Real Estate Information

1786 Heritage Walk

Open 1-3

Location: From Main Street turn East to  Bench Boulevard, turn North on Bench to Kyhl Lane

Brand new 2 bedroom home, 3 baths, oversized 2 car garage, deck, large open living area with vaulted ceiling, gas fireplace, custom kitchen, quiet secluded location, near shopping, and medical facility. $195,900

Open 1-3

1140 Patriot Street

Location: From Governors Boulevard turn East on Constitution to Patriot, follow the signs

Spacious home with over 3,300 sq. ft. huge custom kitchen, dining area, formal living room, lower level family room, 4 bedrooms, 3 baths, 3 car garage, fenced and landscaped yard, deck, storage galore!  $224,900

Ask about the tax credits available when you purchase a home

MARKET UP DATE AT GLANCE COMMENTARY JANUARY 6TH 2010

2009 IS IN THE REAR VIEW MIRROR, SO LONG AND I DON’T THINK THE YEAR WILL BE MISSED. 2009 FROM THIS SIDE OF THE FENCE CAN BEST BE DESCRIBED AS A GRIND OUT YEAR ALL SALES TOOK MORE TIME AND ENERGY TO ACHIEVE MY CLIENTS GOALS. WHEN 2009 STARTED IT APPEARED THE WORLD WAS FALLING OFF A CLIFF, WHICH IT WAS, THE QUESTION WAS WOULD THE FALL STOP.

FROM THE HOUSING PERSPECTIVE IN YELLOWSTONE COUNTY I THINK THE MARKET BEHAVED REASONABLY WELL BASED ON THE FACTORS INVOLVED. AT THE START PEOPLE WITHDREW FROM THE MARKET PLACE IN DROVES, REASONABLE WHEN IT APPEARS THE ECONOMY MAY END AS WE KNEW IT AROUND THE GLOBE. LUCKILY WE LIVE IN YELLOWSTONE COUNTY SO WE WERE SPARED THE WORST OF THE STORM.

IN FEBRUARY THE FIRST TIME BUYERS CREDIT STARTED AND SINCE EMPLOYMENT WAS GOOD AND PRICES IN YELLOWSTONE COUNTY NEVER OUT STRIPPED WAGES, FIRST TIME BUYERS CAME INTO THE MARKET THROUGH OUT THE YEAR, IN SEPTEMBER AND OCTOBER IT WAS A RUSH TO WHAT WE ALL THOUGHT WOULD BE THE FINISH LINE OF THE TAX CREDIT. BUT THE POLITICIANS FOOLED US. BEFORE THE END OF THE YEAR THEY EXTENDED AND EXPANDED THE TAX CREDITS TO HOUSING, SO IT BRIGHTENS THE OUT LOOK FOR THE BEGINNING OF 2010, MORE ON THAT LATER. THE BIGGEST INTERVENTION INTO HOUSING BY THE GOVERNMENT WAS ACTUALLY NOT THE TAX CREDIT BUT THE FEDERAL RESERVE BUYING MORTGAGES FROM FANNIE MAE AND FREDDIE MAC. Just SO YOU KNOW AS A TAXPAYER YOU CONTRIBUTED ABOUT 49% OF EVERY DOLLAR LENT IN 2009 TO HOME BORROWERS. IN TOTAL IF YOU COUNT ALL THE SUPPORT that WAS GIVEN TO HOUSING IT TOTALS ABOUT 2 TRILLION DOLLARS NOT A FIGURE YOU’RE LIKELY TO SEE IN 2010.

SO WHAT CLOUDS CAN WE PART AND SEE THE HOUSING MARKET IN 2010.

I WILL USE MY STANDARD DISCLAIMER ABOUT PROGNOSTICATIONS “IF I COULD ACCURATELY SEE THE FUTURE I WOULD BE RICHER THAN BILL GATES AND YOU WOULD NOT BE RECEIVING THIS FROM ME.” That BEING SAID HERE WE GO.

FIRST LETS LOOK AT CONSTRUCTION, CONSTRUCTION OF HOMES IS DRIVEN BY FIRST AND FOREMOST JOBS. ALTHOUGH YELLOWSTONE COUNTY IS FORTUNATE UNEMPLOYMENT IS ONLY 4.8% YELLOWSTONE COUNTY HAS 3804 FEWER PEOPLE EMPLOYED THAN THE PEAK OF EMPLOYMENT IN AUGUST OF 2007 WITH that IN MIND THE HOME CONSTRUCTION BUSINESS WILL PROBABLY SETTLE WHERE IT HAS BEEN IN THE LAST TWO YEARS ABOUT 250 SINGLE FAMILY HOMES IN 2010. that NUMBER IS ABOUT 200 HOMES LESS THAN BEFORE THE DOWN TURN AND 350 LESS THAN THE PEAK. ALTHOUGH YELLOWSTONE COUNTY CONTINUES TO GROW SLOWLY IN POPULATION IT IS JOBS that DRIVES NEW CONSTRUCTION.

EXISTING HOMES ACTUALLY ENDED THE YEAR UP 13 UNITS FROM 2008 that WAS DRIVEN ENTIRELY BY THE TAX CREDIT. IN 2010 WE HAVE NOT ONLY THE FIRST TIME BUYER CREDIT WE ALSO HAVE THE EXISTING HOME BUYER CREDIT FOR THOSE WHO HAVE LIVED IN THEIR HOME FOR AT LEAST 5 OF THE LAST 8 YEARS. THESE TWO FACTORS COMBINED WITH THE FEDERAL RESERVES COMMITMENT TO CONTINUE BUYING MORTGAGES THOROUGH MARCH OF 2010 SHOULD PROPEL HOUSING INTO THE NEW YEAR WITH A FAIRLY SUBSTANTIAL PUSH.

That WILL MEAN PRICES SHOULD BE STABLE WITH NO DOWNWARD PRESSURE FROM FORECLOSURES AND, AT LEAST IN THE FIRST FOUR MONTHS OF THE YEAR, ENOUGH DEMAND TO BALANCE WITH INVENTORY.

WITH ALL PROGRAMS WHEN YOU PUSH ON ONE SIDE, SOMETHING MOVES ELSEWHERE, THIS IS ALSO TRUE IN HOUSING AND WITH THE POSITIVE SALES SIDE IT HAS CREATED A SOFTER RENTAL MARKET. THE AVERAGE ASKING PRICE FOR AN APARTMENT IN YELLOWSTONE COUNTY DECLINED 1% YET AVAILABILITY INCREASED BY 33% SO WE SHOULD EXPECT SOFTNESS IN THE PRICING ARENA FOR RENTALS FOR MOST OF 2010 UNTIL THE EFFECTS OF THE TAX CREDITS WEAR OFF IN THE SALES MARKET.

MY BELIEF IS 2010 WILL BE MORE STABLE THAN 2009 YET THE RESULTS BY THE END OF THE YEAR WILL MOST PROBABLY BE VERY CLOSE TO 2009 IN TERMS OF SALES YET MORE STABLE PRICING THROUGHOUT THE YEAR

HERE’S TO WISHING NOTHING BUT THE BEST IN 2010!!!!!!!!!!!!!.

The latest edition of my Monthly newsletter is now online at my website, just click on the link to monthly news and information.

Happy New Year!

if you were not aware new rules governing licensing of loan origination by the federal government go into to July 31st 2010. if a state does not comply, Government backed lending could be eliminated as an option so effectively the Federal government will take control of the licensing of loan origination in residential  lending.

(a) Except as provided in paragraph

(e) of this section, in order to operate a SAFE-compliant program, a State must prohibit an individual from engaging in the business of a loan originator with respect to any dwelling or residential real estate in the State, unless the individual first:

(1) Registers as a loan originator through and obtains a unique identifier from the NMLSR, and

(2) Obtains and maintains a valid loan originator license from the State.

(b)(1) An individual engages in the business of a loan originator if the individual:

(i)(A) Takes a residential mortgage loan application; and

(B) Offers or negotiates terms of a residential mortgage loan for compensation or gain; or

(ii) Represents to the public, through advertising or other means of communicating or providing information (including the use of business cards, stationary, brochures, signs, rate lists, or other promotional items), that such individual can or will provide any of the services or perform any of the activities described in

paragraph (b)(1)(i) of this section.

(2) An individual does not engage in the business of a loan originator merely by performing administrative or clerical tasks.

(c)(1) An individual ‘‘takes a residential mortgage loan application'' if the individual receives a residential mortgage loan application for the purpose of deciding (or influencing or soliciting the decision of another)whether to extend an offer of residential mortgage loan terms to a borrower or prospective borrower (or to accept the terms offered by a borrower or prospective borrower in response to a solicitation), whether the application is received directly or indirectly from the borrower or prospective borrower.

(2) An individual ‘‘offers or negotiates terms of a residential mortgage loan for compensation or gain'' if the individual:

(i)(A) Presents for acceptance by a borrower or prospective borrower residential mortgage loan terms;

(B) Communicates directly or indirectly with a borrower or prospective borrower for the purpose of reaching an understanding about prospective residential mortgage loan terms; or

(C) Recommends, refers, or steers a borrower or prospective borrower to a particular lender or set of residential mortgage loan terms, in accordance with a duty to or incentive from any person other than the borrower or prospective borrower; and

(ii) Receives or expects to receive payment of money or anything of value in connection with the activities described in paragraph (c)(2)(i) of this section or as a result of any residential mortgage loan terms entered into as a result of such activities.

(d)(1) Except as provided in paragraph

(e) of this section, a State must prohibit an individual who is an independent contractor from engaging in residential mortgage loan origination activities as a loan processor or underwriter with respect to any dwelling or residential real estate in the State, unless the individual first:

(i) Registers as a loan originator through and obtains a unique identifier from the NMLSR, and

(ii) Obtains and maintains a valid loan originator license from the State.

(2) An individual engages in residential mortgage loan origination activities as a loan processor or underwriter if, with respect to a residential mortgage loan application, the individual performs clerical or support duties.

(e) A State is not required to impose the prohibitions required under paragraphs (a) and (d) of this section on the following individuals:

(1) An individual who performs only real estate brokerage activities and is licensed or registered in accordance with applicable State law, unless the individual is compensated directly or indirectly by a lender, mortgage broker, or other loan originator or by an agent of such lender, mortgage broker, or other loan originator;

(2) An individual who is involved only in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. 101(53D);

(3) A loan processor or underwriter who performs only clerical or support duties and does so at the direction of and subject to the supervision and instruction of an individual who is licensed and registered in accordance with paragraph (a) of this section or who is exempt under paragraph (e)(7) of this section;

(4) An individual who only offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual;

(5) Any individual who only offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence.

(6) A licensed attorney who only negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator; or

(7) An individual who is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry, and who is an employee of

(i) A depository institution;

(ii) A subsidiary that is:

(A) Owned and controlled by a depository institution; and

(B) Regulated by a Federal banking agency; or

(iii) An institution regulated by the Farm Credit Administration.

(f) A State must require an individual licensed in accordance with paragraphs

(a) or (d) of this section to renew the loan originator license no less often than annually.

For an individual to be eligible for a loan originator license required under § 3400.103(a) and (d), a State must require and find, at a minimum, that an individual:

(a) Has never had a loan originator license revoked in any governmental jurisdiction, except that a formally vacated revocation shall not be deemed a revocation;

(b)(1) Has never been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:

(i) During the 7-year period preceding the date of the application for licensing; or

(ii) At any time preceding such date of application, if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering.

(2) For purposes of this paragraph (b): (i) Expungement of a conviction described in paragraph (b)(1) of this section does not affect the ineligibility of the convicted individual; (ii) Pardoned convictions do not render an individual ineligible; and (iii) Whether a particular crime is classified as a felony is determined by the law of the State in which an individual is convicted. (c) Has demonstrated financial responsibility, character, and general fitness, such as to command the confidence of the community and to warrant a determination that the loan originator will operate honestly, fairly, and efficiently, under reasonable standards established by the individual State.

(d) Completed at least 20 hours of prelicensing education that has been reviewed and approved by the Nationwide Licensing System and Registry. The pre-licensing education completed by the individual must include at least:

(1) 3 hours of Federal law and regulations;

(2) 3 hours of ethics, which must include instruction on fraud, consumer protection, and fair lending issues; and

(3) 2 hours of training on lending standards for nontraditional mortgage product marketplace.

(e)(1) Achieved a test score of not less than 75 percent correct answers on a written test developed by the NMLSR in accordance with 12 U.S.C. 5105(d).

(2) To satisfy the requirement under paragraph (a)(5)(i) of this section, an individual may take a test three consecutive times, with each retest occurring at least 30 days after the preceding test. If an individual fails three consecutive tests, the individual must wait at least 6 months before taking the test again.

(3) If a State licensed loan originator fails to maintain a valid license for 5 years or longer, the individual must retake the test and achieve a test score of not less than 75 percent correct answers.

(f) Be covered by either a net worth or surety bond requirement, or pays into a State fund, as required by the State loan originator supervisory authority.

(g) Has submitted to the NMLSR fingerprints for submission to the Federal Bureau of Investigation and to any government agency for a State and national criminal history background check; and

(h) Has submitted to the NMLSR personal history and experience, which must include:

(1) Information related to any administrative, civil, or criminal findings by any governmental jurisdiction; and

(2) An independent credit report.

For an individual to be eligible to renew a loan originator license as required under § 3400.105(f), a State must require the individual:

(a) To continue to meet the minimum standards for license issuance provided in § 3400.105; and

(2) To satisfy annual continuing education requirements, which must include at least 8 hours of education approved by the NMLSR. The 8 hours of annual continuing education must include at least:

(i) 3 hours of Federal law and regulations;

(ii) 2 hours of ethics (including instruction on fraud, consumer protection, and fair lending issues); and

(iii) 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.

(b) A State must provide that credit for a continuing education course is valid only for the year in which the course is taken and that an individual may not meet the annual requirements for continuing education by taking an approved course more than one time in the same year or in successive years.

(c) An individual who is an instructor of an approved continuing education course may receive credit for the individual's own annual continuing education requirement at the rate of 2 hours credit for every one hour taught.

(a) Except as provided in paragraphs (b), (c), and (d) of this section, a State must provide that the effective date for requirements it imposes in accordance with §§ 3400.103, 3400.105, and 3400.107 is no later than July 31, 2010.

link to complete regulation

http://www.hud.gov/offices/hsg/ramh/safe/safeprule.pdf

You can see the rush to use the $8,000 first time buyer tax credit in the number; everyone thought it was going to expire. Congress fooled you. Now the months of March and April 2010 will repeat what happened in September and October 2009. So even if we have winter I’ll bet $10 against your $1 that the first four months of 2010 exceed the first four months of 2009 in terms of pending sales activity. Our friends in the construction business have benefited also by the governments largess with the tax dollar as you can see from the numbers. They builders have responded in spades adjusting their product to the market place and moved down in their price to sell homes, the market at work. Of course there is one segment that is taking a hit due to all the first time buyers flooding the purchase marker and you can see that in what’s happening to the rental availability and price declines in the rental market. When you’re robbing peter to pay Paul that is what happens, there is always collateral damage some where in the market place.

Thought it might be useful to show the effect on interest rates on the decision to rent versus purchase a home. The comparisons contain over 4000 rental housing units advertised in 2009 and over 1150 closed home transactions. Payment figure a financing of 100% of purchase price 5% interest rate for 30 years showing the principal and interest payment. Taxes and insurance are not included, yet if you factored in the tax savings versus the tax & insurance costs it’s about a wash.

The following charts do not take into account the benefit of $8,000 tax credit given to you when you switch from renting to buying. yet if want to compute that affect, it tilts the advantage to buying by another $22.22 per month over thirty years  so average sales price you have only $16 more a month to own the averages sales price in billings as opposed to renting the average asking price home for rent.

Now when you look at the median sales priced home in billings and think your better off renting your calculator is not working at all. it only costs $9 more a month to rent the median priced home as opposed to purchasing it. When you factor in the $8,000 credit over thirty years it cost $31 more a month to rent than it does to buy.

MARKET UP DATE AT GLANCE COMMENTARY THRU NOVEMBER 14TH 2009

I’LL BEGIN  WITH THE COMMENT “cash for clunkers EXTENDED AND EXPANDED” and a race to the MOVED finish line (NOW APRIL 30^TH 2010) THE BEST WAY TO DESCRIBE THE WAY THE REAL ESTATE MARKET IS BEHAVING this fall.

WHEN YOU LOOK AT THE NUMBERS THE THING that JUMPS OUT AT YOU IS A 67% INCREASE IN THE NUMBER OF PENDING SALES YEAR TO YEAR, YOU COULD SHOUT ABOUT THE INCREASE (SEE THE CAUSE IN THE FIRST LINE), YET WHEN YOU NOTE THAT LAST YEAR AT THIS TIME THE BUYERS WITHDREW FROM THE MARKET PLACE AND CAUSED A PLUNGE IN PENDING SALES, IT TEMPERS ENTHUSIASM. I BELIEVE we are in AN EXTENDED AND EXPANDED race with first time buyers ($8,000 CREDIT) WANTING TO PURCHASE WITH tax credit AND EXISTING HOMES that BUY A DIFFERENT PRINCIPAL RESIDENCE ($6,500 CREDIT).

THIS BRINGS UP A GOOD POINT IN THE OVERALL NUMBERS WE WILL EXPERIENCE THE REST OF THE YEAR. THE MARKET FELL FROM THIS POINT FORWARD FOR THE REMAINDER OF 2008. THIS YEAR APPEARS TO HAVE STABILIZED WITH INVENTORY AND PENDING SALES REMAINING IN A SOLID RELATIONSHIP TO EACH OTHER. THAT FACT BRINGS MEASURED OPTIMISM.

the most active SEGMENT of the market HAS REMAINED between 160k to 180k(PRIME FIRST TIME BUYER PRICE RANGE), that price range  share of the market  13% by unit volume in 2008, INCREASED TO  17% by unit VOLUME AT THE END TO september 2009. THE UPPER RANGE SEGMENTS 300K TO 500K WILL SEE AN INCREASE IN MOVE UP TRAFFIC WITH THE EXPANSION OF THE TAX CREDIT TO EXISTING HOME BUYERS. i SUSPECT A lag in timing, UNTIL AFTER THE HOLIDAY SEASON WE WILL WATCH CLOSELY AS THE PENDING SALES AFTER JANUARY 1^ST 2010.

THE inventory levels have CONTINUED TO STAY IN A NARROW BAND ALL YEAR WITH A slight A DECREASE IN PROPERTIES FOR SALE OF 5% FROM a year ago, AS COMPARED TO 41% HIGHER IN JANUARY AND 9% HIGHER IN MARCH A YEAR AGO, THE decrease from a year ago is AFFECTED by the increase in pending SALES AND STABLE INVENTORY..

THE PENDING SALES LEVELS CONTINUE HIGHER, AN INCREASE OF 67% FROM a year ago, AS COMPARED TO 37% LOWER IN JANUARY AND 12% LOWER IN MARCH. THE CONTINUED INcrease from a YEAR ago is AFFECTED by the increase in FIRST TIME HOME BUYERS AND slight MOVE UP TRAFFIC (WHICH SHOULD INCREASE WITH THE EXPANDED TAX CREDIT). THIS MONTH AS IN COMING TIME PERIODS WE WILL SEE INCREASES FROM A YEAR AGO, BECAUSE A YEAR AGO PENDING SALES LEVELS WENT DOWN SUBSTANTIALLY.

CONSTRUCTION numbers in OCTOBER: single family permits, IN TOTAL still show A DECLINE FROM LAST year, 18% LOWER. to put it in PERSPECTIVE the first 10 months of the year are as follows 1. 2009 199 single family permits, 2. 2008 243 Single family permits, 3. 2007 392 Single family permits. WE CONTINUE A TREND IN new CONSTRUCTION market THAT PERMITS IN FOR THE MONTH ARE AT OR HIGHER THAN THE YEAR BEFORE AND OCTOBER DID ADMIRABLY WELL AGAIN 21 PERMITS 2009 AND 16 IN 2008. AS WE MOVE FORWARD THE TREND WILL MOST PROBABLY CONTINUE DUE THE STEEP DECLINE IN PERMITS LAST YEAR, AGAIN THIS SHOWS A MARKET THAT IS STABILIZING AND FOUND ITS FLOOR of activity. THE BONUS FOR HOME BUILDERS WILL BE 2010 IF THEY CAN GET AN ORDER BY APRIL 30^TH 2010  AND GET THEM BUILT TO CLOSE BEFORE JUNE 30^TH 2010 THE BUYERS CAN REAP A $6,500 TAX CREDIT. A LITTLE BIT OF A NARROW TIME FRAME YET I AM SURE IT WILL INCREASE ACTIVITY IN THE HOME BUILDING BUSINESS.

the home sales prices below SHOW a slight price decline year to year YELLOWSTONE county  a 4% IN AVERAGE AND 3% IN MEDIAN SALES PRICE.  I WOULD SAY WHEN THE SMALLER SIZE OF HOME SELLING IS FACTORED IN THE DECLINE YEAR TO YEAR WOULD BE ABOUT 3% WITH HOMES IN POOR CONDITION OR LOCATION EXPERIENCING GREATER THAN THAT.

THE POSITIVE forces in the MARKET REMAIN THE SAME, the STRENGTH of the below $200,000, no SIGNIFICANT FORECLOSURES of HOMES AND HISTORICALLY LOW INTEREST RATES 5% FOR A 30YEAR LOAN AND STRONG EMPLOYMENT NUMBERS. the importance of A LOW FORECLOSURE RATE CAN not be OVERSTATED. when you look at other market places AND THE case /shiller index declines, the driving force in downward price pressure is FORECLOSED properties sold by lenders.

unemployment in YELLOWSTONE COUNTY IN   WAS 4.7%, NOT SEASONALLY ADJUSTED, COMPARED to the state average of 6.7% , GALLATIN VALLEY OF 5.5% MISSOULA OF 5.6%,  THE FLAT HEAD OF 8.8 % and the NATIONAL of 10.2% giving people who want to own their home a job and A BELIEF that they will be employed, (A SIDE NOTE TO YELLOWSTONE COUNTY  ACTUAL NUMBER OF WORKING PEOPLE IN OCTOBER WAS 80,400 PRELIMINARY) along  WITH low INTEREST, approximately 5.% on a 30 year fixed rate, and you have a good case for buying a home if your intention is staying put three plus years. 

IF YOU NEED AN ADDITIONAL INFORMATION PLEASE CALL OR E-MAIL                                                                              

actual bill extending and expanding the home buying tax credit

SEC. 11. EXTENSION AND MODIFICATION OF FIRST-TIME HOMEBUYER TAX CREDIT.

(a) Extension of Application Period-

(1) IN GENERAL- Subsection (h) of section 36 of the Internal Revenue Code of 1986 is amended--

(A) by striking `December 1, 2009' and inserting `May 1, 2010',

(B) by striking `Section- This section' and inserting `Section-

`(1) IN GENERAL- This section', and

(C) by adding at the end the following new paragraph:

`(2) EXCEPTION IN CASE OF BINDING CONTRACT- In the case of any taxpayer who enters into a written binding contract before May 1, 2010, to close on the purchase of a principal residence before July 1, 2010, paragraph (1) shall be applied by substituting `July 1, 2010' for `May 1, 2010'.'.

(2) WAIVER OF RECAPTURE-

(A) IN GENERAL- Subparagraph (D) of section 36(f)(4) of such Code is amended by striking `, and before December 1, 2009'.

(B) CONFORMING AMENDMENT- The heading of such subparagraph (D) is amended by inserting `AND 2010' after `2009'.

(3) ELECTION TO TREAT PURCHASE IN PRIOR YEAR- Subsection (g) of section 36 of such Code is amended to read as follows:

`(g) Election To Treat Purchase in Prior Year- In the case of a purchase of a principal residence after December 31, 2008, a taxpayer may elect to treat such purchase as made on December 31 of the calendar year preceding such purchase for purposes of this section (other than subsections (c), (f)(4)(D), and (h)).'.

(b) Special Rule for Long-time Residents of Same Principal Residence- Subsection (c) of section 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

`(6) EXCEPTION FOR LONG-TIME RESIDENTS OF SAME PRINCIPAL RESIDENCE- In the case of an individual (and, if married, such individual's spouse) who has owned and used the same residence as such individual's principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence, such individual shall be treated as a first-time homebuyer for purposes of this section with respect to the purchase of such subsequent residence.'.

(c) Modification of Dollar and Income Limitations-

(1) DOLLAR LIMITATION- Subsection (b)(1) of section 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

`(D) SPECIAL RULE FOR LONG-TIME RESIDENTS OF SAME PRINCIPAL RESIDENCE- In the case of a taxpayer to whom a credit under subsection (a) is allowed by reason of subsection (c)(6), subparagraphs (A), (B), and (C) shall be applied by substituting `$6,500' for `$8,000' and `$3,250' for `$4,000'.'.

(2) INCOME LIMITATION- Subsection (b)(2)(A)(i)(II) of section 36 of such Code is amended by striking `$75,000 ($150,000' and inserting `$125,000 ($225,000'.

(d) Limitation on Purchase Price of Residence- Subsection (b) of section 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

`(3) LIMITATION BASED ON PURCHASE PRICE- No credit shall be allowed under subsection (a) for the purchase of any residence if the purchase price of such residence exceeds $800,000.'.

(e) Waiver of Recapture of First-time Homebuyer Credit for Individuals on Qualified Official Extended Duty- Paragraph (4) of section 36(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

`(E) SPECIAL RULE FOR MEMBERS OF THE ARMED FORCES, ETC-

`(i) IN GENERAL- In the case of the disposition of a principal residence by an individual (or a cessation referred to in paragraph (2)) after December 31, 2008, in connection with Government orders received by such individual, or such individual's spouse, for qualified official extended duty service--

`(I) paragraph (2) and subsection (d)(2) shall not apply to such disposition (or cessation), and

`(II) if such residence was acquired before January 1, 2009, paragraph (1) shall not apply to the taxable year in which such disposition (or cessation) occurs or any subsequent taxable year.

`(ii) QUALIFIED OFFICIAL EXTENDED DUTY SERVICE- For purposes of this section, the term `qualified official extended duty service' means service on qualified official extended duty as--

`(I) a member of the uniformed services,

`(II) a member of the Foreign Service of the United States, or

`(III) an employee of the intelligence community.

`(iii) DEFINITIONS- Any term used in this subparagraph which is also used in paragraph (9) of section 121(d) shall have the same meaning as when used in such paragraph.'.

(f) Extension of First-time Homebuyer Credit for Individuals on Qualified Official Extended Duty Outside the United States-

(1) IN GENERAL- Subsection (h) of section 36 of the Internal Revenue Code of 1986, as amended by subsection (a), is amended by adding at the end the following:

`(3) SPECIAL RULE FOR INDIVIDUALS ON QUALIFIED OFFICIAL EXTENDED DUTY OUTSIDE THE UNITED STATES- In the case of any individual who serves on qualified official extended duty service (as defined in section 121(d)(9)(C)(i)) outside the United States for at least 90 days during the period beginning after December 31, 2008, and ending before May 1, 2010, and, if married, such individual's spouse--

`(A) paragraphs (1) and (2) shall each be applied by substituting `May 1, 2011' for `May 1, 2010', and

`(B) paragraph (2) shall be applied by substituting `July 1, 2011' for `July 1, 2010'.'.

(g) Dependents Ineligible for Credit- Subsection (d) of section 36 of the Internal Revenue Code of 1986 is amended by striking `or' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting `, or', and by adding at the end the following new paragraph:

`(3) a deduction under section 151 with respect to such taxpayer is allowable to another taxpayer for such taxable year.'.

(h) IRS Mathematical Error Authority- Paragraph (2) of section 6213(g) of the Internal Revenue Code of 1986 is amended--

(1) by striking `and' at the end of subparagraph (M),

(2) by striking the period at the end of subparagraph (N) and inserting `, and', and

(3) by inserting after subparagraph (N) the following new subparagraph:

`(O) an omission of any increase required under section 36(f) with respect to the recapture of a credit allowed under section 36.'.

(i) Coordination With First-time Homebuyer Credit for District of Columbia- Paragraph (4) of section 1400C(e) of the Internal Revenue Code of 1986 is amended by striking `and before December 1, 2009,'.

(j) Effective Dates-

(1) IN GENERAL- The amendments made by subsections (b), (c), (d), and (g) shall apply to residences purchased after the date of the enactment of this Act.

(2) EXTENSIONS- The amendments made by subsections (a), (f), and (i) shall apply to residences purchased after November 30, 2009.

(3) WAIVER OF RECAPTURE- The amendment made by subsection (e) shall apply to dispositions and cessations after December 31, 2008.

(4) MATHEMATICAL ERROR AUTHORITY- The amendments made by subsection (h) shall apply to returns for taxable years ending on or after April 9, 2008.

SEC. 12. PROVISIONS TO ENHANCE THE ADMINISTRATION OF THE FIRST-TIME HOMEBUYER TAX CREDIT.

(a) Age Limitation-

(1) IN GENERAL- Subsection (b) of section 36 of the Internal Revenue Code of 1986, as amended by this Act, is amended by adding at the end the following new paragraph:

`(4) AGE LIMITATION- No credit shall be allowed under subsection (a) with respect to the purchase of any residence unless the taxpayer has attained age 18 as of the date of such purchase. In the case of any taxpayer who is married (within the meaning of section 7703), the taxpayer shall be treated as meeting the age requirement of the preceding sentence if the taxpayer or the taxpayer's spouse meets such age requirement.'.

(2) CONFORMING AMENDMENT- Subsection (g) of section 36 of such Code, as amended by this Act, is amended by inserting `(b)(4),' before `(c)'.

(b) Documentation Requirement- Subsection (d) of section 36 of the Internal Revenue Code of 1986, as amended by this Act, is amended by striking `or' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting `, or', and by adding at the end the following new paragraph:

`(4) the taxpayer fails to attach to the return of tax for such taxable year a properly executed copy of the settlement statement used to complete such purchase.'.

(c) Restriction on Married Individual Acquiring Residence From Family of Spouse- Clause (i) of section 36(c)(3)(A) of the Internal Revenue Code of 1986 is amended by inserting `(or, if married, such individual's spouse)' after `person acquiring such property'.

(d) Certain Errors With Respect to the First-time Homebuyer Tax Credit Treated as Mathematical or Clerical Errors- Paragraph (2) of section 6213(g) the Internal Revenue Code of 1986, as amended by this Act, is amended by striking `and' at the end of subparagraph (N), by striking the period at the end of subparagraph (O) and inserting `, and', and by inserting after subparagraph (O) the following new subparagraph:

`(P) an entry on a return claiming the credit under section 36 if--

`(i) the Secretary obtains information from the person issuing the TIN of the taxpayer that indicates that the taxpayer does not meet the age requirement of section 36(b)(4),

`(ii) information provided to the Secretary by the taxpayer on an income tax return for at least one of the 2 preceding taxable years is inconsistent with eligibility for such credit, or

`(iii) the taxpayer fails to attach to the return the form described in section 36(d)(4).'.

(e) Effective Date-

(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to purchases after the date of the enactment of this Act.

(2) DOCUMENTATION REQUIREMENT- The amendments made by subsection (b) shall apply to returns for taxable years ending after the date of the enactment of this Act.

(3) TREATMENT AS MATHEMATICAL AND CLERICAL ERRORS- The amendments made by subsection (d) shall apply to returns for taxable years ending on or after April 9, 2008.