Homebuyers have been given a gift! The extension and expansion of the tax credit provides time to still jump in to this ripe real estate market. And, there are some excellent choices available.
The FHA option of putting only 3 1/2% down is an excellent opportunity for those buyers who are 'cash poor' but certainly able and qualified to make the monthly mortgage payments. Often the final monthly mortgage payment is less than the cost of rent even without the additional benefit of deductible interest at tax time.
Now buyers have until April 30, 2010 to sign a purchase contract and until June 30, 2010 to close escrow.
HOW IT WORKS TAX CREDIT: Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time buyers and $6,500 for others.
DEADLINE: Purchase agreements must be signed by April 30 and closings must be final by June 30. MILITARY: The deadline is extended by a year for those who have served outside the United States for at least 90 days from Jan. 1, 2009, to May 1, 2010.
INCOME LIMITS: Individuals who make up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
HOW TO APPLY: Taxpayers can claim the credit on their federal tax returns. If the credit exceeds the tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their 2008 returns.
The new deadline will
probably NOT be extended again. The market may never be as ripe as it is today. And the interest rates will continue to rise.
Actually, there is another gift - the gift of a ripe real estate market with many reasonably priced options to choose from.
Checkout the local Phoenix metro area market place and
begin your shopping now while these gifts are available.
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