Do I still have time to build a new home?

Home Buyer Tax Credits

Looking to take advantage of the home buyer tax credit before it expires?

Make sure you know how long it will take your builder to complete your new home.

It's important to know how the home building process works - you might not have as much time as you think. 

Buyers have until April 30 to sign a sales contract. But they must close on the home by June 30 in order to qualify for the $8,000 tax credit for new home buyers or $6,500 tax credit for repeat buyers.

One of the first questions you need to ask your builder is, 'How long will it take to build the plan I have in mind, on the lot I chose?'

Here's some basic steps to keep in mind:

- Line up your financing

It can take 30-45 days or longer to get financing in place.  Make sure to respond to your lender as quickly as possible when they request information - remember, they're working with quite a few other folks looking to take advantage of record low interest rates and tax credits, and make sure they're following all the new rules.  Ask your builder for recommendations of responsive lenders.  Yes, there is construction financing available, with good rates and low down payments - contact us.

- Get permits started for your new home

Your builder can apply for building permits as soon as your contract is signed and deposit in place - this can be as low as $2,000 for some builders.  The permits can then be ready at the same time your financing is approved.

- Build your new home

The entire building process for a custom home in the $200s-$500s generally takes about 90-120 days, but this can vary by builder.  Ask your builder what the timeline for your new home will be.  And help everything stay on track by making your selections and any floor plan or other changes by the deadlines provided.

Have more questions on the First Time and Repeat Home Buyers Tax Credit?  Check out the answers here:

http://www.federalhousingtaxcredit.com/