APRIL 5 AND APRIL 30 – TWO DEADLINES FOR BUYERS AND SELLERS
APRIL 5 AND APRIL 30 – TWO DEADLINES FOR BUYERS AND SELLERS
There are two upcoming deadlines that will affect both Buyers and Sellers of Real Estate nationally:
The first deadline for Buyers and Sellers is April 5, 2010. On that date, the Department of Housing and Urban Development will initiate new regulations for FHA loans. Among the changes that will take effect on that date are:
• The mortgage insurance premium for FHA mortgage insurance on loans which are assigned on or after April 5, 2010 will be raised from 1.75% to 2.25% of the loan amount.
• Individuals who have a credit score of less than 580 will be required to pay a minimum down-payment of 10% of the sales price, rather than the traditional minimum of 3.5%.
• The percentage of loan fees and closing costs which the seller is allowed to provide will be reduced from 6% to 3%.
These changes will make purchasing a home more expensive for Buyers and will reduce the incentives that Sellers can offer to prospective Buyers.
Because there will probably be a lot of people who want to beat this deadline, there could easily be a backlog of loan applications, so we are advising our clients to buy in March, to insure that their loans will be assigned by April 5, 2010.
The second deadline involves the Homebuyers Tax Credit, which provides for a tax credit of $8000 for first-time Buyers and up to $6500 for repeat Buyers. This tax-credit will no longer be available for anyone who does not have a contract in place by April 30, 2010 and which must close by June 30, 2010. Please give us a call to discuss the details of this program which could be a very valuable benefit to you.
Buyers, please contact us to learn more about the soon-to-be-expired opportunities for purchasing your home. Sellers, please contact us for information about marketing your home, especially for assistance in properly pricing your home in this competitive market.
The bottom-line for both of these significant deadlines is that, whether you are a prospective Buyer or Seller, NOW IS THE TIME TO MAKE YOUR MOVE !!!
NEW IRS FORM AVAILABLE FOR FIRST-TIME HOMEBUYERS CREDIT
Department of the Treasury Form 5405 is now available online for individuals claiming their tax credit as first-time homebuyers, or, as repeat buyers. Click here for a copy of the form.
