Sunday, November 8, 2009

HR3548 Home Buyer Tax Credit

This is Great news for the housing market. HR3548, the extension of the first time home buyer's tax credit was passed in both the House and the Senate. The Senate passed it 98 to 0 and the House passed it 403 to 12.

The income limits are $125,000 for single applicants and $225,000 for joint applicants. The maximum purchase price is $800,000.

My advice to you is this. If you are contemplating about taking advantage of this tax credit, ... Don't sit on the fence. Do it Now, or at least start by the first of the year. There is a time limit.

You must have a contract by 4/30/10 and your loan must close by 7/1/10. This is not much time. It take two to three Months to close a loan in today's market.

There are only three options for a "no down payment" or 100% LTV loan: FHA, VA, and USDA Rural Development Guaranteed or Direct Mortgage. These organizations are overwhelmed by the shear number of applications because they are the only 100% loans on the market right now.

These organizations are way understaffed and there is no option to hire. This is the Government, and there is no budget to hire more people.

Buyers and Sellers should be aware of this and make sure their contract reflects two to three months to close the loan. This is not a joke.

So, take advantage of HR3548 but start now, don't wait.

Good Luck.