Is A Historic Home Right For you? Part II Tax Incentives and Financing

In Is A Historic Home Right For You? Part I we reviewed what the definition of a Historic Home is as well as some resources available in finding a historic home.  In Is A Historic Home Right For You?  Part II I thought it would be beneficial to understand the Financial Assistance that is available for purchasing a historic home in addition to exploring incentives that are available for restoring a historic home.

One huge incentive for purchasing a historic property comes in the form of a Tax Credit.  It is extremely important to note here that each state varies with their requirements for a tax credit in what it can be used for and also the amount!  For the purpose of this post I will be applying the requirements and nuances specific to North Carolina for residential properties.  There are additional guidlines for commercial buildings, income-producing properties and unique properties such as restoring mills and lighthouses.

Tax Credits:  North Carolina offers a 30% tax credit for qualifying rehabilitations for non-income producing properties that are to be utilized for personal residence.  Please note that a home must be listed on the National Register for it to receive the credit.  A homeowner may start work prior to the inclusion on the National Register but there must be evidence of intent to have the home listed on the National Register.  It is strongly advised that homeowners secure the listing on the National Register before claiming the credit.  There is no equivalent Federal Tax Credit for such rehabilitations, however there are Preservation Easements.

Preservation Easements:  While the exact definition of a Preservation Easement will be discussed in Part III it is relavent to mention here that there is a Federal Tax Credit available for Preservation Easements which are in addition to the State Tax Credits.   (Again, this is specific to North Carolina)

FHA Streamlined 203(k) Limited Repair Program:  Another disclaimer for you – I AM NOT A MORTGAGE PROFESSIONAL!  However, I can relay the information as I know it and for further details you should consult a mortgage professional.  The FHA Streamlined 203(k) Limited Repair Program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home prior to move-in.  In addition to the Streamlined 203(k) there is the FHA 203(k) which is much more detailed and has more nuances, twists and turns than this post will permit.  For more information I suggest that you visit U.S. Department of Housing and Urban Development AND consult a mortgage professional.

By no means does this post encompass all that is available to an individual that wishes to purchase and restore or maintain a historic property.  For more information I would suggest that you visit the following sites:

Thanks for following along and I hope that the information I have provided will assist you in your research.  If you are interested in purchasing a historic home in my area I would be delighted to help you navigate the path to finding the right home and exploring the options that are available to you! 

Is a Historic Home Right For You?  Part III will be coming soon and I will be detailing how to get your historic home certified as well as defining a Preservation Easement and what it means to you.

Historic opportunities are abundant in My Back Yard….

PS – The home picture used in this post is one of my favorites.  The owner has graciously allowed me to visit him this evening to interview him regarding the property’s history and take pictures.  It will be very exciting and I can’t wait to share it all with you!

 

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Absolute Gems Available in Wake Forest NC

314 Main Street – Outstanding home Circa 1925…  Completely remodeled, 3 bedroom/2.5 bath with over 2400 sq ft.  This home overlooks Holding Park (many posts on my blog regarding Holding Park), and has a two-level deck perfect for entertaining and viewing the park.  $324,900.00

427 N. Main Street – With low roofs, wide eaves, and ornamental brackets, this home is a stunning example of Victorian Italianate Circa 1891… Updated electrical systems and plumbing for peace of mind.  11′ ceilings on first floor evoke spacious, grand air… 5 bedrooms/3 baths and over 3900 sq ft. $475,000.00

421 N. Main Street – Lovingly restored by custom builder Circa 1905… Heart of pine floors, 6 fireplaces, clawfoot tub, front and back porches are just a few of the features of this classic located in the middle of the historic district.  4 bedrooms/3 full 2 half baths with over 4000 sq ft.  $699,000.00

These are just a few of the historic homes currently for sale in Wake Forest, NC.  For a more detailed and comprehensive list please feel free to email me or call me – I would be delighted to help!

Circa Properties can help you Establish YOUR Circa!

Is A Historic Home Right For You? Part I

Historic Wake ForestPurchasing a historic home is an exciting opportunity to preserve history, restore charm and character to an older home, extend a legacy and experience history all in one. If you are anything like me you have a deep-rooted love for historic homes. I am in awe of the artchitecture and the craftsmanship of these romantic, antiquated homes and the vibes that run through the veins of the homes when I place my hand on a railing or bannister are overwhelming. For me, it is an experience that I seek out as often as possible.

While the dreamy visions of restoring an old treasure may intrigue you – you must first evaluate the consequences (and the benefits) of underatking such a, at times, Herculean effort.

First and foremost we must define what a historic home is. A historic property by North Carolina definition is:

The quality of significance in American history, architecture, archaeology, and culture is present in districts, sites, buildings, structures, and objects that possess integrity of location, design, setting, materials, workmanship, feeling, and association, and:

A. that are associated with events that have made significant contribution to the broad patterns of our history; or

B. that are associated with the lives of persons significant in our past; or

C. that embody the distinctive characteristics of a type, period, or method of construction, or that represent the work of a master, or that possess high artistic values, or that represent a significant and distinguishable entity whose components may lack individual distinction; or

D. that have yielded, or may be likely to yield, information important in prehistory or history.

** It is important to note that there are federal, state and local agencies that all have subtle differences. It is important to check in your local area for specifics.

 

Now that we know how a home qualifies – where are they?

There are many places to search for historic homes. I would be remiss at this point if I did not mention the best way to seek out these homes are to enlist the help of a Realtor® that is well-versed iHistoric Wake Forestf the niche of historic properties. An educated Realtor® will be able to assist you in your search, your homework and the paperwork involved. A few places that you can surf on your own while contemplating the big leap are:

While each of the sites mentioned have a broad variety of historic homes for sale they do not represent a complete list of what is possibly available in your area.

Once you have found your potential gem in the rough it is very important to sit down prior to a signed contract and assess your financials. You must take into account all of the work (and money) that will be required to bring the home “up to code”. It is highly advisable to have a home inspection done PRIOR to making an offer so that you will have clear vision of the work that lay ahead.

There are many financial assistant programs available to individuals involved in restoration projects……

I do hope that you join me for Part II in a few day – I will highlight some of the grant programs available to the purchaser of a historic home.

I hope you stay with me to explore the historic home opportunities and allow be to help you Establish Your Circa in My Back Yard….

Welcome to Wake Forest, North Carolina!

I would like to dedicate this blog to the purchase, up fit, sale, and options available to those who are interested in purchasing Historic Homes.

Wake Forest is full of historic flavor with several historic districts sprinkled throughout. It is my goal to help you navigate the nuances of purchasing a historic home! I have over 8 years of experience in Real Estate and have been fortunate to have facilitated the sales of many historic properties.

So, sit back, peruse the posts and be sure to submit any questions or suggestions that you might have – this site is for YOU!

Join me and together we can “Establish YOUR Circa….”!

Leesa