The tax credit extension for first-time homebuyers includes some new twists and turns:
1. Buyers must have a binding contract in place by April 30th, and the purchase must close by June 30, 2010.
2. The credit has been expanded to include a $6500 credit for existing homeowners. They must have owned a home in the last three years, and have lived in the same primary residence for five consecutive years during the past eight-year period.
3. Income limits have increased – up to $145,000 for individuals and up to $245,000 for joint filers. The amount of the tax credit decreases as the income increases.
Don’t procrastinate if you think you may be eligible for a full or partial credit and want to take advantage of this program. It can take you more than one or two offers in the current climate before an offer is accepted, and oftentimes bank sellers move more slowly to process offers than a typical owner-occupant. Most of my buyer-clients this year had to make multiple offers before one was accepted. Also, they seemed to have better luck with individuals or rehab companies than with the banks.
Remember, home prices over $800,000 don’t qualify. And, tax credit qualifiers must be at least age 18.
RATE UPDATE:
Rates have improved the last few days – but beware, as we are trading near the bond price highs of the year. They can deteriorate rapidly which could result in a rapid increase in rates. If you want to refinance take advantage of the rates ASAP!
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