FIRST TIME HOMEBUYER TAX CREDIT

I’ll keep hammering this home until it’s almost

at an end.  The first time homeowner’s tax credit, that is.  You are a first time home buyer if you HAVE NOT owned a home in the last 3 years.  This is a true tax credit and not a “loan”…..does not need to be paid back.  However, the one caveat is that you must remain in the home — primary residence — for at least 3 years.

This is a win win situation.  The FHA loan program requires 3.5% downpayment requirement and if you need help with that, say from your parents, they can “gift” you the downpayment by submitting a letter stating that the money is a gift and does not need to be paid back.

This tax credit is set to expire on December 1, 2009.  We don’t know if it will be extended and most likely won’t know until close to the expiration.  If you are entertaining an FHA, you will need approximately 60 days to close.  Of course, if you are paying cash, the closing are typically quicker.  Beware of the bank owned properties as they can sometimes take a little longer especially if there are issues with HOA arrearage.

This is a terrific opportunity for people to get into a home and have the government pay you to do it.  Don’t miss out.  If you need more information, please feel free to contact me.  I have recently closed on a bank owned, first time homebuyer property — cash deal and I am currently working with a first time home buyer in an FHA situation.

In addition, if the home you are looking at is a townhome/condo there are lenders getting spot FHA approvals.  I know two lenders who are having good luck with this scenario.