Warning: Don't Put Your Home Buyer Tax Credit in Jeopardy
Posted by Lisa Corelli on Wednesday, April 7th, 2010 at 1:32pm.
As we get close to the expiration date on the home buyer tax credit extension you'll need to be aware of issues that can affect your closing date. Please review these tips to help you meet the deadlines and avoid delays in your closing.
Be sure to have the home in contract by April 30th, 2010. Not just an offer made, but in contract. The sooner you get started, the better.
Be sure to close by June 30th, 2010. For most buyers, 2 months is plenty of time to close. However, here are a few scenarios which may require more time close.
· Purchasing a short-sale: Short-sales often take 2-3 months for approvals. Frequently they can take up to 5 months and, at times, your offer may be rejected.
· Purchasing a home under construction: Be sure the builder is aware of the time constraints and is prepared to have a certificate of occupancy in early June.
· Purchasing a new condo: New financing guidelines are requiring a certain percentage of units to be sold. Lender's will not close the loan if this percentage is not met. Sales can lag, buyers can drop-out and delay the process. Talk to your lender about how this affects you.
· Using a Rehab loan: This is a longer, more detailed process and time consuming hurdles can often come up.
· Using USDA 100% home loan program: The USDA loan approval time can easily become backed up when demand rises. Find out if how long they are taking to get loans funded in your area.
· Using the Washington State House Key Loan Program: This program can run out of funds and there is no guarantee the funds will be available when you need them. Be sure to address this with your lender.
For more information about qualifying for the home buyer tax credit (including information about special military service rules) check out http://www.federalhousingtaxcredit.com/glance.php.
For more information about the filing requirements check out http://www.irs.gov/newsroom/article/0,,id=204671,00.html.
For an experienced, local agent who will be able to guide you seamlessly through the home buying process, please call Brett Meade at 253-208-0808. I’m ready to go to work for you.
Feel free to ask your questions below. I'll be monitoring this post regularly.
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Share2 Responses to "Warning: Don't Put Your Home Buyer Tax Credit in Jeopardy"
Jessica:
Yes, some existing home owners qualify. In order to qualify for the $6,500 "move-up" credit, a home owner will have had to own, and lived in, their previous home for 5 of the last 8 years. There are other rules regarding income limits and the sales price as well.
Posted on Wednesday, April 7th, 2010 at 3:00pm.
Do existing home owners qualify?
Posted on Wednesday, April 7th, 2010 at 2:51pm.