1ST-TIME BUYER TAX CREDIT

Borrowers still have time to get in on the tax credit of up to $8,000 if they close on a home by 12/1/09.

Definition of 1st-time buyer: Someone who has not owned a home in the past 3 years.

You can get the money AFTER you buy the home by either amending your 2008 tax return to get it right after you close, or you can get it when you file your 2009 tax return.

Loan programs now want a borrower to invest their own funds for the down payment. A majority of the loans that are being foreclosed on are loans where a borrower had zero down, so lending guidelines have changed to require a borrower invest something into a home. There are 2 loans in our area with zero down. Federal VA where you need to be a qualified Veteran to get the loan, and the Guaranteed Rural Housing (GRH) or Rural Development loan, which has income limits that must be met. All other programs require a down payment from the borrowers funds. FHA or HUD required 3.5% down, but that down payment can be a gift from a parent, grandparent, brother or sister.

So, if you or someone you know is a 1st-time buyer and would like to take advantage of this potential tax credit (there are maximum income requirements for this credit) time is of the essence! It's taking 45-60 days to close a home loan these days, so you've only got 4 months to get into that new home!

Call me for details, 608-498-1959