Home Buyer Tax Credit Expiring April 30

Posted by Stacy Callahan on Mar 31st, 2010 | no comments

The Home Buyer Tax Credit is set to expire on April 30. Here are some key details of the credit.

Here are details on the extension and expansion of the U.S. tax credit for homebuyers signed into law on November 6, 2009, by President Obama:

Deadline Extended Into 2010
The tax credit was originally to end November 30, 2009. It has now been extended into 2010. If you have a signed purchase agreement by April 30, and close the transaction before July 1, you’re eligible for the credit.

Most Other Buyers Now Eligible
First-time homebuyers are eligible for a credit of 10 percent of the price of the home, up to $8,000. (Married couples filing individually can receive $4,000 each.) You are considered a first-time buyer if you haven’t owned a principal home in the U.S. in the last three years.

The tax credit has also been expanded to buyers who have owned a home at some period during the last three years and used it as their principal residence for five consecutive years in the last eight. They can receive up to $6,500 – or $3,250 for couples filing as individuals.

No Repayment if You Stay in Home for Three Years
The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale.

Caps on Income, Home Price
Individuals who earn up to $125,000, and couples who earn up to $225,000, are eligible for the full credit. Individuals who earn between $125,000 and $145,000 – and couples who earn between $225,000 and $245,000 – can receive a percentage of the full credit.

The maximum purchase price is $800,000. Any home selling for more than that makes the buyer ineligible for the credit.

Taking Advantage of the Credit
You can claim the credit on your 2009 or 2010 tax return. There are also programs in place to enable you to use the funds to help with the down payment.

Applying the Credit to Your 2009 Taxes
You will need to do three things to claim the credit on your 2009 tax return:

• Fill out the applicable IRS form to determine the amount of your available credit.
• Apply the credit when you file your 2009 tax return or an amended return.
• Attach documentation of purchase to your return or amended return.

If You Purchase in 2010
Buyers purchasing in 2010 will have the option to:

• Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009.
• File an amended return for 2009 if their purchase is completed after April 15, 2010.
• Claim the credit on their 2010 tax return.

Call Jana Ledbetter with our Mortgage Lending Team at 618-457-3595 to discuss how this credit can help you.

Student loan bill overall won’t affect private lending

Posted by SIU Credit Union on Mar 23rd, 2010 | one comment

NEW YORK (CUNA — 3/23/10)–A student loan bill passed with the health care reform bill by the House Sunday won’t affect private student loan providers overall, says a company that offers private student loan programs.

“The bill overall doesn’t affect private student lending, and even if it does, it helps the borrower, so it is a positive for the industry,” said Chirag Chaman, chief operating officer of Fynanz, a New York, N.Y.-based provider of custom private student loans. Fynanz has a new alliance with CUNA Strategic Services to help credit unions in the private student loan market. It has 23 credit unions on board and 16 to be implemented in the next nine months, he said.

“If [the bill] helps the students, it helps the customers of the credit union, and by helping them, it helps the credit union” meet members’ needs, he told News Now.

The bill revamps the federal student loan programs and eliminates fees paid to private banks to act as intermediaries in student lending. Instead, the government will expand a direct lending program and use the $61 billion that taxpayers would save over 10 years to increase Pell grants for students (The New York Times March 21).

The bill sets automatic annual increases in the maximum Pell grant, scheduled to increase to $5,975 by 2017 from $5,350 this year. It also includes $13.5 billion to cover a shortfall caused by a steep increase in the numbers of students enrolling in college and seeking financial aid during the recession, said the Times.

Chaman noted there are few changes from earlier versions of the bill. “There’s nothing thrown in that’s new,” he told News Now. The Pell changes will provide aid, and “Need-based aid for students is important. The funds hadn’t been growing the past few years and [the increases] were needed,” said Chaman.

He noted that the average student takes out a private student loan as a last resort. “They will take the federal loan aid, state grants, scholarships first. A private student loan is the last thing they should look at,” he added.

Private lending can still be among the options schools can present to students with their information, although schools cannot recommend one over the other. “And the bill has no extra regulatory burden other than what’s already come down the pike” when Congress introduced Title X changes in loan forms, he said.

Don’t Make Us Pay — Important Legislative Info

Posted by SIU Credit Union on Mar 15th, 2010 | one comment

Rep. John Conyers, Chairman of the House Judiciary Committee, has introduced a bill on interchange that would shift this cost of doing business for merchants to the backs of American consumers.

Learn more about the chaotic vote in the Judiciary Committee on last year’s version of this legislation »

It’s simple: merchants do not want to pay their fair share to accept debit and credit cards, and they want consumers to foot the bill.

If this legislation passes, American families will end up footing retailers’ bills when it comes to accepting debit and credit cards.

Watch a video on how interchange legislation will raise costs for American families »

Merchants that accept credit and debit cards benefit from more sales, lower costs and greater profits. It is only fair that they pay a fee for this service.

At a time when American families everywhere are struggling to make ends meet, they shouldn’t be forced to pay more so giant retailers can profit at their expense.

Tell Congress that you don’t want to pay for retailers’ bills »

Fixed-rate, no closing costs on home equity loans

Posted by SIU Credit Union on Mar 1st, 2010 | no comments

Visa Giving Gateway

Posted by mikelantrip on Feb 17th, 2010 | one comment

Support your local charity with ease, convenience and security of using Visa. Access nearly 1 million IRS-qualified 501(c)(3) publicly supported charities and receive a receipt immediately when you make a donation with your SIU Credit Union Visa Check Card or Visa Credit Card.

Visit Visa Giving Gateway to make charitable donations ease and security of using your Visa card via one centralized destination. Just use your SIU Credit Union Visa Check Card or Visa Credit Card to give to the causes you care about most — in your neighborhood or
nationwide.

You’ll avoid the hassles of writing checks and receive an electronic receipt right away. Plus when you use your SIU Credit Union Visa Check Card you’ll earn Power Points so your giving can be even more rewarding!

Visa Giving Gateway makes it easy to support charities that matter to you:
•Access to nearly 1 million 501(c)(3) publicly supported charities via one single online destination
•Learn more about charitable organizations before you donate
•Recommend charities of all sizes

Here’s how easy it is to donate:
Step 1: Find your charity at visa.com/giving
Step 2: Donate with your SIU Credit Union Visa.
Step 3: Print a receipt for your records
Donate today at visagiving.com

CARD CARD Act Brings Change to the World of Credit Cards

Posted by SIU Credit Union on Feb 11th, 2010 | no comments

You’ve likely heard about credit changes coming your way. A new law—The CARD Act—forces card issuers to show young adults (younger than 21) the big picture.

February 22, 2010

▪ Cards can’t be issued without an adult co-signer unless cardholder can prove means to repay the debt.
▪ Credit limits can’t be increased without considering the ability of the borrower to make required payments.
▪ Card issuers are not allowed to offer tangible items or inducement for applications on or near campus at college-sponsored events. What this means to you If you’re younger than age 21 you’ll need a co-signer if you want a credit card unless you have a steady source of income. SIU Credit Union still is the best place to shop for a credit card—with your parents’ approval, of course.  For more information our our credit cards, visit our our Visa Page.