Tax Credit Time is Slipping Away...

Time is slipping away home buyers… but it isn’t too late to take advantage of tax credit.

I have had many buyers stressed because they have not found that perfect home, and they fear they will lose out on the Tax Credit. (Remember… that is an $8,000 tax credit for first time home buyers, and a $6,500 tax credit for ‘move-up’ home buyers.)

Fear not home buyers. You still have time, but not a lot. Don’t stress you will lose out on this opportunity, but start looking and do so now.

The tax credits for both types of buyers is worded that you need to “be in contract” by April 30th, and close by June 30th to qualify for the credit. This is 45 days away! Only 6 more weekends to get out and look. Be proactive and keep looking.

Worst case scenario may be you get an accepted offer at the last minute. Let’s say on April 30th. You will be ok to close this loan on time, as most transactions are not taking a full 60 days to close.

Beware though of the short sales and bank owned homes. The timelines on these transactions may be troublesome.

If you have any questions regarding this, please feel free to shoot me an email. I am always available to answer any questions you may have.

Thanks for reading … Bryan

Email to: Bhusen@susnetmortgageco.com

The Tax Credit Extension is here. Save the date: April 30th, 2010.

The most common question over the past few weeks has been, "Do you know if they (the government) is going to be extending the 'homebuyers tax credit' soon?" Many of my buyers that have been looking have known they were running out of time with the current incentive we had.

Well good news is here! On Friday November 6th, President Obama signed the Worker, Homeownership, and Business Assistance Act into law. This legislation includes language that significantly expands the popular first-time home buyer tax credit that was enacted this past February. This new law also has a great new add to the existing law, but adding a repeat home buyer tax credit.

Allow me to provide an update to the new law with a breakdown of the two new incentives of this law:

$8,000 First-time Home Buyer Tax Credit Update

• The $8,000 tax credit is for first-time homebuyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit applies to sales occurring before April 30th, 2010. However, in cases where a binding sales contract is signed by April 30th,2010, a home purchase completed by June 30th, 2010 will qualify.
• Income limits have also increased for single taxpayers and married couples filing jointly. Contact me for more information.

$6,500 Move-Up / Repeat Home Buyer Tax Credit Update

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five of the consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10% of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit applies to sales occurring before April 30th, 2010. However, in cases where a binding sales contract is signed by April 30th,2010, a home purchase completed by June 30th, 2010 will qualify.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Time will pass faster than you know it. If you have any further question regarding the changes to the tax credit, please feel free to call.

If you are thinking of buying or ‘Moving-up” and wonder what your buying power may be, please contact me today at BHusen@Sunsetmortgageco.com

Thanks for visiting.

Bryan