Congress gave a gift to first time home buyers earlier this year. What Congress gives, Congress takes away and unless you get into a contract soon, your likelihood of getting the $8000 First Time Home Buyer’s Tax Credit will be gone. You must have the keys to your new home in hand by November 30th. That seems like a long way off from today, it’s 90 days, but with all of the new laws now in place to “protect” you the buyer, we are seeing tremendous delays and problems closing escrows. The days of the 30 day close are gone. If you haven’t begun your home search you need to do so NOW. You need to be pre-approved by a lender, and we work with some of the best, before we even head out the door to begin looking at real estate. So what are you waiting for?
Are you a Condo buyer? It’s even more important to hustle on this one if you are planning on using an FHA loan. Since most of our First Time Buyer’s have been using FHA loans, here’s something to be aware of. Right now there is a list of approved FHA condo complexes that your lender pulls up. If the complex is on the list, you will be approved for your loan. If the condo isn’t on the list, you must see if it can be qualified on what is called a Spot Approval. The Spot Approval is going away very soon. In fact, FHA will be looking at all of the currently approved complexes and re-approving them, especially if they were approved more than 2 years ago. What is good today may not be good tomorrow.
If you are a single person and earn between $70,000 and $90,000 you qualify for the credit, but the more you make the less you can get. Married couples must have incomes between $150,000 and $180,000 and the same holds. There is a sliding scale on income qualification and it is definitely favoring couples in our area.
We’re here to help you with all of your real estate needs whether you’re a first time buyer or an investor of many years.