The extension of the $8,000 home buyer tax credit is a key provision being considered by Congress this fall. On October 5th, the White House came close to endorsing the extension when the White House Press Secretary said it had been successful and is being considered again to support the economic recovery. I believe the odds of the tax credit being extended are pretty good. However, I do think it is much less likely that the credit would be increased above $8,000 or expanded beyond first-time homebuyers.
It is still up in the air if the tax credit is extended, when it will be actually enacted. Tax bills usually move at the end of the year. Unless the tax credit provision is moved in a “stand alone” bill or attached to an existing bill, it could mean there will be a lapse in availability in early December. But if the extension is enacted, there could be a good chance it would be retroactively applied back to December 1st 2009.
The tax credit has been quite a bonus for first time home buyers, many of whom are using FHA Loans with 3.5% down to buy their first house. It’s very advantageous to buy your first home, and then a few weeks later receive $8,000 to replenish your down payment or FHA closing costs, or help you with repair costs or remodeling costs of your new home.
As a reminder, here are some of the highlights of FHA Home Loans:
- Only 3.5% down and that 3.5% can be a gift from a relative
- You don’t need perfect credit, if you think you have bad credit, you may still qualify for a FHA Loan
- FHA 203k home improvement loan is available for property fix up
- Seller can credit you for up to 6% in FHA Loan closing costs
- Flexible qualifying guidelines
- Non occupant co-borrowers OK
- 50 year low 30 year fixed rates
- 3.5% down available on 2-4 unit owner-occupied properties
So if you have any questions or you would like to apply for a FHA Loan, don’t hesitate to call at 858-922-7899 or email at homeloan8@gmail.com
Warm Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA specialist)
858-922-7899
You must log in to post a comment.