afford it. We have seen prices come down this year and in the fall of the year is traditionally the best time to get a great deal. Sellers want to be out of their property before the snow flies so they're a little better at negotiating.

No RSVP is required just come on down and visit us and bring all your real estate questions with you. We would love to help you get into a piece of Durango real estate. If you can't make this workshop, give us a call at 970-375-7007 and we would be happy to sit down with you and answer all your questions.

More First Time Home Buyer Credits

By now, everyone has heard about the $8000 tax credit for first-time homebuyers. However, there is an additional first time home buyer incentive available. Sponsored by the Colorado Housing Finance Authority, a first-time home buyer may be eligible to take a tax credit of 20% of each year's mortgage interest paid against their federal income tax liability. Let's say, for purposes of illustration, that a homeowner paid $12,000 in interest on their home mortgage the first year. 20% of that number ($2400) would be deductible from the taxpayer's federal income tax liability. The remaining 80% of the mortgage interest paid ($9,600) can still be used as an itemized deduction on their federal income tax return. This program is supposed to last the life of the loan.

In order to qualify for this program, you must obtain a CHFA Statewide Mortgage Credit Certificate through an approved lender. In order to qualify purchase price of the home cannot be more than $354,900 anyone a two-person family cannot make over $71,000 annual household income or $81,600 annual household income for homes with three or more persons.

Only a select number of lenders have signed on to this program so please give me a call and I would be happy to help you connect to the appropriate party. Buying real estate in Durango is very rewarding but it certainly can be a daunting task for many a first-time home buyer. Team Lorenz is certainly here to help you locate great properties and get you connected with the appropriate lenders.

Durango Is a Great Place to Raise Kids

Durango was recently named the third-best city in the United States to raise outdoor kids. The study was put on my Backpacker Magazine. So many children are raised in the city and they never get a good sense of the outdoors. The report was featured on the CBS morning show the other day. Here's a link to that program:
Raise Kids in Durango
There are so many factors to consider when finding a new home for your family, and Durango real estate certainly comes up all aces in so many categories. With interest rates low, sellers really ready to make a deal, and lots of good inventory to choose from, I'm not sure there's ever been a better time to invest in Durango real estate. Feel free to give me a call and our Team is ready to go to work for you.

Local Economic News

Sometimes it's good to just sit back and look at some basic economic numbers for our area. As a member of the Durango Chamber of Commerce, I get a lot of that type of information which I find to be very helpful. I hope some of this information will be helpful to you as well.
Airport Enplanements We will never be a major airport, but our connection to Denver and Phoenix is very important. In June of 2005 8608 people boarded planes at our local airport. By 2007, that number had risen to 10,770 in the month of June. June of this year that number had increased to 14,490 people. Since 2005, that is a 46% increase.
Unemployment Figures Durango's unemployment is certainly better than you see in this state and nationally. At the end of May, the national unemployment rate was 9.1%; Colorado's unemployment rate was 7.4%; while the La Plata County's unemployment rate was only 5.5%.

Durango is still a destination location when it comes to real estate. People move here because they want to live here not because they got forced to live here because of a corporate transfer. As a matter of fact, we often see corporate transferee is specifically requesting Durango and hoping that they never then get re-transferred back out. Our little town offers so many benefits of a big city, but without all of the negative features that go along with a large town. You can still go in the grocery store and know 30% of the people that you see shopping.