$8000 Tax Credit First Time Home Buyers is just about over even though the program does not end until November 30. The reason being is most First Time Home Buyers will be obtaining financing through FHA. Well, processing an FHA loan is not a sprint. It is more like an arduous marathon.
FHA being a Federal program follows in the foot steps of just about every other government program. The results are a cumbersome organization. It boils down to what I call a hoop session and even though I'm writing from the heart of A.C.C. basketball territory I'm not talking about that. What I am referring to is all the hoops that have been set in place that have to be met.
A typical FHA loan can be processed in about 30 to 45 days, and more recently leaning towards the later due to an increase of loans because of the expiration date drawing closer.
Now, on the other hand, there is still a little more time for you to capture the $8000 tax credit if you are willing to put down 20% or more and obtain financing through a conventional loan. This kind of loan does not take nearly as long because the guidelines are more relaxed since you are putting more money down.
With the program drawing to a close and the increase in loans being processed now I would recommend that you not wait. If your closing gets delayed for some reason and you close on December 1st you are out of luck on collecting the $8000 tax credit.
If this happens to you its going to feel like and this hurts. So, with a few steps right now we can avoid this. Give me a call, give your real estate broker a call. Just get off the fence and do something.
There is talk about an extension but this most likely won't be announced until closer to the end of the program or after it expires. This is a big unknown. Take it advantage of it while you can.
Here is a short video with Rob Dietz, Ph.D., director of tax issues for the National Association of Home Builders: