Tax Credit Countdown – It’s Now or Never
April 30, 2010 is the last day in which to take advantage of the homeowner’s tax credit of $8000 for first-time buyers and $6500 for previous homeowners. This means that sales must be completed OR a binding sales contract must be signed by April 30, 2010, and the actual sale completed by June 30, 2010. The deadline dates are the same for both first-time home buyers and repeat home buyers.
If the danger of missing out on a tremendous tax credit isn’t enough to light a fire under first-time or repeat home buyers, consider also that interest rates are still extremely low. This means that it may be possible to afford a larger home than previously believed, provided approval is granted.
Still not convinced? Well, then, how about the fact that this year will bring major changes to FHA loan requirements. These changes include, but are not limited to:
- Homebuyers must have a credit score of at 580 to qualify for the FHA 3.5% down payment program. If your credit score is lower than 580, you will have to come up with a down payment of at least 10%.
Now is a good time to check your credit score, and make any corrections that may be needed. Don’t delay, however, if you are going to do this, because it can take a little time for the corrections to appear, and you will be working against the April 30 deadline.
- Sellers will be limited in the amount of money that they can offer to pay at the time of closing. Sellers could once give buyers 6% of the home’s price; it has not been reduced to 3%.
- Lenders who offer FHA mortgages will be more closely scrutinized. This may cause some lending companies to no longer offer FHA mortgages, making it harder to find somewhere that does.
There simply is no better time to buy a home than right now. Even though the deadline is rapidly approaching, it is still a buyer’s market out there, and things are still working in the favor of those looking for a new home.
Don’t delay. If you have even been considering buying a new home (and, remember, this means first-time ever home buyers, and repeat home buyers), you should act now. Don’t let the opportunity of a lifetime, to own a new home, slip through your fingers.
Freedom Family Homes has a wide selection of move-in ready homes from which to choose. We understand the urgency of the approaching deadline, and will help you in any way possible to start the process of home buying so that you will be eligible for the tax credit.
There is even still time to pick out your house plans and make arrangements to have your home built. We have dozens of styles to choose from, and, once you have made your choice, we can help you with that aspect of owning your home. Visit our website at www.freedomfamilyhomes.com/floor-plans/ today and see what we have to offer.
Tags: First Time Home Buyer, home buying, tax benefits, Tax Credit
