Good news for Military Personnel who have been overseas**! If you buy a home by April 30, 2011 and close by June 30, 2011, the First-Time Homebuyer Tax Credit of $8000 and $6500 tax credit for move up buyers is still available.
How Do I Qualify**?
**If You have served at least three months outside the U. S. during the last year, you may be eligible to buy a home using whichever tax credit you qualify for. You must write a contract by April 30, 2011 and close by June 30, 2011.
What are the Guidelines?
Your lender will know all the stipulations, but here are the basic ones:
Purchase Price - maximum of $800,000
Income Limits - Individual $125,000; Married $225,000
First-Time Homebuyers - can't have owned a home within the last 3 years
Move Up Buyers - must have lived in your home 5 of the last 8 years.
What Type of Loans are Available?
Many types of loans are available, but most Military families favor the VA loan because of no downpayment and no mortgage insurance. First-Time Homebuyers can use their VA eligibility for a loan. Move up Buyers may use their VA eligibility if they do not currently own a home with a VA mortgage or if they sell their home with a VA mortgage in time to apply for their new home. A funding fee is added to the purchase price and paid back over the life of the mortgage. VA loan rates are competitive and there are no penalties for prepayment. Guidelines are more lax for VA loans, allowing higher-debt-to-income ratios and borrowers with bankruptcy and foreclosure are eligible for a loan (after a certain time period).
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