This is the Catch 22. You can apply to have your tax credit for your 2008 taxes or fill out the forms required to retro your tax credit and use this as part of your closing. HUD still require you to put down 3.5% and are having to review the legalities of applying for a tax credit on a transaction that has not closed. Even if this passes the banks are sounding reluctant to lend on that premise.
So gloden rule, close the home without delay and enjoy the low interest rate. Enjoy the Tax rebate in 2010 and think about the fact that in 2 - 4 years when assumable mortgages are again the fashion you will have a low fixed rate that will be attractive to the buyers of that market.
Comments(0)