November 12th, 2009 7:38 PM by Diego Quintero
The latest changes in the mortgage industry have allowed us to keep moving forward, albeit slowly – but moving. While the industry has seen a steep decline in loan applications in the past few weeks, the federal government is hoping that the recent approval to extend the tax credit will help bolster the industry and the overall economy. As many of you already know, the $8,000 tax credit for first time homebuyers has been extended through the month of June, 2010. You must be in contract by April 30, 2010. So, make sure to get a head-start on home shopping. If you want to get a good deal on a home, you do not want to be up against a deadline as it will hamper your ability to negotiate.
In some markets, the tax credit will also be available for ‘move-up’ buyers. The $6,500 tax credit is available for those who want to buy a replacement primary residence. Technically, it applies to all markets, but you must have lived in your home for at least the last 5 years. Many homeowners in the Arizona, California, Nevada, and Florida markets may not be able to take advantage of the program since they may not have equity in their current primary residences to sell and make a profit. Perhaps if you live in the New England market, you may find that you are able to “move-up” and take advantage of the latest legislation a bit easier than your western or southern counterparts.
If you are going to take-on the benefits of the program, make sure that your income does not exceed the maximum allowable, per program guidelines. The credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase. Watch out for the small print, too. Don’t try to buy a home from a close relative, specifically from your spouse, parent, grandparent, child or grandchild. It simply won’t work that way!
No matter which market you are from, feel free to call me and I can help you understand the details and lead you in the right direction. If there is anyone that you may know that needs more information, please pass on my info. I look forward to making new business relationships. Thank you, in advance!
Your trusted mortgage professional,
Diego L. Quintero