The new law extends until April 30, 2010. This is the new deadline for closing escrow for first-time homebuyers to receive a credit worth up to $8,000. The credit was going to expire Nov. 30. It also adds a credit worth up to $6,500 for taxpayers who buy a replacement primary home provided they have lived in their existing home for at least 5 of the past 8 years.
I am not sure that this is a resolution but it sure does give first time home buyer's an incentive to buy. The only thing is I am seeing a ton of FHA buyers at 3% down purchasing homes under this new option.
Is this really the best idea? Buying a home is a great idea, but to rush into a purchase because of the tax credit when you have no equity seems like a high risk endeavor.
I feel like this is clearing inventory and puting new homeowners in a high risk situations for the future, especially if they lose thier job etc.
It seems as though the 20% down buyer's are becoming a thing of the past, especially with first time home buyers.